MGMT 330 - Midterm

Select the statement that best summarizes the four dimensions of corporate social responsibility.

For firms to reach all of the people affected by their business practices, they should consider four dimensions of CSR: economic, legal, ethical, and philanthropic

Franchising provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. Another advantage is that

Franchisees assume the majority of the capital costs and human resource issues.

Segmentation based on where prospective customers live or work is referred to as

Geographic segmentation

During this stage of the consumer purchase decision process, consumers will search for both external and internal _________ to help them make the best decision.

Information

Deceptive pricing involves

Intentionally misleading customers with price promotions

When buying a frequently purchased item such as a loaf of bread, an ________ often provides a sufficient basis for making a decision.

Internal information search

Marketers must realize that the consumer is unlikely to engage in any of the subsequent steps of the buying process if he or she

Is not aware of a problem or does not recognize a need

Pet Plus Value Inc. has developed a new objective that states, "To increase sales of dog food." What is wrong with this objective?

It lacks measurability

All of the following statements about the use of social media for B2B customer engagement are true except

It makes B2B intereaction with customers more challenging.

Stores such as Bass Pro Shops focus their attention on consumers who like to fish, hunt, and pursue other outdoor activities. This represents the form of segmentation called ______ segmentation.

Lifestyle

Travis has an athletic shoe store and is currently preparing a market summary. To be most effective, the competition section of his market summary should

List both direct and indirect competitors

Flying Tiger Cophenhagen is a Danish variety store that now has nearly 1000 stores in the United Kingdom, United States, Spain, and Italy. This expansion of the brand correlates with which type of marketing growth strategy?

Market development

John's Fitness Club was originally geared toward individuals interested in weight training. Recently, the club started offering yoga and high intensity interval training classes in hopes of increasing memberships at the club. In this example, John is using a ________ strategy.

Market development

Which marketing strategy would a firm be using if it decided to begin selling its products in another market, for example, region, state, or country, for the first time?

Market development

It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets rave reviews for her hand-decorated cupcakes. So, rather than open a bakery that offers a wide variety of baked goods, Shelly has decided to open a specialty cupcake shop to cater to that market only. This is an example of?

Market segmentation

Read the following statements to select the choice that is NOT true of market segmentation.

Market segmentation identifies which products will be profitable and which ones are not worth pursuing.

________ are the relatively homogeneous groups of consumers that result from the segmentation process.

Market segments

A wholesale retailer used MSA data to identify areas within 10 to 20 miles of the most densely populated urban areas in the Southeastern United States to open its first series of stores. This retailer relied on which geographic variable to segment its market?

Market size

Internal and external factors that affect a firm's ability to succeed are collectively known as the firm's

Marketing environment

Typically, when a firm decides to reposition a product, it must also change one or more

Marketing mix elements

This form of B2B e-marketing allows customers to access their accounts in real time, track their orders, and even message with their deliver drivers.

Mobile applications

This form of B2B e-marketing raises some concerns about security specifically as related to cyberattacks and competitor security.

Mobile applications

An advertisement shows a group of boys playing soccer on a hot day. When they take a break, the group runs to a cooler to find something to quench their thirst. Inside the cooler are water bottles, cans of soda, fruit juices, and Gatorade. Immediately, the boys fight over the Gatorade, showing that is clearly the best choice. In this ad, liquid refreshment represent a ________, while Gatorade represent a ________.

Need; want

The Built-Rite mowing company has been selling its lawnmowers to retail outlets for years. The company has decided it wants to tap into new markets, so it is looking to sell its mowing tractors to county institutions for mowing grass along public highways. If the country institutions purchase the Built-Rite mowers, it would be an example of a(n)

New buy

A targeting strategy that involves pursuing a large share of a small market segment is referred to as

Niche marketing

College Prep Tutors is a business that tutors high-school students who are preparing to take the ACT test as part of their college entrance requirements. Because it possesses a unique offering that is desirable to a specific market, College Prep Tutors would most likely use what type of target market strategy?

Niche marketing

Every fall Starbucks adds its Pumpkin Spice Latte to its beverage menu but then removes it at the end of the fall season. This is a behavioral segmentation strategy based on which variable?

Occasion

Valdivo Inc. is a manufacturing firm that specializes in sports-related equipment. Valdivo has taken the initiative to enhance employee relations and improve the manufacturing process. Which element of excellence does Valdivo's initiative exemplify.

Operational

_________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

Operational excellence

Which marketing mix element involves decisions regarding location and inventory management?

Place

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as

Positioning

Which of the following is true of primary data?

Primary data are collected specifically for the research problem at hand.

Which two dimensions are measured by the VALS framework?

Primary motivation and resources

The first step in the consumer decision-making process is

Problem recognition

Apple's classic and iconic white packaging makes its brand among the most recognizable and visible in the computer, tablet, and smartphone market. Which area of excellence does Apple's iconic white packaging exemplify?

Product

Expansion past domestic markets often spurs innovation as firms respond to market differences that later become product improvements for all markets. This statement best describes the relationship between

Product expansion and product improvements

Marketers generate value through decisions based on the four Ps of the marketing mix, which are

Products, price, place, and promotion

Of the four Ps of the marketing mix, the P that focuses on making sure that the organization is using the most effective means of letting consumers known about its offerings is known as

Promotion

When people think of what marketing entails, they typically think about the element of

Promotion

Stores like Cabela's, REI, and Bass Pro Shops that cater to outdoor enthusiasts' most likely use what type of segmentation strategy?

Psychographic segmentation

Which of the following is not an example of a secondary data source?

Questionnaires

Aurora is a regional sales manager and has decided that each member of the sales team must increase his or her current sales figures by 85 percent within two months to remain with the company. Overall, the economy for the industry has dropped dramatically, yet she has decided that the strategy she has proposed is the best way to motivate her sales team. Aurora has failed to make her marketing objective

Realistic

Which of Cleo's actions during the process of buying a new car took place in the problem recognition stage?

Realizing that driving a car was the only practical way to get to work.

Warren opened a new computer store in town. When customers purchase a computer from his store, they automatically receive an extended warranty, free in-home installation, access to Warren's 24-hour technical support team, and in-store software training classes. By offering all these things, Warren is most likely trying to

Reduce a new customer's cognitive dissonance

Which of the following is a reason why the use of licensing to enter international markets has increased significantly in recent years?

Rising research and development costs

Revel Ecce Motors, an automobile dealer for Xoin Automobiles, sold 25 cars in January 2014. January usually accounts for 4 percent of Revel's annual sales volume. Using this information, Revel estimates that it will sell 625 cars in 2014. This scenario exemplifies

Sales forecasting

At the start of the school year, Defrain Arts and Crafts launched a promotion for a new brand of milk paint. To determine whether the marketing efforts affected company sales, it followed changes in sales during and after the promotion. This type of research is known as

Sales tracking

Marketers that develop consumer profiles that highlight their similarities and dissimilarities both within and across consumer groups are using ________ bases.

Segmentation

Demographic, geographic, psychographic, and behavioral characteristics make up the four bases of market ______. This process helps firms develop ________ profiles that highlight the similarities and dissimilarities within and across market segments.

Segmentation; consumer

The U.S. army slogan Be All You Can Be appeals to which level of Maslow's hierarchy of needs

Self-actualization

Which of the following best describes a market development strategy?

Selling existing products to new markets

Ocean Bound has several retail shops within a 15-minute drive from the most popular beach destinations. However, there are many people that live within walking distance of the beach as well as many looking to buy beach-related trinkets or to replace an emptied bottle of sunscreen without having to leave the beach. Ocean Bound is looking to apply a geographic segmentation strategy based on customer convenience in this case. What specific strategy would you recommend?

Set up kiosks near the beach restroom and shower areas

Consider a buying situation in which a business is low on stock of a specific item. It places an order with its regular supplier to replenish this stock. It requests the same product as previously purchased and agrees to buy it at the same price. This describes which type of buying situation.

Straight rebuy

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is called

Strategic planning

A successful marketing ________ can lead to higher profits, stronger brands, and larger market share.

Strategy

A successful marketing _________ can lead to higher profits, stronger brands, and larger market share.

Strategy

"Segments must be large enough for the firm to make a profit by serving them." Which criterion of successful market segmentation does this statement describe?

Substantial

Which market segment criterion refers to the fact that segments must be large enough for the firm to make a profit by serving them?

Substantial

Whereas a consumer need is something one has to have to _________, a consumer want is something one would like to ________.

Survive; have

Rewind is a music store that dedicates an entire section of its store to vinyl records and cassette tapes. It also sells refurbished record players and cassette decks. Rewind is appealing to a segment of the market that do not own smartphones and are not inclined to download music off the Internet. If Rewind were to utilize the VALS framework to segment its market for vinyls and cassettes, which psychographic segment should it target?

Survivors

Divine Cocoa is a chocolate manufacturing company. While most of Divine Cocoa's competitors produce only milk and dark chocolate varieties, Divine Cocoa sells more than 50 different varieties of flavored chocolates. Divine Cocoa sources fine, rare cocoa beans that do not have high-quality substitutes, which adds value to their chocolate varieties and makes it difficult for other chocolate manufacturers to copy. Divine Cocoa has a(n) ________ in the chocolate manufacturing market.

Sustainable competitive advantage

Patagonia, a California-based clothing company, is deeply committed to the environment. The Company makes fleece jackets out of recycled bottles, uses solar panels to generate most of their electricity at its headquarters, and even tells its customers in its advertisements to think twice before buying anything, all in an effort to reduce its carbon footprint. This is an example of how Patagonia is engaged in

Sustainable marketing

The better a firm understands the difference between customers' needs and wants, the more effectively it can ________ its message to convince customers to buy its good or service.

Target

The group of customers toward which an organization has decided to direct its marketing efforts is known as

Target market

When a company is deciding which group of marketing segments they will focus their efforts on to maximize sales, they are engaging in

Targeting

The Mercury Corporation is struggling to maintain a competitive advantage in the very competitive lawn and garden equipment industry. Mercury knows that i needs to focus on operational excellence but is not sure how to go about doing this. Which of the following strategies would you suggest Mercury follow to achieve operational excellence?

The Mercury Corporation should focus on integrating resources at the manufacturing facility to maximize customer value.

Which of the following statements about the dependent variable is true?

The dependent variable is the one being tested and measured.

What about experimental research allows marketing researchers to examine the causal relationship between variables?

The fact that they can control and then manipulate the research setting

The concept of sustainable marketing refers to

The process of creating, communicating, and delivering value to customers in a way that incorporates the concept of sustainability.

When marketers segment based on psychographics, the market is divided into groups according to

The reason why the consumer made the purchase

Immediacy of a need plays a role in how fast the buying process occurs. For which of the five key situational and personal influences on consumer behavior is this a key differentiating factor?

Time

Which of the following would be considered a limited problem-solving purchase and why?

Toaster oven because it is an occasional purchase that requires mid-level decision making

B2B relationships are often described as being on a continuum, with one end covering _______ relationship and the other end covering ________ relationships.

Transactional; collaborative

A marketing strategy that involves creating new goods and services for existing markets is a product development strategy.

True

Janie thinks that Herbal Essence is the best brand of shampoo on the market and refuses to buy any other brand. For Janie, Herbal Essence has established a competitive advantage over the competing products.

True

Professionally speaking, the same marketing principles used in business settings can help you market yourself and help you reach your professional goals.

True

The Flame Keeper is a retail store that sells fireplaces and barbecue tools. It knows the buying behavior of all of its clients because it maintains a database, so when it needs to run an advertisement, it needs to decide what items to put on sale to draw in customers, it can use this data to help make decisions. This is an example of secondary data.

True

The fact that Procter & Gamble has broadened its product offerings to include household cleaning products, laundry products, snack products, and hair care products is an example of diversification.

True

Which of the following is an important source of demographic data that firms can use to refine their segmentation strategy?

U.S. Census Data

The maker of a new specialty product purchased general air time on a cable network that was aimed at TV viewers as a whole. This is an example of

Undifferentiated targeting

Which of the following represents the three basic strategies for targeting markets?

Undifferentiated targeting, differentiated targeting, and niche marketing

In which case would the use of primary data be the most helpful?

Value City wants to determine if its price cuts on store-branded products have had an effect on what products customers decide to buy.

For a market segment to be considered substantial,

it must be large enough for the firm to make a profit by serving it.

What are the two types of involvement influence on consumer behavior?

low, high

A recent survey conducted by U.S. News and World Report on the best overall hybrid car, ranked the Ford Fusion Hybrid as the best hybrid car for the money. For Ford, this represents

A competitive advantage

A membership reference group is defined as

A group to which a consumer actually belongs

The marketers for Bob's Bagels have set up an Instagram account showcasing its unique bagel varieties (such as salted poppy seed) and unique homemade spreads (such as roasted red pepper). It has also posted a link in its Instagram bio directing customers to the online preordering form and a map that shows driving and walking directions to the actual shop. Which criterion for effective market segmentation is being applied in this situation?

Actionable

Marketers are particularly interested in segmenting older Americans because they generally have more time and money than do their younger cou7nterparts. Which demographic variable is most important to marketers in this case?

Age

Which of the following is true of demographic segmentation?

Age, being the easiest to identify, is one of the most commonly used demographic variables.

Sal has heard a lot about his town's country club. He heard it has a great golf course, tennis courts and dining room. In addition, many of Sal's business partners belong to the club. Although he doesn't have the money to join the club now, Sal hopes to be able to in the future. What type of reference group would the country club be for Sal?

An aspirational reference group

A consumer's overall evaluation of product that involves general feeling of like or dislike is a psychological influence known as

Attitude

Which of the following can be said regarding buyers/customers for the business-to-business (B2B) market?

Business marketers typically deal with far fewer buyers than consumer markets

Wanderlust Tours is a sustainable tourism group seeking to promote its latest trip—a trek through the Sapa region of Vietnam where all proceeds go toward building a new school for the children that live in the area. To promote this trip, it posts photos from the mountains on its Instagram account with the instructions to "click on the link in bio" for more information about the trip. Wanderlust Tours is using Instagram to

Communicate value

When positioning, a firm assumes that consumers

Compare products and brands on the basis of benefits.

Firms develop a competitive advantage by

Creating more value for customers than those of other firms.

Each of the following are examples of ___________. A weak U.S. dollar makes U.S. car exports less expensive for offshore buyers. By boosting exports, a country can use a lower currency to shrink its trade deficit. A weaker currency alleviates pressure on a countries sovereign debt obligations.

Currency manipulation

A local diner holds a top spot for customer-centric food establishment in the area. Customers continuously boast about their positive experience dining in the establishment and employees always tell customer,s "You are the reason we are successful; hope to see you again soon!" Given this information, the local diner is more likely employing which element of excellence?

Customer

A strategy designed to put the customer at the center of all marketing activities by focusing on value, satisfaction, and quality of service is known as

Customer excellence

Which of the following contains an example of an independent variable that cannot be manipulated by researchers?

Customers' ages

A retailer inflated the price of its leather jackets so that when it puts the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of which social criticism of marketing?

Deceptive pricing

One important aspect of the strategic planning process that will help the firm achieve maximum success is to

Define the firm's objectives

Which of the following is an example of an enablement tool?

Delivery reminder

Which of the following segmentation bases do marketers use to develop customer profiles?

Demographic, geographic, psychographic, behavioral

In order for a product to create value for a customer, it must enrich the lives of consumers with

Designs, features, and functions that they need and want

A company that sells beef sandwiches across the country makes the sandwich with green chilies and jalapenos in the Southwestern states but makes it with green peppers in the Northeastern states. This is an example of a(n) _________ targeting strategy.

Differentiated

A fitness gear shop that typically sells workout clothes and running shoes has begun selling cell phone and tablet cases in the attempt to capitalize on its visual brand. This strategy exemplifies

Diversification

Amazon.com started out as a bookseller; it now sells a range of products from apparel to furniture to food, as well as offers live-stream video through its Amazon Prime service. Amazon's decision to move beyond books correlates with which type of marketing growth strategy?

Diversification

Which of the following statements best explains the importance of effective strategic planning for a firm?

Effective strategic planning improves the likelihood that marketers will select, adapt, and execute the right marketing actions to maximize both short- and long-term success for a firm.

Because green products sometimes cost more to produce than traditional products, organizations providing these products can attempt to recover the cost of their ecological investments and generate a profit by utilizing a(n)

Environmental cost leadership strategy

Aislinn is looking into new fitness centers. She's considering two places to determine which one is closer to her office and which one has a greater variety of classes. This behavior is reflective of which state of the consumer purchase decision process?

Evaluation of alternatives

Aiko is in the market for a high-end, professional digital camera to take on her first photojournalism assignment. She owns several small, reliable point-and-shoot digital cameras, but this will be her first time purchasing a professional camera. She knows she will need additional accessories, such as a powerful zoom lens and a sturdy camera bag. Which variation of the consumer buying process would Aiko most likely apply in this case?

Extended problem solving

When consumer seek information beyond their persona knowledge and experience to support them in their buying decision, they are engaging in an

External information search

Marco is leaving school and wants to pick up lunch on his way home. Marco is debating between going through the McDonald's drive-thru to purchase a value meal or stopping at Walmart to pick up a frozen pizza. In this example, McDonald's and Walmart are considered direct competitors.

False

Market penetration strategies focus on selling existing goods and services to new customers.

False