BUS Ch. 11, 12, & 13 Test

_____ is created when your customers believe that your product has a better relationship between the cost and the benefits than any competitor.

Value

_____ is a category of marketing research that requires the researcher to interact with the research subject.

Survey research

The customer group that a business focuses on is called its __________.

Target market

Marketers who cannot forge a close personal bond with every customer but gather data and pursue a connection with those who initiate contact have a _____ relationship with the customers.

Limited

Monopoly, Life, Ouija, Sorry!, Battleship, and Twister represent Hasbro's product _____.

Line

iPhones now come in blue, yellow, red, black, white, and coral. This reflects a ________ extension.

Line

Customers rarely switching to shop at another store illustrates customer ___________.

Loyalty

Dividing potential customers into groups of similar people is known as _____.

Market segmentation

The _____ concept is a business philosophy that makes customer satisfaction—now and in the future—the central focus of the entire organization.

Marketing

A company sells puzzles, board games, calendars, and clothing. This represents a product _____.

Mix

_____ are brands that the producer owns and markets.

National Brands

Which diffusion characteristic asks: How visible is the product to other potential consumers?

Observability

What are the two common traps marketers fall into?

Overpromising and underpromising

Some stores offer layaway where they allow customers to set aside products they want and pay for them a little at at time. This is an example of which type of utility?

Ownership Utility

Which of the following utilities satisfies wants by smoothly transferring proprietorship of goods and services from seller to buyer?

Ownership Utility

Many stores offer delivery or instore pickup for orders. This is an example of which type of utility?

Ownership utility

In the context of marketing strategies and tactics, sports, politics, and art dominate the category of _____ marketing.

People

"Customers can develop into advocates for businesses by becoming powerful generators of positive 'word-of-mouth'" would be a statement from which marketing era?

Relationship Era

"They retain their current customers as it is cost-effective" would be a statement from which marketing era?

Relationship Era

Loyalty programs became popular in which marketing era?

Relationship Era

Comparison shopping occurs with which category of consumer products?

Shopping Products

Name at least two of the four characteristics of a well-chosen target market.

Size, accessibility, profitability, limited competition

In the context of consumer product categories, most people perceive _____ as being so important that they are unwilling to accept substitutes.

Specialty Products

Which consumer product category has highly selective distribution?

Specialty Products

Which of the following utilities satisfies wants by providing goods and services at a convenient period for customers?

Time utility

What is the goal of a knockoff?

To copy a competitor

Which diffusion characteristic asks: How easily can potential consumers sample the new product?

Trialability

What do we call the ability of goods and services to satisfy consumer wants?

Utility

A whole range of public and private organizations market beliefs that are meant to change how people think or act. This is referred to as _____ marketing.

idea marketing

Monitoring and predicting consumer behavior is an objective of _____.

marketing research

Demographic segmentation divides the market based on what?

measurable characteristics about people such as age, gender, and income

Jenna sells furniture that she fixes and paints. What type of utility does Jenna most likely provide?

Form utility

A company's marketing manager meets all clients at least once a month. The company most likely establishes a _____ partnership with its customers.

Full

What is the first stage in the standard model of the new product development process?

Idea generation

A company signs a contract to use another company's characters on their products. This is an example of what?

Licensing

What is the biggest downside of observation research?

It does not yield any information on consumer motivation

What is an advantage of survey research?

It helps you secure information about what people are thinking and feeling.

What is another term for "buyer's remorse"?

Cognitive dissonance

The physical good or delivered service that provides a core benefit is called the _____.

Actual product

What is an advantage of licensing?

An established reputation

The purpose of the _____ stage of the new product development process of a company is to estimate costs and forecast sales for each idea.

Analysis

Which type of segmentation uses dividing the market based on how people react toward various products?

Behavioral segmentation

What is an advantage of co-branding?

Both partners leverage their strengths to enter new markets.

What is an advantage of observation research over survey research?

It allows you to notice what people actually do and not what they say they do.

What is one drawback of secondary data?

Can be outdated, cannot be customized, may not meet specific needs, available to competitors

What is most likely to take place when a company launches a new product that is lower in price than the current products of the company?

Cannibalization

The _____ stage of the new product development process entails introducing the product to the general market.

Commercialization

A slight modification of an existing product is called a _____.

Continuous innovation

A product has three layers. What are they?

Core benefit, actual product, and augmented product.

In the context of product differentiation and planning, the term _____ refers to the advantage that a consumer gains from specific product features.

Customer Benefit

_____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.

Customer relationship management

In the context of the new product development process, the _____ stage leads to detailed descriptions of each concept with specific product features.

Development

In the context of new product adoption, the process of a new product spreading throughout a market after it is introduced is called _____.

Diffusion

_____ are brand-new ideas that radically change how people live.

Discontinuous innovations

_____innovations require a moderate level of consumer learning in exchange for significant benefits.

Dynamically continuous

The only certainty in the _____ environment is change, but the timing of expansions and contractions is virtually impossible to predict.

Economic

_____ is the process of continually collecting information from the external marketing surroundings.

Environmental scanning

Idea marketing is often combined with _____ marketing to market ideas that are meant to change how people think or act.

Event marketing

_____ marketing includes marketing—or sponsoring—athletic, cultural, or charitable functions.

Event marketing

What is one drawback of primary data?

It can be expensive to obtain

The purpose of the _____ stage of the new product development process of a company is to weed out proposals that do not fit with the company's objectives.

Idea screening

What do companies use market research for?

Identify external opportunities and threats.

In the context of business product categories, accessory equipment is designed for a shorter productive life than _____.

Installations

Which business product category refers to large capital purchases made by a company that are designed for a long productive life?

Installations

Diana sells hand warmers at football tailgating events. This is an example of which type of utility?

Place Utility

Which of the following utilities satisfies wants by providing goods and services at a convenient location for customers?

Place Utility

Which marketing strategy can be best employed for attracting tourists?

Place marketing

The characteristics of a product that a marketer offers are known as _____.

Product Features

Which of the 4 P's has decisions that range from brand name, to product image, to package design, to customer service?

Product strategy

"They prioritize the production of large quantities of goods" would be a statement from which marketing era?

Production Era

What do we call dividing the market based on consumer attitudes, interests, values, and lifestyles?

Psychographic segmentation

_____ refers to how well a product performs its core function.

Quality level

In B2B, dividing the market based on the characteristics of buyers is which type of segmentation?

customer-based segmentation

_____ refers to how people act when they're purchasing products to use either directly or indirectly to produce other products.

business buyer behavior

Understanding the _____ environment begins with analysis of market share.

competitive

_____ is the description of how people act when they are buying, using, and discarding goods and services for their own personal consumption.

consumer behavior

The goal of the _____ strategy of a product is to deliver the product to the right people, in the right quantities, at the right time, in the right place.

distribution

A company that spends more money on promotions in cities with high population densities is using __________ segmentation.

geographic

_________ strategy includes all of the ways that marketers communicate about the product.

promotion