Quiz 6-10 MKTG 409
The stages of the business buying decision process, in order, are
recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.
A forecasting method that predicts sales based on relationships between past sales and other variables is called
regression analysis
The sales prediction technique based on the correlation between sales and other factors⎯such as population density, per capita income, or family size⎯is
regression analysis.
IHOP is active on Facebook, Twitter, and YouTube in order to communicate with its customers, conduct a video contest, and generally find out the customers' likes and dislikes. IHOP in this example, is engaging in ____ marketing.
relationship
The three purposes for which individuals or groups can use products in order for it to be considered a business market are
resale, use in daily operations, and direct use in producing other products.
The third stage in the business buying decision process is to
search for products and suppliers.
Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to
select specific target markets.
A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
social influences.
The buildup approach measure of sales potential
starts with forecasts about demand for a specific product within a relatively small area.
Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.
subcultural
In relation to international marketing, which of the following best describes direct ownership?
A company owns subsidiaries or facilities in foreign countries.
Both you and your roommate are avid Internet and social media users. You both spend about 4 hours a day interacting with the Internet. Your roommate likes post on sites like Facebook throughout the day. In fact, she is a member of just about every social media site on the Web. Your interest is more geared towards regularly communicating with any and every one via Twitter. Which of the following statements is true regarding you and your roommate's use of the Internet?
According to the Social Technographics Profile, you are a "Conversationalist" and your roommate is a "Joiner".
Pizza Hut has restaurants in India where Joiners make up the majority of the online population. To match their marketing efforts with the characteristics of the population, Pizza Hut should
Add tags to webpages or photos.
Refer to Scenario 10.1. The Disney website has a special link for educators that allows them to download educational videos pertaining to various subjects and grade levels. Educators are asked to register online with further information about their needs. This is an example of
Addressibility
When the makers of Red Bull, an energy drink, decided to go international with their marketing effort, a global approach was adopted. With which of the following factors did Red Bull most likely experience difficulty as the firm applied a global strategy for marketing?
Advertising
Which American subculture spends the highest proportion of its income on phone services, children's clothing, and shoes?
African Americans
Which of the following is the fastest growing, most affluent subculture in the United States?
Asian Americans
What consumer research method is a means of measuring consumer attitudes by gauging the intensity of individuals' reactions to adjectives, phrases, or sentences about an object?
Attitude scale
When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire?
Business
The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?
Concentrated
____ involves the use of digital networks to provide linkages between information providers and users.
Connectivity
Credit card companies maintain staffs of professionals whose primary responsibility is to monitor the activity on cardholders' accounts to spot potential fraudulent purchases or stolen cards. These staffs are employed to prevent which of the following:
Consumer misbehavior
Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
Contract manufacturing
Red Bull has started introducing new products and information to bloggers in the hope that they will pass the information on to their online followers. In this case, the bloggers are
Creators
____ are those consumers who construct their own media outlets, such as blogs, podcasts, consumer-generated videos, and wikis.
Creators
Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not?
Demographic
The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case?
Differentiated
____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.
Digital marketing
You have been invited to attend a meeting of a special interest group that a good friend is a part of. You accept the invitation and agree to attend the group's next meeting. After attending the meeting, you realize you are passionately opposed to everything the group stands for. You tell your friend you never want to attend another meeting or associate with anyone who is a part of that group. However, you will make a special allowance for your friend. In terms of social influences, which of the following terms best describes the group as it relates to you?
Dissociative reference group
When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?
Does the supplier also sell to my competitors?
Marketers can take advantage of a wealth of public and private data about business customers using various industrial classification systems. However, as with any data, there are limitations associated with industrial classification systems' data. Which of the following is a limitation of industrial classification systems' data?
Double counting of sales data may occur when products are shipped between two divisions within the same organization.
What are the four major factors that influence business buying decisions?
Environmental, organizational, interpersonal, and individual
____ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.
Exchange controls
Intuition and expediency are primary characteristics of which of the following sales forecasting methods?
Executive judgment
Henderson Synthetics is a producer of chemical products aimed at increasing agricultural yield per acre. Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries, however, it is costly to obtain market research to confirm this. If Henderson Synthetics wanted to temporarily "try out" these international markets with a minimal level of commitment and cost, it should use
Exporting
According to Maslow's hierarchy of needs, human beings have five levels of needs they are constantly seeking to satisfy. The need for love and affection is an example of one of humans' _________________ needs.
Familial
The consumer buying decision process involves _______ stages. The first stage is ____________, and the last stage is _____________.
Five; Problem recognition; Post-purchase evaluation
Crate and Barrel uses ____ to market themselves visually by displaying snapshots of company events, staff, and products.
Flickr
As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.
Gatekeepers
Because firms have different resources and core competencies, their international marketing strategies will also be different. Nevertheless, any firm seeking to be successful in international markets must establish the right organizational structure for its core competencies and resources. Which of the following is a valid international organizational structure?
Geographic area structure
Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as
Globilization
Experience has shown you that your customers' buying decisions can be significantly impacted by situational influences. You are analyzing past sales activities to better understand how these factors translate into sales impacts. Which of the following statements is true about situational influences on the consumer's buying decision process?
If the consumer is fatigued this could potentially be a situational influence on her buying decision process.
What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable?
Licensing
The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as
MERCOSUR.
Of the online user segments in The Social Technographics Profile, the largest group in most countries is
Spectators
____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.
Market segment profiles
Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?
Modified rebuy
The trade agreement that links Mexico, Canada and Unites States into one economic market is called which one of the following?
NAFTA
The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called
NAFTA.
In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?
Performance Evaluations
After doing considerable shopping, Eric has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Eric?
Purchase
During which stage of the consumer buying decision process does a consumer decide from which seller he or she will buy the product?
Purchase
Retailers like Target and Kmart are considered to be members of which business market?
Reseller
Which of the following statements about reseller markets is false?
Resellers are not concerned with how much space the product takes up as long as it has a high price
Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments.
Similarities among; Differences between
Jessie is out with a group of friends this evening for dinner at a local restaurant and then a movie. While the service at the restaurant was slow, and the food just ok, Jessie still had a great time and left with a positive opinion of the restaurant experience. Jessie's experience was likely influenced by ____.
Social surroundings
1.
The forecasting techniques that assume past sales patterns will continue into the future are all variations of time series analysis.
Why would a company use the undifferentiated strategy?
The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
The internationally integrated structure is one type of organizational structure used by U.S. firms for their international operations. Which of the following statements is true about internationally integrated structures?
The product division structure is one type of internationally integrated structure.
The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:
The variables should be based solely on demographic characteristics.
Lady Gaga is on a concert tour and has decided to hold a contest for tonight's event. The first ten people to answer a riddle by calling a local phone number will receive free tickets to the show and back-stage passes. Which social networking site would be the best for Lady Gaga to broadcast information about this contest?
Refer to Scenario 10.2. Politicians could use _____, the ultimate type of social media for reaching those potential voters who want to stay connected to the latest information.
Which of the following entities is part of the buying center?
Users
If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of
WTO.
When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered
a government purchase.
Changing people's attitudes toward a firm and its marketing program is
a long, expensive, and difficult task that may require extensive advertising campaigns.
Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at
a market segment profile.
Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by
a reference group.
Refer to Scenario 9.2. The practice of offering fried octopus and squid at Asian KFC's is best described as
a strategy of some customization.
When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in
limited decision making.
The ability of a marketer to identify customers before they make a purchase is called
addressability.
A business advantage of the concentrated targeting strategy for any company is that it
allows a firm to develop a special marketing mix for a single market segment.
Telluride Ski Resort in Telluride, Colorado is a world-class ski destination. Taylor is a newly-hired manager of digital media and electronic marketing for Telluride. Taylor remembers reading about a new trend in video marketing, using _________ to engage and create a community of customers.
amateur filmmakers
The gross domestic product is
an overall measure of a nation's economic standing.
Smart phones contain ____ that help consumers access more information about businesses.
applications
The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to
attempt to make large payments or bribes to influence policy decisions of foreign governments.
The ____ is the difference in value between a nation's exports and its imports.
balance of trade
The development of a person's self-concept is a function of
psychological and social factors.
The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______ variables for market segmentation.
behavioristic
Papa John's received negative publicity concerning the quality of the contents used in making their pizza. The information in the news report was incorrect, and was corrected on the next newscast. However, Papa John's wanted to go further and respond to the issue by creating a web-based journal that gives accurate information about Papa John's and the ingredients they use. This journal is an example of a(an)
blog.
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.
breakdown
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.
buildup
The ability to purchase a product is a function of
buying power.
After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing
cognitive dissonance.
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
company sales potential.
When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his ____ set.
consideration
In shopping for a new laptop computer for her master's degree program, Jocelyn has narrowed the alternatives to four brands. She is considering Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's
consideration set.
One trend that has caused consumer-generated information to gain importance is
consumers' tendencies to trust other consumers over corporations.
Coca-Cola entices consumers to their website through contests and games, but they cannot force people to visit their website due to the ____ characteristic of online media.
control
The Southern Common Market (MERCOSUR) includes
countries in South America.
Verizon encourages customers to post reviews on its company website or Facebook page in the hopes of increasing the company's
credibility
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
customers' needs for the product must be homogeneous.
The Internet is often called a _________ medium because users determine which websites they are going to view.
pull
The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is
derived.
After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is
developing market segment profiles.
Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.
differentiated
Electronic media that function using digital codes are called
digital media.
Mario and his friend have been talking about their love of Bose headphones and speakers. Mario's friend mentions a consumer report that he read the week before that stated Bose products had higher prices but lower quality than in previous years. Mario thought to himself that perhaps his friend had misread the report, because Bose had always been the best. This perceptual process is known as selective
distortion.
Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Jenny is engaging in
limited decision making.
Brand name, product characteristics, packaging, and labeling are some of the ______________ marketing mix variables to standardize for international markets.
easiest
When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.
economic
All of the following describe the demand for business products except
elastic.
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing.
electronic marketing
Chloe and Max are searching for a health club to join. This purchase will likely be affected by ____ involvement.
enduring
The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy.
environmental analysis
When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)
expert forecasting survey.
The Samsung Group sells several different product lines around the world through home appliance and electronics stores. Samsung appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, Samsung has been investigating the possibility of buying land and building a production plant in Tennessee, in the United States. Samsung is now operating as a(an) ______; however, if the plant is built in Tennessee, it will be operating as a(an) ______.
exporter; multinational enterprise.
Henderson Synthetics is a producer of chemical products aimed at increasing agricultural yield per acre. Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries, however, it is costly to obtain market research to confirm this. If Henderson Synthetics wanted to temporarily "try out" these international markets with a minimal level of commitment and cost, it should use
exporting.
New information technologies such as social media represent a tremendous opportunity because they ______________ while significantly ______________.
facilitate communications; reducing costs
The forces that other people exert on one's buying behavior are called social influences. These come from reference groups and opinion leaders, social classes, culture and subcultures, roles, and
family.
Digital media such as blogs allow marketers to interact with prospective customers in
real time.
Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in
franchising.
As the new sales representative for H & L Electronics, Sophie is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Sophie knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that H & L's information brochures and new product diagrams actually get to the management staff. In this situation, Sophie is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.
gatekeepers
Population density and city size are ____ variables used for market segmentation.
geographic
Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be
geographic location.
Alpine Ski Shops is looking for new markets for both its brick and mortar retail stores and its catalog division. Alpine Ski Shops would most likely use a(n) ______ base for market segmentation of its stores and a(n) ______ base for market segmentation of its catalog division?
geographic; behavioristic
Northeastern University and Penn State University both offer online MBA programs that are available to students around the world. This is an example of
globalization.
Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as
globalization.
The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's
gross domestic product per capita.
The purchase of products from a foreign source is called
importing.
According to Maslow's hierarchy of needs,
individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.
Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot.
inelastic
When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.
institutional
Refer to Scenario 10.1. The Disney website is missing ____, because the website does not offer the opportunity for customers to directly communicate with Disney employees. Customers cannot express their needs and wants directly to the company.
interactivity.
King Auto Supply sells car and truck parts, as well as tire replacement and balancing services. As King places its order for truck tires with Michelin, it must also place an order for valve stems and balancing weights for the tires. Such business products are characterized as having ____ demand.
joint
Eighteen-year-old students do not form a market for alcoholic beverages because they
lack the authority to purchase this type of product.
Refer to Scenario 7.1. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of
learning.
The World Trade Organization accomplishes all of the following except
lending money to businesses interested in developing international markets.
A disadvantage of reciprocity is that it can lead to
less-than-optimal purchases for the buyer.
Cole's smart phone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Cole is most likely to use _____ for this purchase.
limited decision making behavior
Tori went to Sam's Wholesale Club to shop for a party she was hosting on the weekend. She knew that she could buy larger quantities of food items than she normally did, and they would also be much less expensive. She checked everything off her list and proceeded to the checkout lines. Passing a display of fresh flowers, she thought "Wouldn't those be nice for the party?" She selected one of the bouquets and placed it in her cart. Tori has most likely engaged in ______ when selecting the food for her party, and ____ when selecting the flowers.
limited decision making; impulse buying.
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as
market segments.
Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase.
modified rebuy
After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual
organization
Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n)
partnership.
Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called
partnerships.
Luis likes shopping at Stein Mart, a discount department store, because he likes the prices, products, and services the store provides. His selection of this store as a regular stop when shopping is influenced by ____ motives.
patronage
Due to increasing consumer demand, many television networks are creating ____ of their shows.
podcasts
Special interest groups and regulatory bodies are ____ forces that must be taken into account in international marketing.
political and legal
Inelastic demand in business markets refers to a situation where
price increases or decreases will not significantly change demand for a given product.
When marketing to business customers, marketers have to understand the key characteristics of the business customer, and alter their marketing mix accordingly. For example, a business customer views _________ as the amount of investment necessary to obtain a desired level of return or savings. Moreover, the business customer demand ______________ before buying to be sure their needs are being met with the product.
price; detailed information
Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets.
producer
Two trends that have caused consumer-generated information to gain importance is
the increase of consumers sharing their opinions through digital media and the consumer's mistrust of information from corporations.
One trend that has caused consumer-generated information to gain importance is
the increase of consumers using digital media to publicize their own product reviews.
Which of these statements is not true about business markets?
the purchase is always made by more than one individual
The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as
the self-reference criterion.
A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a
trading company.
Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ____ analysis.
value
During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.
value
The attrition rate for digital media channels is
very high.
In the consumer buying decision process, the information search stage
yields a group of brands that a buyer views as possible alternatives.