Marketing Midterm

Dollar General profitably appeals to families with more modest means. The retailer's approach is most likely referred to as ________.

target marketing

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?

the desire for having beautiful eye

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

to give customers the complexion they dream about by providing products suited to their needs

T/F Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe.

true

Consistency of a product mix refers to the ________.

ways in which the various product lines are related

When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.

actionable

Which of the following best describes product positioning?

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

The initial function of a marketing information system is ________.

assessing the information needs of a company

Companies that practice marketing by ________ create offerings and messages that engage consumers rather than interrupt them.

attraction

For the past nine years, PepsiCo's Doritos brand has held a "Crash the Super Bowl" contest in which it invites 30-second ads from consumers and runs the best ones during the game. This is an example of ________.

consumer-generated marketing

In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________.

create immediate consumer recognition

Cylog, a leading provider of personal computer systems, began manufacturing tablet devices after predicting a future consumer need for portability. Which of the following was most likely implemented by Cylog?

customer-driving marketing

Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its target audience and identify the demographics of potential buyers. It then conducts experimental research to test whether customers associate discounted prices with lower product quality. Which types of research has the boutique employed in this case?

descriptive followed by causal

Which of the following will most likely be included in the "price" component of a company's marketing mix?

discounts

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation

intermarket

Which link in the service profit chain emphasizes superior employee selection and training?

internal service quality

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

less-for-much-less

Which of the following is a psychographic characteristic of a consumer?

lifestyle

In the BCG growth-share matrix, question marks refer to products or businesses with a ________.

low market share in a market with high growth prospects

Consumers' needs and wants are fulfilled through ________.

market offerings

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________.

market penetration

Which of the following is a structured method of online research where marketers require direct responses from customers?

online surveys

A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ________ marketing.

organization

The most effective sources of information about a product tend to be ________

personal

Zeal is a popular automobile brand, and its positioning statement is: "For upscale American families who require large vehicles, Zeal is the automobile of choice." Which of the following mandatory elements is missing from the positioning statement?

point of difference

Bose promises "better sound through research." This is an example of ________.

product differentiation

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called?

psychographic

Companies are likely to gain ________ through speedy, convenient, or careful delivery of products.

services differentiation

Many leading business and marketing thinkers are now preaching the concept of "shared value" which recognizes that ________ needs, not just economic needs, define markets.

societal

________ is the total combined customer lifetime values of all the company's current and potential customers.

Customer Equity

T/F A convenience sample is a special type of probability sampling method as the sample is taken from a group of randomly selected people.

False

T/F A greater focus on underlying customer needs than on existing customer wants leads to marketing myopia.

False

T/F A large percentage decreases in consumer demand can cause small decreases in business demand as business markets are inelastic.

False

T/F Corporate image marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.

False

T/F Cupcake Gourmet, a high-end bakery in Manhattan, segments its customers according to those who frequent their store regularly, those who visit infrequently, and those who have never visited. This is an example of usage-rate segmentation.

False

T/F In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.

False

T/F In markets with few customers and high margins, sellers should try to develop basic relationships rather than full partnerships.

False

T/F In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it

False

T/F Market offerings are limited to physical products

False

T/F Neuromarketing techniques provide easy-to-interpret data that allow researchers to analyze consumer involvement with products.

False

T/F Product line filling occurs when a company lengthens its product line beyond its current range.

False

T/F Products include only tangible objects.

False

T/F Since less than ten percent of smartphone owners use their phones for shopping-related activities, mobile marketing is a slow growing digital marketing platform.

False

T/F The adopter classification suggests that an innovating firm should direct its initial marketing efforts toward innovators and early mainstream users in their product categories.

False

T/F The business buying process tends to be shorter and less formal than the consumer buying process.

False

T/F When backed by buying power, wants become needs.

False

T/F segmentation dives buyers into segments based on their knowledge, attitudes, uses or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments.

False

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

Image

________ are small groups of consumers who interact directly and informally with product designers without a moderator.

Immersion groups

Which positioning strategy offers value for consumers by providing the same brands as competitors at a lower price?

Same-For-Less

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry?

The company introduces BerryBliss, a dried berry snack mix for kids.

Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________.

specialty product

Business advisory services such as legal or advertising are classified under which category of industrial products?

supplies and services

________ is a method of gathering primary data that involves asking people questions about their knowledge, attitudes, preferences, and buying behavior.

survey Research

________ refers to a channel stretching from raw materials to components to final products that are carried to final buyers.

A supply Chain

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?

Barnacles

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry?

BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

________ involves using an existing brand name for a new product category.

Brand extension

T/F "At Dodson, we sell shoes" is a market-oriented business definition.

False

Which of the following is an industrial product categorized under supplies and services?

Coal

________ is the degree to which the results of using an innovation can be observed or described to others.

Communicability

________ is the degree to which an innovation fits the values and experiences of potential consumers.

Compatibility

Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a ________ strategy.

Diversification

A(n) ________ becomes a motive when it is directed toward a particular stimulus object.

Drive

T/F When a firm introduces a new product, it should take a differentiated marketing strategy which may make the most sense.

Fasle

Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________.

Filling

Which of the following is an example of consumer-generated marketing?

Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.

Erica Jenson has a limited budget to conduct market research. Which of the following research approaches would provide Erica with the most cost-effective way to reach a large number of respondents in a short period

Internet-based surveys

________ is the final step in the marketing research process.

Interpreting and reporting the findings

ToyBox is a toy manufacturer based in the United Kingdom. Which of the following indicates that the company is following a market penetration strategy?

It acquires toy rights for a popular cartoon character to boost its sales

Which of the following is true of a good marketing information system?

It balances the information that a firm would like to have against what they really need.

Which of the following is true of competitive marketing intelligence?

It can be obtained from information that is available in the public domain.

________ are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

Lagging adopters

Kathy Jenkins is planning to conduct research on consumers' personal care routines. Since the questions are likely to be personal and sensitive, Kathy wants to select a contact method that will encourage respondents to answer honestly. Which of the following contact methods is most likely to best serve Kathy's purpose?

Mail Questionnaires

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market segmentation

T/F The 4As framework takes into consideration the buyer's view of the market.

True

________ is the art and science of choosing target markets and building profitable relationships with them.

Marketing management

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________.

Measurable

________ marketing is perhaps the fastest-growing marketing platform.

Mobile

T/F The major advantage of survey research is its flexibility.

True

Bakeries and coffee bistros that offer pumpkin-flavored items only during the autumn season target their consumers primarily through ________ segmentation.

Occasion

________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

Opinion leaders

________ refers to working closely with people inside and outside the company to jointly bring more value to customers.

Partner relationship management

________ is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Perception

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?

Perishability

Harper Farms raises chickens. For years, it has used wooden coops for hauling its poultry to market. When the owner, Jane Harper, went to reuse some of her coops, she noticed many of them could not be sufficiently cleaned for reuse and needed to be replaced. Which stage of the business buying decision process was Harper in when she decided to replace her old coops?

Problem recognition

Eastline, a manufacturer of outdoor patio furniture, positions its products as superior in weatherproofing and durability. This is an example of ________ differentiation.

Product

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

Product Mix

Henry Ford's philosophy was to perfect the Model-T so that its cost could be reduced further for increased consumer affordability. This most likely reflects the ________.

Production Concept

________ is the degree to which an innovation appears superior to existing products.

Relative advantage

Sally purchased a newly introduced moisturizing lotion. By attempting to find out if the lotion's perceived performance matched her expectations, Sally was measuring her level of customer ________.

Satisfaction

Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.

Segmentation

________ refers to the portion of the customer's purchase that a company gets in its product categories.

Share of customer

Major appliances, furniture, and clothing are typical examples of ________ products.

Shopping

The use of traditional business marketing concepts and tools to create behaviors that will benefit individual and societal well-being is called ________ marketing.

Social

Which of the following is most likely a true statement about social class?

Social classes show distinct product preferences in areas such as clothing.

Cosmetic retailer Lush knows that doing what's right benefits both customers and the company. Their premium beauty products are made by hand from the freshest possible natural ingredients. This is an example of the ________ concept.

Societal Marketing

________ are customers who show low potential profitability and little projected loyalty.

Strangers

________ marketing is defined as socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

Sustainable

Which of the following is a difference between the marketing concept and the selling concept?

The marketing concept focuses on customer needs, whereas the selling concept focuses on existing products.

Which of the following concepts calls for sustainable marketing?

The societal Marketing concept

Which of the following is an advantage of primary data?

They are more relevant than secondary data.

Which of the following is true of perceptual positioning maps?

They are used to analyze consumer perceptions of a brand relative to competing products.

T/F The product-market expansion grid, like the BCG matrix, is used to identify growth opportunities.

True

T/F The response rate in mail surveys is often very low.

True

T/f When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.

True

Which of the following is true of product positioning?

To simplify the buying process, consumers are likely to position products in their minds.

Consumers are generally willing to make more effort than usual to buy specialty products.

True

T/F A brand's value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

True

T/F A cluster sample is a sampling method used when the population is divided into externally mutually exclusive groups but it is internally heterogeneous within a group.

True

T/F A company or brand image should convey a product's distinctive benefits and positioning.

True

T/F A firm's marketing department must partner with other company departments to produce superior value for customers.

True

T/F A market is a segment of potential consumers who share a common need or want.

True

T/F An augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.

True

T/F An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

True

T/F CRM analysts use big data and marketing analytics to unearth patterns in customer data.

True

T/F Furniture is an example of a shopping product.

True

T/F Ideally, a sample should be representative so that a researcher can make accurate estimates of the thoughts and behaviors of the larger population.

True

T/F In a convenience sample, a researcher selects the easiest population members from whom to obtain information.

True

T/F In the final step of a marketing process, a company reaps the rewards of its strong customer relationships by capturing value from customers.

True

T/F In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising.

True

T/F Individual interviews cost three to four times as much as telephone interviews.

True

T/F Marketing ROI measures the profits generated by investments in marketing activities.

True

T/F Marketing research is the systematic design, collection, analysis, and reporting of data directly relevant to a specific marketing situation facing an organization.

True

T/F Once the research problems and objectives have been defined, researchers must determine the exact information needed.

True

T/F Organizations that follow the societal marketing concept most likely practice socially and environmentally responsible marketing.

True

T/F Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables.

True

T/F Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.

True

T/F Support services are an important part of a customer's overall brand experience.

True

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand?

brand personality

Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo. It's built 30 additions onto the original store, which now serves more than 300,000 customers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. Instead of focusing on individual transactions, Stew and his staff are putting a priority on ________.

capturing customer lifetime value

Experimental research is best suited for gathering ________ information.

causal

Customer-driven marketing is most effective when ________.

clear needs exist and customers know what they want

Ethnographic research is ________.

conducted in settings where people live and work

Fred's faith in Asics, his favorite brand of running shoes, makes him consider other offerings introduced by Asics. Fred is not a risk-taker, and he tends to evaluate each new product carefully before adopting it. Fred is an opinion leader in his social networking community and best described as a(n) ________.

early adopter

A company that sells personal care products sends a trained observer to watch potential buyers in their natural environments. This is an example of ________ research.

ethnographic

Which of the following is an example of an industrial product grouped under capital items?

factory

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

geographic location

At the extreme, micromarketing becomes ________ insofar as products and marketing programs are tailored to the needs and preferences of customers.

individual marketing

Becca wants to buy a new coat. She asks her friends to recommend a store and/or a style of coat. She looks for sale advertisements for coats in newspapers and also visits nearby stores to check if she can find a coat in her budget. In this case, Becca is most likely in the ________ stage of the buyer decision process.

information search