MKTG 101 Exam 2

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

Growth

Which of the following statements is true of social classes?

Social classes show distinct product preferences in clothing and automobiles.

Which of the following is NOT part of Maslow's hierarchy of needs?

Spiritual needs

Product improvements, product modifications, and original products can all be classified as ______.

new products

A _____ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.

product position

According to Freud, a person's buying decisions are primarily affected by ______.

subconscious motives

A(n) ____ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

target market

Product planners need to consider products and services on three levels. At the second level, product planners must _______.

turn the core benefit into an actual product

_____ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.

product value analysis

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ______.

prototype

A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a _____ to the band's fans.

reference group

Market segments that can be effectively reached and served are ______.

accessible

A ______ consists of all the product lines and items that a particular seller offers for sale.

product mix

In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands for ________.

Activities

Many companies use several ethnically specific themes in their mainstream marketing strategy. This is because several marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________.

Cross-cultural marketing

Which of the following is true about business purchases?

Involve more professional purchasing effort than consumer purchases.

_____ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

Market targeting

______ involves designing and producing the container or wrapper for a product.

Packaging

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

brand

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a _______.

business analysis

Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?

concentrated marketing

The fundamental asset underlying brand equity is _______, the value of customer relationships that the brand creates.

customer equity

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?

demographic segmentation

Product mix ______ refers to the number of versions offered for each product in the line.

depth

SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2012. This is an example of ______.

e-procurement

All of the following are disadvantages of test marketing EXCEPT that test marketing ______.

encourages dishonesty among participants.

The business marketer normally deals with _____ than the consumer marketer does.

far fewer but far larger buyers

"Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of _____.

geographic segmentation

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ______ stage of the product life cycle.

growth

New-product development starts with ______.

idea generation

Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?

personality and self-concept - selective attention

John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. In the business buying process, this approach to cost reduction most likely took place in the _______ stage.

product segmentation - specification

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ______

segmentation by usage rate

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a _________ product.

shopping

Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?

undifferentiated marketing

_____ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.

Aspirational groups

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

Benefit segmentation

_____ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

Brand equity

_______ involves the use of a successful brand name for new or modified products in a new category.

Brand extension

______ may help shape product specifications, but their major role is in selecting vendors and negotiating.

Buyerse

_______ occurs when two established brand names of different companies are used on the same product.

Co-branding

Pat thought he had received the best deal on his new car. Shortly after the buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ____.

Cognitive dissonance - post purchase dissonance

All the individuals and households that buy or acquires good and services for personal consumption make up the ______.

Consumer market

_____ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Convenience goods

_____ involves actually distinguishing the firm's market offering to create superior customer value.

Differentiation

When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ______.

Dissonance-reducing buying behavior

_____ refers to purchasing through electronic connections between buyers and sellers—usually online.

E-procurement

______ refers to how highly consumers regard and respect the brand.

Esteem

Which of the following can help a company create direct procurement accounts with suppliers, through which company buyers can purchase equipment, materials, and supplies directly?

Extranet links

A company launching a new product into the market must first decide where to launch the product.

FALSE

Abel is considering whether or not to get an electronic reader. He has read online reviews of three different kinds of readers and has talked with two friends who own electronic readers. Abel is at the awareness stage of the new product adoption process.

FALSE

Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

FALSE

In B2B Marketing, Gatekeepers have formal or informal power to select or approve the final suppliers.

FALSE

Jim is planning on buying an expensive HDTV and he realizes that there are few differences between brands of HDTV. Therefore, Jim is displaying complex buying behavior.

FALSE

Style is a larger concept than design. Design simply describes the appearance of a product.

FALSE

Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

FALSE

____ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

Occasion

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?

Occasion segmentation

Because of _____, a company cannot make its product illegally similar to a competitor's already established product.

Patent laws

Which of the following statements characterizes the introduction stage of the PLC?

Period of slow sales growth as product is introduced into market/profits are nonexistent because of heavy expenses

A buyer's decisions are influenced by ______ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.

Personal characteristics

James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James' purchase decision?

Personal source

____ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Positioning

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ______.

Product

_____ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Psychographic

Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand?

Ruggedness

Which of the following best characterizes the decline stage of product development?

Sales and profit decline

_____ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Service

______ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

Service intangibility

______ means that services cannot be stored for later sale or use.

Service perishability

Which of the following statements is true of cultural factors that influence consumer behavior?

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

Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ____.

Straight buy

A firm can obtain new products through acquisition or new-product development efforts.

TRUE

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

TRUE

According to Maslow's hierarchy of needs theory, when the most important need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need.

TRUE

For many companies, the package itself has become an important promotional medium.

TRUE

Product line filling is overdone if it results in cannibalization and customer confusion.

TRUE

To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.

TRUE

Which of the following groups do marketers involve for the process of concept testing new products?

Target consumers

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

actionable

A nurse in a hospital told the chief dentist, Dr.Albrecht, that the hospital should purchase equipment that would sterilize the dentists' tools without using any water because water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on chemical sterilizers and gathered more information on how they worked. After talking to salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht played the role of a(n) _____.

decider

The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ______ demand.

inelastic

Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here?

intermarket segmentation

Product mix ____ refers to the total number of items a company carries within its product lines.

length

Perry's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Perry's because it charges rock-bottom prices. Perry's Mart most likely uses the ________ positioning.

less for much less

Which of the following is a drawback of local marketing?

local marketing increases manufacturing costs by reducing economies of scale.

All of the following are difficulties associated with selling to government buyers EXCEPT ____

low sales volume

When the size, purchasing power, and profiles of a market segment can be calculated, the market is _____

measurable

In a(n) _______ situation, the buyer wants to revise product specifications, prices, terms, or suppliers.

modified rebuy

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) _______.

positioning statement

Which of the following plays the most important role in government buying?

prices

Through ______ differentiation, brands can be differentiated on features, performance, or style and design.

product

Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ______.

product characteristics that influence rate of adoption

A detailed version of a new idea stated in meaningful customer terms is called a ________.

product concept

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

product differentiation

Which term refers to the course that a product's sales and profits take over its lifetime?

product life cycle

A _______ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

product line

_____ involves adding more items within the present range of the product line.

product line filling

_____ occurs when a company lengthens its product line beyond its current range.

product line stretching