MKTG 3832 Final

Oreo commands an extremely high market share. Purchasers of Oreo Cookies are extremely less sensitive to price changes. Based on this assessment, Oreo is said to have high brand equity.

True

The marketing mix refers to the combination of four strategy elements: product, price, place (distribution), and promotion, which are used to satisfy the target market.

True

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy? A. Luxury automobiles B. Healthy snack foods C. Table salt D. Imported wine

Table salt

Dividing an overall market into homogeneous groups based on gender and age would constitute demographic segmentation.

True

Fitness Zone is a gym that offers its customers a chance to buy health drinks through a vending machine. This type of service is called automatic merchandising.

True

Godiva's introduction of a sugar-free version of its premium chocolate bar is an example of line extension.

True

If merchandise selection changes frequently to follow fashion trends, advertising is typically used to promote current styles effectively.

True

Oscar Mayer, a maker of various meat products, introduced Lunchables, a product specifically aimed at children. This is an example of:

differentiated marketing

A dentist provides pure service.

True

In selecting the target market for your gourmet tea store, you were influenced by multiple factors. These included: 1. the number of people who appreciate and will go out of their way to buy gourmet tea. 2. how much profit you can make by selling to gourmet tea enthusiasts. 3. how stiff the competition will be from other tea merchants or sellers of substitute products. 4. FDA standards for tea safety. 5. All of the above

1, 2, and 3

Frequent flyer programs are often used by airlines to encourage consumers to make repeat purchases since members can earn free trips based on their accumulated points are an example of _____.

Brand loyalty segmentation

Cole is identifying which customers should be included in a study sample. Based on this information, Cole is in which stage of the marketing research process?

Creating a research design

American Express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and The Nest, for newlyweds. This is an example of _____ marketing.

Differentiated

A brand mark is defined as a part of a brand that can be spoken.

False

A dinner at Starlight Cafe is an example of a pure good.

False

Macy's is a retail store that focuses on fashion-oriented merchandise, backed by a complete array of customer services. It can be considered as a self-service store.

False

Maria is planning to gather primary data, therefore, she can expect to spend less time and money in gathering her data compared to secondary data.

False

One of the advantages of secondary data is that secondary data is more relevant to the research than primary data.

False

Steven is about to conduct marketing research. The first step he should take in the marketing research process is to conduct exploratory research so he can then use that information to define the problem.

False

Pirate Port, a significant player in the adult beverage industry, is in the process of negotiating the purchase of a distillery plant and a bottling unit. This is an important investment for Pirate Port and the products have been designed specifically for them. Which of the following types of products is Pirate Port purchasing?

Installations

Which of the following is a limitation of secondary data not found in primary data?

It may not be completely relevant to the specific needs of the marketer

Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market?

Psychographic segmentation

Whole Foods, a grocery and health food store, is ready to open a new location in Dallas, Texas. Executives at Whole Foods would like to gather research to determine which Dallas neighborhood to build in. Whole Foods uses information from ESRI's Tapestry segmentation to identify Dallas zip codes with the highest concentration of their target audience. Whole Foods is utilizing which type of secondary data?

Research services

Sup Dogs plans to introduce a new line of spicy hot dogs for a three-month period. If the product and promotional efforts behind it are successful, Sup Dogs may launch the spicy hot dogs on its permanent menu. What type of marketing research is being conducted?

Test marketing

The new CEO of a struggling cell phone service provider is trying to revitalize the company by revamping its business strategy. The CEO surveys the current service provider market and sees that there are a few large companies with similar business models: customers are required to choose from a limited number of plans, and are then locked into those plans for at least two years by contract. In order to even enter into a contract with the service provider, the customer must have proof of a steady income and be able to pass a credit check. The CEO sees that many individuals in the 15 to 24-year-old age bracket cannot meet these standards and are not being served by the larger companies. She decides to make her company unique by offering no-contract, pay-as-you-go cell phone service. Customers do not need to pass a credit check or provide proof of income in order to sign up for service, and can discontinue service at any time. ​ According to this scenario and your knowledge of marketing strategies, which statement best explains the new CEO's actions?

The CEO realized that the youth segment of the market was not being served and decided to fill that niche in the business by creating a business plan that targeted it.

Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.

True

"For the same dollars that you spend on a no-frills ticket to Los Angeles, fly Business Class with us!" is the advertising statement issued by FlyHigh Airlines. It represents an attempt by FlyHigh Airlines to position itself with respect to its competitors.

True

Vending machines are an example of:

automatic merchandising.

A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by:

benefits sought

Consumer goods such as toothpaste, eggs, and shampoo are generally classified as _____ products.

convenience

Some grocery stores, like Wegmans and Fred Meyer, now offer pickup and even delivery of groceries to your home. The grocery stores typically charge a small fee for this service. This reflects the _____ component of retail strategy.

customer service

When a retailer decides to offer gift wrapping, product assembly, and registries, they are considering the elements of their:

customer service strategy

Jason is a research analyst who has spent nine months conducting a study about consumer perceptions and attitudes. In writing his final report, Jason should make sure he:

direct his report toward the management and not other researchers.

Colby, a successful entrepreneur, is planning to get into the steel business. He bought three steel roller presses costing him several million dollars to start his business. These steel roller presses are examples of:

installations.

Home Depot hardware stores sell a wide variety of home improvement items including lumber, tools, and appliances, while smaller hardware store, Ace, focuses on just a few brands in each category and does not sell appliances. Although both are hardware stores, Ace and Home Depot differ on their:

merchandising strategy.

Erica is a marketing researcher involved in improving retail store layouts. She would like to know the order in which various types of products are purchased by customers. She also wants to find out what type of assistance is required by the customers while purchasing products. The best method for Erica to collect this data would be by:

observation

The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on:

product application

Elise is using data she found published by a popular trade association in her study. The data Elise is using can be considered _____.

secondary data

A positioning map:

shows how consumers view a product relative to competitive products

Grocery stores like Harris Teeter usually display items such as mints, gums, and candy bars near the checkout counter because:

they tend to be purchased on the spur of the moment.