Marketing Midterm

The ________ race and ethnicity market segment is about 12 percent of the U.S. population and is not growing rapidly.

African-American

Societal marketing refers to practices of promoting products to entire consumer markets rather than to individuals.

False

The most common foreign market entry strategy is joint venture.

False

________ are product enthusiasts who enjoy being the first to try and master a new product.

Innovators

________ segmentation is sometimes referred to as segmentation by lifestyle or values.

Psychographic

A firm with a production orientation assumes that if you have a great product, customers will come to you.

True

Even if companies do not engage in direct foreign marketing, they may still sell abroad through intermediaries.

True

Of all the business fields, marketing is the most visible to people outside the organization.

True

The GE Business Screen portfolio analysis uses three levels—high, medium, and low—to rank business position and market attractiveness.

True

Reasons for conducting exploratory research include ________.

answering the research question

A frequent Caesars guest who serves as a strong advocate for the Caesars experience to friends and acquaintances is referred to as a(n) ________.

apostle

With brand ________, customers develop a number of emotional, performance, and psychological connections with a brand.

association

Of the five dimensions of service quality, the ability to convey trust and build a customer's confidence in the quality of a service refers to ________.

assurance

A company can use its brand to expand into new product types. This is known as a ________.

category extension

Which of the following is an internal source of collecting information for making marketing decisions?

customer orders

The primary function of marketing and the entire organization, in a broader context, is to ________.

deliver value to the customer

The most significant global economic trend in the past 15 years has been the ________.

emergence of regional market zones

In the service-profit chain, external service value leads to all of the following EXCEPT ________.

employee turnover

Every time Tabitha pays bills for her cell phone or car insurance, services that are important for her, she is practicing the central tenet of marketing called ________.

exchange

Firms that employ service as a marketing strategy must plan ahead for service ________ and train employees to properly execute service recovery.

failure

Apex Jerseys, a manufacturer of sports apparel and sports equipment, has experienced a sharp drop in sales over the last quarter. The marketing manager asks the marketing research department to investigate this alarming development. The first step taken by the researchers in their process should be to ________.

formulate a specific research problem

The warranty on a bottle of store brand pain relievers says that consumers may return this product if they are dissatisfied with it for any reason. This is an example of a(n) ________ warranty.

general

While goods can be experienced through sensory perception, services cannot. This relates to the ________ characteristic of services.

intangibility

Informing and educating the target audience about the product's benefits and features is part of the communication strategy in the ________ phase of the product life cycle.

introduction

The product life cycle (PLC) defines the life of a product in four basic stages, which include ________.

introduction, growth, maturity, and decline

Customer loyalty is defined as ________.

the degree to which an individual will resist switching from one offering to another

________ relates to the reliability and validity of the data.

veracity

The CEO of Big Wheel Automotive is concerned about declining sales. He has identified his research problem as the fact that his competitors are drawing away his business. He purchases access to J. D. Power's automobile rankings to learn about possible reasons for the shift in consumer purchasing. In this case, the CEO is using ________ to collect secondary data for his research problem.

a market research organization

During which stage do consumers purchase a product with the intent of becoming a dependable user?

adoption

The rate at which new products become accepted is known as the ________ process.

adoption

In the business market purchase decision process, new buys will include _________ step(s) in the process.

all of the

To compete in today's market, how often should firms focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips?

at all times

________ choices tend to be more holistic than emotional choices, using summary impressions rather than specific attributes to evaluate the options and affect even important purchases such as a car or house.

attitude-based

________ segmentation divides customers into groups according to similarities in benefits sought or product usage patterns.

behavioral

KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate?

brand assets

ABC Automobile Manufacturers is the leading brand in economy cars with respect to gas mileage. If ABC wanted to start making hybrid vehicles under the same brand name, the company would likely be successful because of its previous product offerings. This is an example of linking the ________ benefit of brand equity to marketing strategy.

brand connections

Gerry always purchases clothing made by S&G Clothing. He tells others about how much he likes their clothes and the high levels of quality maintained by S&G. When a shirt he purchased turned out to be defective, instead of switching to another clothing company, he gave S&G a chance to fix the problem and still shops there. Which dimension of brand equity does Gerry demonstrate?

brand loyalty

A restaurant's marketing manager is interested in finding out if reducing the price of food items will lead to increased sales. For this purpose, the manager should conduct ________ research.

causal

In the purchase process, once a problem has been identified, the next step is to ________.

clearly define the need and develop product specifications

During the evaluation stage of the product adoption process, consumers ________.

combine all information and assess the product for trial purchase

Jeremy runs a U.S.-based company. Recently, some of his customers with global operations have placed additional orders that require Jeremy to work with their foreign subsidiaries. As a result, Jeremy has developed local distribution and service reps in three foreign markets. What stage of the global experience learning curve is Jeremy experiencing?

companies with foreign marketing

Internal sources of generating product ideas include ________.

company salespeople

Customer relationship management (CRM) is considered critical largely because of ________.

competitive pressures in the marketplace

CRM helps in determining which customers to target based on known or learned characteristics that will drive growth. This describes which of the three CRM objectives?

customer acquisition

The service-profit chain is designed to help managers better understand the key linkages in a service delivery system that drive ________.

customer loyalty, revenue growth, and higher profits

The marketing ________ is a comprehensive system providing managers with up-to-the-minute information, including data such as actual sales versus forecast and progress on marketing plan objectives.

dashboard

The owners of Tyrell's Tattoo Shop are interested in determining the nature of the relationship between their clients' professional occupation and the number of tattoos that individuals have. In this case, which research will result in the most appropriate way to explain the nature of this relationship?

descriptive

Products that are new-to-the-world create a fundamental change in the marketplace and are known as ________.

disruptive innovations

When consumers order a newspaper subscription, they want the paper delivered early in the morning so that they can read it before setting out for the day. It appears that newspaper publishers are offering form, time, and place utility, but not ownership utility.

false

The marketing manager for DRNK Spirits decided that all of the products his company produced would carry the same brand name of Nightlife. As a result, there is Nightlife Ale, Nightlife Lager, Nightlife Vodka, Nightlife Tequila, and Nightlife Whiskey. This is an example of ________ branding.

family

The household life cycle is changing due to changes in ________.

family structure

The basis of the gap model is the identification and measurement of differences in ________ key areas of the service delivery process.

five

It is important to remember that a marketing plan should be able to change as customers change, competitors develop new products, or there is a change in the external environment. In other words, a marketing plan should be ________ to be successful.

flexible

Fun Time Corp. has decided to move production of its board games for children and adults from the United States to Mexico to realize cost savings. At the same time, the company has decided to make Spanish-language versions of the games and distribute them in Central and South America. Most likely Fun Time is pursuing a strategy of ________.

growth/ horizontal integration

An organization's focus on internal service quality implies that employees ________.

hold a customer mind-set

Demographic segmentation is best described as using characteristics of ________ to segment the market.

human populations

As the marketing manager of Tiny Tire Company, you are interested in assessing whether it is possible to decrease the amount of time between customers' tire replacement services and also whether it is possible to increase average transaction amounts through add-on sales. To assess customer satisfaction with current services, you decide to consult your CRM system to ________ customer orders.

identify the frequency and size of

Gen Y consumers are much more receptive than their parents and grandparents to electronic commerce as a primary means of receiving marketing communication and purchasing. The marketing change driver represented by this is a shift ________.

in generational values and preferences

The manager of an automotive after-market specialties firm is interested in collecting secondary data. He is concerned with the future of the industry and his competition. He would like to find industry research reports along with industry and company analysis of his competitors. His best sources of this information would be ________.

independent online databases

It is said that B2B demand is more ________ in general than B2C demand for products or services.

inelastic

The ________ of performance and consumption of services heightens the role of human service providers in a customer's experience.

inseparability

Demographic segmentation is one of the most popular segmentation approaches because ________.

it is relatively easy to measure the variables used in this approach to segmentation

There are times when marketers forget that marketing is not just a department, and they fail to market the dashboard to ________.

key stakeholders

Hazardous materials such as cleaning products, pesticides, and many other items require 14 different pieces of information be included on the label. This is an example of the ________ requirements of labeling.

legal

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as ________.

licensing

In analyzing the attractiveness of market segments, which of the following is NOT one of the most important variables?

location of the segment

When a company is focused on uncovering needs that customers do not realize they have, it is using a ________ strategy.

market-driving

________ include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.

marketing analytics

Peter Drucker, the father of modern management, stated that the business function(s) of an organization include ________.

marketing and innovation

Big Data from ________, such as Cartwheel from Target, can be used to assist customers in finding in-store deals and provides opportunities for retailers to maximize the value of in-store shopping experiences.

mobile apps

The B2B customer buying process is ________ than the consumer purchase decision process because it takes longer and involves more people, making the seller's job more challenging.

more complex

RB Soaps, the market leader in body wash, sells its products in every state under the same brand. This is an example of ________ branding.

national

Jeffie completed his mission statement for his marketing plan and has written down company goals; now he is focusing on his business's ________, or how he will be able to attain these goals in specific, measurable ways.

objectives

A company's brand role includes ________.

offering an effective and efficient methodology for categorizing products

Because Sony has so many different product offerings in various types of electronics, management has found that it is helpful to use brands to keep track of products in each type. Thus, it has different brand names for its televisions, DVD players, and portable music players. Which company brand role does this example illustrate?

offering an effective and efficient methodology for categorizing products

________ fulfill an important role by classifying, explaining, and then bestowing information, most often to family and friends but occasionally to a broader audience.

opinion leaders

When Nike moved manufacturing to China, it took into account China's labor laws when fulfilling hiring needs. Which type of information was being addressed?

political and legal

Once market segments have been defined and analyzed and target markets have been selected for development, the firm must turn its attention to creating, communicating, delivering, and exchanging offerings that have value to the target markets. This process is known as ________.

positioning

Organizations communicate one or more sources of value to customers in a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer. Execution of this approach is referred to as a firm's ________ strategy.

positioning

At Nancy's Natural Potato Chip Corp., the company always take into account the quality of the ingredients going into the snack foods it produces and recently rejected a supplier who claimed to use all-natural ingredients but actually did not. What part of the marketing mix did this claim affect?

product

A marketing manager using VALS is interested in ________ segmentation.

psychographic

Cost reduction is a specific method for introducing lower-cost products to the market. This may involve ________.

reducing features

A luxury car dealership assigns a service representative to each customer. This service rep handles all routine and emergency service appointments, writes thank-you letters, and advises the car owner when the next service date is anticipated. This dealership has adopted a ________ approach.

relationship approach

The choice of generic strategy is usually driven by ________ capabilities of the firm, as well as the ________.

resource; competitive landscape

Any influence on the product and supplier choice is an organizational factor. The primary organizational factor is ________.

risk tolerance

________ represents a formalization of the measurement of customer expectations of a service compared to perceptions of actual service performance.

service quality

________ is a ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.

social class

Sociologists look for defining events such as major economic upheaval, wars, and ________ as triggers for generational change.

sociocultural revolution

Warranties that offer explicit product performance promises related to components of the product are known as ________ warranties.

specific

A ________ chain is the synchronized movement of goods through the channel.

supply

The marketing manager for Joe's Shoe-Mart has decided to conduct descriptive research using primary data. Based on some preliminary research of trade journals and interviews with customers, she knows what questions to ask. However, the customers she wants information from are spread out over many stores in several states. The best technique for her to collect this data would be ________.

surveys

A beer manufacturer has noticed that the cost of hops has increased four times in the last year. A description of this would be found in the ________ section of the SWOT analysis.

threats

According to the BCG matrix, a business that is classified as a cash cow has high market share and low growth.

true

Brad's company is in the process of determining the best way to get enough wood to build the furniture that they need to manufacture. This represents the value-creating activity of inbound logistics.

true

The marketing management team of Superior Foods Inc. hired a research firm to collect preference data from consumers in several former Soviet Bloc countries. However, the researchers struggled to get these data, especially from older citizens who were afraid that the information would be used against them, as it had been when they were under a Communist government. Which of the following problems associated with collecting primary data in global markets does this scenario exemplify?

unwillingness to respond

If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.

$1

"Little m" marketing refers to strategies the firm uses to reach its stakeholders.

False

________ warranties are generally open to customers returning the product for a broad range of reasons beyond specific product performance problems.

General

Regional market zones usually form as a result of economic and political factors, geographic proximity, and cultural similarities.

True

Some firms come close to one-to-one marketing by employing mass customization.

True