BUS 312 Midterm

There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base? A. Age B. Usage rate C. Gender D. Geography E. Lifestyle

. E. Lifestyle

For which customer relationship group should a company make continuous relationship investments to delight, engage, retain, and grow them? A. True friends B. True believers C. Barnacles D. Butterflies E. Strangers

22. A. True friends

Which of the following is an accurate statement about building customer relationships in the modern marketing era? A. Building relationships through consumer-generated content is expensive and takes time. B. New digital and social media relationship tools are a fad which marketers can safely ignore. C. Digital technologies and social media have caused a decline in customer-engagement marketing. D. Customers have no role in managing relationships and creating personal brand experiences. E. Digital technologies and social media have had little impact on relationship building.

A. Building relationships through consumer-generated content is expensive and takes time.

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague? A. Carefully consider the degree of competition and ease of entry into the segment. B. A segment is attractive if there are substitute products available. C. Fast growing segments are always attractive. D. If there are powerful buyers in the segment it will drive prices up. E. If a segment is larger than others it should always be targeted.

A. Carefully consider the degree of competition and ease of entry into the segment.

Which of the following statements about segmentation is true? A. Different segments might require different marketing strategies or mixes. B. Buyers within a market segment have different needs, characteristics, and behaviors. C. Segmentation identifies individual buyers that can be targeted with a market offering. D. Market segmentation is part of a company's value proposition. E. Most companies today mass market and do not segment their markets.

A. Different segments might require different marketing strategies or mixes.

Which of the following statements is true regarding public policy and government regulation? A. Legislation affecting business around the world has increased steadily over the years. B. Marketers can safely ignore government laws and regulation because they are rarely enforced. C. When public policy is developed, the government does not consider what is good for society; it focuses only on business. D. Government regulation does not get involved in how companies compete with one another. E. Government regulation has no impact on international marketing.

A. Legislation affecting business around the world has increased steadily over the years.

Vince's Video has suffered in the current economy because fewer people have the money for videos and because more people use online streaming sites such as YouTube and Hulu. The videos that Vince's Video does sell are often outpriced by versions coming from China or Taiwan, or they are accused of being damaging to the environment. Which of the following marketing impacts has NOT affected Vince's Video? A. Not-for-profit marketing B. The changing economic environment C. The digital age D. Rapid globalization E. Sustainable marketability

A. Not-for-profit marketing

Which of the following is an important trend in the natural environment that marketers should be aware of? A. Products that require scarce resources will face large cost increases B. Lack of consumer concern for the environment C. Decreased pollution D. The increase in availability of raw materials E. Cost decreases for nonrenewable resources

A. Products that require scarce resources will face large cost increases

Which of the following uses a sense-and-respond philosophy to promote a customer-centered marketing orientation? A. The marketing concept B. The societal marketing concept C. The production concept D. The product concept E. The selling concept

A. The marketing concept

In marketing terms, what is a market? A. The set of actual and potential buyers of a product or service B. All sellers of a product or service C. A retail establishment D. The products that are sold to customers E. A company's current customers

A. The set of actual and potential buyers of a product or service

Being proactive toward the marketing environment means that a __________. A. company develops strategies to change the environment B. company avoids threats C. company watches the environment and follows what competitors do D. company watches the environment and reacts to changes E. company passively accepts the way things are

A. company develops strategies to change the environment

The total combined lifetime value of a company's current and potential customers is called __________. A. customer equity B. customer retention C. market share D. customer loyalty E. share of customer

A. customer equity

The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________. A. market targeting B. a customer-driven marketing strategy C. positioning D. differentiation E. market segmentation

A. market targeting

Market offerings include ________. A. products, services, and experiences B. value, satisfaction, and markets C. products, services, and exchanges D. demands, exchanges, and relationships E. needs, wants, and demands

A. products, services, and experiences

What is positioning? A. Developing profiles of market segments B. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers C. A part of a company-driven marketing strategy D. Selecting which segments to enter E. Dividing a market into smaller groups of buyers

B. Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product? A. Psychographic B. Behavioral C. Economic D. Demographic E. Geographic

B. Behavioral

What is the final step in the marketing process? A. Construct an integrated marketing program. B. Capture value from customers. C. Develop a customer value-driven strategy. D. Engage customers. E. Understand customer needs.

B. Capture value from customers

Which of the following is true of environmental sustainability? A. Energy-efficient operations are unrelated to sustainability. B. Companies are learning that engaging in sustainable practices is good for business. C. Following government regulations is sufficient to support sustainability. D. Sustainability requires trade-offs between present needs and needs of future generations. E. Sustainability is important, but more and more companies are focusing their core mission on profits.

B. Companies are learning that engaging in sustainable practices is good for business.

Which of the following statements regarding segmentation is correct? A. As gender roles have changed, gender is no longer a useful form of segmentation. B. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets. C. The business market is homogenous and is not segmente D. Marketers typically use one variable to segment their markets. E. The use of demographics to segment markets has declined in recent years.

B. Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.

Which targeting strategy focuses on common consumer needs, as opposed to different needs? A. Differentiated marketing B. Mass marketing C. Concentrated marketing D. Local marketing E. Individual marketing

B. Mass marketing

A sizable and growing market of consumers are seeking products such as natural, organic, and nutritional foods, fuel-efficient cars, and alternative medicines. This trend is attributed to which cultural value? A. People's views of organizations B. People's views toward nature C. People's views of themselves D. People's views toward society E. People's views of others

B. People's views toward nature

In the United States, patriotism has been increasing for the past 20 years. Marketers have responded with increased use of the "Made in America" appeal and patriotic themes. This reflects which aspect of culture? A. People's views of themselves B. People's views toward society C. People's views of organizations D. People's views of others E. People's views of nature

B. People's views toward society

BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent? A. Channel differentiation B. Product differentiation C. Services differentiation D. Image differentiation E. People differentiation

B. Product differentiation

Which marketing orientation states that consumers will favor products that offer the most in quality, performance, and innovative features? A. The production concept B. The product concept C. The marketing concept D. The selling concept E. The societal marketing concept

B. The product concept

One new technology marketers are adopting is radio frequency identification (RFID). What does this technology do? A. Scans barcodes at point of purchase B. Tracks products and customers at various points in the distribution channel C. Weighs products at the point of purchase D. Allows SmartPhones to send and receive text E. Identifies spam email before it is received

B. Tracks products and customers at various points in the distribution channel

The __________ consists of larger societal forces that affect how a company engages and serves its customers. A. competitive environment B. macroenvironment C. microenvironment D. business environment E. customer environment

B. macroenvironment

Which of the following correctly identifies the five core customer and marketplace concepts? A. (1) Needs, wants, and demands; (2) Products; (3) Value; (4) Customers; and (5) Competitors B. (1) Needs, wants, and demands; (2) Market offerings; (3) Value; (4) Satisfaction; and (5) Markets C. (1) Needs, wants, and demands; (2) Market offerings; (3) Value and satisfaction; (4) Exchanges and relationships; and (5) Markets D. (1) Needs, wants, and demands; (2) Market offerings; (3) Value and satisfaction; (4) Competitors; and (5) Profits E. (1) Needs; (2) Wants; (3) Demands; (4) Market offerings; and (5) Markets

C. (1) Needs, wants, and demands; (2) Market offerings; (3) Value and satisfaction; (4) Exchanges and relationships; and (5) Markets

Fathers were once ignored or portrayed as dolts in advertising, however today's advertisers are showing more caring and capable dads. This reflects which demographic trend? A. Increased ethnic diversity B. An aging population C. Changing dynamics in the American family D. Geographic shifts in population E. A better educated population

C. Changing dynamics in the American family

Which of the following correctly lists actors in a company's microenvironment? A. Suppliers, marketing intermediaries, technology, publics B. Publics, demographics, suppliers, competitors C. Competitors, marketing intermediaries, suppliers, publics D. Suppliers, marketing intermediaries, competitors, culture E. The economy, publics, competitors, suppliers

C. Competitors, marketing intermediaries, suppliers, publics

Which generational age group is now forming brand relationships and represent tomorrow's markets? A. Seniors B. Millennials C. Gen Z D. Gen X E. Baby boomers

C. Gen Z

On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms? A. Undifferentiated marketing B. Concentrated marketing C. Individual marketing D. Local marketing E. Differentiated marketing

C. Individual marketing

Which of the following descriptions best represents targeting a demographic segment? A. Promoting a smartphone with longer battery life B. Promoting cranberry sauce for the Thanksgiving holiday C. Marketing prepackaged lunches for children D. Rewarding heavy users of a product E. Marketing athletic clothing for sports enthusiasts

C. Marketing prepackaged lunches for children

Which of the following correctly lists marketing intermediaries? A. Resellers, physical distribution firms, marketing services agencies, and customer markets B. Suppliers, competitors, resellers, and publics C. Resellers, physical distribution firms, marketing services agencies, and financial intermediaries D. Resellers, physical distribution firms, customer markets, and competitors E. The company itself, competitors, suppliers, and customer markets

C. Resellers, physical distribution firms, marketing services agencies, and financial intermediaries

Which of the following statements regarding the current demographic environment is correct? A. The combined size of the Millennials and Gen Z has resulted in the U.S. population getting younger. B. The ethnic diversity of the U.S. population should remain stable in the years to come. C. The U.S. population is rapidly getting older. D. The LGBT community is not an attractive target for marketers. E. There are few differences between different generational groups.

C. The U.S. population is rapidly getting older

According to the text, what is the single most important demographic trend in the United States today? A. Changes in the structure of the American family B. A better educated population C. The changing age structure of the population D. Increasing diversity E. Geographic population shifts

C. The changing age structure of the population

The actual and potential buyers in a market share which of the following characteristics? A. They do not engage in marketing. B. They are not affected by environmental forces. C. They share a particular need and/or want. D. They have the same demographic profile. E. They have little influence over marketers.

C. They share a particular need and/or want.

What is the purpose of a value proposition? A. To balance customer management with demand management B. To define the target market C. To differentiate and position a market offering in the marketplace D. To determine whom a company will serve with its market offerings. E. To determine the prices a company will charge for its products

C. To differentiate and position a market offering in the marketplace

What are perceptual positioning maps used for? A. To find the best retail locations for a brand B. To show consumer perceptions of different brands on a single product dimension C. To show consumer perceptions of different brands on important product dimensions D. To show consumer perceptions of an individual brand on important buying dimensions E. To compare a company's profitability with the profitability of competitors

C. To show consumer perceptions of different brands on important product dimensions

Demography studies statistics that include __________. A. the economy, technology, family, and age structure of the population B. population size, density, income distribution, and culture C. age, gender, race, and occupation D. age, race, income distribution, and lifestyle E. age, gender, government regulation, and race

C. age, gender, race, and occupation

P&G launched their "Tide Loads of Hope" program, which provides mobile laundromats to families in disaster-stricken areas. P&G washes, dries, and folds clothes for these families free of charge. This is an example of __________. A. adhering to government regulation B. being socially irresponsible C. cause-related marketing D. environmental sustainability E. putting profits ahead of social responsibility

C. cause-related marketing

The most important actors in the company's microenvironment are __________. A. competitors B. the company itself C. customers D. suppliers E. publics

C. customers

Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________. A. the demand for customized products is decreasing B. serving one or a few smaller segments can limit sales C. it can increase costs D. focusing on what is common in consumers can potentially appeal to the largest number of buyers E. offering one marketing mix can limit sales

C. it can increase costs

Geographically, many Americans have been moving to small cities located beyond congested metropolitan areas, such as Minot, North Dakota; Boone, North Carolina; Traverse City, Michigan; and Concord, New Hampshire. These small cities are called __________. A. suburbs B. urban areas C. micropolitan areas D. outlying areas E. rural areas

C. micropolitan areas

Marketing was once understood in the sense of making a sale. Today, marketing is understood in the new sense of __________. A. developing innovative products. B. telling customers what they need C. satisfying customer needs D. not engaging customers E. eliminating promotion

C. satisfying customer needs

In today's global environment, everything and everyone are digitally connected to everything and everyone else. The term used to describe this is __________. A. mobile marketing B. social media C. the Internet of Things D. digital media E. the World Wide Web

C. the Internet of Things

To create and capture customer value, companies must engage the first step of the marketing process, which is __________. A. design a customer value-driven marketing strategy B. create customer delight C. understand the marketplace and customer needs and wants D. construct an integrated marketing program E. build profitable customer relationships

C. understand the marketplace and customer needs and wants

__________ is the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. A. Demand B. Satisfaction C. Objective value D. Customer-perceived value E. Exchange

D. Customer-perceived value

Ford offers a wide variety of cars that range from around $14,000 to more than $54,000. This reflects which economic factor? A. Interest rates B. Cost of living C. Tax rates D. Income distribution E. Income level

D. Income distribution

Which of the following statements regarding generational marketing is correct? A. Marketers see Gen Z as one homogenous group. B. Each generation is typically at the same socioeconomic level. C. Marketers see baby boomers as one homogenous group. D. Marketers need to form more precise age-specific segments within each generational group. E. The most effective way to segment by age is to use birth date as the basis.

D. Marketers need to form more precise age-specific segments within each generational group.

Which value proposition is the most difficult to sustain in the long run? A. Less for much less B. More for the same C. The same for less D. More for less E. More for more

D. More for less

What are the 4 Ps of marketing? A. Product, people, price, promotion B. Product, price, people, packaging C. Product, promotion, price, packaging D. Product, price, place, promotion E. Product, price, promotion, profit

D. Product, price, place, promotion

The first step to a successful value-driven marketing strategy is to determine whom to serve with a market offering. To make this decision, marketers engage in which two activities? A. Segmenting and demand management B. Customer management and demand management C. Targeting and positioning D. Segmenting and targeting E. Segmenting and positioning

D. Segmenting and targeting

What is the overall purpose of differentiation? A. To allow a firm to offer the lowest prices B. To select the segment or segments to enter C. To divide the market into smaller groups of buyers D. To create superior customer value E. To market high quality products

D. To create superior customer value

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation. A. demographic B. usage rate C. life-cycle stage D. benefits sought E. personality

D. benefits sought

The primary goal of consistently delivering superior value is to ________. A. avoid the need to advertise B. maximize profits C. expand into global markets D. build profitable customer relationships E. keep costs down

D. build profitable customer relationships

The key element of successful marketing today is to __________. A. develop one-of-a-kind products B. run frequent promotions C. offer low prices D. create value E. advertise on television

D. create value

Many companies are going beyond government regulation and are developing strategies and practices that create a world economy that the planet can support indefinitely. This represents __________. A. sustained marketing B. pollution control C. green marketing D. environmental sustainability E. environmental marketing

D. environmental sustainability

One important reason that business legislation is enacted is to __________. A. ensure that companies make profits B. provide legal guidelines for businesses and marketers without actually enforcing them C. remove legal regulations from a free market economy D. protect consumers from unfair business practices E. ensure that competition is unregulated

D. protect consumers from unfair business practices

The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________. A. perceptual map B. positioning statement C. image statement D. value proposition E. mission statement

D. value proposition

Which of the following is true regarding the technological environment? A. Changes in technology are always beneficial to consumers and society. B. As products and technology become more complex, safety becomes less of a concern. C. The pace of technological change is slowing down. D. Government regulation has no impact on applying new technologies to products. E. Companies must keep up with changes in technology or risk being left behind.

E. Companies must keep up with changes in technology or risk being left behind.

Which of the following statements regarding concentrated marketing is correct? A. Concentrated marketing is not feasible for small companies. B. Concentrated marketing is generally not a profitable strategy. C. Concentrated marketing targets a small share of a large market. D. Marketers cannot effectively fine-tune the marketing mix to the needs of a narrow, carefully designed segment. E. Concentrated marketing involves higher-than-normal risks.

E. Concentrated marketing involves higher-than-normal risks.

Which of the following statements regarding demographic segmentation is correct? A. Demographic variables are difficult to measure. B. Demographic segmentation divides a market based on age, personality, and benefits sought. C. Demographics are rarely used anymore for market segmentation. D. Demographics segmentation uses lifestyle as the primary measure for segmentation. E. Consumer needs, wants, and usage rates vary closely with demographic variables.

E. Consumer needs, wants, and usage rates vary closely with demographic variables.

How has the Great Recession of 2008-2009 affected marketers in terms of consumer attitudes? A. Consumers are less concerned with value for the dollar. B. Consumers are moving from mindful to mindless spending. C. Consumers' attitudes have not been affected by the recession. D. Consumers are less willing to save their money. E. Consumers are showing an enthusiasm for frugality

E. Consumers are showing an enthusiasm for frugality.

What is the key to building lasting customer relationships? A. Offering everyday low prices B. Marketing on the web C. Selling products at a discount D. Creating unique products that competitors do not offer E. Creating superior customer value and satisfaction

E. Creating superior customer value and satisfaction

What are the three broad targeting strategies used by marketers? A. Mass marketing, differentiated marketing, and concentrated marketing B. Differentiated marketing, concentrated marketing, and micromarketing C. Undifferentiated marketing, differentiated marketing, and concentrated marketing D. Mass marketing, undifferentiated marketing, and micromarketing E. Mass marketing, differentiated marketing, and micromarketing

E. Mass marketing, differentiated marketing, and micromarketing

Which of the following statements regarding positioning is correct? A. Establishing a position usually takes a very short amount of time. B. Once established, a strong position is never lost. C. Abruptly changing a position is an effective strategy when consumer needs change. D. Once a positioning strategy is identified, it is typically very easy to implement. E. Positions must adapt over time to meet changing consumer needs.

E. Positions must adapt over time to meet changing consumer needs.

Companies such asIBM, Walmart, and Google now look beyond economic gain and, in their marketing strategies, they also consider the well-being of customers, the depletion of natural resources, the viability of suppliers, and the interests of the local community. This reflects which marketing philosophy? A. The production concept B. The marketing concept C. The product concept D. The selling concept E. The societal marketing concept

E. The societal marketing concept

When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors. A. economic B. psychographic C. demographic D. geographic E. cultural

E. cultural

If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________. A. measurable B. actionable C. substantial D. accessible E. differentiable

E. differentiable

When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called __________. A. global segmentation B. geographic segmentation C. intra-market segmentation D. cultural segmentation E. intermarket segmentation

E. intermarket segmentation

Psychographic segmentation divides buyers into different segments based on __________. A. age and life-cycle stage B. personality and income C. lifestyle and geography D. lifestyle and income E. lifestyle and personality

E. lifestyle and personality

Engaging customers and managing profitable customer relationships is the simplest definition of ________. A. value B. a market C. advertising D. satisfaction E. marketing

E. marketing

You are thirsty and decide to have an iced tea. Your thirst is a ________ and your choice of iced tea is a ________. A. demand; want B. need; demand C. want; need D. want; demand E. need; want

E. need; want

A firm can be proactive by __________. A. reacting to changes in the environment as they occur B. monitoring social media C. waiting for other firms to respond to changes in the environment D. accepting existing legislation E. pressing lawsuits to keep competitors in line

E. pressing lawsuits to keep competitors in line

Companies who passively accept the marketing environment __________. A. develop strategies to change the environment B. use lobbying to influence legislation C. form contractual agreements to control their distribution channels D. assume that their strategic options are not bound by the current environment E. view it as uncontrollable and do not attempt to change it

E. view it as uncontrollable and do not attempt to change it