chp 6 mktg, Chapter 7 - Consumer Buying Behavior, MKTG 351: Test 2 Review - Chapter 9, chp 11 mktg

IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing?

Direct ownership

Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility?

Direct ownership

True/False: Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

False

True/False: Exporting, licensing and franchising, trading companies, contract manufacturing, and joint ventures are preferred modes of international market entry for firms with an export department structure.

False

True/False: Firms with internationally integrated structures are the least likely to engage in direct ownership activities internationally.

False

True/False: Franchising is an arrangement whereby a franchisee grants a franchiser the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements of the franchising company's business, in return for a financial commitment and an agreement to conduct business in accordance with the franchisee's standard of operations.

False

True/False: Government restrictions on the amount of a particular currency that can be bought or sold are known as import controls.

False

True/False: Importing is the sale of products to foreign markets.

False

True/False: It is impossible for a subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

False

True/False: Media allocation, retail outlets, and price are among the easiest marketing mix variables to standardize.

False

True/False: NAFTA business licensing requirements have been increased.

False

True/False: NAFTA eventually eliminates all tariffs on goods produced and traded between the United States, Mexico, and Brazil.

False

True/False: NAFTA simplifies country-of-origin rules, hindering Japan's use of Mexico as a staging ground for further penetration into U.S. markets.

False

True/False: Opportunities for international marketers are limited to industrial nations with the highest incomes.

False

True/False: The U.S. and Japanese economies are more integrated than are the U.S. and Canadian economies.

False

True/False: The World Trade Organization was an important outcome of the unification of Europe.

False

True/False: The joint venture approach has little appeal to industries involved in extraction of natural resources.

False

True/False: The passage of NAFTA was agreeable to all parties.

False

True/False: The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept anything that American marketers have to sell.

False

True/False: U.S. marketers may engage in bribery to compete with foreign firms.

False

True/False: When products are introduced from one nation into another, acceptance is more likely if the two cultures are different.

False

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)

Import tariff

Which of the following is often used to raise revenue for a country and/or to protect domestic products?

Import tariff

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture.

Which of the following is the fastest growing, most affluent subculture in the United States? African Americans Hispanics Asian Americans Native Americans Italian Americans

Asian Americans

What consumer research method consists of a series of adjectives, phrases, or sentences regarding an object, with subjects indicating the intensity of their feelings toward this object by reacting to these adjectives, phrases, or sentences? Projective specification Patronage clarification Group interview Attitude scale Depth interview

Attitude scale

Which of the following purchases would most likely require a consumer to use extended problem solving? Audio equipment Shaving cream Cereal Kitchen napkins Gasoline

Audio equipment

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product. a) shopping b) unique c) specialty d) historical e) unsought

c

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and a) late adopters. b) nonadopters. c) innovators. d) middle adopters. e) middle majority.

c

During the introduction stage of a successful product, profits are usually a) at their highest point. b) negative and decreasing. c) negative and increasing. d) positive and increasing. e) declining.

c

Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.

c

The U.S. Army recruits soldiers based on the slogan, "An army of one," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs? Safety Esteem Self-actualization Physiological Social

Self-actualization

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy.

WTO

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

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade?

The World Trade Organization

One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix a) width. b) depth. c) length. d) volume. e) dimension.

a

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products. a) shopping b) specialty c) service d) convenience e) unsought

a

Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product? a) Shopping b) Convenience c) Specialty d) Unsought e) Industrial

a

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of a) width of product mix. b) product mix consistency. c) depth of product mix. d) a market mix. e) a promotion mix.

c

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product a) line. b) item. c) mix. d) width. e) depth.

c

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product. a) convenience b) shopping c) specialty d) unsought e) durable

c

The depth of a product mix is measured by the average number of a) convenience products as compared with the number of specialty products. b) different product lines offered by the company. c) different products offered in each product line. d) specialty products as compared with the number of convenience products. e) product features that the company offers.

c

True/False: In determining the size of the market for consumer products, the international marketer will probably be very interested in per capita GDP figures.

True

True/False: International marketing is defined as marketing activities performed across national boundaries.

True

True/False: NAFTA remains politically controversial.

True

True/False: Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.

True

True/False: Regardless of the extent to which a firm chooses to globalize its marketing strategy, extensive environmental analysis and marketing research are necessary to understand the needs and desires of the target market(s) and successfully implement the chosen marketing strategy.

True

True/False: The degree of commitment to international marketing can range on a continuum from national or domestic orientation to a global orientation.

True

True/False: The greatest danger in becoming involved in direct ownership in international marketing is political uncertainty.

True

True/False: The job of the export agent is to bring together buyers and sellers from different countries.

True

True/False: The unification of Europe permits virtually free trade among the member nations of the European Union.

True

True/False: Two-thirds of the world's total purchasing power is outside the United States.

True

True/False: Under a licensing arrangement, the licensee pays commissions or royalties on sales or supplies used in manufacturing.

True

True/False: While NAFTA eliminates many tariffs immediately, the tariffs on more sensitive goods, such as glassware, footwear, and some fruits and vegetables, will be phased out over a 15-year period.

True

When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is a) poor timing. b) the company's failure to match product offerings to customer needs. c) ineffective branding. d) design problems. e) overestimation of market size.

a

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline

a

Which of the following is always used to determine the classification of a good? a) Buyer's intent for using the product b) Amount of shopping required by the buyer to obtain the product c) Price of the product d) Specific product features e) Industry competitors

a

Which of the following is the most typical example of a new product introduction? a) Pringles sold in snack-sized containers b) A brand-new nut discovered in Africa c) A car that uses no oil or gasoline d) Shoes that literally make you run faster e) A device that cools your car while parked outside

a

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? a) Maturity b) Growth c) Introduction d) Market reduction e) Decline

a

Which of the following statements does not apply to convenience goods? a) Consumers are brand loyal to convenience products and are not likely to substitute other brands. b) Convenience products require minimal shopping effort. c) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. d) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. e) Colas, gasoline, and bread are good examples of convenience goods.

a

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? a) Lowering prices after developmental costs have been recovered b) Raising promotion expenditures as a percentage of total sales c) Moving from intensive to selective distribution d) Raising prices to encourage competitors to enter the market e) Reducing the number of product models in the product line

a

A business partnership between a domestic firm and a foreign firm is known as

a joint venture.

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 personality. a reference group. a consideration set. a knowledge base. a role conflict.

a reference group.

The actions and activities associated with a position one holds within a group, organization, or institution constitute personality. a role. a motive. perception. an attitude.

a role.

An alliance between Honda and Ford would most likely be classified as

a strategic alliance.

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. The practice of offering fried octopus and squid at Asian KFC's is best described as

a strategy of some customization.

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? a) Demographic b) Geographic c) Psychographic d) Product-related e) Education

a) Demographic

Population density and city size are _______ variables used for market segmentation. a) geographic b) demographic c) psychographic d) environmental e) geodemographic

a) geographic

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

a) heterogeneous.

A forecasting method that predicts sales based on relationships between past sales and other variables is called a) regression analysis. b) customer forecasting surveys. c) the Delphi technique. d) random factor analysis. e) time series analysis.

a) regression analysis.

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

a) segmentation.

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ___________ strategy. a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous

a) undifferentiated

In the consumer buying decision process, the information search stage a) yields a group of brands that a buyer views as possible alternatives. b) involves a buyer becoming aware of the need for a product. c) is not necessary when the buyer is involved in extensive decision making. d) occurs immediately after evaluation of alternatives. e) is lengthy for routine response buying behavior.

a) yields a group of brands that a buyer views as possible alternatives.

The gross domestic product is

an overall measure of a nation's economic standing.

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix a) width. b) depth. c) length. d) volume. e) life cycle.

b

In which stage of the product life cycle do profits begin to decrease? a) Introduction b) Growth c) Maturity d) Decline e) Recovery

b

In which stage of the product life cycle do profits peak? a) Introduction b) Growth c) Decline d) Termination e) Maturity

b

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets a) services. b) ideas. c) goods. d) tangible products. e) features.

b

Nick Arnold's Auto Towing Service would best be described as a(n) __________ product. a) convenience b) unsought c) specialty d) durable e) shopping

b

Products are classified as being business or consumer products according to the a) goals of the organization. b) buyer's intended use of the product. c) seller's intended use of the product. d) location of use. e) types of outlets from which they are purchased.

b

Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products. a) shopping b) convenience c) industrial d) specialty e) unsought

b

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

b) A large number of people or organizations

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a) Surveys b) Executive judgment c) Cycle analysis d) Market tests e) Industry indicators

b) Executive judgment

What is the main problem with using a market test as a forecasting tool? a) Difficult to interpret b) Expensive c) Inaccurate d) Unacceptable to consumers e) Overused

b) Expensive

Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model? a) Religion b) Geographic location c) Income d) Political views e) Ethnicity

b) Geographic location

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's a) sales potential. b) market potential. c) target growth rate. d) sales forecast. e) sales objective.

b) market potential.

Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a) business market. b) market. c) undifferentiated market d) segmented market e) market variable

b) market.

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is a) lifestyle. b) motives. c) personality. d) benefit expectations. e) personality attributes.

b) motives.

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is a) geographic location. b) type of organization. c) secondary product use. d) customer size. e) market potential.

b) type of organization.

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ___________ strategy. a) directed b) undifferentiated c) segmented d) differentiated e) product-use

b) undifferentiated

A specialty product a) requires minimal effort to purchase. b) is purchased frequently. c) requires purchase planning, and the buyer will not accept substitutes. d) is generally less expensive than other items in the same product class. e) prompts the purchaser to make comparisons among alternatives.

c

A(n) _____ is a concept, philosophy, or image. a) product b) good c) idea d) service e) issue

c

Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer. a) menus b) mixes c) lines d) life cycles e) ensembles

c

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called a) raw materials. b) installations. c) accessory equipment. d) component parts. e) process materials.

c

What are a marketing manager's two options during the decline stage? a) Reintroduce the product to new markets or stop sales immediately b) Speed up the product's decline or increase advertising c) Attempt to postpone the decline or accept its inevitability d) Divesting the brand or reinvesting in the brand e) Accept the decline or phase the product out

c

When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as a) specialty products. b) installations. c) unsought products. d) shopping products.

c

When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual? a) Interest b) Awareness c) Evaluation d) Trial e) Adoption

c

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy? a) Decline b) Expansion c) Growth d) Introduction e) Stabilization

c

The four major stages of a product life cycle include a) prosperity, recession, depression, and recovery. b) specialty, convenience, shopping, and unsought goods. c) decline, stabilization, exposure, and growth. d) introduction, growth, maturity, and decline. e) awareness, interest, trial, and adoption.

d

The intangible products that most organizations use in their operations are called a) component parts. b) MRO supplies. c) process ideas. d) business services. e) installations.

d

The width of a product mix is measured by the number of product a) dimensions in the product line. b) features in each brand. c) items in the product line. d) lines a company offers. e) specialties a company offers.

d

What measure of the product mix involves the number of product lines a company offers? a) Quality b) Consistency c) Depth d) Width e) Size

d

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle. a) introduction b) growth c) stabilization d) maturity e) decline

d

Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using? a) Demographic b) Psychographic c) Life cycle d) Geographic e) Product use

d) Geographic

Within the information search step of the consumer buying decision process, what two primary aspects exist? a) Consideration sets and evoked sets b) Personal information and non-personal information c) Selective retention and selective distortion d) Internal search and external search e) Company-produced information and internal information

d) Internal search and external search

Which of the following products is most likely to have its market segment based on age? a) Bass shoes b) Lipton Iced Tea c) Bic pens d) Legos e) Carpet

d) Legos

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a) Executive judgment b) Customer surveys c) Time series analysis d) Market tests e) Regression methods

d) Market tests

Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) do not have the authority to gamble.

e) do not have the authority to gamble.

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? a) Micromarketing b) Population c) Market density d) MSA e) PMSA

c) Market density

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) 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. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources

c) 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.

All of the following are categories of common forecasting techniques for business except a) surveys. b) time series analysis. c) customer determined. d) executive judgment. e) market tests.

c) customer determined.

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a) sales forecast. b) market potential. c) company sales potential. d) company sales objective. e) market share goal.

c) company sales potential.

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation. a) psychographic b) social class c) lifestyle d) personality e) family life cycle

c) lifestyle

Family life cycle is most typically based on a) income. b) geographic location. c) marital status and age of children. d) occupation. e) buying power.

c) marital status and age of children.

. Evaluating and making product positioning decisions is important for a) new products only. b) existing products only. c) new and existing products. d) product deletions only. e) new products and product deletions.

c) new and existing products.

In shopping for a new laptop computer for her master degree program, the alternatives Jocelyn is considering include Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's dissonance group. evaluative group. framing set. external search results. consideration set.

consideration set.

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the consumer market. end-use consumption group. business market. household purchasing group. organizational market.

consumer market

Children often achieve ______ by observing parents and older siblings in purchase situations and then through their own purchase experiences. consumer socialization personality role identification social class attitude formation

consumer socialization

Which of the following products is most likely to be marketed, using an undifferentiated approach? a) bicycle b) computer c) notebook d) seasoning salt e) oscillating fan

d) seasoning salt

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? a) Trial b) Adoption c) Interest d) Awareness e) Evaluation

d

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. KFC's establishment of international production/processing facilities is an example of

direct ownership.

If a consumer receives information that is inconsistent with her or his beliefs, the consumer may alter this information. This perceptual process is known as selective exposure. distortion. retention. information. organization.

distortion.

Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in

domestic marketing.

Minerals, chemicals, timber, and agricultural products are considered a) process materials. b) accessory materials. c) MRO supplies. d) component parts. e) raw materials.

e

Products used directly in the production of a final product but are not easily identifiable are categorized as a) accessory products. b) component parts. c) MRO supplies. d) assembly components. e) process materials.

e

Sales start at zero and profits are negative during the ____ stage of the product life cycle. a) decline b) growth c) initial d) maturity e) introduction

e

Sales usually start to decline during the __________ stage of the product life cycle. a) beginning of the termination b) end of the growth c) beginning of the decline d) beginning of the growth e) end of the maturity

e

Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods. a) similar; more b) higher; fewer c) higher; more d) lower; more e) lower; fewer

e

Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.

d

Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a little boy. He likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as situational involvement. dynamic involvement. enduring involvement. dynamic buying behavior. situational buying behavior

enduring involvement.

T F Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

f

T F Customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.

f

T F Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.

f

T F During a product's maturity stage, all sales promotion efforts are focused on consumers.

f

T F During the evaluation of relevant market segments, competitive assessment is used primarily to determine the possibility of additional competitors entering particular segments.

f

T F During the growth stage, promotion costs rise as a percentage of total sales.

f

T F Early adopters are the first group of consumers to adopt a new product.

f

T F Effective product positioning helps serve the total market by creating a concept that appeals to the general public.

f

T F Failure of a new product is always absolute.

f

T F Family life cycle is a psychological dimension used for segmenting markets.

f

T F Following a consistent customer-focused plan does not help new products become successful.

f

T F Head-to-head competition is most appropriate when the product performance characteristics do not differ significantly from those of competing brands.

f

T F In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods.

f

T F In the awareness stage of the product adoption process, the buyer seeks information about the product.

f

T F Intensive competition causes price increases during the growth stage of the product life cycle.

f

T F It is likely that during the fifth step of the target market selection process, marketers will decide not to enter and compete in any market segments.

f

T F Lifestyle is a product-related variable.

f

T F Market potential is the amount of a product that an organization could sell during a specified time period.

f

T F Obtaining a specialty product involves a considerable amount of comparison activity.

f

T F Only one variable can be used to segment a market.

f

T F Per-unit gross margins on convenience products are relatively high.

f

T F Product mix refers to a related group of products in the product line

f

T F Product positioning refers to marketers' efforts to have their brands located in the most appropriate location in stores.

f

T F Sales forecasts are always long-range in nature.

f

T F The core product element of the total product can include installation, delivery, training, and financing.

f

T F The executive judgment method of sales forecasting is very accurate in predicting future sales.

f

T F The five-step process usually used for target market selection includes identifying the appropriate targeting strategy, determining which segmentation variables to use, developing market segment profiles, evaluating relevant market segments, and deciding which targeting strategy to use.

f

T F The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.

f

T F The information yielded by market segment profiles usually is not very useful later in the marketing process.

f

T F The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.

f

T F The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.

f

T F The success of launching a new product is based primarily on luck.

f

T F The two major product categories are business and institutional.

f

T F The types of surveys used to forecast sales are customer, executive, and competitor surveys.

f

T F The width of a product mix refers to the number of generic products offered by a company.

f

T F There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy.

f

T F Through market tests, a forecaster gains data regarding consumers' intended purchases.

f

T F Trial is the first stage of the product adoption process.

f

T F Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.

f

T F When a successful brand such as Frito-Lay develops a new product, it will always succeed.

f

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 ethnic heritage. personality. attitudes. perception. family.

family.

A subsidiary in a foreign country generally operates under

foreign management in order to develop a local identity.

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called

franchising.

In many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in

franchising.

All of the following are marketer-dominated sources of information except salespeople. advertising. packaging. friends. displays.

friends.

When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as

globalization of marketing.

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

globalization.

Standardizing many Nike and Adidas shoe models worldwide is an example of

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.

Evaluative criteria for brands within the consideration set are both selective and expansive. objective and subjective. internal and external. extended and routinized. perceptive and selective.

objective and subjective.

After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual organization. attention. retention. interpretation. redefinition.

organization.

The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as

outsourcing.

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. self-concept self-image projective depth patronage

patronage

The development of a person's self-concept is a function of learning. psychological and social factors. reference groups and opinion leaders. roles and family influences. subcultures.

psychological and social factors.

A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n)

quota

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)

quota

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n)

quota

Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective exposure. distortion. retention. information. organization.

retention.

Maria reads through the newspaper fashion flyers containing advertisements for sweaters from Polo, purses from JC Penney, and tennis shoes from Foot Locker. She remembers only the shoe ad, thanks to the recent tear in her own Reeboks. Maria has engaged in selective distortion. decision making. analysis. retention. reading.

retention.

Jonathan is torn between buying a new swing set for his kids and buying a new set of Ping golf clubs for himself. Jonathan is experiencing attitude formation. belief assessment. role inconsistency. cognitive dissonance. personality.

role inconsistency.

Stacy is going to the store to buy a gallon of milk. She will most likely use ___________ in her consumer decision-making process. routinized response behavior limited problem solving extended problem solving perceptual scanning evaluation of alternatives

routinized response behavior

While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as routinized response behavior. extended problem solving. limited problem solving. situational perception. enduring involvement.

routinized response behavior.

When individuals choose which information inputs will reach their awareness and ignore other inputs, they are using perception. selective distortion. selective exposure. cognitive dissonance. selective retention.

selective exposure.

People's needs to grow, develop, and achieve their full potential are referred to by Maslow as ______ needs. ego esteem self-actualization social safety

self-actualization

Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterize enduring involvement. extended problem solving. selective exposure. situational involvement. selective retention.

situational involvement.

Human requirements for love, affection, and a sense of belonging would be classified by Maslow as _____ needs. safety esteem social physiological self-actualization

social

An open aggregate of people with similar social ranking is referred to as a reference group. social class. role. caste. subculture.

social class

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into family types. geographic regions. reference groups. social classes. attitudinal segments.

social classes.

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 motivational influences. social influences. roles. personality influences. cultural influences.

social influences.

Which product listed would most likely be purchased through routinized response behavior? Car Desk Shirt Soft drink Television set

soft drink

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in

standards regarding intellectual property.

Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ___________ to work together on a worldwide basis.

strategic alliance

Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as

strategic alliances.

T F "The people to check with" are the early adopters.

t

T F A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix.

t

T F A company sales forecast is the amount of a product that a firm actually expects to sell during a specific time period.

t

T F A company sometimes defines a total market as its target market.

t

T F A firm using a concentrated targeting strategy aims its marketing activities at one segment of a market.

t

T F A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

t

T F A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments.

t

T F A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates.

t

T F A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands.

t

T F A marketer may segment a market in terms of the benefits that customers expect to receive from a particular product.

t

T F A product can be repositioned by changing its image through promotional efforts directed at customers.

t

T F A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

t

T F A product mix is the composite or total group of products that an organization makes available to customers.

t

T F A product need not be a physical product.

t

T F A product's classification can influence its price, distribution, and promotion.

t

T F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

t

T F Advertising used in the decline stage may prolong the life of the product.

t

T F At times, after doing segmentation analysis, marketers in an organization decide not to enter any segments.

t

T F Bread is usually a convenience product.

t

T F Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.

t

T F Communicating product benefits to consumers is very important in the introduction stage.

t

T F Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.

t

T F Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior.

t

T F If a company repositions a relative product failure, that product might become a successful member of the product line.

t

T F In a customer survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.

t

T F Individuals' ability to buy depends on the amount of their buying power.

t

T F Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.

t

T F Laggards are the last to adopt a new product and usually distrust new products.

t

T F Lifestyle analysis focuses on people's activities, interests, and opinions

t

T F Many products are in the maturity stage of the product life cycle.

t

T F Many products never get beyond the introduction stage.

t

T F Market segment profiles help determine the most desirable segment or segments in relation to the firm's strengths, weaknesses, objectives, and resources.

t

T F Motives can be used to segment markets.

t

T F New products seldom generate enough sales to bring immediate profits.

t

T F One condition for effective segmentation is that at least one segment must have substantial profit potential.

t

T F One limitation of the sales force survey technique is that salespeople often believe that their sales goals are determined by their sales estimates.

t

T F One of the most common reasons new products fail is because of a company's failure to match product offerings to customer needs.

t

T F One problem with using psychographic variables for segmentation purposes is that they are difficult to measure accurately.

t

T F One way marketers can segment business markets is according to their geographic location.

t

T F Perceptual maps are created by questioning a sample of customers about their perceptions of products, brands, or organizations, with respect to two or more dimensions.

t

T F Price cuts are typical in a product's growth stage.

t

T F Process materials are used directly in the production of products.

t

T F Procter & Gamble has a wider product mix than does Baskin Robbins.

t

T F Product position is customers' concept of a product's attributes relative to their concept of competitive brands.

t

T F Profits decline in the maturity stage, largely because of increased competition.

t

T F Promotion decreases in importance during a product's decline stage.

t

T F Sales peak in a product's maturity stage.

t

T F Segmentation variables are characteristics of individuals, groups, or organizations in a total market.

t

T F Sellers can sometimes prolong a product's life cycle.

t

T F Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.

t

T F Sometimes new marketing channels open up in the decline stage.

t

T F Strategies relating to price become more mixed during a product's maturity stage.

t

T F Supporting services, such as installation and guarantees, are part of a product.

t

T F Surveys are sometimes used to forecast sales.

t

T F The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.

t

T F The buyer's intent can determine whether an item is classified as a consumer or a business product.

t

T F The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix.

t

T F The depth of a product mix is measured by the average number of product types in a product line.

t

T F The first adopters of a product are the innovators.

t

T F The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it.

t

T F The size of the market potential places limits on the size of the company sales potential.

t

T F The sum of firms' marketing efforts equals industry marketing efforts

t

T F The term market density refers to the number of potential customers per unit of land area, such as per square mile.

t

T F The two general approaches to measuring company sales potential are the breakdown and the buildup approach.

t

T F The undifferentiated strategy can be effective for an organization that has a homogeneous market and can develop and maintain a single marketing mix.

t

T F The ways in which customers use a particular product may be a basis for segmenting the market.

t

T F Trend analysis is a sales forecasting technique based on historical sales data.

t

T F Use of the product is the most important means of distinguishing consumer products from business products.

t

T F When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments.

t

T F When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do they move through the process at the same speed.

t

T F When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors.

t

Another name for the European Union is

the Common Market.

The country with the highest GDP is

the United States.

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n)

trading company.

When products are introduced into one nation from another, acceptance is far more likely

if there are similarities between the two cultures.

A duty levied by a nation on goods bought outside its borders and brought inside is called a(n)

import tariff.

The purchase of products from a foreign source is called

importing.

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in

importing.

Buyers' actions are affected by one or more internal energizing forces geared toward satisfying needs, which are called motives. lifestyles. perceptions. attitudes. traits.

motives.

Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n)

multinational enterprise.

Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n)

multinational enterprise.

Firms that have operations or subsidiaries located in many countries are referred to as

multinational enterprises.

T F Accessory equipment becomes a part of the finished product.

f

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market.

"born globals"

Approximately ____ of the world's purchasing power is outside of the United States.

2/3

In relation to international marketing, which of the following best describes direct ownership?

A company owns subsidiaries or facilities in foreign countries.

______ bring together buyers and sellers from different countries and collect a commission for arranging sales.

Export agents

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?

APEC

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities?

APEC

When Smithson Graphics decided to go international with its marketing effort, it adopted a global approach. Which factors did SG 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 utilities, footwear, children's apparel, groceries, and housing? Native Americans Hispanics African Americans Asian Americans Americans over 65 years of age

African Americans

By 2009, NAFTA will create a totally free trade area between the United States,

Canada, and Mexico.

Many marketers claim that ____ will become the world's largest market.

China

Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?

Contract manufacturing

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?

Cultural factors

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

Cultural relativism

Which of the following lists the levels of involvement in global marketing from the lowest to the highest?

Domestic marketing, limited exporting, international marketing, globalized marketing

___________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank.

Exchange controls.

Which of the following products would probably require extended problem solving before a purchase? Products purchased frequently Products to be purchased in the future Products that are purchased routinely Expensive products Products purchased as a result of social influences

Expensive products

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". At what level of involvement in international marketing is Harley-Davidson with regard to its bikes?

Exporting

Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of problem-solving process is she using? Selective Intensive Extended Shopping Routinized

Extended

Jose and Teresa are searching for a new cellular phone. They will most likely engage in which one of the following forms of problem solving? Extended problem solving Limited problem solving Impulse buying Routinized response behavior Intensive response behavior

Extended problem solving

Mark is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Martin is using which type of consumer problem-solving process? Routinized response behavior Habitual response Information search Extended problem solving Intensive problem solving

Extended problem solving

True/False: A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

False

True/False: A quota is the suspension, by a government, of trade in a particular product.

False

True/False: Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world.

False

True/False: Contract manufacturing occurs when a firm pays a commission or royalties on sales or supplies used in manufacturing.

False

True/False: Cultural differences do not affect marketing negotiations and decision-making behavior.

False

Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing?

Globalization of markets

For which of the following products would a consumer most likely use limited problem solving? Detergent Toothpaste Automobile Hair dryer Washing machine

Hair dryer

What is the greatest advantage to an organization of having a subsidiary in a foreign nation?

Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity

Which of the following centralizes all of the responsibility for international operations?

International division structures

Which of the following is most likely to engage in direct ownership activities internationally?

Internationally integrated structures

Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations?

It has operations or subsidiaries in many different countries.

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of

Japan

Which of the following countries has made the greatest inroads into other world markets?

Japan

Which one of the following is most likely to be a product for which both the purchasing decision and the brand decision are strongly influenced by reference groups? Canned peaches Instant coffee Jeans Furniture Soap

Jeans

Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the Australian government to make watches. What type of partnership agreement does this situation most likely represent?

Joint venture

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?

Licensing

What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable?

Licensing

Kellogg's is introducing a new bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of problem solving? Routinized response behavior Limited problem solving Extended problem solving Impulse buying Extensive response behavior

Limited problem solving

Which of the following is used to help maintain a more favorable balance of trade by a country?

Limiting imports

Which of the following alliances/agreements is the United States not a part of?

MERCOSUR

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as

MERCOSUR.

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization?

Media allocation

According to Coleman's major social class categories, which of the following social classes in our culture has these characteristics: lives in well-kept neighborhoods, likes fashionable items, and is often found in management positions? Lower class Upper class Middle class Working class First class

Middle class

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?

More advanced technology is reaching these countries even though they lack technological infrastructures.

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

NAFTA.

Wal-Mart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

North American Free Trade Agreement.

Bob Turner makes an appointment to visit with a new dermatologist in town to determine whether he should have several moles on his neck removed. When he arrives at the dermatologist's office, Bob notices a foul odor in the air, worn floor coverings, cluttered rooms that have paint peeling from the walls, and poor lighting. While Bob viewed the dermatologist as competent, Bob decided not to have the moles removed even though the dermatologist recommended removal. Which situational influences are most likely to have affected Bob's decision? Social surroundings Customer's momentary mood and condition Time pressures Purchase reasons Physical surroundings

Physical surroundings

Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?

Political and legal

T F An undifferentiated targeting strategy does not target a single market with one marketing mix.

f

When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia? Purchase Evaluation of alternatives Problem recognition Information search Prepurchase evaluation

Problem recognition

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized?

Product

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? Problem recognition Information search Evaluation of alternatives Purchase Postpurchase evaluation

Purchase

Which of the following consumer problem-solving processes will probably be used in purchasing toothpaste? Extended problem solving Routinized response behavior Intensive problem solving Limited problem solving Perceptual scanning

Routinized response behavior

___________ are situational influences that include the characteristics and interactions of others who are present when a purchase decision is being made, such as friends, relatives, and salespeople. Physical surroundings Social surroundings Purchase reasons Buyer's momentary mood and condition Pressures created by time factors

Social surroundings

The Common Market of the Southern Cone (MERCOSUR) includes countries from

South America.

Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?

Strategic alliance

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?

The franchiser does not have to put up a large capital investment.

How does using an exporting intermediary limit the risk involved with global marketing?

This approach involves limited risk because the company has no direct investment in the foreign country.

True/False: Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity.

True

T F Being a product pioneer guarantees a product's success.

f

True/False: A multinational enterprise is a firm that has operations or subsidiaries located in many countries.

True

True/False: A subsidiary operating in a foreign country may have important tax, tariff, and other operating advantages over a licensing agreement or a joint venture.

True

True/False: A trading company provides a link between buyers and sellers in different countries.

True

True/False: An embargo occurs when a government suspends trade with a particular country.

True

True/False: As project sizes increase in the face of global competition and firms attempt to spread the huge costs of technological innovation, there is a stronger impetus to form joint ventures.

True

True/False: Because of continuing disputes and inconsistencies among the administrations of member states, it will be many years before the European Union truly becomes one deregulated market.

True

True/False: Customers that travel the globe expect to be able to buy the same product in most of the world's more than 200 countries.

True

True/False: Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment.

True

True/False: Domestic marketing involves marketing strategies aimed at markets within the home country.

True

True/False: Firms that use an international division structure are often organized domestically on the basis of functions or product divisions, while the international division operates based on geography.

True

True/False: GATT is based on negotiations between member countries to reduce worldwide tariffs and increase international trade.

True

Large tools and machines used in a production process for a considerable length of time are classified as a) installations. b) accessory equipment. c) component parts. d) raw materials. e) MRO supplies.

a

A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market reduction e) decline

a

A common business objective of the ___________ stage of the product life cycle is to generate cash flow. a) maturity b) growth c) introduction d) market reduction e) decline

a

A company wanting to maintain market share during the maturity stage requires moderate to large a) advertising expenditures. b) distribution expenditures. c) production expenditures. d) price increases. e) packaging modifications.

a

A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called a) harvesting. b) investing. c) realigning. d) divesting. e) mixing.

a

A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

a

A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n) a) component part. b) specialty item. c) accessory equipment. d) raw material. e) process material.

a

According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange.

a

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product. a) component parts b) accessory parts c) raw materials d) process materials e) MRO supplies

a

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product? a) Business b) Process materials c) Raw material d) Convenience e) Consumer

a

As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

a

Convenience products are a) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. b) frequently purchased items for which buyers are willing to exert considerable effort. c) frequently purchased items that are found in certain retail outlets. d) items that are expensive but are easy to purchase. e) items that require some purchase planning and for which the buyer often will not accept substitutes.

a

Dannon Yogurt represents what type of product for most consumers? a) Convenience b) Business c) Shopping d) Specialty e) Durable

a

During the decline stage of the product life cycle, a) sales rapidly decrease. b) market share is maintained. c) competition is at a peak. d) profits begin to fall. e) profits peak and then begin to decline.

a

During the growth stage of the product life cycle, marketers must a) fortify the product position. b) move to exclusive distribution. c) raise the price. d) increase promotion as a percentage of sales. e) introduce private brands.

a

Energizer batteries would be classified as which type of product? a) Convenience b) Shopping c) Specialty d) Unsought e) Industrial service

a

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used? a) Positioning to avoid competition b) Head-to-head competition c) Parallel positioning d) Segmented positioning e) Counter positioning

a) Positioning to avoid competition

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method? a) Time series analysis bExecutive judgment c) Surveys d) Regression analysis e) Market tests

a) Time series analysis

A widely used system for classifying individuals on the basis of lifestyle is a) VALS. b) PRIZM. c) CMSA. d) LIFO. e) Prospect Zone.

a) VALS.

T F Buyers want to exert only minimal effort to obtain shopping products.

f

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a) a market test. b) regression analysis. c) trend analysis. d) a survey. e) the Delphi technique.

a) a market test.

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a) behavioristic variables. b) benefits. c) lifestyles. d) psychographic variables. e) demographic variables.

a) behavioristic variables.

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. a) breakdown b) recessionary c) buildup d) pyramid e) dimensional

a) breakdown

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

a) buying power.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Carlos' knowledge of the correct gas mileage is an example of the ____ component of his attitude toward the Toyota, while Alicia's feelings about the children in the commercial being happy in the Toyota van were an example of the _____ component of her attitude. a) cognitive; affective b) cognitive; behavioral c) affective; cognitive d) affective; behavioral e) behavioral; affective

a) cognitive; affective

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore most likely using a(n) _____ targeting strategy. a) concentrated b) differentiated c) exclusive d) focused e) undifferentiated

a) concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy. a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

a) concentrated or differentiated targeting

Gap clothing stores sell primarily what type of products? a) Convenience b) Shopping c) Unsought d) Nondurable e) Specialty

b

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. a) demographic b) psychographic c) sociographic d) behavioristic e) geographic

a) demographic

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables. a) demographic b) psychographic c) geographic d) family life cycle e) product use

a) demographic

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. a) differentiated b) total market c) concentrated d) undifferentiated e) integrated

a) differentiated

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a) expert forecasting survey. b) Delphi technique. c) random factor analysis. d) external judgment survey. e) market test.

a) expert forecasting survey.

The three most widely recognized types of consumer problem solving are: a) limited problem solving, extended problem solving, and routinized response behavior. b) extended problem solving, enduring problem solving, and situational problem solving. c) planned problem solving, impulse buying, and limited problem solving. d) internal problem solving, external problem solving, situational behavior. e) responsive behavior, planned behavior, and impulsive problem solving.

a) limited problem solving, extended problem solving, and routinized response behavior.

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

a) market segments.

Marketers who attempt to use reference-group influence in advertisements are most likely to succeed when messages indicate that a) people in a specific group buy the product and are highly satisfied by it. b) reference groups should be of little concern to the consumer. c) reference groups are "in" and everyone should belong to at least one. d) all products and brands are influenced by reference groups. e) people in a specific group have tried the product and dislike it.

a) people in a specific group buy the product and are highly satisfied by it.

The primary psychological influences on consumer behavior are: a) perception, motives, learning, attitudes, personality, and lifestyles. b) attitudes, perception, retention, exposure, roles, and lifestyles. c) attitudes, perception, social class, culture, and learning. d) perception, motives, reference groups, social class, and personality. e) lifestyles, personality, perception, motives, attitudes, and culture.

a) perception, motives, learning, attitudes, personality, and lifestyles.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. a) perceptual map b) ideal cluster c) product position chart d) market graph e) product matrix

a) perceptual map

A group becomes a reference group for an individual when that person identifies with this group so strongly that he or she a) takes on many of the values, attitudes, or behaviors of group members. b) becomes a formal member of the group. c) becomes familiar with the group's activities. d) seeks information from members of the group regarding buying decisions. e) cannot control the strength of his or her involvement with the group.

a) takes on many of the values, attitudes, or behaviors of group members.

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is a) the importance and intensity of interest in a product in a particular situation. b) the buyer's perception, motives, and abilities. c) the amount of external search that an individual puts into the decision-making process. d) the particular circumstance or environment in which consumers find themselves. e) a combination of an individual's demographic factors.

a) the importance and intensity of interest in a product in a particular situation.

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

a) undifferentiated

Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will most likely use a(n) ___________ approach in defining a target market. a) undifferentiated b) differentiated c) product strategy d) cost-benefit e) demographic

a) undifferentiated

The three major types of reference groups are: membership, aspirational, and advocacy. advocacy, avoidance, and approach. aspirational, disassociative, and membership. actual, implied, and desired. family, peer group, and media

aspirational, disassociative, and membership.

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.

Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ___________ about Secret. motive consideration set cognition attitude self-concept

attitude

Cognitive, affective, and behavioral are the three major components of self-concept. motives. lifestyles. consumer socialization. attitudes.

attitudes.

Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle. a) maturity b) growth c) introduction d) market testing e) decline

b

Aggressive pricing is typical during the ___________ stage of the product life cycle. a) decline b) growth c) introduction d) plateau e) stabilization

b

All of the following are reasons why new products fail except a) overestimated market size. b) followed a systematic plan. c) distributed insufficiently. d) had poor timing. e) promoted poorly.

b

An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle? a) Introduction b) Growth c) Stabilization d) Expansion e) Decline

b

An individual moves into the adoption stage of the adoption process at the point when he or she a) is self-motivated to get information about the product. b) begins using that specific product. c) seriously considers whether the product will satisfy his or her needs. d) experiences the product for the first time. e) becomes aware that the product exists.

b

Buyers do not compare alternatives when shopping for ______ products. a) convenience b) specialty c) shopping d) unique e) unsought

b

The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products. a) non-adopters b) laggards c) innovators d) late adopters e) late majority

b

The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage. a) maturity b) decline c) growth d) introduction e) reorganization

b

To make intangible products more tangible or real to the consumer, marketers often a) use low prices on intangible goods. b) use symbols or cues to help symbolize product benefits. c) use external reference prices. d) use multiple channels of distribution. e) offer more support services with such products.

b

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a) Raw materials b) Installations c) Accessory equipment d) Component parts e) Process materials

b

When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as a) harvesting. b) divesting. c) investing. d) realigning. e) squashing.

b

Which stage of the product life cycle begins when a business reaches the breakeven point with the product? a) Maturity b) Growth c) Introduction d) Market testing e) Decline

b

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. a) Market segmentation variables b) Market segment profiles c) Segmentation grids d) Market differentiation indexes e) Market concentrations

b) Market segment profiles

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method? a) Time series analysis b) Market test c) Executive judgment d) Regression analysis e) Survey

b) Market test

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

b) The geographic location of the company

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

b) They are difficult to measure.

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

b) Undifferentiated

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. alternate purchase consideration problem imposed

consideration

Selective exposure refers to a) targeting only certain parts of the total market. b) admitting only certain inputs into consciousness. c) the circumstances or conditions that exist when a consumer is making a purchase decision. d) the process of selecting, organizing, and interpreting information inputs to produce meaning. e) remembering inputs that support personal feelings and beliefs and forgetting those that do not.

b) admitting only certain inputs into consciousness.

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior? a) customer's reactions to marketing strategy can impact the firm's success b) all customers are the same when it comes to buying behavior c) a firm should create a marketing mix that satisfies customers d) it helps the marketer predict how consumers will respond to marketing strategies e) the marketing concept stresses that a firm should know its customers

b) all customers are the same when it comes to buying behavior

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

b) allow experts to work separately to reach a consensus as to their forecasts.

Problem recognition occurs when a consumer a) searches for information to resolve a problem. b) becomes aware that there is a difference between a desired state and an actual condition. c) recognizes a need. d) evaluates her or his purchase. e) is exposed to a television advertisement.

b) becomes aware that there is a difference between a desired state and an actual condition.

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. a) consumer b) business c) government d) international e) most target

b) business

Routinized response behavior is what a consumer does when a) purchasing an unfamiliar product. b) buying frequently purchased, low-cost items that need little effort. c) an information search is extensive and may involve consulting with friends and family. d) buying products that require a moderate amount of time for information gathering and deliberation. e) he or she enters the problem recognition stage of the consumer buying decision process.

b) buying frequently purchased, low-cost items that need little effort.

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

b) choose the segments most in line with the firm's objectives and long-term growth.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. e) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

b) customers' needs for the product must be homogeneous.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

b) differentiated

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

b) divide a total market to enable a marketer to develop a more precise marketing mix.

Which of the following products is least likely to be segmented according to stages in the family life cycle? a) Single-family homes b) Ford automobiles c) European vacations d) Diet Coke e) General Electric appliances

d) Diet Coke

A salesperson at Best Buy tells Patrick Dunnavan that the Sony Notebook is one of the most reliable computer notebooks ever made. Patrick, however, has just heard about a second Sony recall for this model because of overheating. His most likely response will be to a) buy the Sony. b) forget the information from the salesperson. c) ignore the recall as a fluke. d) focus on positive aspects of the Sony. e) cease shopping for a computer notebook at this time.

b) forget the information from the salesperson.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid a) behavioristic segmentation. b) geodemographic segmentation. c) market density analysis. d) demographic segmentation. e) geographic segmentation.

b) geodemographic segmentation.

T F Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment.

f

Extended problem solving is the type of consumer problem-solving process that a) involves no conscious planning but rather a powerful and persistent urge to buy something. b) is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products. c) requires a moderate amount of time for information gathering and search. d) is the creation and maintenance of a collection of products that satisfy a person's needs and wants. e) requires very little search-and-decision effort and is practiced when buying lowcost and frequently purchased products.

b) is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

b) it allows a firm to specialize to meet specific customer needs.

Sixteen-year-old high school students do not form a market for alcoholic beverages because they a) lack sufficient buying power to form a market. b) lack the authority to purchase this type of product. c) do not want to purchase this type of product. d) do not have sufficient experience with this type of product. e) lack the money to purchase this type of product.

b) lack the authority to purchase this type of product.

In contrast to extended problem solving, routinized response behavior requires a) careful deliberation before making a choice. b) less information about products. c) more time. d) considerable thought. e) more money.

b) less information about products.

Chloe and Max are searching for a health club to join. This purchase will likely be affected by ___________ involvement. low internal enduring evoked perceived

enduring

The five major stages of the consumer buying decision process, in order, are a) information search, establishment of product criteria, evaluation of alternatives, purchase, and postpurchase evaluation b) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation. c) problem recognition, information search, evaluation of alternatives, postpurchase evaluation and purchase. d) information search, evaluation of alternatives, purchase, trial adoption period, and postpurchase evaluation. e) problem recognition, purchase, evaluation of alternatives, postpurchase evaluation, and rebuy.

b) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

b) product positioning is the customer's absolute perception of a product's attributes.

Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets

b) the purchase is always made by more than one individual

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

b) sales of a new product hurts sales of the company's existing products.

T F A market segment profile provides customers with an understanding of how a business can use its capabilities.

f

A product line is defined as a) products that can be designated as a unique offering among the organization's products. b) products that an organization makes available to consumers. c) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. d) a specific group of products that are offered to the market. e) products that are sold by the same firm or a division of a firm.

c

The ___________ is the difference in value between a nation's exports and its imports.

balance of trade

The role of export agents is to

bring buyers and sellers from different countries together and collect a commission for arranging sales.

96. When are marketers least likely to change a product's design, style, or other attributes? a) Introduction b) Maturity c) Decline d) Growth e) Removal

c

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product? a) Raw material b) Installations c) Accessory equipment d) Component part e) Process material

c

Which of the following statements regarding social class is true? a) A social class is a closed aggregate of people with similar social ranking. b) The criteria used to group people into social classes do not vary from one culture to another. c) A social class is an open aggregate of people with similar social ranking. d) A social class is a ranking of people by other members of society into positions of social respect. e) A social class is an open aggregate of people with different social rankings

c) A social class is an open aggregate of people with similar social ranking.

. Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a) Concentrated b) Strategic c) Differentiated d) Undifferentiated e) Multisegmented

c) Differentiated

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis

c) Time series analysis

Changing people's attitudes toward a firm and its marketing program is a) simple when advertisements are used. b) impossible, even if the firm uses advertisements. c) a long, expensive, and difficult task that may require extensive advertising campaigns. d) unnecessary, since consumer attitudes are of little importance. e) rarely attempted through the use of marketing practice.

c) a long, expensive, and difficult task that may require extensive advertising campaigns.

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

c) a market segment.

The division of a market according to what benefits consumers want from the product is called ______ segmentation. a) behavioristic b) product usage c) benefit d) end-purpose e) advantage

c) benefit

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

c) determining which segmentation variables to use.

In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e) the authority to buy the specific products.

c) discretionary income to purchase the product.

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through a) U.S. Census Bureau information. b) geographic segmentation variables. c) geodemographic segmentation. d) climate information. e) psychographic segmentation.

c) geodemographic segmentation.

A culture can be divided into subcultures according to a) personality characteristics of individuals in that culture. b) motives that members of that cultural group have for their behavior. c) geographic regions or human characteristics, such as age or ethnic background. d) income levels. e) information to which consumers allow themselves to be exposed.

c) geographic regions or human characteristics, such as age or ethnic background.

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning. a) direct b) focused c) head-to-head d) avoidance e) parallel

c) head-to-head

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

c) identifying an appropriate targeting strategy.

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

c) people within the market have heterogeneous needs.

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is a) geographic location. b) customer size. c) product use. d) customer importance. e) organization classification.

c) product use.

The sales prediction technique based on the correlation between sales and other factors—such as population density, per capita income, or family size—is a) executive judgment. b) time series analysis. c) regression analysis. d) a market test. e) an expert survey.

c) regression analysis.

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's a) sales potential. b) market potential. c) sales forecast. d) market sales. e) selected market.

c) sales forecast.

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. a) marketing b) classification c) segmentation d) stratification e) dividing

c) segmentation

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

c) 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. a) demographic b) situational c) subcultural d) role e) social class

c) subcultural

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Toyota's production of commercials that featured Hispanic actors and the Spanish language is an example of marketing to a) cultural self-concepts. b) social classes. c) subcultures. d) roles. e) social strata.

c) subcultures.

Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products.

c) they would not have the ability to purchase such products.

When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called interpretation. completion. distortion. closure. linking.

closure.

After purchasing a new Lexus, Pablo sees an Infinity pass by on the street and begins to wonder if he made the right choice. Pablo is experiencing problem recognition. cognitive dissonance. internal search. alternative evaluation. framing.

cognitive dissonance.

Shaun is going shopping with his dad to buy his first baseball glove for Little League. He listens to his dad talk to the salesperson at the sporting goods store, watches him examine the stitching in the glove and then rub his finger over the leather palm. Shaun's observations are part of his consumer development. attitude development. purchasing evaluation. consumer socialization. consumer attitude.

consumer socialization.

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of

contract manufacturing

If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using

contract manufacturing.

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces.

cultural

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". One of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. This is an example of _______ impacting the market.

cultural forces

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe". If KFC were to resort to paying this bribe in China saying that "it's different doing business there" -- this would be an example of

cultural relativism.

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on

customization.

A product item is best described as a a) component of a marketing mix. b) particular brand. c) specific characteristic of a product. d) specific version of a product. e) unit of measure for the product.

d

During the maturity stage a) product modifications are unnecessary. b) there is less emphasis on changing a product's price. c) marketing strategies are rarely altered. d) some competitors are forced out. e) limited advertising expenditures are required to maintain market share.

d

Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle. a) introduction b) decline c) growth d) maturity e) competitive

d

Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product? a) Price b) Selling organization c) Terms of the sale d) Buyer's intended use of the product e) Benefits the product provides

d

T F A marketer can use regression analysis techniques to predict the sales of new products.

f

When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process. a) awareness b) interest c) evaluation d) trial e) adoption

d

When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process? a) Awareness b) Interest c) Evaluation d) Trial e) Adoption

d

Which of the following best defines the interest stage in the product adoption process? a) The buyer tries to find the product in a retail store. b) The buyer considers the benefits and determines whether to try the product. c) The buyer tries the product to determine its usefulness. d) The buyer seeks information and is receptive to learning about the product. e) The buyer uses objective sources to learn about the product.

d

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible? a) McDonald's arches b) Mercedes Benz emblem c) Nike swoosh d) Traveler's Insurance umbrella e) Arrows on Wrigley gum packages

d

Which of the following is most likely to be considered a convenience good? a) A lamp b) A haircut c) Running shoes d) Gatorade e) Concert tickets purchased online

d

Which of the following is not a stage in the buyer's product adoption process? a) Awareness b) Adoption c) Trial d) Exploration e) Interest

d

Which stage of the product life cycle is characterized by intense competition? a) Decline b) Plateau c) Introduction d) Maturity e) Stabilization

d

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

d) Personality characteristics, motives, and lifestyles

Which of the following is not one of the major categories of consumer market segmentation variables? a) Demographic characteristics b) Geographic variables c) Psychographic dimensions d) Situational variables e) Behavioristic characteristics

d) Situational variables

Which of the following buying situations is most consistent with routinized response behavior? a) Ian buying his first pair of basketball shoes b) Molly buying a new set of tires for her car c) Aaron buying a new fishing rod and reel d) Stephanie buying bottled water e) Bryan buying a new software program

d) Stephanie buying bottled water

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

d) Undifferentiated

Which of the following is an example of a behavioristic segmentation variable? a) Family size b) Climate c) Age d) Usage rate e) Personality characteristics

d) Usage rate

When marketing research shows that a group of people does not desire a particular product, the people in that group a) are a market. b) do not have the ability to purchase the product. c) do not have the authority to purchase the product. d) are not a market for the product. e) are a market but will not purchase the product.

d) are not a market for the product.

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of a) demographics. b) lifestyles. c) psychographics. d) behavior. e) personality characteristics.

d) behavior.

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be a) poor product positioning. b) product deletion. c) product repositioning. d) cannibalization. e) new-product development.

d) cannibalization.

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's a) target growth rate. b) sales forecast. c) sales objective. d) company sales potential. e) market potential.

d) company sales potential.

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

d) concentrated

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a) homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

d) concentrated

A marketer that targets customers based on marital status and the presence and age of children is using a) behavioristic segmentation. b) lifestyle variables. c) psychographic variables. d) family life cycle. e) phase of life segmentation.

d) family life cycle.

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on a) age. b) education. c) product use. d) gender. e) income.

d) gender.

An attitude scale measures the a) strength of a buyer's need for a product. b) buyer's level of information about a product. c) amount of experience the buyer has had with the product. d) intensity of a buyer's feelings toward a certain object. e) intensity of a buyer's desire for the product.

d) intensity of a buyer's feelings toward a certain object.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of a) perception. b) motivation. c) attitudes. d) learning. e) influence.

d) learning.

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least important. These needs, in order from most to least important are a) psychological, physiological, safety, social, and esteem. b) physiological, safety, esteem, social, and self-actualization. c) physiological, psychological, safety, social, and esteem. d) physiological, safety, social, and esteem, self-actualization. e) physiological, esteem, safety, self-actualization, and psychological.

d) physiological, safety, social, and esteem, self-actualization.

The five categories of situational influences are: a) product involvement level, physical surroundings, social surroundings, time perspective, and purchase reason. b) antecedent states, physical surroundings, social surroundings, time perspective, and space dimensions. c) social surroundings, physical surroundings, time pressures, purchase reason, and lifestyles. d) purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood. e) store atmosphere, location, aromas, sounds, and lighting.

d) purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.

T F A person who has buying power also has the authority to buy.

f

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 a) determine which segmentation variables to use. b) develop market segment profiles. c) identify the appropriate targeting strategy. d) select specific target markets. e) develop sales forecasts.

d) select specific target markets.

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

d) selecting specific target markets.

Perception is a three-step process that involves a) motivation, personality, and attitudes. b) classifying, recording, and eliminating information received through the senses. c) collecting, eliminating, and organizing information inputs. d) selecting, organizing, and interpreting information inputs. e) anticipating, classifying, and discarding information inputs.

d) selecting, organizing, and interpreting information inputs.

The three major categories of influences on the consumer buying decision process are: a) situational influences, demographic influences, and psychological influences. b) social influences, situational influences, and marketer-dominated influences. c) demographic influences, situational influences, and marketer-dominated influences. d) situational influences, social influences, and psychological influences. e) marketer-dominated influences, psychological influences, and person-specific influences.

d) situational influences, social influences, and psychological influences.

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

Estimating the cost of entering a market and focusing on a specific target segment is important because a) cost estimates are crucial to estimating sales potential accurately. b) higher costs will keep other potential competitors from entering that particular segment. c) customers are more likely to be attracted to marketers that invest heavily in the target segment. d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e) higher cost generally ensures long-term success.

d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

d) their purchasing decisions are always made by only one individual

Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power.

d) they do not have the need or desire for dog food.

The forecasting techniques that assume past sales patterns will continue into the future are all variations of a) regression analysis. b) random factor analysis. c) seasonal analysis. d) time series analysis. e) past sales forecasting surveys.

d) time series analysis.

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

d) undifferentiated

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

d) use a positively viewed characteristic they assume much of their target market has or would like to have.

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a) customer size. b) psychographics. c) demographics. d) use of product. e) geographic location.

d) use of product.

Globalization of marketing involves

developing a set of marketing strategies for the entire world or major regions of the world.

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce inventory by selling the bikes at below cost prices. This practice is known as

dumping.

If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in

dumping.

A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors.

e

As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product. a) convenience b) unsought c) disposable d) shopping e) specialty

e

As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a a) raw material. b) processed component. c) component part. d) service. e) business product.

e

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and a) production activities. b) service assistance. c) specialty industrial products. d) computer programming and operation services. e) MRO supplies.

e

Cadillac recognized it needed to revitalize its brand and attract different market segments. These are indications that Cadillac's products were primarily in the ______ stage of the product life cycle. a) maturity b) growth c) introduction d) market testing e) decline

e

Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle. a) introduction b) growth c) maturity d) early e) decline

e

Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of a) poor timing. b) the failure to match product offerings to customer needs. c) technical problems. d) overestimation of market size. e) ineffective branding.

e

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. a) psychographic b) usage c) demographic d) geodemographic e) behavioristic

e) behavioristic

The difference between absolute and relative product failure is a) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent. b) relative product failure loses money on its investment, whereas absolute product failure returns a small profit. c) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires. d) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution. e) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

e

The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle. a) decline b) evaluation c) growth d) introduction e) maturity

e

Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination. a) not yet developed b) growth c) introduction d) maturity e) decline

e

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is a) pruning items from the product line. b) generating cash flow. c) maintaining their market share. d) filling geographic gaps. e) increasing their share of the customer.

e

Which of the following is not a business product? a) Oil to be refined into fuel b) Chips to be integrated into components for personal computers c) Paper, pens, and tape to be used in an office d) Marketing consulting services to aid a company in marketing a new product e) Calculators bought to help individuals complete their personal federal income tax forms

e

Which of the following forecasting methods is least dependent on historical sales data? a) Regression analysis b) Trend analysis c) Time series analysis d) Cycle analysis e) A market test

e) A market test

Which of the following statements about the consumer buying decision process is true? a) Consumers progress through the five stages of this process for all limited problem-solving decisions. b) Although all of the steps in the process are used in all decision processes, the order tends to depend on the customer's level of involvement. c) The key element of the process that exists in all consumer buying decision processes is the purchase of the product. d) Once the purchase of a product has been made, the consumer buying decision process is complete. e) Consumers making limited problem-solving decisions may not go through all five steps of the process.

e) Consumers making limited problem-solving decisions may not go through all five steps of the process.

Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate? a) Inputs are organized by individuals to produce meaning, and this organizational process is usually a slow one. b) Organization of information inputs is not always needed to produce meaning. c) Inputs that reach awareness are organized and interpreted in much the same way by all consumers. d) Because a person interprets information in terms of what is familiar, only one interpretation of organized inputs is possible. e) Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.

e) Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? a) Surveys b) Executive judgment c) Time series analysis d) Market tests e) Regression analysis

e) Regression analysis

When a business has a relatively small number of customers, a preferred method of forecasting is a) regression analysis. b) trend analysis. c) the Delphi technique. d) a market test. e) a customer forecasting survey.

e) a customer forecasting survey.

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) the sales force survey results. b) the results of sales forecasting. c) a market trend analysis. d) a market segmentation discrimination analysis. e) a market segment profile.

e) a market segment profile.

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

e) allows a firm to develop a special marketing mix for a single market segment.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. Positive feelings generated by satisfaction with Skola's response will become part of Steve's a) personality. b) motives. c) social class. d) role. e) attitude.

e) attitude.

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. a) multivariable b) use of product c) breakdown d) regression e) buildup

e) buildup

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

e) by starting with general economic conditions.

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy. a) undifferentiated b) differentiated targeting c) exclusive targeting d) heterogeneous e) concentrated targeting

e) concentrated targeting

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

e) demographic, geographic, psychographic, and behavioristic.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

e) developing market segment profiles.

After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is a) the congruence between external and internal searches for product information. b) a function of the manner in which the manufacturer of the product describes its attributes. c) satisfaction with the purchase. d) the establishment of criteria for comparing products. e) doubts that occur because the buyer questions whether the decision to purchase the product was right

e) doubts that occur because the buyer questions whether the decision to purchase the product was right

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on a) income. b) ethnicity. c) taste. d) geographic considerations. e) family life cycle.

e) family life cycle.

An opinion leader is likely to be most effective under all of the following conditions except when the a) follower has high product involvement. b) follower has low product knowledge. c) follower has values and attitudes similar to the opinion leader. d) product details are numerous and complicated. e) follower has attitudes and values that are different from those of the opinion leader.

e) follower has attitudes and values that are different from those of the opinion leader.

Alpine Ski Shops U.S, is looking for new markets. Since their market is based mainly on access to snow, they would most likely use which base for segmentation? a) behavioristic b) demographic c) psychographic d) environmental e) geographic

e) geographic

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

e) heterogeneous

According to Maslow's hierarchy of needs, a) individuals simultaneously try to satisfy all five levels of needs. b) self-actualization needs are the most important needs to be met for most individuals. c) individuals first address needs at the top of the pyramid and then move down to the lower level needs. d) levels of needs are different for everyone, and we all try to satisfy them in a different order. e) individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

e) individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a) motive. b) social class. c) personality. d) stage in family life cycle. e) lifestyle.

e) lifestyle.

The United States' prohibition against importing cigars from Cuba is an example of a(n)

embargo

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. The type of problem solving that consumers use to select an auto repair shop would normally be a) intensive problem solving. b) extended problem solving. c) routinized response behavior. d) selective problem solving. e) limited problem solving.

e) limited problem solving.

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the a) competitor sales potential. b) sales objective. c) forecasted sales. d) company sales potential. e) market potential.

e) market potential.

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of a) market density. b) demographic segmentation. c) behavioristic segmentation. d) environmental segmentation. e) micromarketing.

e) micromarketing.

An attitude is a) an internal trait that makes a person unique. b) a set of actions that a person in a particular position is supposed to perform. c) a competence in performing activities. d) a person's behavior caused by information and experience. e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.

e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.

The three most commonly used psychographic segmentation variables are a) personality, perception, and learning. b) personality, perception, and behavior. c) motives, attitudes, and lifestyles. d) attitudes, personality, and perception. e) personality, motives, and lifestyles.

e) personality, motives, and lifestyles.

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

e) product's performance characteristics are not significantly different from those of competing brands.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a) company sales potential. b) revenue estimate. c) company sales prediction. d) market potential. e) sales forecast.

e) sales forecast.

Age, rate of product use, location, and gender are all examples of common a) demographic variables. b) geographic characteristics. c) targeting strategies. d) psychographic variables. e) segmentation variables.

e) segmentation variables.

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.

e) select specific target markets.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. The fact that Alicia had remembered the gas mileage of the Toyota Sienna incorrectly is most likely an example of a) selective expression. b) selective retention. c) perceptual extension. d) perceptual bias. e) selective distortion.

e) selective distortion.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. A dissatisfied Skola's Auto Repair customer told a friend about his experience. The friend has been a long-time Skola's customer and the next day, didn't remember what her friend told her. This is an example of a) perceptive perception. b) selective exposure. c) selective distortion. d) receptive exposure. e) selective retention.

e) selective retention.

Company sales forecasts are least likely to be based on a) executive judgment. b) customer surveys or sales force surveys. c) time series analysis. d) market tests. e) single-variable segmentation.

e) single-variable segmentation.

T F A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

f

Relying on executive judgment for forecasting may be adequate when a) levels of marketing efforts put forth by competitors vary considerably. b) recent events give the executive specific impressions of product demand. c) product demand is erratic. d) the executive conducts surveys. e) the executive has considerable experience and product demand is relatively stable.

e) the executive has considerable experience and product demand is relatively stable.

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a) salespeople are generally optimistic about the future and will provide excellent forecast targets. b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c) this tends to be the fastest way to determine a good sales forecast for the upcoming period. d) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is a) the regression method. b) customer forecasting. c) a market test. d) sales force forecasting. e) time series analysis.

e) time series analysis.

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

T F A segmentation variable is used to group smaller markets into one larger market.

f

Differences in standards of living, credit, buying power, and income distribution are all examples of _____ forces that must be considered in international marketing efforts.

economic

The environmental 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

Many companies choose to standardize their _____ across national boundaries to maintain a consistent and well-integrated corporate culture.

ethical behavior

The exchange rates of several European countries are linked together to a common currency, the

euro.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Since Alicia and Carlos were using gas mileage as one of their evaluative criteria, they are most likely in the ______ phase of the consumer buying process. a) problem recognition b) external search c) evaluation of alternatives d) purchase e) post-purchase

evaluation of alternatives

A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her framing characteristics. service characteristics. consideration set. evaluative criteria. information search criteria.

evaluative criteria.

A group of brands that a consumer views as alternatives for possible purchase is called a(n) evoked set. acceptance group. brand preference. selective retention group. evaluation criteria.

evoked set.

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

exchange controls.

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ________ structure.

export department

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n)

exporter.

Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through

exporting.

A publication such as Consumer Reports may be initially used during a(n) product recognition. evaluation of alternatives. internal information search. external information search. purchase decision.

external information search.

Component parts usually need to be processed significantly before they are used in production.

f

T F "Business Services" is not a category or type of business product.

f

T F A buyer becomes aware of the product during the evaluation phase of the product adoption process.

f

T F A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix.

f

T F A firm operating in a one-state market would not regionalize its market.

f

T F A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts.

f

T F A market segment profile deals primarily with demographic characteristics.

f

T F A seller's profits peak in the maturity stage of a product's life cycle.

f

An unplanned buying behavior resulting from a powerful urge to buy something immediately is called impulse buying. habitual buying. compulsive response behavior. non-problem solving. cognitive dissonance.

impulse buying.

Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of limited problem solving. impulse buying. routinized response behavior. addictive consumption. situational involvement.

impulse buying.

Before the 1990s, most firms entered international markets

incrementally and slowly.

During the evaluation of alternatives stage of the consumer buying decision process, framing most likely influences the decision process of ___________ buyers. younger older wealthier veteran inexperienced

inexperienced

In the process of perception, individuals receive sensations through sight, sound, taste, smell, and hearing. These sensations are called selective inputs. olfactory receptors. information inputs. perceptual motives. psychological influences

information inputs.

As Jeff runs out of shaving cream, he immediately tries to remember what he did the last time this happened. He is engaging in external search. consideration set development. internal search. cognitive dissonance. alternative evaluation.

internal search.

When Trevor realizes his liquor cabinet supply was devastated by last weekend's party, he first retrieves information from his memory about what types of liquor he and his friends like most and then asks the attractive clerk at the liquor store what she would recommend. Trevor started with a(n) _____ search and then progressed to a(n) _____ search. consideration; evaluative focused; broad internal; external routinized; extended self; inclusive

internal; external

Assignment of meaning to organized information inputs is called motivation. redefinition. learning. interpretation. selection.

interpretation.

If a U.S. bicycle tire manufacturer has to form a partnership with the government of Indonesia in order to gain access to the country's rubber, a _____ has been formed.

joint venture

Changes in an individual's thought processes and behavior caused by information and experience is called learning. attitude formation. patronage motives. personality. motivation.

learning.

Marketers often provide consumers with experience to their products, including free samples and trial offers, to facilitate consumer patronage motives. attitudes. perception. distortion. learning.

learning.

The World Trade Organization accomplishes all of the following except

lending money to businesses interested in developing international markets.

A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's motivational structure. routinized response behavior. level of involvement. cognitive dissonance. evaluative criteria.

level of involvement.

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

licensing.

Shane spends most of his free time participating in extreme sports and traveling to exotic locations with a group of close friends who share his interests and opinions about most things. This is a description of Shane's self-concept. lifestyle. personality. attitudes. role.

lifestyle.

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in

limited exporting.

When a new variety of Kashi whole-grain breakfast cereals is first introduced, consumers will most likely engage in______ when deciding whether or not to purchase this new product. extended problem solving limited problem solving situational solving behavior routinized response behavior automatic processing behavior

limited problem solving

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 routinized response behavior. extended problem solving. limited problem solving. impulse buying. intensive problem solving.

limited problem solving.

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 enduring purchase behavior. routinized response behavior. extended problem solving. impulse searching. limited problem solving.

limited problem solving.

Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at KMart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called social needs. learning processes. patronage motives. product attitudes. retailer attitudes.

patronage motives.

Psychological influences that determine where a person purchases products on a regular basis are called convenience responses. patronage motives. shopping motives. pattern responses. routine decisions.

patronage motives.

In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential.

per capita gross domestic product

As Brianna walks to classes, she selects, organizes, and interprets the sensations she is receiving through her sense organs. Brianna is experiencing the process of exposure. motivation. learning. attitude formation. perception.

perception.

The unification of Europe through the European Union (EU)

permits virtually free trade among the member nations of the EU.

When, in their information search, consumers focus on communication with friends and relatives, they are utilizing ______ sources. internal personal marketer-dominated direct organizational

personal

Hereditary characteristics combined with personal experiences that together make an individual unique form one's self-concept. attitudes. lifestyle. personality. role.

personality.

The results of many studies have been inconclusive regarding the association between buyer behavior and personality. perception. motives. social class. learning.

personality.

Jana now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ___________ needs, appealing to sex appeal. physiological esteem self-actualization psychological social

physiological

Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing.

political and legal

Doubts in a buyer's mind about whether the purchase decision made was the right one may occur during the cognitive dissonance. purchase. evaluation of alternatives. internal search. postpurchase evaluation.

postpurchase evaluation.

As Steve is shopping for groceries, he notices a product on the shelf and remembers that he is about to run out of it at home. In terms of the consumer buying decision process, Steve just experienced problem recognition. high involvement. postpurchase evaluation. information search. evaluation of alternatives

problem recognition.

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

the firm's financial condition is tied to a single and specialized marketing mix.

Franchising offers all the following benefits for franchisers except

the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.

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 ___________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.

trading company

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

trading company.

According to Coleman's major social class categories, the social class in our society that favors prestigious schooling, neighborhoods, and brands is the upper class. middle class. upper-lower class. working class. lower class.

upper class.

Katie is buying her first car and has narrowed her choices down to a Honda Civic, a Toyota Prius, or a Volkswagen Jetta. Katie goes on-line and posts questions to others who have experience with any of these cars, asking for reviews. Katie is most likely using a blog. an opinion leader. using her reference groups for information. experiencing enduring involvement. exerting social influence.

using a blog.

According to Coleman's social class categories, the social class that includes approximately 40 percent of the population, shops for bargains, and buys sports and recreational equipment is the upper class. middle class. first class. working class. lower class.

working class.