Marketing Mid-term

Women influence what percentage of new-car buying decisions?

84 percent

The strategies an organization develops to provide value to the customers it serves is called A) a business model. B) an objective goal. C) a protocol. D) a mission statement. E) a vision statement.

A) a business model.

55) Electronic commerce refers to A) any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. B) electronic storefronts that advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased. C) an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings. D) two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. E) electronic storefronts that focus on converting an online browser into an online, catalog, or in-store buyer.

A) any activity that uses electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

In Figure 2-4 shown above, SBUs found in quadrant D would be called A) cash cows. B) hedgehogs. C) stars. D) dogs. E) question marks.

A) cash cows.

Often used interchangeably with the term vision, a ________ frequently has a meaningful theme and a long-term orientation. A) mission statement B) business definition C) marketing plan D) customer value proposition E) point of difference

A) mission statement

If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States, it would be using a ________ strategy. A) product development B) market saturation C) market development D) market penetration E) diversification

A) product development

Market development refers to the marketing strategy of A) selling current products to new markets. B) selling new products to current markets. C) selling the same brands in both current and new markets. D) increasing sales of current products in current markets. E) selling new products to new markets.

A) selling current products to new markets.

Three teenage girls spent an hour at a store trying on various outfits, looking at possible combinations, and asking each other, "How do you think this looks on me?" This situation is most closely related to which of the following situational influences? A) social surroundings B) antecedent states C) physical surroundings D) purchase task E) temporal effects

A) social surroundings

A market-product grid is a framework to relate A) the market segments of potential buyers to meaningful product groupings. B) total estimated expenses for each product sold to each market segment. C) the market segments of current buyers to relative market share compared to the largest competitor. D) total anticipated profit for each product sold to each market segment. E) total anticipated revenue for each product-market segment combination.

A) the market segments of potential buyers to meaningful product groupings.

Which of the following competitors mentioned in the text should the owner of a Wendy's restaurant monitor closely due to its explosive growth in the number of current and proposed locations—one that is or may soon be near this Wendy's? A) McDonald's B) Five Guys C) Smashburger D) Burger King E) In-N-Out Burger

B) Five Guys

The 50 million people born between 1965 and 1976, a period also known as the baby bust, are referred to as A) Generation Y. B) Generation X. C) Generation Z. D) baby boomers. E) millennials.

B) Generation X.

While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?

B) The hybrid Civic is a star; the Accord is a cash cow.

Recently, many organizations have added ________ to their mission statements. A) a business definition B) a social element to reflect an ideal that is morally right and worthwhile C) their level of pricing and product quality D) an expanded definition of stakeholders to include its competitors E) an economic element to promote profit maximization

B) a social element to reflect an ideal that is morally right and worthwhile

Market segmentation refers to A) identifying small groups of customers with dissimilar needs. B) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. C) aggregating prospective buyers into groups and selecting only those whose needs cannot be met by competitors' products. D) aggregating different products into more reasonable product groupings to better serve consumers' needs. E) those characteristics of a product that make it superior to competitive substitutes.

B) aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as A) points of similarity. B) competencies. C) sustainable advantages. D) core values. E) points of differences.

B) competencies.

A business model A) is a measure of the quantitative value or trend of a marketing activity or result. B) consists of the strategies an organization develops to provide value to the customers it serves. C) is the means by which organizational goals are to be measured and documented. D) is a road map for the marketing activities of an organization for a specified future time period. E) consists of the detailed day-to-day operational decisions for an organization.

B) consists of the strategies an organization develops to provide value to the customers it serves.

A study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. Which segmentation base did these organizations use the most? A) psychographic B) geographic C) product D) behavioral E) demographic

B) geographic

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having

B) high market growth rates but low relative market shares.

You have determined you want to buy an advanced hybrid vehicle, and a visit to Ford's website has revealed that the Ford Fusion Hybrid SE uses hybrid fuel technology with the latest in lithium-ion battery technology. You are currently in which stage of the consumer purchase decision process for this type of automobile? A) needs analysis B) information search C) problem recognition D) purchase decision E) postpurchase evaluation

B) information search

The key role of marketing includes A) supporting the board of directors. B) looking outward by listening to customers. C) managing executives. D) operating at the corporate level. E) delivering strategic business decisions

B) looking outward by listening to customers.

An industry refers to A) organizations that manufacture identical products to meet ISO 9000 specifications. B) organizations that develop similar offerings. C) companies that are active in the production of materials used in finished products. D) a group of people or firms united through strategic alliances. E) the economic activity concerned with the selling of finished products to wholesalers and retailers

B) organizations that develop similar offerings.

Differentiation positioning requires a product to A) emphasize unique product attributes to compete directly with competitors. B) seek a less-competitive, smaller market niche in which to locate a brand. C) compete directly with competitors on similar product attributes in the same target market. D) develop marketing actions to move a product or brand to an ideal position. E) compete with competitors on similar product attributes but in a different market.

B) seek a less-competitive, smaller market niche in which to locate a brand.

The primary focus of Zappos's market segmentation strategy is to sell A) all types of shoes, accessories, and clothing to department and fashion discount stores for reasonable prices. B) shoes and other products to people who will buy them online and like to use mobile technology. C) shoes in its own retail stores to those who prefer face-to-face interaction. D) a wide selection of leather shoes and boots to high-end retailers. E) Spanish novelties and accessories to organizations that typically resell them.

B) shoes and other products to people who will buy them online and like to use mobile technology.

7) Consumer behavior refers to A) the aspects of a consumer's decision-making processes that cannot be measured. B) the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. C) those purchasing behaviors that result from (1) repeated experience and (2) reasoning. D) the mental and social processes related to purchasing that are innate in a person from birth. E) the five stages a buyer passes through in making choices about which product and service to investigate, purchase, and consume.

B) the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

An approach whereby an organization allocates its marketing mix resources to reach its target markets is referred to as A) the tactical marketing process. B) the strategic marketing process. C) situational analysis. D) diversification analysis. E) synergy analysis.

B) the strategic marketing process.

The online retailer Lands' End communicates a remarkable commitment to its_______ with these unconditional words: "We accept any return, for any reason. Guaranteed Period."

C) Customers

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as A) a marketing metric. B) a sales proportionality. C) a market share. D) a contribution margin. E) an industry potential.

C) a market share.

Baby boomers can be defined as the generation born A) between 1965 and 1976. B) since 1995. C) between 1946 and 1964. D) between 1977 and 1994. E) between 1918 and 1945.

C) between 1946 and 1964.

The clear, broad, underlying industry or market sector of an organization's offerings is referred to as its A) product grouping. B) competitive set. C) business. D) commerce. E) marketing.

C) business.

When General Mills repeatedly advertises that a cake baked from a Betty Crocker mix tastes just like homemade, it is influencing which type of learning? A) stimulus discrimination B) behavioral learning C) cognitive learning D) stimulus generalization E) brand loyalty

C) cognitive learning

Market penetration refers to the marketing strategy of A) selling new products to new markets. B) selling current products to new markets. C) increasing sales of current products in current markets. D) selling new products to current markets. E) selling the same brands in both current and new markets.

C) increasing sales of current products in current markets.

In the Maslow hierarchy of needs, water, food, shelter, and oxygen would be considered ________ needs. A) psychological B) safety C) physiological D) social E) personal

C) physiological

Product development refers to the marketing strategy of A) selling the same brands in both current and new markets. B) increasing sales of current products in current markets. C) selling new products to current markets. D) selling new products to new markets. E) selling current products to new markets

C) selling new products to current markets.

One reason some people don't like to buy clothing from Internet retailers is the inability to know if the ordered clothes will fit. ImageTwin has developed a scanning system that obtains the measurements of individuals, which are then fed into a database. When you want to buy something at LandsEnd.com, you can see a 3-D image of what the item should look like on your body. This is an example of the ________ force in the marketing environment. A) marketing mix B) sociocultural C) technological D) economic E) competitive

C) technological

Recently, ink has been developed that will conduct electricity. The application for this ink is to print circuitry that can be read electronically. This may help to drive down the cost of radio frequency (RFID) tags that are currently used in industry. This is an example of how ________ forces are applied to industry. A) marketing mix B) ecological C) technological D) competitive E) regulatory

C) technological

Which of the following statements regarding an organization's core values is most accurate? A) Core values cannot be separated from the financial realities of an organization. B) Core values change as an organization's offerings change. C) Core values are developed by cross-functional teams for all levels of an organization. D) Core values guide the organization's conduct. E) Core values are important to the founders but rarely motivate a firm's stakeholders.

D) Core values guide the organization's conduct.

Which of the following statements about psychographics is most accurate? A) Psychographics combines demographic data, psychological data, and actual spending data of consumers to create VALS profiles. B) Psychographic data are extremely vulnerable to current social trends and therefore are best suited to new market-product combinations rather than existing ones. C) Although helpful in segmenting markets, psychographics is limited in its ability to target consumers. D) Psychographics describes a variety of segmentations such as those based on behaviors, attitudes, activities, interests, opinions, and social values. E) Psychographics is unable to provide actionable information about potential customers since the data obtained from the research are too subjective to be reliably interpreted and acted upon.

D) Psychographics describes a variety of segmentations such as those based on behaviors, attitudes, activities, interests, opinions, and social values.

A mission statement should be all of these except which? A) Meaningful B) Clear C) Inspirational D) Short-term E) Concise

D) Short-term

All of the following statements about the environmental forces that have influenced Facebook are true except which? A) Its rivalry with Google, Twitter, Snapchat, and new social networks encourages rapid expansion. B) Technological advances in data storage, server speed, and software integration have made Facebook increasingly fast and convenient. C) People increasingly look for new ways to communicate, obtain information, and offer opinions. D) The Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites. E) The cost of wireless connectivity and smartphones rapidly declined, and Internet access expanded, which increasingly made social networking affordable for more people.

D) The Federal Trade Commission (FTC) has a laissez-faire policy of not interfering with the development and marketing of Facebook and other social media websites.

Organizations that develop similar offerings, when grouped together, create A) a sector. B) a monopoly. C) a conglomerate. D) an industry. E) a merger.

D) an industry.

When considering the quick-service restaurant competition, it will be most important for Wendy's to consider not only the offerings of Burger King, McDonald's, Five Guys, and other hamburger chains but also the A) dormitory meal plans at surrounding colleges and universities. B) local farmer's markets that sell produce. C) meals at golf and country clubs. D) items for sale at gas stations and convenience stores. E) nearly every food item sold at local grocery stores.

D) items for sale at gas stations and convenience stores.

The purpose of the five key steps in segmenting and targeting markets is to A) provide guidance to reposition a firm's products. B) generate new-product ideas for firms that are not growing in market share. C) identify competitors that provide similar products that satisfy a firm's customers' needs. D) link market needs of customers to the organization's marketing program. E) correlate directly to each of the five environmental forces.

D) link market needs of customers to the organization's marketing program.

A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its A) core benefit proposition. B) mission statement. C) core value proposition. D) organizational culture. E) corporate philosophy

D) organizational culture.

In the Maslow hierarchy of needs, those needs that are represented by the need for achievement, status, prestige, and self-respect are referred to as ________ needs. A) self-actualization B) physiological C) social D) personal E) safety

D) personal

The ________ element of the marketing mix includes features and packaging. A) price B) promotion C) people D) product E) place

D) product

In the Maslow hierarchy of needs, those needs involving personal fulfillment are called A) safety. B) physiological. C) personal. D) self-actualization. E) social

D) self-actualization.

A situation analysis refers to A) the process where a firm searches for growth opportunities from among current and new markets as well as current and new products. B) the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. C) an appraisal of an organization's cash flow and financial ratios to access its health and the potential for new investment. D) taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. E) a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were separate investments.

D) taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it.

Disposable income refers to A) the total amount of money made by a single individual during his or her lifetime. B) the money that is spent for necessities or charitable causes that is exempt from taxation. C) the money that remains before paying for taxes and necessities. D) the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. E) the money deducted from a person's paycheck to pay for federal, state, and local taxes.

D) the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation.

Large organizations are extremely complex, and usually consist of ________ organizational levels whose strategies are linked to marketing. A) seven or more B) two C) six D) three E) five

D) three

Which of the following is not a reason to segment a market? A) There is a potential marketing action to reach it. B) The ability to assign buyers to a segment is simple and cost-effective. C) There are different wants and needs of buyers in the entire market. D) It would cause an increase in market share or profit. E) All the buyers in the entire market have similar wants and needs

E) All the buyers in the entire market have similar wants and needs

Consider Figure 2-7 above. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The company's need to refit its factory would fall in which quadrant(s) of the SWOT analysis grid? A) C B) A C) both B and D D) D E) B

E) B

Which of the following is an example of a multiple products, multiple market segments strategy? A) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. B) College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the United States. C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. D) Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. E) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.

E) Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens.

All of the following are marketing actions that can be taken as a result of a SWOT analysis except which? A) Avoid a disaster-laden threat B) Exploit an opportunity C) Build on a strength D) Correct a weakness E) Collaborate with a competitor

E) Collaborate with a competitor

Americans born between 1977 and 1994 are referred to as A) Generation X. B) baby boomers. C) baby busters. D) Generation Z. E) Generation Y.

E) Generation Y.

Quadrant A in Figure 2-7 above represents a(n) ________ in a SWOT analysis. A) a weakness B) a threat C) a market segment D) an opportunity E) a strength

E) a strength

The form of competition where just a few companies control the majority of industry sales is referred to as

E) an oligopoly.

Which of the following is a commonly held value in the United States? A) the importance of rank and status B) acceptance of birthright C) the importance of tradition D) belief in fate E) competition

E) competition

41) Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as A) strategic business units. B) business committees. C) designated teams. D) venture squads. E) cross-functional teams.

E) cross-functional teams.

Statements of an accomplishment of a task to be achieved, often by a specific time are referred to as A) strategies. B) procedures. C) core values. D) plans. E) goals.

E) goals.

The first step in segmenting and targeting markets that links customer needs to marketing actions is to A) group products to be sold into categories. B) develop a market-product grid and estimate size of the overall market. C) take marketing actions to reach target markets. D) select target markets. E) group potential buyers into segments.

E) group potential buyers into segments.

Recently, St. Joseph Hospital was named one of the "Best Places to Work in Indiana" for the sixth consecutive year. The hospital touts universal values to "keep health care human" and employees consistently put patients first, which unites them in a common goal. Hospital President Kathy Young believes that St. Joseph's ________ makes both her employees and patients happier in her hospital. A) behavioral protocol B) vision C) service offerings D) pathos E) organizational culture

E) organizational culture

When Jeremy said, "It's really hard for me to get to class on time without a car," he was entering which stage of the consumer purchase decision process? A) information search B) alternative evaluation C) prepurchase behavior D) purchase decision E) problem recognition

E) problem recognition

A firm may have a goal to offer its customers the highest ________, as Medtronic does with its implantable medical devices that meet its customers' critical performance expectations. A) warranty B) service C) value D) innovation E) quality

E) quality

Customers' perceptions are of vital importance to an organization. Customer ________ can be measured with surveys or by the number of customer complaints an organization receives. A) value B) welfare C) responsibility D) lifetime benefit E) satisfaction

E) satisfaction

Consumer behavior includes the actions a person takes in purchasing services and using products and services, including A) the emotional processes that occur during these actions. B) the cognitive and attitudinal processes that must be learned to complete these actions. C) the financial limitations one must overcome to accomplish these actions. D) the physical effort spent on these actions. E) the mental and social processes that come before and after these actions

E) the mental and social processes that come before and after these actions.