BCOR Exam 2 Review questions

What is included in the first part of a marketing strategy statement?

target market description

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

test marketing

Business buyer behavior refers to the ________.

buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

In the new product development process, the first idea-reducing stage is ________.

idea screening

Acquisition refers to ________.

the buying of a whole company, a patent, or a license to produce someone else's product

What sets the ceiling for product prices?

the customers perceptions of the products value

In business markets with inelastic demand ________.

the total demand for products is not much affected by short-term price changes

Which of the following is the most likely reason that employees regularly attend trade shows and seminars?

to get new product ideas

________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes.

total quality management

Business demand that ultimately comes from the demand for consumer goods is known as ________ demand.

derived

________ segmentation assumes that nations close to one another will have many common traits and behaviors.

geographic

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

good-value

Department stores such as Kohl's and Macy's practice high-low pricing by ________.

having frequent sale days for store credit-card holders

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it.

Benefit segmentation

Which of the following statements best explains why idea screening may be the most important step of new product development?

It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

A marketer wanting to determine business buyer behavior is most likely to ask which of the following questions?

What are the major influences on buyers?

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

Which of the following is an example of a pure tangible good?

bag of potato chips

Business markets are similar to consumer markets in that ________.

both involve people who assume buying roles and make purchase decisions to satisfy needs

Marketing mix planning begins with ________.

building an offering that brings value to target customers

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

________ may help shape product specifications, but their major role is to select vendors and to negotiate.

buyers

The decision-making unit of a purchasing organization is called its ________.

buying center

anguine 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

What are the two dimensions of product quality?

consistency and level

Which of the following is a disadvantage of using a differentiated marketing strategy?

cost of doing business increase

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.

cost-plus pricing

The learning curve is representative of the ________.

drop in the average per-unit production cost that comes with accumulated production experience

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

everyday low

Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________.

faces a new task situation

________ segmentation has long been used in clothing, cosmetics, toiletries, and magazines.

gender

Sage Hospitals, a nonprofit organization, provides healthcare to the people in the Midwest. Management at Sage is involved in the ________ market.

institutional

Many companies have developed ________ programs that encourage employees to develop new product ideas.

intrapreneurial

Business buyers are heavily influenced by factors in the current and expected economic environment, such as ________.

level of primary demand

Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________.

line filling

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

market segmentation

When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________.

market targeting

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

new products

A good design begins with ________.

observing and understanding customers and shaping their product-use experience

________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization.

organization

Factors such as a firm's objectives, procedures, and systems are examples of ________ influences on the business buyer behavior.

organizational

A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs.

overhead(Fixed)

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing.

place

________ is the only element in the marketing mix that produces revenue.

price

________ are the major marketing factors in the sale of most manufactured materials and parts.

price and service

________ occurs when someone in the company identifies a need that can be met by acquiring a specific product or service.

problem recognition

Underpriced products ________.

produce less revenue than they would if they were priced at the level of perceived value

An attractive product idea must be developed into a ________.

product concept

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

Consumer products refer to ________.

products and services bought by final consumers for personal consumption

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation.

psychographic

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.

psychographic segmentation

________ 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

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

shopping products

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a ________.

specialty product

________ marketing is more suited for uniform products, such as grapefruit or steel.

undifferentiated

Costs that change with the level of production are referred to as ________.

variable costs

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

when the costs of developing and introducing the product are low

Product mix ________ refers to the number of different product lines the company carries.

width