MKTG101 Exam 2

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.

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

Spiritual needs

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

Subconscious

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?

back sourcing

All the individuals and households that buy or acquire goods and services for personal consumption make up the ________.

consumer market

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 rebut

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

sales and profits decline

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

target market

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

a straight rebuy

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

accessible

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 is a drawback of local marketing?

A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation.

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

Activities

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

Actual product

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

Behavoral

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 Segementation

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

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

Convenience products

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

________ 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

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

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?

Occasional segementation

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

Packaging

Which of the following statements is true of social classes?

People within a social class tend to exhibit similar buying behavior

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

"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

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

Product characteristics that influence rate of adoption

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

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

Psychographic segmentation

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

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

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

buyers

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

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

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

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

"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 segementation

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

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

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

institutional

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.

label

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

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

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

price

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

product

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

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 specification

________ 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 ________ 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's position

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

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

Which of the following is true about business purchases?

Business purchases involve more professional purchasing effort than consumer purchases.

________ 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

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

________ 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.

Services

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

e-procurement

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

far fewer but far larger buyers

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

high advertising costs