BA370 EXAM 1
TRUE OR FALSE: A mission statement describes the specific actions a firm will take to achieve goals.
FALSE; A mission statement is a broad description of a firm's objectives and the scope of activities it plans to undertake.
TRUE OR FALSE: Consultative buying centers use one person to make a decision but solicit input from others before doing so.
TRUE
TRUE OR FALSE: A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center.
FALSE; A consensus buying center is one in which all members of the team must reach a collective agreement that they can support a particular decision.
TRUE OR FALSE: A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.
FALSE; A straight rebuy is typically used for additional purchases of things that are bough regularly. In this case, a new buy is most likely the choice.
TRUE OR FALSE: Fabric World buys from China and sells it to clothing it to clothing manufactures in the US. Fabric World is a retailer.
FALSE; Fabric World is a reseller. A retailer sells directly to a consumer.
TRUE OR FALSE: Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.
FALSE; Formal performance evaluations of the vendor and the products sold generally do NOT occur in B2C buying situations, as they fo in the B2B setting.
TRUE OR FALSE: In both new buy and straight rebuy situations, several members of a buying center will be intensely involved in the purchasing decision.
FALSE; In a new buy, all members of the buying center will be involved in the purchasing decision. In a straight rebuy, it is likely that the buyer will handle the transaction alone.
TRUE OR FALSE: The local school district realized it needed to upgrade the computers in the school libraries. This represents the product specification stage of the B2B buying process.
FALSE; In the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need - in this case, upgraded computers for the school libraries.
TRUE OR FALSE: Most B2B buying situations can be categorized into three categories: new buys, structures rebuys, and automatic rebuys.
FALSE; Most B2B buying situations are categorized as either new buys, modified rebuys, or straight rebuys.
TRUE OR FALSE: As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user.
FALSE; Paul is the influencer, decider, buyer, and gatekeeper, but probably not the user.
TRUE OR FALSE: According to Maslow's Hierarchy of Needs, safety needs are the needs that people first seek to meet.
FALSE; Physiological needs (basic biological necessities of life) are the needs people seek to meet first.
TRUE OR FALSE: A strategic planing process always proceeds sequentially through the five steps.
FALSE; Planning processes can move back and forth between the steps as needed.
TRUE OR FALSE: Public institutions do not engage in B2B relationships.
FALSE; Public institutions engage in B2B relationships to fulfill their needs for capital construction, equipment, supplies, food, janitorial, and so on.
TRUE OR FALSE: Resellers differ from producers in that resellers significantly alter the form of goods they sell.
FALSE; Resellers do NOT significantly alter the form of the goods they sell. Wholesalers and distributers are two types or resellers.
TRUE OR FALSE: STP refers to segmentation, testing, and promotion.
FALSE; STP stands for segmentation, targeting, and positioning.
TRUE OR FALSE: An architect working for a large firm requests specific computer software to process designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.
FALSE; The architect will fill the user role. In addition, he/ she is probably the initiator. The gatekeeper controls information or access, or both, to decision makers and influencers.
TRUE OR FALSE: Once a vendor receives an order from a firm, it respond by immediately filling the order.
FALSE; The supplier first sends an acknowledgment that it has received the order and then it fills the order.
TRUE OR FALSE: Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy.
FALSE; This is a modified rebuy because the buyer changed some specifications. It could also be considered a new buy because Neighbors hadn't ordered gel seats before.
TRUE OR FALSE: LinkedIn is useful for the networking in the B2B marketplace, but Twitter is not typically used.
FALSE; Twitter is also valuable because businesses can use it to communicate with one another.
TRUE OR FALSE: When you go to the hospital for an operation, you are the decider in the buying process.
FALSE; You are the user. The decider who chose the supplies for your surgery.
TRUE OR FALSE: According to the AMA, marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
TRUE
TRUE OR FALSE: The three elements of the consumer's immediate environment are the company, competition, and corporate partners.
TRUE
TRUE OR FALSE: Marketers might wish to sell their products to everyone, but is not practical to do so
TRUE; A good marketer will seek out potential customers who have an interest in the product and the ability to buy it.
TRUE OR FALSE: iTunes software is often created with the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and it was difficult to duplicate. This is an example of sustainable competitive advantage.
TRUE; A sustainable competitive advantage is an advantage over the competition that is not easily copied and thus can be maintained over time. Over time, some competitors have created similar tools, but it has been difficult enough to copy that these competitors have never really caught up.
TRUE OR FALSE: Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.
TRUE; After identifying its target segments, a firm must evaluate each of its strategic opportunities.
TRUE OR FALSE: Demographic profiles of customers provide an easily understood "snapshot" of the typical consumer in target markets.
TRUE; Although demographics do not completely describe consumers, they offer a summary snapshot of consumer characteristics that can be useful.
TRUE OR FALSE: Mary will not consider purchasing an "American" car brand based on negative comments made by her parents; therefore, she has developed a negative attitude towards American brand cars.
TRUE; An attitude is a person's enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. An attitude consists of three components (cognitive, affective, and behavioral). Mary's knowledge of her parent's comments could have influenced one or all of these components of her attitude.
TRUE OR FALSE: The next broad wave of mobile applications is likely to center around "m-wallets" which will enable customers' smartphones to be used for wireless payments.
TRUE; Applications such as Google Wallet, MasterCard's Easy Pay, and Isis Mobile Wallet all enable customer's phones to serve as m-wallets.
TRUE OR FALSE: Another name for physical risk is safety risk.
TRUE; As it related to a purchase decision, physiological (or safety) risk refers to the fear of an actual harm should the product not perform properly.
TRUE OR FALSE: When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.
TRUE; Derived demand reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output.
TRUE OR FALSE: When making an important purchase, consumers often consult friends and family. This is considered an external search for information.
TRUE; External search for information occurs when the buyer seeks information outside their personal knowledge base to help make the buying decision.
TRUE OR FALSE: Firms become value driven, in part, by focusing on the competition.
TRUE; Firms become value driven by sharing information about their customers and competitors across their own organization and with other firms that help them get the product/service to the marketplace, such as manufacturers and transportation companies.
TRUE OR FALSE: Parties that work with the local firm are its corporate partners.
TRUE; Firms collaborate with other firms to produce and market their products.
TRUE OR FALSE: As Daphne's business grew, she needed to find a new way to manage payroll for her employees, so she research payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation.
TRUE; In a new buy situation, a customer purchases a good/service for the first time.
TRUE OR FALSE: A small business may use a web portal as a means of forming a supply a supply chain that can respond to its needs.
TRUE; Smaller companies may lack the ability to attract attention to their requests, so they might turn to a web portal. Portals can provide tremendous cost savings because they eliminate periodic negotiations and routine paperwork, and they offer the means to form a supply chain that can respond quickly to the buyers needs.
TRUE OR FALSE: Understating a customer's needs and wants is fundamental to marketing success
TRUE; Understanding the marketplace, and especially the needs and wants of the customer, is fundamental to marketing success.
TRUE OR FALSE: Generally, people buy one product/ service instead of another because ethyl perceive it to be a better value.
TRUE; Value is th difference between what we get and what we must give to get it. Perceptions of value usually drive purchase decisions.
TRUE OR FALSE: Value is what you get for what you give
TRUE; Value reflects the relationship between the benefits received and the costs.
TRUE OR FALSE: Garage sales and online classified ads are examples of C2C marketing
TRUE; consumers are marketing to one another
TRUE OR FALSE: When a good/service is promoted, the purpose of promotion is to inform, persuade, or remind customers about the good or service.
TRUE; promotions are generally designed to inform, persuade, or remind potential buyers about a product or service in order to influence their opinions and elicit a response.
TRUE OR FALSE: Price should be based on the value that the customer perceives.
TRUE; value-based marketing helps ensure that customers perceive a product as a good value.
TRUE OR FALSE: The components of SWOT analysis are strengths, weaknesses, opportunities, and tactics.
The components of a SWOT analysis are strengths, weaknesses, opportunities, and threats.
TRUE OR FALSE: Applying age as a basis to identify customers is unethical, as it involved stereotyping.
FALSE; Applying age as a basis to identify consumers is quite useful to marketers, as long as it is used un conjunction with other consumer characteristics.
TRUE OR FALSE: Approximately half of marketers say they now use social media tools for marketing purposes.
FALSE; Approximately 93% of marketers assert that they use social media tools for their businesses to allow them to connect better with their customers.
TRUE OR FALSE: B2B marketing refers to buying and selling goods/services to consumers.
FALSE; B2B marketing refers to the process of buying and selling goods/services to be used in the production of other goods/services for consumption by the buying organization and/or resale by wholesalers and retailers.
TRUE OR FALSE: Product penetration is one of the four major growth strategies.
FALSE; The four major growth strategies are market penetration, product development, market development, and diversification.
TRUE OR FALSE: For a marketer, the central focus of the entire business process should be the economy.
FALSE; The marketing firm must consider the entire business process, all from a consumer's point of view
TRUE OR FALSE: Demographics are transmitted by words, literature, and institutions from generation to generation.
FALSE; The question describes culture, not demographics.
TRUE OR FALSE: One of the social trends discussed in the text that is shaping consumer values in the US and all around the world is a concern about the vast disparity in income.
FALSE; The social trends mentioned in the text are a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
TRUE OR FALSE: Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy.
FALSE; This is a product development strategy. A market development strategy offers existing products and services to new customers.
TRUE OR FALSE: Consumers involved in habitual decision making engage in little conscious decision making.
TRUE; Habitual decision making involves little conscious thought. Instead, the consumer simply follows habitual patters, usually without considering other brands.
TRUE OR FALSE: As it related to marketing, the trade of things of value between the buyer and the seller so that each is better off as a result is known as exchange.
TRUE; In a marketing exchange, sellers provide products/services then communicate and facilitate the delivery of their offering to consumers. Buyers complete the exchange by giving money and information to the seller.
TRUE OR FALSE: A group of firms that makes and delivers a given set of goods is known as a distribution network.
FALSE; A group of firms that makes and delivers a given set of goods and services is known as a supply chain or marketing channel.
TRUE OR FALSE: Duke's is a surfer-themes restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.
FALSE; A recession is an external factor, so it is a threat.
TRUE OR FALSE: Burger King no longer uses SpongeBob to promote burgers and fries because the character is no longer popular with young children.
FALSE; Burger King no longer uses SpongeBob because new advertising guidelines do not allow linking unhealthy foods with cartoon characters.
TRUE OR FALSE: Pam didn't go see the movie Gravity because her friends all said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Pam is demonstrating an internal locus of control.
FALSE; By letting her friends' opinions control her actions, and then blaming them for her decision, she is demonstrating an external locus of control.
TRUE OR FALSE: In the immediate environment, the competition has no effect on consumers.
FALSE; Competitors are on factor in the immediate environment that affects consumers.
TRUE OR FALSE: Customers are more likely to talk about service that exceeded their expectation that about service that did not meet their expectation.
FALSE; Consumers are more likely to complain to others about bad experiences that to share praise about good ones.
TRUE OR FALSE: The members of Generation X are also referred to as Digital Natives.
FALSE; Digital Natives are members of Generation Z, not Generation X
TRUE OR FALSE: Over the past decade or so, marketers have begun to realize that it is best to structure a firm's customer orientation in terms of transactions rather than relationships.
FALSE; During the past couple of decades, marketers have begun to develop a relational orientation as they realize that they need to think about their customers in terms of relationships rather than transactions. In doing so, firms focus on the lifetime profitability of the relationship, not on how much money is made during the transaction.
TRUE OR FALSE: Effectively managing supply chains has a minimal effect on profitability.
FALSE; Effectively managing supply chain relationships often has marked impact on a firm's ability to satisfy the customer, which results in increased profitability for all parties.
TRUE OR FALSE: When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke.
FALSE; Habitual decision making involved litter conscious effort - these are purchases that we make regularly and by habit, without even considering alternatives.
TRUE OR FALSE: Setting high customer expectations is a good strategy that will help avoid customer dissatisfaction in the long run.
FALSE; If expectations are set too high, it can lead to dissatisfied customers because the high expectations are so difficult to live up to.
TRUE OR FALSE: The "implement marketing mix" step of the strategic marketing planning process is part of the control phase.
FALSE; In the implementation phase, marketing managers identify and evaluate different opportunities by engaging in a process known as STP. They then are responsible for implementing the marketing mix using the four P's.
TRUE OR FALSE: Inflation refers to the cost of borrowing money.
FALSE; Inflation refers to the persistent increase in the prices of goods and services.
TRUE OR FALSE: Rachael is visiting colleges before applying to schools. Rachel is likely to be involved in an impulse buying decision.
FALSE; It is very unlikely that Rachael will make such an important decision impulsively. The fact that she is visiting schools in advance pf applying indicated she is conducting extensive information search and is probably involved in extended problem solving.
TRUE OR FALSE: Macroenvironmental factors include the company, competition, and corporate partners.
FALSE; Macroenvironmental factors are external factors such as culture, demographics, social issues, technological advances, economic situations, and political/ regulatory environments. The factors listed are related to the immediate environment.
TRUE OR FALSE: Unlike large corporations, small entrepreneurs are unable to understand and control their marketing mixes
FALSE; Many small entrepreneurs have visions of how certain combinations of products and services can satisfy unfilled needs by conducting thorough examination of the marketplace and by developing and communicating the value of their products/services to potential consumers.
TRUE OR FALSE: Marketing is an activity that only large firms with specialized departments can execute
FALSE; Marketing activities can be performed by organizations of all sizes and also by individuals.
TRUE OR FALSE: Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company
FALSE; Marketing's fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customers.
TRUE OR FALSE: Mallow's Hierarchy of Needs is an interesting concept for psychology, but it has little relevance for marketing.
FALSE; Maslow's Hierarchy of Needs helps explain motives, which are needs to wants that are strong enough to cause someone to seek satisfaction. In many cases, satisfaction is tied to a purchase decision.
TRUE OR FALSE: Tweens rarely use any type of technology.
FALSE; Members of this group, a subgroup of Generation Y, are always connected and tech savvy.
TRUE OR FALSE: The RFP process is used by buyers to allow customer input into value creation.
FALSE; The RFP (request for proposals) process allows organizations to invite alternative vendors or suppliers to bid on supplying the organization's required needs.
TRUE OR FALSE: The consumer decision process begins with a comparison of available alternatives.
FALSE; The consumer decision process begins with need recognition.
TRUE OR FALSE: When analyzing the immediate environment and the microenvironment, marketers must be careful to keep the firm at the center of all analyses.
FALSE; The consumer, not the firm, should be kept at the center of all activity.
TRUE OR FALSE: The four P's of the marketing mix include product, promotion, planing, and place
FALSE; The four P's of the marketing mix are product, price, promotion, and place
TRUE OR FALSE: Jason usually buys Nike shoes, so when his friend asked him what shoes he should buy, he said Nike without thinking about it. Jason's response was an evoked set.
FALSE; This is a retrieval set because it is the brand that was readily Brough forth from memory without considering other brands.
TRUE OR FALSE: When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing
FALSE; This is an example of B2B marketing. B2C marketing would involve selling cars or trucks to individual consumers.
TRUE OR FALSE: Socially responsible marketing is defined as strategic effort by firms to supply customers with environmentally friendly merchandise.
FALSE; This is green marketing
TRUE OR FALSE: Vladimir decided not to purchase the iPod shuffle because he didn't think it would hold all of his songs. Vladimir was using assessment of the iPod shuffle's financial risk in making his decision.
FALSE; Vladimir is worried about the performance risk, or the failure of the product to perform as he needed.
TRUE OR FALSE: As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.
FALSE; When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.
TRUE OR FALSE: To build a sustainable competitive advantage, companies should focus on a single strategy.
FALSE; While a firm may put energy into one strategy to achieve excellence, many firms seek multiple sources of advantage to meet customers' needs to the greatest possible extent.
TRUE OR FALSE: Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs.
TRUE; A functional need related to product performance (dependable transportation). A psychological need related to personal gratification (having a car that looks good).
TRUE OR FALSE: The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be.
TRUE; A greater discrepancy leads to a more urgent drive to satisfy the need.
TRUE OR FALSE: A reference group may have direct or indirect influence on your attitude towards a particular clothing store.
TRUE; A reference groups is one or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors. Reference groups provide information directly through conservation or indirectly through observation.
TRUE OR FALSE: Geraldo manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Gerald manages a strategic business unit.
TRUE; A strategic business unit is a division of the firm that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.
TRUE OR FALSE: B2B marketing involves manufacturers, wholesalers, and service firms.
TRUE; B2B organizations market goods/services to other businesses but not to the ultimate consumer.
TRUE OR FALSE: By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.
TRUE; Changes in the environment can be a source of opportunities for the firm.
TRUE OR FALSE: Firms that disingenuously market products/services as environmentally friendly, with the goal of gaining public approval and sales rather than actually improving the environment, are engaged in greenwashing.
TRUE; Consumers need to question whether a firm is spending significantly more money and time advertising being green and operating with consideration for the environment than actually spending these resources on environmentally sound practices.
TRUE OR FALSE: Culture can broadly be defined as the shared meanings, beliefs, morals, values, and customs of a group of people.
TRUE; Culture can be transmitted by words, literature, and institutions. It is passed down from generation to generation and learned over time.
TRUE OR FALSE: The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. When Dell purchases its power adapters from these small companies, it is engaged in B2B marketing.
TRUE; Dell, a business, is purchasing supplies from another business, so this is an example B2B marketing.
TRUE OR FALSE: Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence.
TRUE; Efficiency in the supply chain is one of the primary features of an operational excellence strategy.
TRUE OR FALSE: Good marketing is NOT a random activity
TRUE; Good marketing is not a random activity, it requires thoughtful planning with an emphasis on the ethical implications of any decision made on society in general.
TRUE OR FALSE: In a value cocreation, the customer participates in the creation of a good or service, which provides additional value to the customer
TRUE; In a value cocreation, the firm and the customer work together to create the product/service. This process adds value because the product or service can be tailored to the customer's needs
When Hakim asked Marta where she wanted to go for lunch, she said Chili's because she went there at least once a week and always liked it. Marta conducted internal search for information.
TRUE; In an internal search for information, the buyer examines their own memory and knowledge about the product/service, gathered through past experiences.
TRUE OR FALSE: The final step in the B2B buying process is a formal vendor performance analysis.
TRUE; In this final step, the selected vendor's performance is evaluated in order to decided whether or not to give the vendor additional business in the future.
TRUE OR FALSE: It is not always necessary to go through all the steps in the marketing planning process.
TRUE; It is not always necessary to go through the entire process for every evaluation. For instance, a firm could evaluate its performance in Step 5, and then go directly to Step 2 to conduct a situation audit without redefining its overall mission.
TRUE OR FALSE: Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving.
TRUE; Milk and bread might be habitual purchases, or Frazier might consider different types of bread or different sized milk containers. He must also decide on a menu for dinner and purchase the groceries he needs. None of this requires extended problem solving - in each case he will probably consider only a few alternatives - but a small amount of thought will be needed.
TRUE OR FALSE: Organizational culture may vary by geography.
TRUE; Organizational culture may vary by geography, by division, or by functional department.
TRUE OR FALSE: Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.
TRUE; Place represents all the activities necessary to get the product to the right customer when that customer wants in (convenient location).
TRUE OR FALSE: After purchasing an expensive pair of shoes, you may question whether or not the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of post purchase cognitive dissonance.
TRUE; Post-purchase cognitive dissonance is an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behavior. In this case, someone who spends a lot of money on shoes may feel a conflict due to the possibility that a cheaper pair could have satisfied the need for shoes just as well, leaving the extra money available for another use.
TRUE OR FALSE: Jeanne, who lives in Boston, refers to Pepsi as "tonic", while Paul, who lives in Chicago, calls it "pop". This is an example of a regional culture difference.
TRUE; Regional culture affects many aspects of people's lives, including their vocabulary.
TRUE OR FALSE: Relative market share is an example of a marketing metric.
TRUE; Relative market share might be used as a metric to evaluate a firm's performance compared to its competitors.
TRUE OR FALSE: One benefit of having satisfied customers is that they may spread positive word of mouth.
TRUE; Satisfied customers sometimes spread positive word of mouth. They are also likely to become loyal and to purchase again.
TRUE OR FALSE: Happy cow is an example of a location-based social media application
TRUE; Several restaurant chains are exploiting location-based social media applications, such as Happy Cow, Yelp, Foodspotting, inBloom, and Alfred. By using location based applications to mobile phones, customers can find restaurants that cater to their specific dietary requirements.
TRUE OR FALSE: Situational factors sometimes override psychological and social factors in the consumer deacon process.
TRUE; Situational factors can lead to different decisions than the consumer would make otherwise. This is one reason why it is so difficult to predict how the consumer will behave in a specific instance.
TRUE OR FALSE: Buffalo Wild Wings suggests that its diners check in to its locations using their phones. This demonstrated the use of social media to market a product.
TRUE; Social media enables Buffalo Wild Wings to reach young, tech-savvy customers, its target market.
TRUE OR FALSE: Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run.
TRUE; Socially responsible firms recognize that including a strong social orientation in business is a a sound strategy, one that is both its own and its customers best interest. It shows consumers that the firm will be around for the long run and can be trusted with their business.
TRUE OR FALSE: The group of firms that make and deliver a given set of goods/ services is called a supply chain.
TRUE; Supply chain (or marketing channel) partners include all firms involved in manufacturing and delivering goods and services, from raw material suppliers to retailers and shippers.
TRUE OR FALSE: The B2B buying process tends to be more formal than B2C buying.
TRUE; The B2B buying process is more structured, involving written specification of needs and formal proposals.
TRUE OR FALSE: San Disk's MP3 player product line (Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group analysis, the Sansa would be considered a dog.
TRUE; The Sansa has low relative market share in a low-growth market, which is the definition of a dog.
TRUE OR FALSE: Successful firms focus their efforts on customer needs that match their core competencies.
TRUE; The firm's competencies are its strengths. The firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.
TRUE OR FALSE: Members of Generation Y are also called millennials.
TRUE; The group of people born between 1977 and 2000 are referred to as Generation Y, or millennials.
TRUE OR FALSE: As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchases with strong store loyalty are great customers.
TRUE; These customers rarely even consider alternative brands or stores, and so are excellent customers.
TRUE OR FALSE: Determinant attributed are product or service features that are important to the buyer and on which competing brands or store are perceived to differ.
TRUE; This is the definition of determinant attributes.
TRUE OR FALSE: In 1890, Sherman Antitrust Act prohibits monopolies and other activities that would restrain trade or competition.
TRUE; This made fair trade within a free market a national goal.
TRUE OR FALSE: Lesle Hair Company keeps track of the gender and age of its consumers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This Nisan example of the use of demographics in marketing.
TRUE; Typical demographics include age, gender, income, and race.