Study guide for Business

All of the following factors directly influence consumers' level of involvement in the purchase process EXCEPT:

consumer's age

According to Everett Rogers, all of the following are product characteristics influencing the rate of new product adoption EXCEPT:

distribution

All of the following factors tend to result in high rivalry among existing competitors EXCEPT

fast industry growth

The types of products people purchase using routine response behavior are typically:

frequently purchased, low-cost items

_____ is a means of displaying or graphing , in two or more dimensions, the location of products, brands, or groups of products in customers' minds.

perceptual mapping

While Acme lawn mowers makes a profit on all of its products, it sells mowers to retailers at different prices, depending on whether they are independent stores or members of a national chain. It uses:

price discrimination

A marketing researcher should do all of the following in order to infer causality. Except:

recognize the presence of alternative plausible explanations for the results establish a sequence of events measure the concomitant variation between the cause and the effect

Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used a(n) __________ pricing strategy to help recover its research and development costs quickly

skimming pricing

Charter Chemical needs to order more office supplies. The order quantity and specifications are routine, and the purchase is made from the same component supplier at regular intervals, without any decision making process. Charter will probably engage in a ______ to purchase additional quantities

straight rebuy

_______ is the idea that socially responsible companies will outperform their peers and it is therefore in the business's best interest to be socially responsible.

sustainability

A_____ is a defined group that managers feel is most likely to buy a firm's product, for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group

target market

In most developed countries such as the United States, _______ is among the largest purchases of goods and services

the central government

The purchase of bottled water is a low-involvement purchase. Perrier is the market leader. Which of the following is the MOST LIKELY tactic for Perrier to keep people buying its brand instead of one of the numerous other brands displayed on retailers' shelves

Avoid Perrier brand stockouts on retailers' shelves

When little is known about the problem situation and you wish to gather preliminary information that will define the problem and clarify ambiguous situations, It is desirable to begin with _______ research.

Explanatory

The ability to buy a soda from a vending machine or convenience store demonstrates which element of the marketing mix?

Place/ Distribution

Jim owns a novelty t-shirt shop and had sales of $1,000 in the past week. The leading competitor had sales of $5,000 last week. The total sales of all competitors in Jim's market area were $10,000 last week, thus total sales of all companies is $11,000. What is Jim's market share (to the nearest percent)?

10%

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers values? What should our business be?

A mission statement

The Little Remedies Product provide similar benefits; this BEST describes which of the following?

A product line

All of the following are criteria for successful market segmentation EXCEPT:

Accountability

An industry in which a few large firms supply most or all of a product is known as

An oligopoly

The net present value of the stream of future profits expected from the entire future relationship with a customer is the:

CLV (Customer Lifetime Value)

A natural monopoly is a firm that

Can produce the entire market supply more efficiently than any number of smaller firms.

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions is referred to as

Cognitive dissonance

The information effect of price means:

Consumers use the price of the product to evaluate its quality

______ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution

Convenience

All of the following are disadvantages of corporate social responsibility EXCEPT:

Corporate Charity Principle.

A characteristic that consumers value but may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as ______ quality for example

Credence

All of the following are unique characteristics that distinguish services from goods EXCEPT:

Searchable

A series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the:

FLC (Family Life Cycle)

Which stage in the product life cycle is characterized by a rapid increase in sales, the appearance of competitors, and advertising that emphasizes selective demand?

Growth

Which of the following statements describes an advantage to retailers associated with developing their own brands?

Higher profits are available on private brands.

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior is:

Involvement

Ben and Jerry's introduced Bonnaroo Buzz super premium ice cream to U.S. consumers in 2010. Ben and Jerry's increased unit sales of its Bonnaroo Buzz ice cream to US consumers in 2012 as a result of increased production while keeping its price per pint the same. It is using a _____ strategy in 2012

Market Penetration

Which concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?

Marketing Concept

Jakubowski Farms Gourmet Bread Base is the brand name for a mix designed for use in bread making machines. The mixes are sold in 2-pound canisters for $14.99 plus postage. The products are only available through the mail. People learn about the product through word-of-mouth and bread machine demonstrations the company's founder gives to groups in Wisconsin where she lives. This is a description of the company's

Marketing Mix

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:

Marketing Myopia

An industry in which many firms produce similar products but each firm has significant brand loyalty is known as

Monopolistic competition

Children's accessory and toy store Red Carpet Baby! uses U.S. Census Bureau information to determine the number of families with children under age 5 for each state in its market area. Data obtained from this source are called __________.

Secondary Data

Fisher-Price watches young children play with their toys to determine if and how various toys should be changed or improved. Fisher Price is collecting __________ data.

Observational

Due to a service's ________, services cannot be stored, warehoused, or inventoried

Perishability

AMC Theaters offers customers a package that includes two movie tickets, two small drinks and one small popcorn all priced together at $29.99. This pricing technique is called:

Price bundling

The most flexible of the 4 P's and the easiest to change but provides the least competitive advantage is:

Pricing Strategies

A sample in which every element in the population has a known statistical likelihood of being selected is a

Probability Sample

Procter and Gamble has a large product grouping that includes beauty and grooming (crest toothpaste and Gillette razors), household care (Downy fabric softener, Tide detergent), and Pampers diaper. All of these are part of Proctor and Gamble's

Product MIX

A proposed law in New Jersey would ban the use of tanning beds by anyone under the age of 18. This restriction would be an example of which environment force?

Regulatory

What if anything, is wrong with the following questions asked of homeowners: What is the approximate value of your home?

The list of alternatives is not exhaustive

According to the Porter Competitive Advantage Model, which of the following is NOT a type of competitive advantage?

Transition

Which of the following statements about pricing strategies throughout the product life cycle is NOT true?

With inelastic demand, price will be set low during the introduction stage

The essence of the traditional bain/ mason industrial organization paradigm is

a firm's performance in the marketplace depends critically on the characteristics of the industry environment in which it competes.

Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash infusion from a product line that had a dominant market share. The small appliance industry is a slow-growth one. The small appliance product line is most likely a __________ for Black & Decker.

cash cow

Rose is shopping for a new camera. She has set a maximum of $250 as the highest price she will pay, so she doesn't even bother considering cameras that cost more than that. Rose is narrowing the number of available choices by using a:

cutoff

Marketers use _____ to segment markets because this information is widely available, and factors such as age or gender are often related to consumer purchasing and consumption behavior.

demographics

Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left the university or have newly arrived. Frank also helps Kim make appointments to see professors to discuss textbook choices. Frank acts as the _________ in the business department buying center.

gatekeeper

As discussed in class, a basic rule of research is to

examine secondary data first

You have determined you want to buy an advanced hybrid vehicle, and a visit to Ford's website has revealed that the Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology. You also ask a friend who owns a hybrid auto about her experiences. You are currently in which stage of the consumer purchase decision process for this type of automobile?

information search

When Apple first introduced the Apple II personal computer in 1977, consumers who were young, highly educated, adventuresome (willing to take risk), and wanted to be the first to own a personal computer began buying them. Based on the diffusion of innovation concept, those first buyers of personal computers were _________.

innovators

In a SWOT Analysis, increasing gasoline prices would represent a potential _______ for manufacturers of electric cars

opportunity

All of the following are natural (or structural) barriers to entry, EXCEPT:

relatively low marginal tax rates

In the 20th century, American companies began to produce more goods than buyers could consume. At the same time competition became more significant so companies used aggressive selling techniques to rid themselves of excessive inventory. This describes the _____ era.

sales

What is the promotional objective for the introduction stage of the product life cycle

to inform

A disadvantage of an undifferentiated targeting segmentation strategy is:

unimaginative product offerings and company more susceptible to competition

Compared to the other classifications of consumer products shopping products are

usually more expensive than convenience products and are found in fewer stores.