MKT362 Review

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses? a) Complexity b) Compatibility c) Comparability d) Tangibility e) Competitive advantage

a) Complexity ** Complexity refers to the degree of difficulty involved in using the new product.

A problem facing the timber industry is the absence of any effective way to prove that rain forest timber has been legally harvested. in places like Indonesia, as much as 80% of timber available for sale is illegal cut. Companies like The Home Depot do not want to sell timber from illegally logged forests even through the demand is great for timber from rain forests. Which of the following conditions required for an exchange to occur is missing when a company tries to sell illegally acquired logs to The Home Depot? a) Each party believes it is appropriate to deal with the other party. b) There are more than two parties involved. c) Each party has something of value to bring to the exchange. d) Nobody sees the exchange as producing value. e) One part is free to accept the exchange offer

a) Each party believes it is appropriate to deal with the other party. **For an exchange to occur, two or more parties must be involved. Both parties are free to accept or reject the exchange. If The Home Depot believes the timber has been illegally harvested, then it will not want to deal with the loggers.

University Research Study A regional state university is experiencing declining enrollments. The administration is concerned with this situation and has asked a marketing research class to conduct a research study and make recommendations. One thing the administration is interested in learning is the feasibility of offering all of their degrees online as well as through the traditional on-campus degree program. They do not know what the market potential would be for online degrees and potential students' attitudes and intentions toward getting an online degree from this university. Refer to University Research Study. Which role of marketing research is represented if the student researchers address "what if" questions, such as examining the outcomes if all the degree programs were available online? a) Predictive b) Normative c) Descriptive d) Diagnostic e) Proscriptive

a) Predictive **Marketing research's predictive function is to address "what if" questions.

What is the first step in segmenting a market? a) Select a market or product category for study b) Choose a basis or bases for segmenting the market c) Profile and analyze segments d) Select target markets e) Set the segmentation goals

a) Select a market or product category for study **The steps in segmenting a market are (1) select a market or product category for study; (2) choose a basis or bases for segmenting the market; (3) select segmentation descriptors; (4) profile and analyze segments; (5) select target markets; and (6) design, implement, and maintain appropriate marketing mixes.

Which of the following statements about a retailer's promotion strategy is true? a) The goal of a retail store's promotion mix is to position the store in consumers' minds. b) Retailers find direct mail marketing inefficient. c) Retail promotion strategy does not include public relations activities. d) Most advertising for retailers is carried out at the national level. e) The design of the promotion strategy would be done separately from the creation of the retailing mix.

a) The goal of a retail store's promotion mix is to position the store in consumers' minds. ** Promotion is part of the retailing mix and includes advertising, public relations and publicity, and sales promotions. Most advertising for retailers is carried out at the local level. Retailers have been very successful with direct marketing.

Marketing two or more products in a single package for a special price is known as: a) price bundling. b) two-part pricing. c) psychological pricing. d) price lining. e) family pricing.

a) price bundling. ** This is the definition of price bundling.

When a university began thinking about offering more online degrees, it used primary data to get potential students' attitudes and intentions. What is the most likely reason for using primary data? a) The information will fit the university's needs exactly since it will be collected specifically for this study. b) The value of the research is unrelated to sample size. c) This information was already freely available to all interested parties. d) It will benchmark consumers' interest in grading equipment. e) The information can be collected quickly and at low cost.

a) The information will fit the university's needs exactly since it will be collected specifically for this study. **Primary data are information collected for the first time for the purpose of solving a particular problem under investigation.

As products move through the marketing channel, channel members provide specialization and division of labor, overcome discrepancies, and provide contact efficiency. a) True b) False

a) True

In market segmentation, individual psychographic variables can be combined with other variables to provide more detailed descriptions of market segments. a) True b) False

a) True

In a study whose purpose is to determine the market for a vitamin that is to be chewed like bubble gum, what is the first question to be answered before a sampling plan is selected? a) What is the target segment also known as the population or universe of interest? b) Who can perform the actual sampling? c) How often should the sample be redesigned? d) Must the sample be representative of the population? e) How large should the sample be in terms of its measurement costs?

a) What is the target segment also known as the population or universe of interest? **Before a sampling plan is chosen, the population of interest must be defined.

Prices generally begin to stabilize: a) as a product enters the growth stage. b) when a product if first introduced onto the market. c) as a result of keystoning. d) when a product enters the decline stage of the life cycle. e) in hotly competitive markets.

a) as a product enters the growth stage. ** As the product enters the growth stage, prices generally begin to stabilize.

When Burpee Gardening company collects relevant information from customers, such as date of last communication with the customer and how often the customer contacts the company, this is an example of: a) capturing relevant customer data on interactions. b) deciding on a segmentation strategy. c) establishing marketing objectives.

a) capturing relevant customer data on interactions. **This is an example of a company that uses a CRM approach to capture relevant customer data on interactions.

When Vincent saw Mike's new Iron Horse Yakuza Aniki mountain bike, Vincent immediately knew he wanted to own one just like it someday. According to the AIDA concept, Vincent entered the _____ stage. a) desire b) attention c) liking d) action e) interest

a) desire **The Yakuza Aniki mountain bike has created a brand preference.

The typical starting point of any firm's marketing mix is the: a) development of the good or service to be sold b) design of the promotion campaign to be used for the product c) selection of the places through which the good or service will be sold d) determination of the product's price, enabling future revenues and budgets to be estimated e) analysis of what production equipment is available and owned by the company

a) development of the good or service to be sold **The marketing mix typically starts with the product. Without it, pricing, distribution, and promotion are irrelevant. The production capacity can be changed to fit the proposed product.

Which of the following is NOT an advantage of an undifferentiated marketing strategy? a) effectively protects firm from competition b) low complexity c) very cost effective d) reaches anyone e) offers a single channel of distribution

a) effectively protects firm from competition **One major problem associated with undifferentiated marketing is that it makes the company more susceptible to competitive inroads.

Many consumers, especially when faced with an uncertain purchase decision, think that a high price: a) is a signal of quality. b) is an indication that consumers are being ripped off. c) will always lead to major price discounts to wholesalers and retailers that distribute it. d) is a sign of the company's overall market share. e) indicates that the brand was slipping into the decline stage of the product life cycle but has had a sudden resurgence of growth.

a) is a signal of quality. ** Numerous studies have shown that consumers equate high price with good quality.

The _____ is the unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. a) marketing mix b) market portfolio c) internal environmental mix d) product mix e) product line

a) marketing mix **This is the definition of a marketing mix.

Normally, the longest stage of the product life cycle is the _____ stage. a) maturity b) growth c) introductory d) development e) decline

a) maturity ** Many products stay in this stage of their life cycles and have been for years.

The steps of the consumer decision-making process in order are: a) need recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation b) need positioning, stimulus response reactions, evaluation of alternatives, purchase decision, postpurchase behavior c) information search, need positioning, evaluation of alternatives, product trial, purchase decision, postpurchase satisfaction d) need recognition, alternative aggregation, reevaluation, purchase decision, postpurchase behavior

a) need recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation

Chandler Kumar owns two antique stores. One is in an upscale neighborhood, and its merchandise is artfully arranged and priced to indicate product rarity. The other is in a run-down strip mall and contains some of the same type of merchandise, but the items are left in open boxes and placed haphazardly on shelves. Customers of either store have entirely different perceptions of the stores and would be surprised to know Kumar operates each of them because he uses such differing _____ strategies. a) positioning b) segmentation c) market combination d) targeting e) market integration

a) positioning **Positioning is developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general.

The length of the introductory stage of the product life cycle for a new product is largely determined by: a) product characteristics, such as advantages over substitute products b) the size of the market c) the size of the product d) the efficiency of the test marketing e) the product's marketing mix

a) product characteristics, such as advantages over substitute products ** The introductory stage of the product life cycle is affected by how customers perceive the characteristics of the product. Other factors that affect the length of the introductory stage are the educational effort required to use the item and management's resource commitment to the item.

You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should: a) promote trampolines heavily to dealers and customers b) raise the price of your trampolines because customers are not price sensitive in this stage c) use promotion to increase primary demand for trampolines d) eliminate all unnecessary marketing expense e) abandon peripheral target markets for trampolines

a) promote trampolines heavily to dealers and customers ** Review Learning Outcome 5.

Tower Fasteners developed a commanding position in the fastener industry by having in stock over 150,000 different types of fasteners. Tower's primary market is defined as companies with a need for specialized fasteners. All of the following are characteristics of the buying organization that Tower can use for segmentation EXCEPT: a) psychographic variables. b) geographic location. c) personal characteristics of buyers themselves. d) the method the company uses to make purchases. e) company size.

a) psychographic variables. **Psychographic variables are used in the consumer market.

Representatives of the Tourism Board of Arkansas visited state welcome centers and asked visitors to the state, "What is your reason for coming to Arkansas?" This would be an example of _____research. a) qualitative b) quantitative

a) qualitative **The question encouraged an answer phrased in the customer's own words.

H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round. a) reposition b) reengineer c) demarket d) niche e) undifferentiate

a) reposition **Repositioning means changing the customers' perceptions of a brand in relation to competing brands.

Retailers such as Dillard's and Sears are responding to consumer needs by changing product mixes, hours of operation, locations, and prices. These stores are changing aspects of their: a) retailing mixes. b) store positioning strategies. c) product offerings. d) merchandising groupings. e) retail trade areas.

a) retailing mixes. **Retailers are altering several aspects of the six Ps of the retailing mix. See Exhibit 14.6.

Families of police officers often alter information they hear about officers who die in the line of duty. This _____ allows them to live and function without constant anxiety while their loved one is engaged in a potentially dangerous job. a) selective distortion b) adaptive stimulus c) faculty selectivity d) selective exposure e) selective retention

a) selective distortion **Selective distortion involves changing or distorting the communication message to make the message seemingly agree with preconceived opinion.

Angela and Dominic own Cincy by the Slice pizzeria. They are interested in keeping track of the number of mentions their store receives on sites like Twitter and Facebook, but they are unsure of which steps to take next. Which of the following resource would best meet their needs? a) A social customer relationship management system b) A listening platform with key word report capabilities c) An insight platform that offers online focus group solutions d) An advanced customer database with predictive application

b) A listening platform with key word report capabilities **Such a platform would allow the organization to track discussions, understand sentiment, and identify influencers to improve overall marketing strategy. See Exhibit 18.1

Frigo Design has developed easy-to-install panel sets to update any refrigerator, dishwasher, or compactor made since 1942. As Frigo Design plans its promotion for its new chalkboard panels, which of the following factors will be likely to affect its promotional mix? a) Its panels fit any refrigerator, dishwasher, or compactor made since 1942. b) All of these factors will affect Frigo's promotional mix. c) Its chalkboard panels are easy to install. d) Its chalkboard panels are a new product. e) Its chalkboard panels are targeted to families with school-age children.

b) All of these factors will affect Frigo's promotional mix. **Nature of the product, target market, and product life cycle stage are all factors that would affect the choice of promotional mix elements.

Clorox describes individuals who buy lots of cleaning products as heavy users. This is an example of how companies use benefit segmentation. a) True b) False

b) False

Fisher-Price developed a line of toys for infants in China. Babies make up the market for these products. a) True b) False

b) False

Fisher-Price employees were engaged in experimental research when they observed, from behind a mirror, children playing with soap bubbles and decided to build a toy lawn mower that spewed soap bubbles. a) True b) False

b) False

Maddie's Beverage Company has recently introduced Wateroos, eight-ounce servings of water in juice-style containers with straws, to encourage children to drink more water. Since this product is in the introductory stage of the product life cycle and as yet has no direct competition, Maddie's promotional objective should be persuasion. a) True b) False

b) False

Piper Corporation makes aircrafts. It produces several different planes for three categories of customer: Professional, Personal, and Trainer. What type of targeting strategy is Piper using? a) Demand positioning b) Multisegment c) Concentrated d) Undifferentiated e) Market differentiation

b) Multisegment **Piper has chosen three specific markets to target, which is characteristic of a multisegment targeting strategy.

Barry collects antique watches and has decided to sell a dew of them on eBay. Some of the watches he wants to sell are rare and very valuable. What condition is nescessary for an exchange to occur between Barry and a buyer? a) Buyers must provide payment before the item is shipped. b) Potential buyers must be able to see the match and understand its qualities. c) His watch should have a certificate of authenticity. d) Delivery must take place within 2 says of the purchase. e) The opening bid must be lower than other watches being sold on the site.

b) Potential buyers must be able to see the match and understand its qualities. **For an exchange to take place, there must be at least two parties, each party must have something the other values, the parties must be able to communicate, each party must believe that it is appropriate to deal with the other, and each party must be free to accept or reject the exchange offer.

When Procter & Gamble (P&G) introduced Liquid Tide to a new segment, consumers in the traditional powdered detergent segment switched to the liquid product. Rather than real sales growth, P&G simply experienced the shifting of existing customers to a new product. This exemplifies a drawback of multisegment targeting strategy called: a) undifferentiation b) cannibalization c) demarketing d) market repositioning e) selective perception

b) cannibalization **Cannibalization occurs when sales of a new product cut into sales of a firm's existing products.

Cecelia is a receptionist and just spent $347 on a new riding saddle for her boyfriend Claude, a weekend cowboy. When she got home with the saddle, she experienced a high level of anxiety about whether she has made the right purchase decision. Cecelia experienced: a) temporal distortion b) cognitive dissonance c) perceptual disharmony d) selective dissatisfaction

b) cognitive dissonance

Callaway Golf Co. Callaway Golf Co. has long been a leader in women's golf equipment, but it wanted to expand its lead in this growing sector of the market. While Callaway's technical people knew what could be done with design, they did not know exactly what women wanted in their clubs. Callaway management decided what it needed to do was to bring the technicians and women golfers together. Beginning about three years ago, Callaway sent a team of researchers, designers, and golf pros out to visit with 40 women golfers of various abilities in locations from California to Florida. In selecting the golfers to study, Callaway decided to focus on women who were just beginning to play, as well as, experienced, competitive golfers who wanted to own the latest equipment. Callaway management felt that these two extreme groups of golfers had been overlooked by golf club manufacturers. Further, Callaway felt that if enough could be learned about these two groups, then the company would also learn enough to serve the rest of the women golfer market. Basically, the research team observed the women playing golf and listened to their comments and concerns. The information gathered by this research team was built into every aspect of the design of a new golf club, including the feel of the club, the length of the club shaft and size of the club head, and the weight of the club. When prototypes of the new clubs were completed, they were sent to the women golfers to get their feedback. That feedback was then used to refine the club design. This process went on until the women said the new clubs greatly enhanced their game. The entire process from original prototype to final product took a little less than one year. Refer to Callaway Golf Co. The type of research gathered by the Callaway Golf research team would be called: a) developmental b) descriptive c) secondary d) subjective e) focus group

b) descriptive **Marketing research that is descriptive involves the gathering and presenting of factual statements.

A company that has a market orientation and adheres to the marketing concept does NOT: a) focus on consumer needs and wants b) fuel sales growth through the application of aggressive sales techniques c) integrate all the activities of the firm to satisfy customer wants d) differentiate the firm's products from its competitor's products e) concentrate on long-term goal achievement (such as profits and growth) for the firm

b) fuel sales growth through the application of aggressive sales techniques **Aggressive sales techniques are part of the sales orientation and are not needed if a company is meeting the needs and wants of its customers.

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: a) late majority b) laggards c) decliners d) luddites e) generics

b) laggards ** By the time laggards adopt an innovation, it has probably become outmoded and been replaced by something else.

Fans of Ale-8, a ginger-flavored soft drink, are able to explain why Ale-8 is superior to any other type of cherry cola. They are scattered throughout eastern Kentucky and southern Ohio and are extremely brand loyal. Though Ale-8 is available in bottles or cans, most connoisseurs prefer glass bottles. Ale-8 "traditionalists" even insist on drinking the beverage from the old-style "long-neck" bottles as opposed to the newer, short-neck design. The characteristics of this target market indicate that a promotional mix with _____ should be used. a) more advertising and less sales promotion and public relations b) more advertising and sales promotion and less personal selling c) more sales promotion and personal selling and less advertising d) less sales promotion and more advertising and personal selling e) less publicity and sales promotion and more personal selling

b) more advertising and sales promotion and less personal selling **A target market characterized by widely scattered customers, highly informed buyers, and brand-loyal repeat purchases generally requires a promotional mix with more advertising and sales promotion and less personal selling.

UGG has a portion of its Web site featuring photographs of celebrities wearing UGG shoes. The celebrities serve as: a) aspirational adopters. b) opinion leaders. c) Gatekeepers. d) early instigators. e) laggards.

b) opinion leaders. **Opinion leaders are individuals who influence the opinions of others.

During a recent summer, Volvo Cars of North America drove traffic to its dealerships via a sweepstakes tied to Walt Disney's summer blockbuster Pirates of the Caribbean: Dead Man's Chest. This was an example of: a) publicity. b) advertising. c) a sales promotion. d) a personal sales presentation. e) implicit communications.

c) a sales promotion. **A sales promotion is a marketing activity that stimulates consumer buying and dealer effectiveness.

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges. Airlines are using these rewards as a means of implementing _____ segmentation. a) demographic b) personality c) motive d) usage-rate e) lifestyle

d) usage-rate **Usage-rate segmentation divides a market by consumption so that firms can target their heavy users.

Apple iPhone Apple, Inc.'s iPhone first went on sale on June 29, 2007. Apple's loyal and enthusiastic customer base is known for rushing to purchase its new products, and the iPhone enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone entered the market at what many believed to be a high price ($599). However, within weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was a huge success for Apple and its then-exclusive U.S. carrier AT&T. On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being twice as fast as the original iPhone for half the cost. However, in order to obtain an iPhone at the new price of $199, buyers had to agree to a two-year service contract with AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the introductory weekend. In 2011, the iPhone 4S—the fifth generation iPhone—led cellular phone sales with more than 25 million units sold. Several Android-based phones manufactured by Samsung were not far behind, however. Refer to Apple iPhone. When the iPhone 3G was released at half the cost of the current iPhone, it appeared that Apple's strategic focus had shifted from maximizing profits to gaining market share. Its lowered price was consistent with the _____ approach. a) price bracketing b) penetration pricing c) price lining d) price-fixing e) price skimming

b) penetration pricing ** Penetration pricing uses a relatively low price to build market share.

Java Jacket is a company that designs and prints ads on the paper jackets that go around hot coffee cups sold in coffee shops. To find clients to advertise on the coffee cup jackets, the company sent a representative to companies like Warner Brothers, eBay.com, and the Wall Street Journal to tell them how their ads on coffee cup jackets would give them inexpensive exposure to a large number of potential customers. Java Jacket's activities can best be described as: a) telemarketing. b) personal selling. c) implicit communication. d) mass communication. e) public relations.

b) personal selling. **Personal selling is the planned, face-to-face presentations in a conversation with one or more prospective purchasers for the purpose of making sales.

Shannon Murphey wanted to increase sales at his Tyler, Texas, jewelry store, Murphey the Jeweler. After analyzing his sales figures, he decided to give away $50 gift certificates for local businesses to give to their employees. "Many people used the gift certificates as credit toward more expensive items," explains Murphey. Murphey used a(n) _____ strategy. a) cash-flow b) pull c) push d) kinetic e) inertia

b) pull **A pull strategy is a marketing strategy that stimulates consumer demand to obtain product distribution.

Sure Fit, Inc. has begun a rebranding strategy to let customers know it no longer only produces slipcovers but now also carries a line of rugs, window treatments, and bedding. Its _____ is described as women with average annual household income of $60,000 or more. a) market audience b) target market c) aggregated market d) market differentiation e) perceived market

b) target market **A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group.

Making sure products are available when and where customers want them is the job of which element of the marketing mix? a) Production strategies b) Promotion strategies c) Distribution strategies d) Advertising strategies e) Product strategies

c) Distribution strategies **Distribution strategies make products available when and where customers want them.

Interface Interface, a manufacturer of floor covering products, has recently entered into an agreement with Cargill, Inc. and Dow Chemical Company to develop a carpet manufactured from corn fiber rather than the traditional nylon. Interface hopes to develop a biodegradable carpet tile that will be sold to the public at prices only slightly higher than nylon carpet tiles. Interface's CEO has repeatedly said the mission of his company is to look for manufacturing materials that are renewable and not petroleum dependent. Refer to Interface. A consumer who was in the market for floor covering would be most likely to locate information on the biodegradable floor tiles during which stage of the consumer decision-making process? a) Internal information search b) Postpurchase behavior c) External information search d) Evaluation of alternatives e) Need recognition

c) External information search **The information would come from an outside source since it is a new product.

Breyer's Ice Cream One hot August afternoon, as Nelson is driving home from work, he sees a billboard for Breyer's Ice Cream. He remembers that he is out of ice cream at home, and thinks it would be really great to have a nice, cold bowl of ice cream on such a hot day. So he stops into the convenience store near his home, heads straight for the dairy case, and picks up a half-gallon of strawberry ice cream. Refer to Breyer's Ice Cream. When Nelson realized he was out of ice cream at home, which stage of the consumer decision-making process was this? a) Postpurchase behavior b) Evaluation of alternatives c) Need recognition d) Information search e) Purchase

c) Need recognition ** Need recognition is the first stage in the process, and it is the result of an imbalance between actual and desired states.

There is an overabundance of apartments in Atlanta. Post Properties, the owner of many of the metropolitan area's largest apartment complexes, has reduced its rent so it can fill vacant apartments. Which marketing mix element did Post change to create more demand for its apartments? a) Product b) Personnel c) Price d) Production e) Distribution

c) Price **The firm tried to increase demand by altering its pricing strategies. This is often the only element of the marketing mix that is capable of quick and easy change.

June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. Which step in segmenting a market is LaVista engaged in? a) Targeting promotions to her market segments b) Concentrating her marketing mix on the most profitable marketing segments c) Profiling and analyzing her market segments d) Positioning her products to her market segments e) Differentiating her market segments

c) Profiling and analyzing her market segments **The profiling and analysis of the segments step in segmenting a market involves analyzing the segments' size, expected growth, purchase frequency, and so on.

David and Steven are best friends. Steven loves to compete in triathlons. David would love to compete with Steven but is a weak swimmer. David decides to take swim lessons to improve his breathing and stroke rhythms. Triathletes are a(n) _____ reference group for David. a) nonaspirational b) secondary c) aspirational d) primary e) direct

c) aspirational **Aspirational groups are those groups that someone wishes to join.

Laurie knows little about cooking and does not want to spend the time to learn how to make a quiche. However, she has been asked to bring a quiche to an office retirement party. Not wanting to make a poor choice, she is likely to: a) intuitively make the right choice. b) avoid making a decision by not attending the party. c) buy the most expensive pre-made quiche (perhaps paying too much), guessing that the price is related to quality. d) research the product and buy the least expensive frozen quiche she can find. e) buy the least expensive frozen quiche because most consumers feel that price is not directly related to quality.

c) buy the most expensive pre-made quiche (perhaps paying too much), guessing that the price is related to quality. ** Most consumers equate price and quality.

The first task of developing a retail strategy is to: a) create a promotional strategy. b) define the pricing policies. c) define the target market. d) decide what to buy. e) create a buying organization.

c) define the target market. **The target market's wants and needs form the foundation for a successful retail strategy.

After selecting a market for study and choosing bases for segmenting that market, the marketer must select the segmentation _____, which identify the specific segmentation variables to use a) matrices b) narratives c) descriptors d) variations e) networks

c) descriptors **Descriptors identify the specific segmentation variables to use.

For the first several years it was available, Apple's iPhone could only be purchased through AT&T cell phone distributors and the Apple retail store. This limitation on the _____ element of its marketing mix supported the product's competitive advantage. a) product b) production c) distribution d) planning e) promotion

c) distribution **Distribution strategies make products available when and where customers want them.

The advertisements for Kay Jewelers usually show a man presenting a woman with a ring or necklace and receiving a kiss in return. The ad then shows the slogan "Every Kiss Begins with Kay." This is an example of _____ positioning. a) use or application b) attribute c) emotion d) price and quality e) product class

c) emotion **Positioning uses emotion to show how the product makes customers feel.

Melyssa has been given a horse and needs to buy a new Western saddle. She has narrowed the brands of saddles she is considering down to Dale Chavez, Abetta, and Big Horn. She is comparing the price of these three brands. Here, price refers to an: a) evaluate criteria b) discriminatory set c) evoked set

c) evoked set

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage. a) commercialization b) maturity c) growth d) introductory e) decline

c) growth ** Because losses often occur during the introductory stage, profits first appear in the growth stage.

In January 2005, Burger King sponsored the opener of the third season of The Apprentice. The Apprentice sponsorship was an important element in Burger King's overall marketing strategy to build social currency for the brand through contests, advertising, and other sales promotion. That is, the brand set out to reverse negative perceptions of Burger King through the use of a consistent and coordinated promotional message. Burger King used: a) coordinational promotion. b) promotional mixing. c) integrated marketing communications. d) processed marketing. e) creative selling.

c) integrated marketing communications. **Integrated marketing communications is the careful coordination of promotional messages for a product to assure the consistency of messages at every contact point where a company meets the consumer.

Lyndon went to a Web site that sells barbeque grills and read reviews of several different models. He has requested more information about a Weber grill that appeared to meet his needs, but he is not yet willing to give up his search to find the perfect grill. As far as Weber is concerned, Lyndon is in the _____ step of the AIDA concept. a) desire b) action c) interest d) liking e) attention

c) interest **Lyndon is aware of the product, but he is not yet convinced it is the one he wants to purchase.

Leon is not very quick to purchase innovative products when they come out, but after a while he breaks down and buys if after most of his friends have bought it. He gets most of his information from them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends more than anything. Leon is best described as a(n): a) early majority b) innovator c) late majority d) early adopter e) laggard

c) late majority ** This is characteristic of the late majority, who tend to be influenced by group norms.

A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its ability to communicate value, its pricing policy, and the distribution strategy. These activities are all part of: a) a control system b) production c) marketing d) accounting e) human resources

c) marketing **Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Caterpillar has been experimenting with replacing the traditional steering mechanism on its graders with a joystick-based steering mechanism. As a part of its research, it built graders that included both a steering wheel and joystick steering mechanisms, then asked operators to use the machines for a few days. After two days of testing, several of the operators liked the joysticks so much that they suggested the steering wheel be removed to provide better visibility. This would be an example of using an experiment to gather _____ data. a) enthrographic b) collaborative c) primary d) secondary e) dichotomous

c) primary **The use of experiments is a technique for gathering primary data.

Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most directly affected the _____ element of the company's marketing mix. a) target market b) distribution c) product d) production e) place

c) product **Ocean Spray began with the product offering of the marketing mix by deciding to sell Craisins.

Indonesian logging companies harvest the rain forests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation. a) product b) environmental c) production d) sales e) exchange

c) production **A production orientation is a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

Smelly Fruit At first glance, there is little to like about the durian. The durian is a fruit popular in Thailand that is spiky outside and stinky on the inside. When confronted with the durian for the first time, the Wall Street Journal recently reported that westerners often describe its distinctive sulphurous smell with words like stinky socks and manure. However, the durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao, has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot keep up with demand. There are approximately 30 varieties of the durian grown in Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the durian, the part you eat, has very powerful smell but possesses a sweet, nutty taste that Thais cannot seem to get enough of at any price. Refer to Smelly Fruit. Suppose that a Thai farmer sells ten Kan Yao durians in the marketplace at the going rate of $200 each. If it cost a Thai farmer $125 to produce and market the Kan Yao durian that she has sold, the difference between these two numbers ($75), times the number sold (ten), represents the farmer's: a) ROI b) revenue c) profit d) returns e) COGS

c) profit ** What's left over after covering all costs would be the farmer's profit.

Delta Faucet Company Masco is the name of a well-recognized company in the construction industry. It produces cabinetry, furniture, lighting, and plumbing fixtures for the upper-end homeowner and builder. One of the divisions of Masco is the Delta Faucet Company, which is the leader in the faucet industry. Delta was founded in 1955. Over the decades, it has developed a legacy based on well-crafted, high-quality products. Since the 1970s, Delta has focused its energies on building loyalty with the builder marketplace. Research in 2002 showed that while builders respected the Delta faucet for its quality, durability, and dependability, household consumers were not enamored with Delta products. Due to the number of new magazines and television programs devoted to home style, homeowners wanted faucets that were chic and stylish. This was not the image of the Delta faucet. To change its image, Delta began a marketing program in which it committed itself to developing new products to appeal to homeowners. It adopted a new slogan--"Beautifully Engineered." Refer to Delta Faucet Company. Delta's development of a new slogan represents a change in the _____ element of its marketing mix. a) distribution b) production c) promotion d) product e) place

c) promotion **Promotion includes advertising, public relations, sales promotion, and personal selling.

Data previously collected for purposes other than the one at hand are an important source of information as the researcher defines the problem. These data are called _____ data. a) convenience b) primary c) secondary d) consensual e) single-source

c) secondary **This is the definition of secondary data.

On any given day, a person may be subjected to over 2,500 advertising messages but may only be aware of 11 to 20 of them. This is called: a) selective distortion b) selective learning c) selective exposure d) intermittent selectivity e) sporadic reinforcement

c) selective exposure **Consumers use selective exposure to decide which stimuli to select (attend to) and which to ignore.

Life is good® no longer encloses its apparel in individual poly bags when shipping to customers because the management feels it harms the environment. This is an example of a _____ orientation. a) product b) sales c) societal marketing d) production e) reciprocal exchange

c) societal marketing **Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals' and society's long-term best interests.

American Girl Doll The American Girl catalog began as a concept to introduce today's girls to those who lived in the past. Each historically accurate doll is carefully crafted and dressed and has books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic doll, dressed in a calico dress and striped apron plus the hardcover story of how she got to Minnesota, costs $90.00. Six more hardback books of Kristen's life are available for $74.95. Kristen's nightgown costs $20.00, and a matching one for the doll owner is an additional $38.00. Buy both together and the price is only $50.00. A hand-painted wooden bed and trunk for Kristen are available for $213.00. Shipping costs vary with the price of the merchandise ordered. Refer to American Girl Doll. What is the revenue to American Girl if it sells 20 basic Kristen dolls? a) $90.00 b) $100.95 c) $427.95 d) $1,800.00 e) $3,600.00

d) $1,800.00 ** Revenue equals price times number of items sold.

Kellogg's gives consumers the chance to receive a free DVD. Consumers who buy five boxes of specially marked cereal can cut out the coupons and mail in their completed official form to get a free DVD. Kellogg's is engaging in: a) customer transformation b) sports distribution c) one-to-one marketing d) relationship marketing e) transactional marketing

d) relationship marketing **Relationship marketing is a strategy that entails forging long-term partnerships with customers.

Pocket-knife collector Sam Penley decided to open The Knife Depot, a store that sells pocket knives and related paraphernalia. After 18 months in business, Sam has noticed that most of his sales are to the same small group of customers (about 40 people) even though he has records to show there are over 200 active pocket-knife collectors within a 50-mile radius of his store. Sam's retailing experience is supportive of the: a) optimizer principle b) majority fallacy c) min-max rule d) 80/20 principle e) rule of demand

d) 80/20 principle **The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

When an elementary school teacher needed to buy poster boards for her class, she remembered that she found some poster boards at three stores: her local 99 Cents Only store, Walgreen's, and at her Family Dollar Store. What term best describes the information search method used by the teacher? a) Public external source b) Market-dominated external source c) Personal external source d) Internal search

d) Internal search

InBev bought Anheuser-Busch. How will this purchase affect InBev's marketing mix? a) It will only affect the product element of InBev's marketing mix. b) It will have no affect on InBev's marketing mix. c) It will only affect InBev's four Ps--not its marketing mix. d) It will affect all of InBev's marketing mix elements, either directly or indirectly. e) It will not affect the promotion or distribution elements of the InBev marketing mix.

d) It will affect all of InBev's marketing mix elements, either directly or indirectly. **The purchase will directly change the company's product mix and indirectly affect its promotion, pricing, and distribution elements.

Lauren announced to her family last night that she wanted a pair of Heelys. Her sister Stephanie said she thought it was a stupid idea. Their mother, Susan, said Lauren deserved a special treat for winning the science fair. Because her father Tom said nothing, Lauren knew she was not getting the Heelys. In terms of the roles played by family members in the consumer decision-making process: a) Lauren was an influencer, and Susan was the decision maker. b) Lauren was the initiator, and Stephanie had no role at all. c) Stephanie was the initiator, and Susan was the decision maker. d) Lauren was the initiator, and Tom was the decision maker. e) Lauren was the initiator, and Tom had no role at all.

d) Lauren was the initiator, and Tom was the decision maker. **Lauren suggested the purchase and was the initiator. Susan and Stephanie both tried to influence the purchase. Tom was the decision maker.

Which marketing management philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product? a) Product b) Sales c) Production d) Market e) Exchange

d) Market **A market orientation states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.

College Decision Juan is a senior in high school and is deciding which university to go to after he graduates. He has received several pieces of mail from local universities with information on scholarship opportunities because he has a good GPA and a high ACT score. He and his parents have visited several schools and have talked to advisors regarding his chosen major of marketing. Juan is thinking about going to the local community college where all of his friends are planning to go, but his parents want him to go to a more prestigious school because they think he will get a better education there. Refer to College Decision. The direct mail pieces with scholarship information that schools are sending to Juan are examples of which type of information sources? a) Internal b) Selective c) Nonmarketing-controlled d) Marketing-controlled e) Service-oriented

d) Marketing-controlled **Marketing-controlled information sources are a product information source that originates with marketers promoting the product.

Which type of pricing means pricing at odd-numbered prices to connote bargains and pricing at even-numbered prices to imply quality? a) Bait pricing b) Price bundling c) 1-2 pricing d) Odd-even pricing e) Two-part pricing

d) Odd-even pricing ** This describes odd-even pricing (or psychological pricing).

Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement? a) Product b) Price c) Public relations d) Place e) Promotion

d) Place **Where a product is sold is part of the place (distribution) element of its marketing mix.

Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size packages are most useful when the consumer is near the _____ stage of the AIDA model. a) preference b) liking c) knowledge d) action e) awareness

d) action **These extras are the sales promotion techniques that often push the complacent consumer into the purchase stage.

A publicly accessible Web page that functions as an interactive journal is called a(n): a) electronic diary. b) tweet. c) profile. d) blog. e) status page.

d) blog. **This is the definition of a blog, on which readers can post comments on the author's entries.

When opening a new retail operation, the retailer needs to consider all of the following factors EXCEPT: a) geographic region. b) growth potential. c) zoning regulations. d) employee density. e) traffic flow.

d) employee density. ** Employee density is concerned with the amount of employees per 1,000 square feet in the store--not in the neighborhood. The other four factors are to be considered when deciding on a location.

Without context, measurements are _____: a) more accurate. b) hard to capture. c) invaluable. d) meaningless. e) not very costly.

d) meaningless. **Without context, measurements are meaningless.

A(n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little Crackers healthy and tasty in comparison to other brands. a) predictive model b) product position c) trend analysis d) perceptual map e) internal marketing audit

d) perceptual map **A perceptual map displays, in two or more dimensions (like healthy and tasty), the location of products in the customers' minds.

Jeni's Splendid Ice Creams is famous for its unusual flavors, such as Wildberry Lavender, Goat Cheese with Red Cherries, and Sweet Corn and Black Raspberries . Which of the following product characteristics would most likely influence the market success of these flavors? a) Tangibility b) Competitive advantage c) Complexity d) Comparability e) Compatibility

e) Compatibility ** Is the ice cream consistent with existing product experiences?

E&V Bridal Studios, a wedding consulting business, only works with Eastern Asian customers who want to use their cultural heritage in their wedding ceremonies. What type of segmentation strategy does the wedding consultant use? a) Undifferentiated targeting b) Limited demand c) Market aggregation d) Multisegment marketing e) Concentrated targeting

e) Concentrated targeting **EV Bridal Studios concentrates on one segment of the market--Eastern Asians who want a traditional wedding.

Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services? a) Marketing orientation b) Production orientation c) Customer orientation d) Product orientation e) Sales orientation

e) Sales orientation **Aggressive selling is sometimes used by companies that sell products their customers do not want to buy.

If a company uses a sales orientation, consumer complaints would most likely result in: a) product reinvention b) continuous market research c) philanthropy d) attempts to cut production costs e) a modification of the sales presentation

e) a modification of the sales presentation **The sales orientation relies on aggressive sales techniques to fuel business.

One reason why negative customer comments and complaints are important to an organization is that they can: a) quickly be hidden from competitors. b) help the organization identify "problem" customers, who are then typically removed from mailing lists. c) generate sympathy for the organization when consumers realize that "no one is perfect". d) be used in future advertising campaigns. e) bring to light unknown brand flaws.

e) bring to light unknown brand flaws. **Negative comments and complaints are of particular importance to an organization because they can illuminate unknown brand flaws and because they are the comments that tend to go viral.

All of the following are product characteristics influencing the rate of adoption EXCEPT: a) relative advantage b) observability c) compatibility d) complexity e) distribution

e) distribution ** While it is a marketing factor that may influence the rate of adoption of a new product, distribution is not a product factor influencing the rate of adoption.

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely: a) late majority b) innovators c) early minority d) laggards e) early majority

e) early majority ** The early majority will collect more information and evaluate more brands than do early adopters. They rely on friends, neighbors, and opinion leaders for information.

A retailer of sporting goods equipment is interested in learning peoples' attitudes, motivations, and feelings about its product lines. All of the following are potential sources for this information EXCEPT: a) mail questionnaires. b) in-store interviews. c) telephone surveys. d) focus group interviews. e) observation studies.

e) observation studies. **Observation research focuses on what people do, not on their attitudes and feelings.

New Car Purchase Zena has been promoted to VP of the management consulting firm where she works.. Her new status has led her to consider the need for a new car. Her trusty little Volkswagen Beetle has over 100,000 miles on it and no longer seems appropriate. Susanne, another VP, suggests that Zena consider a car produced in the United States because the firm has a policy of supporting U.S. businesses. Zena began her quest for a new car by visiting several car dealers and obtaining pamphlets on the models she is considering. She also studied Consumer Reports magazine, Car and Driver ratings, and other consumer rating publications to see what the experts think. After evaluating all options, Zena has decided to purchase a new Chrysler. She believes that the car is a good fit with her new image and position in her company. Since her purchase, she has seen more advertisements touting the car's features than she ever noticed before. She also has noticed many models of her car on the road. Zena thinks the fact that so many others are driving the same model car as hers is proof that she made a good decision. Refer to New Car Purchase. Susanne has influenced Zena's choice of a new automobile. In this instance, Susanne is acting as a(n): a) purchase catalyst b) social reference c) dissociative reference d) gatekeeper e) opinion leader

e) opinion leader **An opinion leader is an individual who influences the opinions of others.

Imagine life without that little spinning wheel icon to remind you that your computer is still searching for a Web site or copying documents. Without this wheel, consumers might think the computer had stopped working. This process in which consumers interpret this stimulus into a meaningful and coherent picture is called: a) cognition b) exposure c) retention d) selection e) perception

e) perception **Perception is the process of selecting, organizing, and interpreting the stimuli that are bombarding consumers daily.

Apple iPhone Apple, Inc.'s iPhone first went on sale on June 29, 2007. Apple's loyal and enthusiastic customer base is known for rushing to purchase its new products, and the iPhone enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone entered the market at what many believed to be a high price ($599). However, within weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was a huge success for Apple and its then-exclusive U.S. carrier AT&T. On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being twice as fast as the original iPhone for half the cost. However, in order to obtain an iPhone at the new price of $199, buyers had to agree to a two-year service contract with AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the introductory weekend. In 2011, the iPhone 4S—the fifth generation iPhone—led cellular phone sales with more than 25 million units sold. Several Android-based phones manufactured by Samsung were not far behind, however. Refer to Apple iPhone. When Apple introduced the iPhone at a high price, it was probably using a _____ strategy to maximize profits. a) price bracketing b) penetration pricing c) price lining d) price-fixing e) price skimming

e) price skimming ** Price skimming is a pricing policy whereby a firm charges a high introductory price, especially for a heavily promoted product.

Products such as bleaches, aspirin, unleaded regular gasoline, and some soaps are distinguished by differences such as brand names, packaging, color, smell, or "secret" additives. With these products, marketers attempt to convince customers that their product is significantly different from the others and should therefore be demanded over competing brands. These marketers are using: a) cannibalization b) integrated marketing c) perceptual mapping d) psychographic targeting e) product differentiation

e) product differentiation **Product differentiation is a positioning strategy that some firms use to distinguish their products from those of competitors.

In 2008, Apple, Inc. introduced Mobile Me, which keeps everything on a consumer's Mac, PC, iPod, or iPhone on an online server Apple calls the "Cloud" so that it can be accessed at any time. Apple is catering to on-the-go consumers who use multiple platforms. This positioning strategy is based on the: a) competitor b) use or application c) product class d) price and quality e) product user

e) product user **This positioning strategy focuses on a personality or type of user.

SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and in-line skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. To which of the four Ps does this represent? a) product b) place c) price d) publicity e) promotion

e) promotion **Promotion covers a wide range of communication vehicles.

During the hot summer months, or the week before a new class starts if there is still space available, the Nick Price golf school in Orlando, Florida, offers a 25 percent reduction to get golfers during the off-season or those making a last-minute decision. This is an example of pricing strategy used as a(n): a) distribution tool. b) price enhancer. c) product strategy. d) direct sales tool. e) promotion strategy.

e) promotion strategy. ** Price is often used as a promotional tool to increase consumer interest.

A company would probably NOT want to use Twitter to: a) share links to the official company Web site. b) direct customers to its corporate blog. c) reply to customer queries. d) promote a brand-new product. e) provide a customer with complex, hard-to-understand instructions on how to use a product.

e) provide a customer with complex, hard-to-understand instructions on how to use a product. **Twitter's 140-character limit would likely make it difficult for a customer to follow difficult instructions. The company could, however, use Twitter to direct the customer to a Web page where the instructions could be found.

Cassandra, an accounting major, read an article stating that accounting graduates are receiving the highest starting salary offers for business majors. The article also stated that marketing majors start with lower salaries but surpass all other majors' salaries within ten years. A week later, Cassandra doesn't remember reading this last part of the article, just the first part. This is an example of: a) intermittent reinforcement b) selective socialization c) selective exposure d) selective distortion e) selective retention

e) selective retention **Selective retention is the process whereby a consumer remembers only information that supports personal feelings or beliefs.