BA 370 Exam 1

Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing

a marketing strategy

E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed.

place

Which element of the marketing mix is most relevant to the activity "creating value"?

product

Public institutions do not engage in B2B relationships

false

a small business decides to upgrade its aging phone system. the business will probably place a straight rebuy order.

false

In the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent. This change in value is called

foreign currency fluctuations

Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a __________ for the purchase of these medical services.

gatekeeper

Which of the following is a social trend listed in the text?

health and wellness

Which of the following is the third step in the marketing planning process?

identify and evaluate opportunities

At many universities, education faculty members were among the first to ask for personal computers. these faculty members were ______ in the buying center.

initiators

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.

Esau wants to offer his existing design customers new goods and services. He is pursuing a market development strategy.

False

Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing.

False

Promotion deals specifically with retailing and marketing channel management, also known as supply chain management.

False

Sustainability, health and wellness, and how to more efficiently utilize and distribute food are all considered political trends.

False

The strategic planning process always proceeds sequentially through the five steps.

False

When analyzing the immediate environment and the microenvironment, marketers must be careful to keep the firm at the center of all analyses.

False

Marketers wanting to use social media to reach consumers should understand that _______ were born into a world that was already full of electronic gadgets and digital technologies such as the Internet and social networks.

Gen Z

Which of the following is an example of an institutional buyer?

Mayo Clinic hospital

Angele wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs.

True

Apple makes its innovations compatible with existing products to encourage customers to maintain a long-term relationship with the company across all their electronic needs.

True

During the market-oriented era, manufacturers began to focus on customers' needs before they designed or sold their products.

True

Gina is out of bread and butter and needs to decide what is for dinner. She will be stopping at the grocery store on the way home. Gina will likely engage in limited problem solving.

True

In value concretion, the customer participates in the creation of a good or service, which provides additional value to the customer.

True

It is not always necessary to go through all the steps in the marketing planning process.

True

Parties that work with the focal firm are its corporate partners.

True

Price should be based on the value that the customer perceives as a good "Deal" for the product they receive.

True

Situational factors sometimes override psychological and social factors in consumer decision process.

True

The four elements of the consumer's immediate environment are the company, competition, corporate partners, and the physical environment.

True

The marketing plan is broken down into various components- how the product or service will be conceived or designed, how much it should cost, where and how it will be promoted, and how it will get to the consumer.

True

iTunes software is often credited for the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage.

True

Which of the following statements accurately describes the current income distribution in the United States?

Wealthy households are outpacing both poor and middle-class households.

Parties that work along with the focal firm to provide goods and services to consumers are viewed as

corporate partners

The fundamental goal of marketers when creating goods, services, or combinations of both is to

create value

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

creates opportunities to provide value to each group

Where violet grew up, everyone knew everyone else, no one locked their doors, and a person's world could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Violet had to adjust to ____ differences.

cultural

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

culture

Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door, is an example of ________ excellence.

customer

Miner's Oil Change Service Center sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast, courteous service in a clean, professional-looking environment. Miner's has used this strategy for over 40 years, expanding to 15 outlets. Miner's Oil Change Service Center has created a ____ macro strategy to create and deliver value and to develop a sustainable competitive advantage.

customer excellence

Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces __________ demand.

derived

When the Tesla electric cars first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. Increased factory product indicates

derived demand

_____ attributes are product or service features that are important to buyers and that are used to differentiate among choices.

determinant

A firm's macroenvironment includes

economics

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of

engaging customers and developing long-term relationships

A key to successful marketing is determining how to meet the correct balance of ____ needs that best appeals to the firm's target markets.

functional and psychological

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

increased long-term profits

When Darnell went to college, tuition was $650 a semester. Now the same college charges $6500 per semester. This number reflects a persistent increase in price known as

inflation

Topper's Construction needs heavy duty equipment to install a new pipeline in northern Minnesota. topper's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. topper's engineers will primarily play the ____ role in the company's buying center.

influencer

Wanda is the director of HR for a small electronics firm. She has a strong personal interest in technology and is known throughout the firm as the one with the most knowledge about new kinds of communication technologies. if the firm decides to upgrades its network, Wanda will probably function in what role in the firm's buying center?

influencer

When Kristy has a new manicure customer, she invites the person to be on her email distribution list. In the process, in addition to exchanging her manicure service for payment, Kristy is gathering

information

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

just after World War 2

To build relationships, firms focus on the ___ of the relationship, not how much money is made during each transaction.

lifetime profitability

Thomas, a bank employee, doesn't feel that his coworkers accept him. He decides to dress more casually, as they do, hoping to be accepted. Which level of Maslow's hierarchy of needs is Thomas trying to work on?

love

Value creation through place decisions for a consumer product involves

making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

Many marketing students initially overlook the importance of marketing channel management because

many of these activities take place behind the scenes

Among Internet users, some do research online, some shop, some look for entertainment, and many do all three. Each of these groups would be called a

market segment

When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation.

modified rebuy

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

place

Starbucks carefully crafts its offerings and advertising message, and it strategically sets prices and selects locations to appeal to its target market. These efforts represent Starbucks'

positioning strategy

Many teenagers, both male and female, have clothes they purchased in the past that they "would not be caught dead in" today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel

post purchase cognitive dissonance

When Marvel launched several successful series on Netflix, including Jessica Jones, Daredevil, Iron Fist, and Luke Cage, it employed a ________ strategy.

product development

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursing a(n) ____ macro strategy.

product excellence

In most companies, portfolio management is typically done at the SBU or ___ level of the firm.

product line

After hurricane sandy, many states reevaluated their coastal area building requirements. These new building codes represented ____ that building materials companies used to develop new products.

product specifications

After need recognition, a business develops __________ that suppliers might use to develop their proposals.

product specifications

A(n) _____ is one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

reference group

Another name for physiological risk is

safety risk

Iziie is about to open a new housewares store. She is making decisions regarding lighting, colors, and layout of merchandise. Izzie knows these ____ factors will influences consumers' purchase decisions.

sensory

"Black Friday," as the day after Thanksgiving has come to be known in the US, is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "Doorbusters", and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item and decide not to do anymore shopping. This is an example of the impact of ___ on the consumer decision process.

setting high expectations

Though Asian Americans comprise only 5.6 percent of the U.S. population, they represent:

the fastest-growing minority population

B2B marketing involves manufacturers, wholesalers, and retailers.

true

According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans' total net worth?

76%

Elaine was tired of her leather pocketbook, so she sold it to her friend, Jeannie. This is an example of _____ marketing

C2C

Some websites allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent?

social

Curt greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays and offers them free meals on their birthdays. Curt hopes that this attention to his "regulars" will encourage them to

spread positive word of mouth

Francine, the delivery and sales representative for a wine distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected home and table event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Francine is providing the important marketing function of

supply chain management

Even though they operate on a limited schedule and offer few extra services, discount, no-frill airlines like Allegiant have been successful. Consumers obviously consider

the benefit of lower prices to be greater than the cost of reduced services and less convenience

In delivering value, marketing firms attempt to find the most desirable balance between

the need to provide benefits to customers and keep down costs

A small business may use a web portal as a means of forming a supply chain that can respond to its needs.

true

Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of greenwashing

true

organizational culture may vary by geography

true

Tenisha sells consumer electronics. She knows her customers weigh the costs versus the benefits associated with the different options available. Tenisha decided which products to offer and what prices to change based on the way her customers think. Tenisha operates as if she was in the ___ era.

value-based marketing

What type of marketers constantly measure the benefits that customers perceive against the cost of their offerings?

value-oriented marketers

A generation cohort is a group of people

who are of the same generation

When Jamies sees the RFP issues by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor

will probably not be an advantage in getting the new order

Lucas bought a pickup truck to transport his equipment on weekend fishing trips. He also bough a trailer for his lawn maintenance business. His purchases were

B2C, B2B, respectively

Which of the following specifically prohibits monopolies?

Sherman Antitrust Act

The RFP stage of the B2B buying process is not required for

a straight rebuy

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish

a sustainable competitive advantage

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except

age

Kai has to decide which college to attend. This is the most important, riskiest, and most expensive decision he has ever made. He will be engaged in

extended problem solving

The consumer decision process begins with a comparison of available alternatives.

false

Selma is a travel agent. Whenever she sells an expensive vacation package, she encourage the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Selma is trying to reduce her customers' ____ risk.

financial

Elena knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' ____ change(s) over time.

needs, wants, and ability to purchase

The ____ situation usually involves more members of a buying center and involved more time to complete than the other buying situations.

new buy

Roderick is charged with assessing his company's external environment as part of a SWOT analysis. Roderick will study her company's

opportunities and threats

At the main campus of a large university, faculty always refer to one another as "Dr", wear suits, and guard their academic domains against one another. This leads to frequent name-calling and strenuous debates. Meanwhile, at the various branch campuses, faculty members call one another by first name, dress casually, and support one another's scholarly efforts. This example illustrates the differences in _____ that can exist within an organization.

organizational culture

Effective promotion enhances a product or service's

perceived value

_____ refer(s) to the process by which consumers select, organize, and interpret information to form a meaningful picture of the world.

perception