Marketing Chapter 5-8

Volkswagen markets its Atlas SUV to large families, its CC to those wanting a sports coupe, and its Jetta to young singles. What targeting approach is Volkswagen using?

Differentiated

The feasibility and degree of globalization is determined by the

degree of similarity among the various environmental and market conditions.

The most significant factor influencing a buyer's level of involvement is

risk.

When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered

a government purchase.

Kira is interested in joining Alpha Gamma Delta's sorority. She begins to shop at Delphine's, a local store where the Alphas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Kira is influenced by

a reference group.

____ buy products from manufacturers and then resell the products to other firms in the distribution system.

Wholesalers

When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is

6

Which of the following is not a requirement or characteristic of a market?

A large number of people or organizations

The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:

The variables should be based primarily on demographic characteristics.

In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of?

Business market

The Strait Music Company traces its roots to 1963 when Dan Strait opened a piano store in Austin. The company later added band and orchestra instruments. The company grew in size and number of locations over the years. Today, it is a leading retailer of all types of instruments for sale or rent, and it offers numerous related services. Assume that you are one of the brand managers for a line of products such as stringed instruments including guitars and violins. Which of the following would be most important to you in assisting you to forecast sales and plan inventory levels for this music store company?

Consumers' discretionary income

____ 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

Demand for business products is characterized as derived. From what is the demand derived?

Demand for consumer products

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

Description

You recently raised your prices on the products you sell to your business customers. To your surprise, these customers did not change the amount of units they purchase from you. It was as if the price increase did not matter to these customers. Which of the following types of business demand most accurately describes this situation?

Inelastic demand

You are manager of a clothing manufacturing firm that has operations in different countries. Your Indonesian manufacturing facility is dedicated solely to producing elementary school uniforms for the U.S. market. Most of your product output is sold to a larger school uniform company in the U.S. called School Uniforms, Inc. School Uniforms, Inc. has major contracts with school districts like the Los Angeles Unified School District. In this scenario, the Los Angeles Unified School District is part of which of the following business markets?

Institutional market

Glenda works in the buying center at a personal protection safety equipment firm. Whenever she needs a certain product, she always orders from Christian. Although other suppliers might be less expensive, Glenda has worked with Christian before and trusts him completely to deliver all supplies to the exact specifications. She values this trust and would rather work with Christian than having to take a chance on another supplier who might be less expensive. Which factors are influencing the business buying decision process?

Interpersonal

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

Limiting imports

Which of the following is an example of a behavioristic segmentation variable?

Usage rate

Oleg owns an ice cream and frozen treat restaurant and is considering adding new menu items. He recently met with the representative of a yogurt company who is trying to convince Oleg to add the frozen yogurt to his menu. Oleg has never offered a yogurt product in the restaurant and has concentrated on ice cream items. The yogurt product would not need a different freezer or dispensing unit, so the investment would be similar to changing flavors of ice cream. However, because he's never offered yogurt, he's unsure what the market response will be and how much profit he can achieve with the frozen yogurt. What type of purchasing decision does this represent for Oleg?

Modified rebuy

Method is a company producing products that limit the amount of negative impact on the environment. Its product line includes dishwashing liquid, cleaners, hand soap, and laundry detergent, to name a few. Method is exploring offering a line of environmentally friendly clothing, mostly T-shirts, shorts, and long pants for both men and women. Its research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Method likely be using?

Personality characteristics, motives, and lifestyles

Golden State Wines has national distribution agreements with wineries across the United States such as Mason and Robert Mondavi in Napa Valley, California. Golden State Wines receives its inventory from its winery suppliers and makes the wine available to customers—restaurants, bars, hotels, etc., through its sales representatives and extensive catalog. What type of business market does Golden State Wines represent?

Reseller

Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship?

Satisfaction for both the buyer and seller

Georgia has been a loyal customer of Apple for years. She likes to own the latest products and looks forward to announcements about product releases. She owns an Apple phone, iPad, and MacBook and hopes to purchase the new model phone when it's released in the fall. Georgia is talking to one of her friends about Apple and is surprised to learn that Apple was involved in some workforce-related issues at an overseas plant. Her friend tells her that Apple paid very low wages and people were required to work long hours. Georgia reasoned that this issue must be related to a third-party manufacturer because Apple would never treat its employees this way. She dismisses the incident and explains to her friend that it must have been an honest mistake. What type of process is Georgia utilizing with regard to the information about Apple?

Selective distortion

Benedict is in the market for a new car. He believes that lately there have been more car ads than usual on TV. The need Benedict has is most likely driving which of the following phenomena?

Selective exposure

The Sound Emporium is a music superstore selling instruments, sound equipment, lighting, as well as DJ, band, and orchestra products. The Sound Emporium plans to continue its growth across the country by opening 10 to 15 new stores each year. The Sound Emporium has recognized that it has several market segments, including professional musicians, DJ businesses, and consumers who purchase instruments for school band and orchestra. The company has developed a detailed description of these various customer segments. These detailed descriptions include information such as demographic characteristics—age, income, and education level—as well as an individual's preferences regarding what brands of instruments they purchase, how frequently they visit the store to make a purchase, how much time they spend in the store, and the percent of time they select The Sound Emporium to make a purchase. What step in the target market selection process has The Sound Emporium completed by describing their target market customers?

Step 3: Develop Market Segment Profiles

A representative from Maine Root stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

Straight rebuy

Hannah, a working mother, has recognized the need for some sort of slow cooker so that she can spend less time preparing meals and more time with her family after work. She uses Google to research slow cookers online and learns that Consumer Reports ranks the Instant Pot the highest. Hanna's use of the internet is

an external search.

The gross domestic product is

an overall measure of a nation's economic standing.

Having used both Secret and Dove deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ____ about Secret.

attitude

The role of an export agent is to

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

Routinized response behavior is what a consumer does when

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

Marketing to businesses employs all the same concepts as marketing to consumers except

buying methods.

As Gillian has become more knowledgeable about health, obesity, and quality ingredients, her attitude toward soft drinks and fast food have become less favorable, while her attitude toward healthier brands like Panera and Bubly has improved. This best relates to the _______ component of attitude.

cognitive

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy.

concentrated or differentiated targeting

Bentley targets a very exclusive high-income market. Toyota, on the other hand, targets economy markets (Yaris), the environmentally-conscious market (Prius), and the higher-income market (Lexus). Bentley has adopted a ___________ targeting strategy. Toyota has adopted a ______________ targeting strategy.

concentrated; differentiated

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except

customers' needs for the product must be homogeneous.

Animal Crackers 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. Animal Crackers is using ____ variables to segment its market.

demographic

Many health-care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in

demographics.

Consumer confidence is at a low during periods of

depression.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

determining which segmentation variables to use.

To monitor changes in the marketing environment effectively, marketers must engage in

environmental scanning and analysis.

Micromarketing is

focusing precise marketing efforts on very small geographic markets.

An opinion leader is likely to be most effective under all of the following conditions except when the

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

Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of

globalization

Calloway Golf Company standardizes many of its products worldwide, which is an example of _______.

globalization

Although most buying decisions can be categorized on the basis of product cost, search and time effort, and brand preference, we sometimes buy things with no conscious planning, prompted by a powerful urge to buy something now. This is best described as

impulse buying.

A person's buying power is a function of

income, wealth, and credit.

When using credit to make purchases, consumers are

increasing current buying power at the expense of future buying power.

According to Maslow's hierarchy of needs,

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

One of the guaranteed constants in the global business environment is

instability

Developing and performing marketing activities across national boundaries is called

international marketing.

Extended decision making is the type of consumer decision-making process that

is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

Eighteen-year-old students do not form a market for tobacco products because they

lack the authority to purchase this type of product.

Even when reciprocal buying arrangements are legal, they can lead to

less-than-optimal purchases.

A major determining factor in deciding which type of decision-making 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

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 or royalties. This type of arrangement is called

licensing

Stan 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 Stan's

lifestyle

Family life cycle is most typically based on

marital status and age of children.

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as

market segments.

In considering the viability of potential international markets for Maine Root beverages, Maine Root is advised to take into account ____, which provides insight into market potential.

per capita gross domestic product

Inelastic demand in business markets refers to a situation where

price increases or decreases will not significantly change demand for a given product.

Marketers that attempt to influence and change the various environmental forces have a(n) ____ response to these forces.

proactive

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.

The stages of the business buying decision process, in order, are

recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

resale, use in daily operations, and direct use in producing other products.

Perception is a three-step process that involves

selecting, organizing, and interpreting information inputs.

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

social influences.

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.

sociocultural

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.

Franchising offers all the following benefits for franchisors except

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

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is

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

Business customers today turn first to _____ to search for information and find sources for their product needs.

the internet

Estimating the cost of entering a market and focusing on a specific target segment is important because

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

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

trading company.

PPG manufactures paint and coatings for aerospace, marine, automotive, industrial, and specialty applications. PPG is likely to segment the market for paint and coatings by

type of organization.

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.

undifferentiated

The accumulation of past income, natural resources, and financial resources is known as

wealth.