Chapter 7 - Consumer Buying Behavior, Chapter 8 - Business Markets and Buying Behavior, Chapter 9 - Reaching Global Markets, Chapter 10 - Product Concepts, Chapter 6 - Target Markets: Segmentation, Evaluation, and Positioning

According to your text, ____ are small technology-based firms operating in international markets within two years of their establishment and realizing as much as 70 percent of their sales outside the domestic home market. "natural globals" "multinational corporations" "born globals" "born multinationals" "multinational enterprises"

"born globals"

Convenience products are A) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. b) frequently purchased items for which buyers are willing to exert considerable effort. c) frequently purchased items that are found in certain retail outlets. d) items that are expensive but are easy to purchase. e) items that require some purchase planning and for which the buyer often will not accept substitutes.

A) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

A disadvantage of the concentrated targeting strategy is that a) the firm's financial condition is tied to a single and specialized marketing mix. b) large sales volumes cannot be generated. c) production costs may be higher than with other strategies. d) marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e) marketing costs are often higher than for other strategies.

A) the firm's financial condition is tied to a single and specialized marketing mix.

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China? WTO MERCOSUR FTAA NAFTA APEC

APEC

Which of the following trade alliances differs from others in its commitment to facilitating business and its practice of allowing the private sector to participate in a wide range of activities? NAFTA EU MERCOSUR WTO APEC

APEC

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product? Raw material Installations Accessory equipment Component part Process material

Accessory equipment

Which American subculture spends the highest proportion of its income on utilities, footwear, children's apparel, groceries, and housing? Native Americans Hispanics African Americans Asian Americans Americans over 65 years of age

African Americans

Which of the following is the fastest growing, most affluent subculture in the United States? African Americans Hispanics Asian Americans Native Americans Italian Americans

Asian Americans

What are a marketing manager's two options during the decline stage? Reintroduce the product to new markets or stop sales immediately Speed up the product's decline or increase advertising Attempt to postpone the decline or accept its inevitability Divesting the brand or reinvesting in the brand Accept the decline or phase the product out

Attempt to postpone the decline or accept its inevitability

What consumer research method consists of a series of adjectives, phrases, or sentences regarding an object, with subjects indicating the intensity of their feelings toward this object by reacting to these adjectives, phrases, or sentences? Projective specification Patronage clarification Group interview Attitude scale Depth interview

Attitude scale

Which of the following purchases would most likely require a consumer to use extended problem solving? Audio equipment Shaving cream Cereal Kitchen napkins Gasoline

Audio equipment

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. What segmentation variable is GE Transportation using to select a target market? Demographic Benefit expectations Income Volume usage Psychographic

Benefit expectation

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product? Business Process materials Raw material Convenience Consumer

Business

When Hunter Ceiling Fans buys electrical wire for use in producing its ceiling fans, Hunter is part of what type of market for electrical wire? Resale Wholesale Customer Consumer Business

Business

Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product? Price Selling organization Terms of the sale Buyer's intended use of the product Benefits the product provides

Buyer's intended use of the product

Which of the following is always used to determine the classification of a good? Buyer's intent for using the product Amount of shopping required by the buyer to obtain the product Price of the product Specific product features Industry competitors

Buyer's intent for using the product

By 2009, NAFTA will create a totally free trade area between the United States, Canada, and Mexico. Japan, and China. Brazil, and Mexico. Cuba, and Panama. Panama, and Canada.

Canada, and Mexico

Many marketers claim that ____ will become the world's largest market. Japan the United States China Thailand India

China

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations? Conduct market research. Use management judgment. Trace existing service levels. Stress quality service with employees. Train employees better.

Conduct market research.

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. Given the type of business market in which Precision Brake is currently operating, which group would it be least likely to sell to? Producers Governments Retailers Consumers Institutions

Consumers

Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification? Licensing Contract manufacturing Exporting Importing Direct investment

Contract Manufacturing

Dannon Yogurt represents what type of product for most consumers? Convenience Business Shopping Specialty Durable

Convenience

Energizer batteries would be classified as which type of product? Convenience Shopping Specialty Unsought Industrial service

Convenience

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Shaving razors fall into which of the following classification of consumer products? Convenience products Shopping products Substitute products Specialty products Accessory equipment

Convenience products

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following? Available advertising media Cultural factors Legal challenges Technological advances Economic environmental factors

Cultural factors

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures. The self-reference criterion Global ethics Economic relativism Cultural relativism Moral relativism

Cultural relativism

Demand for business products is characterized as derived. From what is the demand derived? Industrial demand Modified demand Demand for consumer products Future product demand The business cycle

Demand for consumer products

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using? Demographic Geographic Psychographic Product-related Education

Demographic

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? Environmental Organizational Interpersonal Demographic Individual

Demographic

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. Last year, Precision Brake's sales to the manufacturers of lawn tractors declined, partially due to the fact that more consumers were hiring small landscaping businesses to cut their grass. This decline in sales for Precision Brake is an example of Product scarcity Joint demand Derived demand Reciprocity demand Inelastic demand

Derived demand

If a business owner buys parts by specifying the quantity, grade, and other attributes, which buying method is he or she using? Description Sampling Negotiation Ordering Inspection

Description

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? Homogeneous selection Inspection Description Sampling Negotiation

Description

Which of the following products is least likely to be segmented according to stages in the family life cycle? Single-family homes Ford automobiles European vacations Diet Coke General Electric appliances

Diet Coke

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Which of the following targeting strategies is GE Transportation most likely using? Undifferentiated Differentiated Concentrated Selective Market diffusion

Differentiated

___________ can force businesspeople to buy and sell foreign products through a central agency, such as a central bank. Embargoes Export tariffs Quotas Import tariffs Exchange controls

Exchange controls

Intuition and expediency are primary characteristics of which of the following sales forecasting methods? Surveys Executive judgment Cycle analysis Market tests Industry indicators

Executive judgment

What is the main problem with using a market test as a forecasting tool? Difficult to interpret Expensive Inaccurate Unacceptable to consumers Overused

Expensive

Which of the following products would probably require extended problem solving before a purchase? Products purchased frequently Products to be purchased in the future Products that are purchased routinely Expensive products Products purchased as a result of social influences

Expensive products

______ bring together buyers and sellers from different countries and collect a commission for arranging sales. Export agents Licensors Trading companies Import specialists Trade brokers

Export Agents

Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of problem-solving process is she using? Selective Intensive Extended Shopping Routinized

Extended

Jose and Teresa are searching for a new cellular phone. They will most likely engage in which one of the following forms of problem solving? Extended problem solving Limited problem solving Impulse buying Routinized response behavior Intensive response behavior

Extended problem solving

Mark is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Martin is using which type of consumer problem-solving process? Routinized response behavior Habitual response Information search Extended problem solving Intensive problem solving

Extended problem solving

Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive? Develop a code of service. Set service objectives. Formally survey customers. Specify service uniformity. Stress truthfulness with employees.

Formally survey customers.

Which of the following is most likely to be considered a convenience good? A lamp A haircut Running shoes Gatorade Concert tickets purchased online

Gatorade

Zerex markets its radiator liquid as a coolant in the South and an antifreeze in the North. Which of the following segmentation variables is Zerex using? Demographic Psychographic Life cycle Geographic Product use

Geographic

Subaru is producing a new crossover van with all-wheel drive. Which of the following would be a likely variable for segmenting the market for this new model? Religion Geographic location Income Political views Ethnicity

Geographic location

Levi Strauss markets its denim jeans in many countries and develops its marketing strategy as if the world were a single market. This approach to selling a standardized product in all countries represents which type of international marketing? Exporting Accidental exporting Limited exporting Licensing Globalization of markets

Globalization of markets

In which stage of the product life cycle do profits peak? Introduction Growth Decline Termination Maturity

Growth

For which of the following products would a consumer most likely use limited problem solving? Detergent Toothpaste Automobile Hair dryer Washing machine

Hair dryer

Which of the following is often used to raise revenue for a country and/or to protect domestic products? Quota Warning label Embargo Import tariff Exchange control

Import tariff

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? Raw materials Installations Accessory equipment Component parts Process materials

Installations

Which of the following centralizes all of the responsibility for international operations? Product division structures Export department structures Internationally integrated structures International division structures Global matrix structures

International division structures

Which of the following is most likely to engage in direct ownership activities internationally? Internationally integrated structures International division structures Export department structures Import department structures Outsourcing structures

Internationally integrated structures

Which of the following countries has made the greatest inroads into other world markets? Indonesia Philippines Malaysia Japan China

Japan

Which one of the following countries will not be included in the data presented in the new industry classification system that is replacing the SIC? Mexico Canada United States Japan All but one NAFTA country

Japan

One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of Canada. Japan. Brazil. Cuba. Panama.

Japan.

Which one of the following is most likely to be a product for which both the purchasing decision and the brand decision are strongly influenced by reference groups? Canned peaches Instant coffee Jeans Furniture Soap

Jeans

Which of the following products is most likely to have its market segment based on age? Bass shoes Lipton Iced Tea Bic pens Legos Carpet

Legos

Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing? Exporting Trading Joint venture Strategic alliance Licensing

Licensing

What level of commitment in international marketing may be most attractive when the political and economic stability of a foreign country is questionable? Joint ventures Direct ownership Exporting Limited exporting Licensing

Licensing

Kellogg's is introducing a new bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of problem solving? Routinized response behavior Limited problem solving Extended problem solving Impulse buying Extensive response behavior

Limited problem solving

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization? Brand name Package Media allocation Labels Product characteristics

Media allocation

According to Coleman's major social class categories, which of the following social classes in our culture has these characteristics: lives in well-kept neighborhoods, likes fashionable items, and is often found in management positions? Lower class Upper class Middle class Working class First class

Middle class

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called EU. MERCOSUR. APEC. NAFTA. GATT.

NAFTA.

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. What type of business purchase is Samsung undertaking? Modified rebuy Straight rebuy New-task Straight purchase New rebuy

New-task

Wal-Mart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the European Union. North American Free Trade Agreement. Pacific Rim Unification Act. International Retail Alliance Association. Latin American Free Trade Association.

North American Free Trade Agreement.

Bob Turner makes an appointment to visit with a new dermatologist in town to determine whether he should have several moles on his neck removed. When he arrives at the dermatologist's office, Bob notices a foul odor in the air, worn floor coverings, cluttered rooms that have paint peeling from the walls, and poor lighting. While Bob viewed the dermatologist as competent, Bob decided not to have the moles removed even though the dermatologist recommended removal. Which situational influences are most likely to have affected Bob's decision? Social surroundings Customer's momentary mood and condition Time pressures Purchase reasons Physical surroundings

Physical surroundings

Caterpillar would like to better understand factors that would affect its ability to market construction equipment in various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts? Political and legal Interpersonal Social Technological Industrial

Political and legal

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used? Positioning to avoid competition Head-to-head competition Parallel positioning Segmented positioning Counter positioning

Positioning to avoid competition

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. Which of the following groups should Samsung not include in its buying center for the new equipment? Purchasing agents at Samsung Eventual users within Samsung Potential future Samsung customers Gatekeepers within Samsung Senior managers at Samsung

Potential future Samsung customers

Which of the following is the most typical example of a new product introduction? Pringles sold in snack-sized containers A brand-new nut discovered in Africa A car that uses no oil or gasoline Shoes that literally make you run faster A device that cools your car while parked outside

Pringles sold in snack-sized containers

When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia? Purchase Evaluation of alternatives Problem recognition Information search Prepurchase evaluation

Problem recognition

Which type of business market tends to have the most complex buying procedures? Reseller Institutional Retailer Government Producer

Producer

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process? Problem recognition Product specification Product-supplier search and evaluation Product-supplier selection Product-supplier post-evaluation

Product-supplier search and evaluation

After doing considerable shopping, Eric has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Eric? Problem recognition Information search Evaluation of alternatives Purchase Postpurchase evaluation

Purchase

Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasiassembly pods, and has begun negotiations with their sales representatives. What was the first step of the buying decision process that Samsung went through when looking for the quasi-assembly pods? Searching for products and suppliers Selecting and ordering the most appropriate product Recognizing the problem or need Establishing product specifications Evaluating the product relative to specifications

Recognizing the problem or need

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? Surveys Executive judgment Time series analysis Market tests Regression analysis

Regression analysis

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. When Precision Brake sells to the individual dealers, they would be considered which of the following business types? Producer Reseller Government Institutional Covert

Reseller

Retailers like Target and Kmart are considered to be members of which business market? Reseller Customer Producer Institutional Services

Reseller

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? Reseller Producer Consumer Government Supply

Reseller

Which of the following consumer problem-solving processes will probably be used in purchasing toothpaste? Extended problem solving Routinized response behavior Intensive problem solving Limited problem solving Perceptual scanning

Routinized response behavior

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? Description Inspection Sampling Negotiation Selection

Sampling

Which method of business buying is necessary when products are highly homogeneous and examination of each item is not feasible? Negotiation Sampling Description Inspection Homogeneous selection

Sampling

The U.S. Army recruits soldiers based on the slogan, "An army of one," implying that people can reach their full personal potential in the U.S. Army. This is an appeal to what need according to Maslow's hierarchy of needs? Safety Esteem Self-actualization Physiological Social

Self-actualization

Gap clothing stores sell primarily what type of products? Convenience Shopping Unsought Nondurable Specialty

Shopping

Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product? Shopping Convenience Specialty Unsought Industrial

Shopping

_________ is(are) a major threat to the sales success of jointly demanded products. Price changes Shortages Economic instability Inventory buildup Proliferation of brands

Shortages

Which of the following is not one of the major categories of consumer market segmentation variables? Demographic characteristics Geographic variables Psychographic dimensions Situational variables Behavioristic characteristics

Situational variables

___________ are situational influences that include the characteristics and interactions of others who are present when a purchase decision is being made, such as friends, relatives, and salespeople. Physical surroundings Social surroundings Purchase reasons Buyer's momentary mood and condition Pressures created by time factors

Social surroundings

The Common Market of the Southern Cone (MERCOSUR) includes countries from Africa. Asia. Central America. South America. the Pacific Islands.

South America

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 2.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process? Searching Specification development Alternative evaluation Selection Performance evaluation

Specification development

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in Sales & Marketing Management. an SIC listing. the Census of Business. the Census of Manufacturers. Standard & Poor's Register.

Standard & Poor's Register.

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase? New-task Modified rebuy Straight rebuy Bid Negotiated

Straight rebuy

Safeway Supermarkets recently placed an order with the Kahn Corporation. Safeway has ordered these same products before under the same terms of sale. What type of purchase does this situation represent? New-task Repetitive Institutional Straight rebuy Modified rebuy

Straight rebuy

Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use? Trading company Strategic alliance Licensing Direct ownership Exporting

Strategic alliance

Which of the following would be considered an institutional buyer? The University of Illinois The Environmental Protection Agency Apple Computers The United Way City of Greenville

The United Way

Which of the following agreements provides a forum for tariff negotiations, reducing trade restrictions, resolution of international trade problems, and ground rules for international trade? The World Trade Organization The North American Free Trade Agreement The Latin American Free Trade Agreement The European Union Free Trade Agreement The General Agreement on Tariffs and Trade

The World Trade Organization

Which of the following best defines the interest stage in the product adoption process? The buyer tries to find the product in a retail store. The buyer considers the benefits and determines whether to try the product. The buyer tries the product to determine its usefulness. The buyer seeks information and is receptive to learning about the product. The buyer uses objective sources to learn about the product.

The buyer seeks information and is receptive to learning about the product.

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method? Time series analysis Executive judgment Surveys Regression analysis Market tests

Time series analysis

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique? Surveys Executive judgment Time series analysis Market tests Regression analysis

Time series analysis

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible? McDonald's arches Mercedes Benz emblem Nike swoosh Traveler's Insurance umbrella Arrows on Wrigley gum packages

Traveler's Insurance umbrella

Which of the following is an example of a behavioristic segmentation variable? Family size Climate Age Usage rate Personality characteristics

Usage rate

A widely used system for classifying individuals on the basis of lifestyle is VALS. PRIZM. CMSA. LIFO. Prospect Zone.

VALS

___________ analysis is a systematic evaluation of current and potential suppliers that focuses on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability. Value Vendor Buying center Strategic Cost

Vendor

At the heart of the ____ are agreements that provide legal ground rules for international commerce and trade policy. United Nations GATT MERCOSUR WTO APEC

WTO

If a newly formed country wanted to increase its international trade and reduce worldwide tariffs, it would most likely try to become a part of NAFTA. WTO. MERCOSUR. APEC. EU.

WTO.

______ buy products from manufacturers and then resell the products to other firms in the distribution system. Retailers Producers Distributors Warehouses Wholesalers

Wholesalers

When a business has a relatively small number of customers, a preferred method of forecasting is regression analysis. trend analysis. the Delphi technique. a market test. a customer forecasting survey

a customer forecasting survey

Most business buying decisions are made by one person. a team of purchasing agents. a firm's buying center. inventory control personnel. the sales force.

a firm's buying center

A business partnership between a domestic firm and a foreign firm is known as a joint venture. an international partnership. a multinational enterprise. licensing. exporting.

a joint venture

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a market test. regression analysis. trend analysis. a survey. the Delphi technique.

a market test

Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by personality. a reference group. a consideration set. a knowledge base. a role conflict.

a reference group.

The actions and activities associated with a position one holds within a group, organization, or institution constitute personality. a role. a motive. perception. an attitude.

a role.

An alliance between Honda and Ford would most likely be classified as a strategic alliance. a joint venture. direct ownership. a multinational enterprise. contract manufacturing.

a strategic alliance

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. The practice of offering fried octopus and squid at Asian KFC's is best described as a strategy of standardization. a strategy of globalization. a strategy of some customization. competitive advantage. internationalizing the franchise.

a strategy of some customization.

What are the four major categories of factors that influence business buying decisions? a) Environmental, organizational, interpersonal, and individual b) Environmental, organizational, psychological, and individual c) Environmental, psychological, individual, and technological d) Technological, organizational, environmental, and interpersonal e) Environmental, organizational, technological, and individual

a) Environmental, organizational, interpersonal, and individual

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Which of the following best describes Lil' Angels' current approach to the market? a) It is segmenting the market according to demographic variables. b) It is segmenting the market according to product-related variables. c) It has chosen a segment that is not identifiable and divisible. d) Its market is impossible to reach because of legal constraints. e) It is not segmenting the market but is attempting to reach everyone with the product.

a) It is segmenting the market according to demographic variables.

Which of the following is true about NAFTA? a) It remains politically controversial. b) It will increase the total output of goods and services to foreign markets. c) It will decrease the total number of jobs in the United States. d) It eliminated all tariffs on goods traded between the United States, Canada, and Mexico. e) It will reduce the number of illegal aliens in the United States.

a) It remains politically controversial.

Micromarketing is a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets. b) developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market. c) marketing efforts that are tightly controlled by high-level executives in the organization. d) a way to segment the market to meet the needs of individuals with the same motives and personality attributes. e) creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.

a) a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.

A product mix is best described as a) all products offered by a firm. b) product, distribution, promotion, and price. c) many products sold by one firm. d) all products of a particular type. e) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

a) all products offered by a firm.

According to the text, a product is defined as a) anything the customer receives in an exchange. b) the physical object the customer receives in an exchange. c) the service that is rendered to a customer. d) the idea that the customer receives in an exchange. e) goods and services the customer receives in an exchange.

a) anything the customer receives in an exchange.

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to a) attempt to make large payments or bribes to influence policy decisions of foreign governments. b) offer foreign businesses any type of incentive for purchasing their company's products and services. c) change their ethical standards when dealing with foreign firms. d) give even small tips or gifts in countries where such gifts are customary business practices. e) introduce any type of corruption into foreign businesses that have higher ethical standards than those of the U.S. firm.

a) attempt to make large payments or bribes to influence policy decisions of foreign governments.

The role of export agents is to a) bring buyers and sellers from different countries together and collect a commission for arranging sales. b) purchase products from different companies and sell them to foreign countries. c) help a firm to make direct investments in foreign countries. d) contact domestic firms about the opportunities available in exporting. e) arrange for licensing agreements between domestic and foreign firms.

a) bring buyers and sellers from different countries together and collect a commission for arranging sales.

The ability to purchase a product is a function of a) buying power. b) desire. c) willingness. d) authority. e) needs.

a) buying power.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Carlos' knowledge of the correct gas mileage is an example of the ____ component of his attitude toward the Toyota, while Alicia's feelings about the children in the commercial being happy in the Toyota van were an example of the _____ component of her attitude. a) cognitive; affective b) cognitive; behavioral c) affective; cognitive d) affective; behavioral e) behavioral; affective

a) cognitive; affective

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories using a single marketing mix and is therefore most likely using a(n) _____ targeting strategy. a) concentrated b) differentiated c) exclusive d) focused e) undifferentiated

a) concentrated

When markets are comprised of people with differing product needs, the marketing manager should use a(n) ___________ strategy a) concentrated or differentiated targeting b) market-intensive c) integrated d) product-oriented e) undifferentiated

a) concentrated or differentiated targeting

Globalization of marketing involves a) developing a set of marketing strategies for the entire world or major regions of the world. b) performing marketing activities across national boundaries. c) exporting goods and services to foreign countries. d) creating value and exchanging value between countries. e) locating operations or subsidiaries in many countries.

a) developing a set of marketing strategies for the entire world or major regions of the world.

A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ___________ targeting strategy. differentiated total market concentrated undifferentiated integrated

a) differentiated

Adolescents are not considered part of the market for casinos because they a) have very little buying power. b) do not have the desire to gamble. c) are not willing to spend their money on gambling. d) cannot afford to gamble their savings. e) not have the authority to gamble.

a) have very little buying power.

Toyota has learned that some people want sports cars, while others want vans, trucks, sedans, and economy cars. In this instance, Toyota has found its markets to be a) heterogeneous. b) undifferentiated. c) concentrated. d) homogeneous. e) focused.

a) heterogeneous

The three most widely recognized types of consumer problem solving are: a) limited problem solving, extended problem solving, and routinized response behavior. b) extended problem solving, enduring problem solving, and situational problem solving. c) planned problem solving, impulse buying, and limited problem solving. d) internal problem solving, external problem solving, situational behavior. e) responsive behavior, planned behavior, and impulsive problem solving.

a) limited problem solving, extended problem solving, and routinized response behavior.

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a) market segments. b) heterogeneous markets. c) concentrated markets. d) demographic segments. e) strategic segments.

a) market segments

Marketers who attempt to use reference-group influence in advertisements are most likely to succeed when messages indicate that a) people in a specific group buy the product and are highly satisfied by it. b) reference groups should be of little concern to the consumer. c) reference groups are "in" and everyone should belong to at least one. d) all products and brands are influenced by reference groups. e) people in a specific group have tried the product and dislike it.

a) people in a specific group buy the product and are highly satisfied by it.

The primary psychological influences on consumer behavior are: a) perception, motives, learning, attitudes, personality, and lifestyles. b) attitudes, perception, retention, exposure, roles, and lifestyles. c) attitudes, perception, social class, culture, and learning. d) perception, motives, reference groups, social class, and personality. e) lifestyles, personality, perception, motives, attitudes, and culture.

a) perception, motives, learning, attitudes, personality, and lifestyles.

Product specifications are a) physical characteristics and level of quality. b) types of services that are provided with the product. c) financing available for the product. d) types of competitors offering similar products. e) product return policies.

a) physical characteristics and level of quality.

The stages of the business buying decision process, in order, are a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance. b) recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance. c) recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products. d) establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance. e) establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.

a) recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.

The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a) segmentation. b) diversification. c) target marketing. d) concentration. e) customization.

a) segmentation

A group becomes a reference group for an individual when that person identifies with this group so strongly that he or she a) takes on many of the values, attitudes, or behaviors of group members. b) becomes a formal member of the group. c) becomes familiar with the group's activities. d) seeks information from members of the group regarding buying decisions. e) cannot control the strength of his or her involvement with the group.

a) takes on many of the values, attitudes, or behaviors of group members.

Many aspects of consumer buying decisions are affected by the individual's level of involvement. Level of involvement is a) the importance and intensity of interest in a product in a particular situation. b) the buyer's perception, motives, and abilities. c) the amount of external search that an individual puts into the decision-making process. d) the particular circumstance or environment in which consumers find themselves. e) a combination of an individual's demographic factors.

a) the importance and intensity of interest in a product in a particular situation.

Marketers for C & H Sugar believe that consumers have similar needs for the product. C & H will most likely use a(n) ___________ approach in defining a target market. a) undifferentiated b) differentiated c) product strategy d) cost-benefit e) demographic

a) undifferentiated

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ___________ strategy a) undifferentiated b) differentiated c) segmented d) concentrated e) heterogeneous

a) undifferentiated

In the consumer buying decision process, the information search stage a) yields a group of brands that a buyer views as possible alternatives. b) involves a buyer becoming aware of the need for a product. c) is not necessary when the buyer is involved in extensive decision making. d) occurs immediately after evaluation of alternatives. e) is lengthy for routine response buying behavior.

a) yields a group of brands that a buyer views as possible alternatives.

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called raw materials. installations. accessory equipment. component parts. process materials.

accessory equipment.

When Smithson Graphics decided to go international with its marketing effort, it adopted a global approach. Which factors did SG most likely experience difficulty as the firm applied a global strategy for marketing? Branding Product characteristics Packaging Labeling Advertising

advertising

A company wanting to maintain market share during the maturity stage requires moderate to large advertising expenditures. distribution expenditures. production expenditures. price increases. packaging modifications.

advertising expenditures

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Which of the following bases is Lil' Angels using to segment its market? behavioristic frequency of use age income family life cycle

age

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of a branding extension. co-branding. an extension in the width of the product mix. an extension in the depth of the product mix. family branding.

an extension in the width of the product mix.

The three major types of reference groups are: membership, aspirational, and advocacy. advocacy, avoidance, and approach. aspirational, disassociative, and membership. actual, implied, and desired. family, peer group, and media

aspirational, disassociative, and membership.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in at the present time? awareness attention evaluation trial adoption

attention

Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ___________ about Secret. motive consideration set cognition attitude self-concept

attitude

Cognitive, affective, and behavioral are the three major components of self-concept. motives. lifestyles. consumer socialization. attitudes.

attitudes.

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person? Trial Adoption Interest Awareness Evaluation

awareness

As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item? Awareness Interest Evaluation Trial Adoption

awareness

Which of the following is not a requirement or characteristic of a market? a) The ability to purchase a product b) A large number of people or organizations c) The authority to buy a product d) The willingness to use buying power e) The need for a specific product in a specific product category

b) A large number of people or organizations

What is the greatest advantage to an organization of having a subsidiary in a foreign nation? a) Avoidance of all U.S. laws b) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity c) Increased trend toward nationalistic marketing approaches d) Greater amount of standardization of the marketing mix e) Greater amount of security from government nationalization and other anticompetitive measures

b) Increase in cross-cultural approaches to management that allows subsidiaries to develop their own identity

Input-output analysis is most likely to yield what type of information? a) Number of employees that a firm has b) Industries that purchase the major portion of an industry's output c) Kinds of returns a firm is getting on its equipment investments d) Type of inventory turnover that is characteristic of a firm e) Kinds of variables that would be used to segment the target market

b) Industries that purchase the major portion of an industry's output

Japan's Sony Corporation is a prime example of a multinational enterprise. With this in mind, which of the following would most accurately characterize Sony's operations? a) It follows a strategy of market globalization. b) It has operations or subsidiaries in many different countries. c) It places most of its emphasis on profits generated in foreign countries. d) It would not expect its foreign operations to share the same goals as the parent firm. e) It does not concern itself with differences in markets around the world.

b) It has operations or subsidiaries in many different countries.

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean? a) These countries are able to forgo current technological advances in order to wait for even better technology to be developed. b) More advanced technology is reaching these countries even though they lack technological infrastructures. c) Technological advances are often offered at prices considerably lower than in well-developed countries. d) The technology in developing countries is rapidly surpassing the technology in well-developed countries. e) The existing technological infrastructures in these countries are rapidly being replaced by newer, more advanced technology.

b) More advanced technology is reaching these countries even though they lack technological infrastructures.

Kroger Grocery Store is an example of a reseller. Which of the following factors concerning reseller purchase decisions is false? a) Resellers are concerned with the level of demand for the product. b) Resellers are not concerned with how much space the product takes up as long as it has a high price. c) Resellers want producers to be able to supply adequate quantities of the product. d) Resellers are concerned with the availability of technical and promotional assistance from the producer. e) Resellers are concerned with the markup percentage they can get on the product.

b) Resellers are not concerned with how much space the product takes up as long as it has a high price.

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing? a) There are no risks involved with allowing a foreign franchisee. b) The franchiser does not have to put up a large capital investment. c) The franchiser does not have to share its name or operational procedures. d) The franchisee only pays a set fee every month to the franchiser. e) An equal partnership is formed between the franchiser and franchisee.

b) The franchiser does not have to put up a large capital investment.

Which of the following variables would most likely be used to segment a business market? a) An attitude of the company's CEO b) The geographic location of the company c) The lifestyle of the company's buying agent d) Net income generated by the company e) Common opinions of the company's employees

b) The geographic location of the company

Which of the following is the biggest drawback to using psychographic variables? a) They are not strongly reflective of consumer behavior. b) They are difficult to measure. c) They give poor information about consumer needs. d) They do not reflect socioeconomic characteristics of consumers. e) The resulting segments are difficult to be reached.

b) They are difficult to measure.

The ProMark Company manufactures and sells only one type of ballpoint pen at just one price. All its advertising is the same and is directed at the mass market. What type of targeting strategy is the ProMark Company using? a) Extensive b) Undifferentiated c) Concentrated d) Intensive e) Differentiated

b) Undifferentiated

Selective exposure refers to a) targeting only certain parts of the total market. b) admitting only certain inputs into consciousness. c) the circumstances or conditions that exist when a consumer is making a purchase decision. d) the process of selecting, organizing, and interpreting information inputs to produce meaning. e) remembering inputs that support personal feelings and beliefs and forgetting those that do not.

b) admitting only certain inputs into consciousness.

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior? a) customer's reactions to marketing strategy can impact the firm's success b) all customers are the same when it comes to buying behavior c) a firm should create a marketing mix that satisfies customers d) it helps the marketer predict how consumers will respond to marketing strategies e) the marketing concept stresses that a firm should know its customers

b) all customers are the same when it comes to buying behavior

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to a) allow an opportunity to obtain diverse expert opinions. b) allow experts to work separately to reach a consensus as to their forecasts. c) reach an accurate sales forecast through the use of multiple sales forecasting techniques. d) determine if the expert forecasting survey is superior to regression analysis. e) assess the extent to which this year's sales forecast is more accurate than that of previous years.

b) allow experts to work separately to reach a consensus as to their forecasts.

Problem recognition occurs when a consumer a) searches for information to resolve a problem. b) becomes aware that there is a difference between a desired state and an actual condition. c) recognizes a need. d) evaluates her or his purchase. e) is exposed to a television advertisement.

b) becomes aware that there is a difference between a desired state and an actual condition.

Routinized response behavior is what a consumer does when a) purchasing an unfamiliar product. b) buying frequently purchased, low-cost items that need little effort. c) an information search is extensive and may involve consulting with friends and family. d) buying products that require a moderate amount of time for information gathering and deliberation. e) he or she enters the problem recognition stage of the consumer buying decision process.

b) buying frequently purchased, low-cost items that need little effort.

When selecting specific target markets, a firm should a) revert to an undifferentiated approach if the market is deemed heterogeneous. b) choose the segments most in line with the firm's objectives and long-term growth. c) choose all segments that are determined to be profitable for the organization. d) choose the minimum number of segments necessary to achieve company sales potential. e) pick the segments with the best sales forecasts for the upcoming period of time.

b) choose the segments most in line with the firm's objectives and long-term growth.

Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a) the total market should be divided so that segments can be compared on sales potential, costs, and profits. b) customers' needs for the product must be homogeneous. c) the company must be able to reach the chosen segment with a particular marketing mix. d) segments must be identifiable and divisible. c) at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment.

b) customers' needs for the product must be homogeneous.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ___________ targeting strategy for laundry detergents. a) multiuse b) differentiated c) stratified d) undifferentiated e) concentrated

b) differentiated

The purpose of market segmentation is to a) differentiate products. b) divide a total market to enable a marketer to develop a more precise marketing mix. c) reduce the overall cost of marketing activities. d) identify a single marketing mix that will be satisfactory for the general market. e) meet the needs of homogeneous markets.

b) divide a total market to enable a marketer to develop a more precise marketing mix.

A subsidiary in a foreign country generally operates under a) the laws of the parent company's home country. b) foreign management in order to develop a local identity. c) strict management control from the home country's executives. d) the regulations set forth by the International Trade Agreement. e) a team of managers from the distant parent company.

b) foreign management in order to develop a local identity.

A salesperson at Best Buy tells Patrick Dunnavan that the Sony Notebook is one of the most reliable computer notebooks ever made. Patrick, however, has just heard about a second Sony recall for this model because of overheating. His most likely response will be to a) buy the Sony. b) forget the information from the salesperson. c) ignore the recall as a fluke. d) focus on positive aspects of the Sony. e) cease shopping for a computer notebook at this time.

b) forget the information from the salesperson.

Compared with consumer goods, marketers aiming at business customers a) do not need to select target markets. b) have an enormous amount of information available concerning potential customers. c) have more difficulty in determining where their customers are located. d) are restricted in the types of promotion they can use. e) have more difficulty in estimating customers' purchase potentials.

b) have an enormous amount of information available concerning potential customers.

Extended problem solving is the type of consumer problem-solving process that a) involves no conscious planning but rather a powerful and persistent urge to buy something. b) is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products. c) requires a moderate amount of time for information gathering and search. d) is the creation and maintenance of a collection of products that satisfy a person's needs and wants. e) requires very little search-and-decision effort and is practiced when buying lowcost and frequently purchased products.

b) is the most complex problem-solving behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

The primary advantage of a concentrated targeting strategy is a) it meets the needs of a wide range of consumers. b) it allows a firm to specialize to meet specific customer needs. c) it is more flexible than any other approach. d) it is the least risky targeting approach. e) its customers are the most willing to repurchase the same brands.

b) it allows a firm to specialize to meet specific customer needs.

In contrast to extended problem solving, routinized response behavior requires a) careful deliberation before making a choice. b) less information about products. c) more time. d) considerable thought. e) more money.

b) less information about products.

Inelastic demand in business markets refers to a situation where a) demand for a given product fluctuates very little over time. b) price increases or decreases will not significantly change demand for a given product. c) demand for a given product fluctuates significantly over time. d) demand for one product depends heavily on the demand for another product. e) supply for a given product cannot keep pace with the demand for it.

b) price increases or decreases will not significantly change demand for a given product.

The five major stages of the consumer buying decision process, in order, are a) information search, establishment of product criteria, evaluation of alternatives, purchase, and postpurchase evaluation b) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation. c) problem recognition, information search, evaluation of alternatives, postpurchase evaluation and purchase. d) information search, evaluation of alternatives, purchase, trial adoption period, and postpurchase evaluation. e) problem recognition, purchase, evaluation of alternatives, postpurchase evaluation, and rebuy.

b) problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

All of the following statements about product positioning are true except a) product positioning decisions are not only for new products. b) product positioning is the customer's absolute perception of a product's attributes. c) effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment. d) product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds. e) when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.

b) product positioning is the customer's absolute perception of a product's attributes.

In the context of marketing, cannibalization means a) one company eating up another company's market share. b) sales of a new product hurts sales of the company's existing products. c) a product is past its prime and should be deleted from the product mix. d) a company illegally uses copyrights and patents from another company. e) sales of a new product may exceed sales of an older, more established product.

b) sales of a new product hurts sales of the company's existing products.

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of a) their markup. b) sales per square foot of selling area. c) how many of the product they can fit in a certain amount of space. d) profit per dollar of selling price. e) the reliability of the supplier.

b) sales per square foot of selling area.

Which of these statements is not true about business markets? a) the purchase may be made to resell the item b) the purchase is always made by more than one individual c) the purchase may be made to use in general daily operations d) the purchase may be made to use in production of another product e) they can also be referred to as organizational markets

b) the purchase is always made by more than one individual

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ___________ strategy. a) directed b) undifferentiated c) segmented d) differentiated e) product-use

b) undifferentiated

To make intangible products more tangible or real to the consumer, marketers often a) use low prices on intangible goods. b) use symbols or cues to help symbolize product benefits. c) use external reference prices. d) use multiple channels of distribution. e) offer more support services with such products.

b) use symbols or cues to help symbolize product benefits.

The ___________ is the difference in value between a nation's exports and its imports. net trade value export/import ratio gross domestic product balance of payments balance of trade

balance of trade

An individual moves into the adoption stage of the adoption process at the point when he or she is self-motivated to get information about the product. begins using that specific product. seriously considers whether the product will satisfy his or her needs. experiences the product for the first time. becomes aware that the product exists.

begins using that specific product

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of demographics. lifestyles. psychographics. behavior. personality characteristics.

behavior

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on behavioristic variables. benefits. lifestyles. psychographic variables. demographic variables.

behavioristic variables.

The division of a market according to what benefits consumers want from the product is called ______ segmentation. behavioristic product usage benefit end-purpose advantage

benefit

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential. breakdown recessionary buildup pyramid dimensional

breakdown

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential. multivariable use of product breakdown regression buildup

buildup

Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ___________ markets. consumer business government international most target

business

As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a raw material. processed component. component part. service. business product.

business product.

The intangible products that most organizations use in their operations are called component parts. MRO supplies. process ideas. business services. installations

business services.

Products are classified as being business or consumer products according to the goals of the organization. buyer's intended use of the product. seller's intended use of the product. location of use. types of outlets from which they are purchased.

buyer's intended use of the product.

In a buying center, purchasing agents or purchasing managers are also known as gatekeepers. deciders. buyers. users. influencers.

buyers.

Which of the following statements regarding social class is true? a) A social class is a closed aggregate of people with similar social ranking. b) The criteria used to group people into social classes do not vary from one culture to another. c) A social class is an open aggregate of people with similar social ranking. d) A social class is a ranking of people by other members of society into positions of social respect. e) A social class is an open aggregate of people with different social rankings

c) A social class is an open aggregate of people with similar social ranking.

What is the primary distinction between a joint venture and a strategic alliance in international marketing? a) Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically diverse countries. b) A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies. c) A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture. d) A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings. e) A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.

c) A strategic alliance is formed by companies who have traditionally been rivals, which is not the case with a joint venture.

Which of the following is true with respect to buyers in business markets? a) Business buyers always act rationally when making purchases for their company. b) Business customers tend to be less informed about the products they purchase than consumer buyers. c) Business customers demand detailed information about a product's quality, features, or technical specifications. d) Business customers are no different than buyers in consumer markets. e) Business customers tend to buy products from their friends and contacts with business suppliers.

c) Business customers demand detailed information about a product's quality, features, or technical specifications.

Volkswagen markets its Routan to large families, its R32 race car to men, and its Jetta to young singles. What targeting approach is Volkswagen using? a) Concentrated b) Strategic c) Differentiated d) Undifferentiated e) Multisegmented

c) Differentiated

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a) Does the quality of the goods meet company specifications? b) Does the supplier consistently deliver on time? c) Does the supplier also sell to my competitors? d) Does the supplier offer the services required? e) Does the price meet company budget requirements?

c) Does the supplier also sell to my competitors?

Select the true statement. a) Legislation regulating marketing in many foreign countries is being eased. b) A government's attitude toward cooperation with importers has little impact on marketing to that country. c) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage. d) Bribes and payoffs are considered unethical in all countries and cultures. e) Bribes and payoffs are supported by U.S. trade policies under certain

c) Refusing to give payoffs and bribes in some foreign countries may put a marketer at a competitive disadvantage.

Why would a company use the undifferentiated strategy? a) The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b) The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d) The undifferentiated strategy is expensive to implement but tends to produce the most sales. e) The undifferentiated strategy requires less time and fewer resources.

c) The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.

Most business purchases can be classified as belonging to one of three types: a) delinquent, repetitive, or delivered. b) repetitive, new-task, or modified rebuy. c) modified rebuy, new-task, or straight rebuy. d) delinquent, new-task, or reciprocal. e) rebuy, reciprocal, or delayed.

c) modified rebuy, new-task, or straight rebuy.

All of the following are important concerns of business customers except a) achieving a specific level of quality in the products offered to target markets. b) obtaining a level of quality that meets specifications. c) obtaining products that exceed specifications to ensure the best possible product performance. d) obtaining products for which the quality level is consistent. e) supporting customers with services they expect.

c) obtaining products that exceed specifications to ensure the best possible product performance.

The undifferentiated targeting strategy for finding a target market will likely not be successful if a) product positioning is needed. b) the firm defines the total market as its target market. c) people within the market have heterogeneous needs. d) people within the market have homogeneous needs. e) the firm is capable of developing a single marketing mix that satisfies all people's needs.

c) people within the market have heterogeneous needs.

Business markets are typically divided into four categories. These categories are a) retailers, wholesalers, services, and nonprofit firms. b) producer, manufacturer, reseller, and government. c) producer, reseller, government, and institutional. d) manufacturer, wholesaler, retailer, and services. e) reseller, retailer, government, and institutional.

c) producer, reseller, government, and institutional.

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is a) geographic location. b) customer size. c) product use. d) customer importance. e) organization classification.

c) product use.

A specialty product a) requires minimal effort to purchase. b) is purchased frequently. c) requires purchase planning, and the buyer will not accept substitutes. d) is generally less expensive than other items in the same product class. e) prompts the purchaser to make comparisons among alternatives.

c) requires purchase planning, and the buyer will not accept substitutes.

The three purposes for which individuals or groups can use products in order for it to be considered a business market are a) use in daily operations, end consumption, and resale. b) direct use in producing other products, company travel, and end consumption. c) resale, use in daily operations, and direct use in producing other products. d) governmental, institutional, and reseller purposes. e) making other products, selling to other businesses, making component parts.

c) resale, use in daily operations, and direct use in producing other products.

When evaluating market segments, assessment of competitors is important because a) it is difficult to segment a market when it has multiple competitors. b) an absence of competitors usually creates difficulties in accurately measuring segment sales potential. c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment. d) a competitive analysis may lead to confusion as to who are the key competitors. e) competition is generally not a major problem as long as a marketer is aware of it.

c) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

The buildup approach measure of sales potential a) starts with broad estimates of general economic activity. b) ends with an estimate of a single firm's sales of a specific product. c) starts with forecasts about demand for a specific product within a relatively small area. d) does not use sales estimates. e) is seldom employed by industrial firms.

c) starts with forecasts about demand for a specific product within a relatively small area.

Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ___________ influence on consumer buying decision processes. a) demographic b) situational c) subcultural d) role e) social class

c) subcultural

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be poor product positioning. product deletion. product repositioning. cannibalization. new-product development.

cannibalization

When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called interpretation. completion. distortion. closure. linking.

closure.

After purchasing a new Lexus, Pablo sees an Infinity pass by on the street and begins to wonder if he made the right choice. Pablo is experiencing problem recognition. cognitive dissonance. internal search. alternative evaluation. framing.

cognitive dissonance.

The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the sales forecast. market potential. company sales potential. company sales objective. market share goal.

company sales potential.

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's target growth rate. sales forecast. sales objective. company sales potential. market potential.

company's sales potential

A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n) component part. specialty item. accessory equipment. raw material. process material.

component part.

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product. component parts accessory parts raw materials process materials MRO supplies

component parts

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Lil' Angels Kids Spa is currently using a(n)___________ targeting strategy. undifferentiated exclusive concentrated differentiated selective

concentrated

When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his _________ set. alternate purchase consideration problem imposed

consideration

In shopping for a new laptop computer for her master degree program, the alternatives Jocelyn is considering include Dell, Toshiba, Sony, and Hewlett-Packard. These four brands make up Jocelyn's dissonance group. evaluative group. framing set. external search results. consideration set.

consideration set.

Purchasers who intend to use or benefit from the purchased product and do not buy products to make profits are part of the consumer market. end-use consumption group. business market. household purchasing group. organizational market.

consumer market

Children often achieve ______ by observing parents and older siblings in purchase situations and then through their own purchase experiences. consumer socialization personality role identification social class attitude formation

consumer socialization

Shaun is going shopping with his dad to buy his first baseball glove for Little League. He listens to his dad talk to the salesperson at the sporting goods store, watches him examine the stitching in the glove and then rub his finger over the leather palm. Shaun's observations are part of his consumer development. attitude development. purchasing evaluation. consumer socialization. consumer attitude.

consumer socialization.

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". Harley-Davidson's practice of having manufacturers in China produce apparel items with the Harley logo is an example of contract manufacturing globalization direct ownership joint venture exporting

contract manufacturing

If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using exporting. franchising. contract manufacturing. a joint venture. licensing.

contract manufacturing

If a certain country considered handshakes in business transactions to be taboo and preferred to use nodding, this would be an example of differences in _____ forces. cultural political economic technological regulatory

cultural

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". One of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. This is an example of _______ impacting the market. international forces economic forces domestic forces cultural forces environmental forces

cultural forces

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe". If KFC were to resort to paying this bribe in China saying that "it's different doing business there" -- this would be an example of a licensing arrangement. the self-reference criterion. cultural relativism. balance of trade issues. exchange controls.

cultural relativism

All of the following are categories of common forecasting techniques for business except surveys. time series analysis. customer determined. executive judgment. market tests.

customer determined

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on internationalization. culturalization. nationalization. globalization. customization.

customization.

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. If a GE Transportation researcher analyzes monthly sales data for a four-year time frame, looking for periodic fluctuations, the researcher is doing a _________ analysis. trend seasonal cycle random factor regression

cycle

In relation to international marketing, which of the following best describes direct ownership? a) A company owns its own manufacturing facilities. b) A company forms an alliance with a similar company in a foreign country. c) Foreign companies contract with manufacturers in other countries. d) A company owns subsidiaries or facilities in foreign countries. e) Two companies from different nations have interests in each other's facilities.

d) A company owns subsidiaries or facilities in foreign countries.

Within the information search step of the consumer buying decision process, what two primary aspects exist? a) Consideration sets and evoked sets b) Personal information and non-personal information c) Selective retention and selective distortion d) Internal search and external search e) Company-produced information and internal information

d) Internal search and external search

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using? a) Geographic location of customers b) Age, sex, and socioeconomic characteristics c) Social class variables d) Personality characteristics, motives, and lifestyles e) Family life cycle, social class, and religion

d) Personality characteristics, motives, and lifestyles

Which of the following buying situations is most consistent with routinized response behavior? a) Ian buying his first pair of basketball shoes b) Molly buying a new set of tires for her car c) Aaron buying a new fishing rod and reel d) Stephanie buying bottled water e) Bryan buying a new software program

d) Stephanie buying bottled water

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use? a) The government will request bids from all companies on its qualified bidder list. b) It will contact whatever company made the last jets and have them develop the new ones. c) Ads will be placed in the top five circulated U.S. newspapers for a company to produce the jets. d) The government will select a few firms and enter into negotiations with them until the contract is awarded. e) The contract will go to the first company that submits a reasonable bid for the desired jets.

d) The government will select a few firms and enter into negotiations with them until the contract is awarded.

Which of the following statements about the undifferentiated targeting strategy is false? a) The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b) The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c) The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e) The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy.

d) The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market.

Pillsbury defines all purchasers of flour as its target market. What targeting strategy would be most appropriate in this case? a) Concentrated b) Differentiated c) Wide appeal d) Undifferentiated e) Clustered

d) Undifferentiated

The gross domestic product is a) a measure of the profit made by all firms in a nation. b) the average annual earnings per person in a nation. c) a measure of the types of products produced by a nation. d) an overall measure of a nation's economic standing. e) a ratio of domestic products to products produced in foreign countries.

d) an overall measure of a nation's economic standing.

When marketing research shows that a group of people does not desire a particular product, the people in that group a) are a market. b) do not have the ability to purchase the product. c) do not have the authority to purchase the product. d) are not a market for the product. e) are a market but will not purchase the product.

d) are not a market for the product.

Miller Brewing does not consider teenagers to be a part of the beer market because they lack the ___________ to buy beer. a) money b) desire c) interest d) authority e) willingness

d) authority

Business products are a) purchased for personal consumption. b) chosen on the basis of preferences expressed by a business procurement department. c) purchased for both their functional aspects and their psychological rewards. d) classified according to their characteristics and intended uses. e) not purchased by nonbusiness organizations.

d) classified according to their characteristics and intended uses.

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) _____ strategy. a) selective b) focused c) differentiated d) concentrated e) undifferentiated

d) concentrated

If Jaguar focused all its marketing efforts for the new Jaguar XKR on professionals earning more than $250,000, it would be using a(n) ___________ strategy. a)homogeneous b) undifferentiated c) multisegmented d) concentrated e) stratified

d) concentrated

An attitude scale measures the a) strength of a buyer's need for a product. b) buyer's level of information about a product. c) amount of experience the buyer has had with the product. d) intensity of a buyer's feelings toward a certain object. e) intensity of a buyer's desire for the product.

d) intensity of a buyer's feelings toward a certain object.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of a) perception. b) motivation. c) attitudes. d) learning. e) influence.

d) learning.

A disadvantage of reciprocity is that it can lead to a) a price war. b) higher promotional costs. c) more competitive firms entering the industry. d) less-than-optimal purchases for the buyer. e) longer periods of negotiation.

d) less-than-optimal purchases for the buyer.

Individual influencing factors refer to a) relationships among those in the firm's buying center. b) uncontrollable environmental forces. c) the power an individual controls in the buying center. d) personal characteristics of individuals in the buying center. e) activities of suppliers.

d) personal characteristics of individuals in the buying center.

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least important. These needs, in order from most to least important are a) psychological, physiological, safety, social, and esteem. b) physiological, safety, esteem, social, and self-actualization. c) physiological, psychological, safety, social, and esteem. d) physiological, safety, social, and esteem, self-actualization. e) physiological, esteem, safety, self-actualization, and psychological.

d) physiological, safety, social, and esteem, self-actualization.

The term dumping refers to the sale of a) products sold in foreign markets that cannot be sold in the United States. b) products sold in foreign markets at prices above those charged in the United States. c) all discontinued U.S. products in foreign countries. d) products sold in foreign countries at unfairly low prices. e) products sold in foreign markets that cannot pass safety standards in the United States.

d) products sold in foreign countries at unfairly low prices.

The five categories of situational influences are: a) product involvement level, physical surroundings, social surroundings, time perspective, and purchase reason. b) antecedent states, physical surroundings, social surroundings, time perspective, and space dimensions. c) social surroundings, physical surroundings, time pressures, purchase reason, and lifestyles. d) purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood. e) store atmosphere, location, aromas, sounds, and lighting.

d) purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.

In business markets, individuals or groups purchase products for one of three purposes. These purposes are a) resale, wholesale, and direct use. b) wholesale, direct use, and use in producing other products. c) resale, wholesale, and use in producing other products. d) resale, direct use in producing other products, and use in general daily operations. e) use in general daily operations, wholesale, and resale.

d) resale, direct use in producing other products, and use in general daily operations.

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to a) determine which segmentation variables to use. b) develop market segment profiles. c) identify the appropriate targeting strategy. d) select specific target markets. e) develop sales forecasts.

d) select specific target markets.

The final step in the target market selection process is a) implementing the appropriate marketing mix for the target market. b) evaluating relative market segments. c) eliminating market segments that are cost prohibitive. d) selecting specific target markets. e) revising the final segmentation variables based on target selection.

d) selecting specific target markets.

Perception is a three-step process that involves a) motivation, personality, and attitudes. b) classifying, recording, and eliminating information received through the senses. c) collecting, eliminating, and organizing information inputs. d) selecting, organizing, and interpreting information inputs. e) anticipating, classifying, and discarding information inputs.

d) selecting, organizing, and interpreting information inputs.

The three major categories of influences on the consumer buying decision process are: a) situational influences, demographic influences, and psychological influences. b) social influences, situational influences, and marketer-dominated influences. c) demographic influences, situational influences, and marketer-dominated influences. d) situational influences, social influences, and psychological influences. e) marketer-dominated influences, psychological influences, and person-specific influences.

d) situational influences, social influences, and psychological influences.

Product positioning refers to a) the area in retail stores in which the manufacturer strives to position its products. b) product price but not to product image. c) product image but not to product price. d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds. e) the length of time a product has survived in the market.

d) the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.

Estimating the cost of entering a market and focusing on a specific target segment is important because a) cost estimates are crucial to estimating sales potential accurately. b) higher costs will keep other potential competitors from entering that particular segment. c) customers are more likely to be attracted to marketers that invest heavily in the target segment. d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs. e) higher cost generally ensures long-term success.

d) the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals. a) how many different suppliers they use b) how many parts can fail c) controlling when shipments will arrive d) the percentage of defects allowed e) how long the parts should last

d) the percentage of defects allowed

Which of the following is not a characteristic of a consumer market? a) it consists of purchasers who intend to consume or benefit from the purchased products b) they do not buy products for the main purpose of making a profit c) they are sometimes referred to as B2C markets d) their purchasing decisions are always made by only one individual e) each of us belongs to numerous markets of this type

d) their purchasing decisions are always made by only one individual

Consumers that do not own dogs are not likely to be in the market for dog food because a) they lack the authority to purchase the dog food. b) they do not possess the buying power for purchasing dog food. c) their ability to purchase the dog food is questionable. d) they do not have the need or desire for dog food. e) they are willing to use their buying power.

d) they do not have the need or desire for dog food.

Analysis of business input-output data by the federal government allows the government to have a better understanding of the a) cash flows that exist among industries. b) raw materials and labor required to produce a given product. c) amount of reinvestment that different industries use. d) types of industries that purchase particular products. e) growth projections for a given industry.

d) types of industries that purchase particular products.

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) _________ strategy. a) concentrated targeting b) differentiated c) heterogeneous market d) undifferentiated e) single mix

d) undifferentiated

When using personality characteristics as a market segmentation variable, marketers generally a) conduct personality assessments of their potential target market to determine which personality characteristics they possess. b) use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have. c) use generic characteristics that all members of the population have. d) use a positively viewed characteristic they assume much of their target market has or would like to have. e) conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.

d) use a positively viewed characteristic they assume much of their target market has or would like to have.

Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle. introduction growth maturity early decline

decline

The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage. maturity decline growth introduction reorganization

decline

Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination. not yet developed growth introduction maturity decline

decline

When are marketers least likely to change a product's design, style, or other attributes? Introduction Maturity Decline Growth Removal

decline

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market. demographic psychographic sociographic behavioristic geographic

demographic

Occupation, family size, and family life cycle are all ______ variables for segmenting consumer markets. behavioristic demographic geographic psychographic usage

demographic

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables. demographic psychographic geographic family life cycle product use

demographic

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix width. depth. length. volume. life cycle

depth

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of width of product mix. product mix consistency. depth of product mix. a market mix. a promotion mix.

depth of product mix.

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______since it depends on the demand for new cars. inelastic fluctuating derived elastic nonderived

derived

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is joint. economically stable. derived. inelastic. more fluctuating

derived.

The second stage in the business buying decision process is to search for products and suppliers. select the most appropriate product. develop product specifications. evaluate product and supplier performance. recognize the problem.

develop product specifications.

If a company markets its products to several different countries, it is using a(n) ___________ targeting strategy to segment the total market. undifferentiated concentrated stratified differentiated homogeneous

differentiated

IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing? Licensing Direct ownership Exporting A trading company A joint venture

direct ownership

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu -- items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countries -- to offer the customer passing by a preliminary view of their product. KFC's establishment of international production/processing facilities is an example of direct ownership. franchising. strategic alliance. outsourcing. a trading company.

direct ownership

Once a company makes a long-term commitment to a foreign market that has a promising political and economic environment, which of the following options then emerges as a possibility? Exporting Joint venture Limited exporting Direct ownership Licensing

direct ownership

If a consumer receives information that is inconsistent with her or his beliefs, the consumer may alter this information. This perceptual process is known as selective exposure. distortion. retention. information. organization.

distortion.

When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as harvesting. divesting. investing. realigning. squashing.

divesting

Miller's Home Furnishings uses marketing strategies aimed at markets within the United States, its home country. Miller's engages in domestic marketing. localized marketing. globalized marketing. limited exporting. international marketing.

domestic marketing

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce inventory by selling the bikes at below cost prices. This practice is known as price skimming. market penetration. dumping. differential pricing. inventory compensation.

dumping

If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in quota-enforcing. embargoing. shoveling. dumping. dipping.

dumping

What is a primary difference between business and consumer buyers? a) Consumer buyers require more product information than business buyers. b) Business purchases are made by one individual whereas families make consumer purchases together. c) Repeat sales are more common with consumer buyers than business buyers. d) Consumers primarily buy inexpensive items; businesses only buy expensive items. e) Business buyers generally make larger orders than consumer buyers.

e) Business buyers generally make larger orders than consumer buyers.

Which of the following is not true of NAFTA? a) The agreement has a long adjustment phase-in time period. b) Increased competition should lead to a more efficient market. c) It will provide additional opportunities for the United States in long-term affiliations with other countries in the Western hemisphere. d) It is controversial. e) Business licensing requirements have been increased.

e) Business licensing requirements have been increased.

Which of the following is not a business product? a) Oil to be refined into fuel b) Chips to be integrated into components for personal computers c) Paper, pens, and tape to be used in an office d) Marketing consulting services to aid a company in marketing a new product e) Calculators bought to help individuals complete their personal federal income tax forms

e) Calculators bought to help individuals complete their personal federal income tax forms

Which of the following statements about the consumer buying decision process is true? a) Consumers progress through the five stages of this process for all limited problem-solving decisions. b) Although all of the steps in the process are used in all decision processes, the order tends to depend on the customer's level of involvement. c) The key element of the process that exists in all consumer buying decision processes is the purchase of the product. d) Once the purchase of a product has been made, the consumer buying decision process is complete. e) Consumers making limited problem-solving decisions may not go through all five steps of the process.

e) Consumers making limited problem-solving decisions may not go through all five steps of the process.

Which of the following lists the levels of involvement in global marketing from the lowest to the highest? a) International marketing, limited exporting, domestic marketing, globalized marketing b) Limited exporting, domestic marketing, globalized marketing, international marketing c) Globalized marketing, international marketing, limited exporting, domestic marketing d) Domestic marketing, globalized marketing, international marketing, limited exporting e) Domestic marketing, limited exporting, international marketing, globalized marketing

e) Domestic marketing, limited exporting, international marketing, globalized marketing

Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate? a) Inputs are organized by individuals to produce meaning, and this organizational process is usually a slow one. b) Organization of information inputs is not always needed to produce meaning. c) Inputs that reach awareness are organized and interpreted in much the same way by all consumers. d) Because a person interprets information in terms of what is familiar, only one interpretation of organized inputs is possible. e) Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.

e) Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.

Which of the following statements about business buying is false? a) Business marketers prefer not to sell to customers who place small orders. b) Business marketers must often sell their products in large quantities to make profits. c) Most business purchases are made by committee. d) Business purchases are usually made on the basis of contracts. e) Orders in business markets tend to be smaller than those placed in consumer markets.

e) Orders in business markets tend to be smaller than those placed in consumer markets.

How does using an exporting intermediary limit the risk involved with global marketing? a) Most exporting intermediaries assume all financial risks on behalf of their clients. b) Exporting intermediaries are not subject to the same laws as companies, and therefore limit the legal risk involved. c) Using an exporting intermediary restricts a company to being involved with joint ventures and not direct ownership. d) Exporting intermediaries guarantee that the products a company is selling will be a good fit for the foreign markets they are entering. e) This approach involves limited risk because the company has no direct investment in the foreign country.

e) This approach involves limited risk because the company has no direct investment in the foreign country.

A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors

e) a consumer product if it is used to light the office of the board of directors

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at a) the sales force survey results. b) the results of sales forecasting. c) a market trend analysis. d) a market segmentation discrimination analysis. e) a market segment profile.

e) a market segment profile.

The difference between absolute and relative product failure is a) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent. b) relative product failure loses money on its investment, whereas absolute product failure returns a small profit. c) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires. d) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution. e) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

e) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

A business advantage of the concentrated targeting strategy for any company is that it a) requires less market research and information. b) requires less intensive analysis of customers' characteristics and needs. c) allows a firm to utilize all of its production capacity. d) maintains the firm's flexibility in moving into other market segments. e) allows a firm to develop a special marketing mix for a single market segment.

e) allows a firm to develop a special marketing mix for a single market segment.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. Positive feelings generated by satisfaction with Skola's response will become part of Steve's a) personality. b) motives. c) social class. d) role. e) attitude.

e) attitude.

Using the breakdown approach to sales potential, estimates are made a) by referring to specific geographic factors. b) by establishing levels of marketing effort that will be required to achieve specific levels of sales. c) without reference to industry marketing efforts. d) without reference to general economic conditions. e) by starting with general economic conditions.

e) by starting with general economic conditions.

Tiffany's markets its exclusive jewelry and gifts to high-income individuals interested in high quality products and a well-known brand name. It uses the same marketing mix to reach this market. Tiffany's uses a(n) ______ strategy. a) undifferentiated b) differentiated targeting c) exclusive targeting d) heterogeneous e) concentrated targeting

e) concentrated targeting

Segmentation variables are usually grouped into four categories: a) demographic, geographic, religion, and income. b) geopolitical, income, behavioristic, and psychographic. c) attitudes, lifestyles, behaviors, and gender. d) geographic, demographic, psychographic, and attitudes. e) demographic, geographic, psychographic, and behavioristic.

e) demographic, geographic, psychographic, and behavioristic.

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a) evaluating each of the relevant market segments. b) selecting the specific target markets. c) reviewing the appropriate marketing strategy. d) analyzing the interaction between segmentation variables. e) developing market segment profiles.

e) developing market segment profiles.

After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is a) the congruence between external and internal searches for product information. b) a function of the manner in which the manufacturer of the product describes its attributes. c) satisfaction with the purchase. d) the establishment of criteria for comparing products. e) doubts that occur because the buyer questions whether the decision to purchase the product was right

e) doubts that occur because the buyer questions whether the decision to purchase the product was right

An opinion leader is likely to be most effective under all of the following conditions except when the a) follower has high product involvement. b) follower has low product knowledge. c) follower has values and attitudes similar to the opinion leader. d) product details are numerous and complicated. e) follower has attitudes and values that are different from those of the opinion leader.

e) follower has attitudes and values that are different from those of the opinion leader.

Most markets for products are made up of individuals or groups with diverse needs for products and are called ________ markets. a) undifferentiated b) concentrated c) homogenous d) differentiated e) heterogeneous

e) heterogeneous

According to Maslow's hierarchy of needs, a) individuals simultaneously try to satisfy all five levels of needs. b) self-actualization needs are the most important needs to be met for most individuals. c) individuals first address needs at the top of the pyramid and then move down to the lower level needs. d) levels of needs are different for everyone, and we all try to satisfy them in a different order. e) individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

e) individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. The type of problem solving that consumers use to select an auto repair shop would normally be a) intensive problem solving. b) extended problem solving. c) routinized response behavior. d) selective problem solving. e) limited problem solving.

e) limited problem solving.

An attitude is a) an internal trait that makes a person unique. b) a set of actions that a person in a particular position is supposed to perform. c) a competence in performing activities. d) a person's behavior caused by information and experience. e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.

e) one's evaluation, feelings, and behavioral tendencies toward an object or idea.

The unification of Europe through the European Union (EU) a) produced the largest single market in the world. b) calls for greater customization of products and attention to regulations and restrictions of European countries. c) means that members of the EU have become more heterogeneous in their needs and wants. d) required the countries to be segmented into many different markets. e) permits virtually free trade among the member nations of the EU.

e) permits virtually free trade among the member nations of the EU.

Positioning a product to avoid competition may be best when the a) competing products are priced higher than or at least equal to the new product. b) company has an established reputation with the consumers of that particular market. c) market is characterized by consumers who are not sensitive to price or value. d) market is characterized by consumers who are price conscious and brand specific. e) product's performance characteristics are not significantly different from those of competing brands.

e) product's performance characteristics are not significantly different from those of competing brands.

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to a) make a presentation appointment with the state. b) quote prices to the purchasing department. c) advertise in the capital city. d) negotiate with the state. e) secure a slot on the list of qualified bidders.

e) secure a slot on the list of qualified bidders.

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to a) identify the appropriate targeting strategy. b) determine which segmentation variables to use. c) develop market segment profiles. d) evaluate relevant market segments. e) select specific target markets.

e) select specific target markets.

Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a little boy. He likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as situational involvement. dynamic involvement. enduring involvement. dynamic buying behavior. situational buying behavior

enduring involvement.

The environmental forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful _______ a critical part of a successful international marketing strategy. background check regulatory analysis social audit environmental analysis marketing statement analysis

environmental analysis

Many companies choose to standardize their _____ across national boundaries to maintain a consistent and well-integrated corporate culture. technology ethical behavior language dress code products

ethical behavior

The exchange rates of several European countries are linked together to a common currency, the lira. euro. dollar. peso. ropea.

euro

When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual? Interest Awareness Evaluation Trial Adoption

evaluation

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Since Alicia and Carlos were using gas mileage as one of their evaluative criteria, they are most likely in the ______ phase of the consumer buying process. a) problem recognition b) external search c) evaluation of alternatives d) purchase e) post-purchase

evaluation of alternatives

A customer shopping for a fax machine tells a salesperson that it is important for the fax machine to have several attributes. It must use plain paper, be able to make copies, be compatible with all other fax machines, and not require a separate phone line. The buyer has expressed his or her framing characteristics. service characteristics. consideration set. evaluative criteria. information search criteria.

evaluative criteria.

A group of brands that a consumer views as alternatives for possible purchase is called a(n) evoked set. acceptance group. brand preference. selective retention group. evaluation criteria.

evoked set.

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as embargoes. quotas. exchange controls. import controls. balance of trade controls.

exchange controls.

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) expert forecasting survey. Delphi technique. random factor analysis. external judgment survey. market test.

expert forecasting survey.

Which of the following is not a stage in the buyer's product adoption process? Awareness Adoption Trial Exploration Interest

exploration

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ________ structure. international division internationally integrated export department geographic area matrix

export department

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n) trading company. importer. exporter. franchiser. contract manufacturer.

exporter

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". At what level of involvement in international marketing is Harley-Davidson with regard to its bikes? Answer Full-scale Globalization Joint venture Direct ownership Exporting

exporting

Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries. To maintain a low level of commitment with minimum effort and cost, Henderson should engage in international marketing through contract manufacturing. exporting. joint ventures. licensing. subsidiaries.

exporting

A publication such as Consumer Reports may be initially used during a(n) product recognition. evaluation of alternatives. internal information search. external information search. purchase decision.

external information search.

A marketer that targets customers based on marital status and the presence and age of children is using behavioristic segmentation. lifestyle variables. psychographic variables. family life cycle. phase of life segmentation.

family life cycle

If Campbell were to offer single serving "Soup for One" packages to small household markets, it would be using segmentation based on income. ethnicity. taste. geographic considerations. family life cycle.

family life cycle

The forces that other people exert on one's buying behavior are called social influences. These come from reference groups and opinion leaders, social classes, culture and subcultures, roles, and ethnic heritage. personality. attitudes. perception. family.

family.

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand. joint inelastic consumer fluctuating derived

fluctuating

All of the following are reasons why new products fail except overestimated market size. followed a systematic plan. distributed insufficiently. had poor timing. promoted poorly.

followed a systematic plan.

During the growth stage of the product life cycle, marketers must fortify the product position. move to exclusive distribution. raise the price. increase promotion as a percentage of sales. introduce private brands.

fortify the product position

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a joint venture. contract manufacturing. direct licensing. franchising. a strategic alliance.

franchising

In many countries, Wendy's allows foreign business people to use its name, logo, methods of operation, advertising, and products. In exchange, Wendy's receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Wendy's is engaging in contract manufacturing. licensing. franchising. exporting. direct investment.

franchising

All of the following are marketer-dominated sources of information except salespeople. advertising. packaging. friends. displays.

friends.

An example of a convenience product is stereo equipment. gasoline. a motorcycle. a bicycle. athletic shoes.

gasoline.

Administrative assistants that control the flow of information to other people in the organization often play the _____ role in the buying center. gatekeeper user influencer buyer controller

gatekeeper

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision. gatekeeper buyer decider buying center captain order giver

gatekeeper

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the midwest. When Precision Brake's sales team calls on tractor manufacturing companies, the first person they usually talk to is the receptionist. In this example, the receptionists would be considered to be ________, part of the buying center. gatekeepers influencers users buyers controllers

gatekeepers

Cosmopolitan magazine, Secret deodorant, and Eve cigarettes are all products whose marketers have used segmentation based on age. education. product use. gender. income.

gender

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through U.S. Census Bureau information. geographic segmentation variables. geodemographic segmentation. climate information. psychographic segmentation.

geodemographic segmentation.

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid behavioristic segmentation. geodemographic segmentation. market density analysis. demographic segmentation. geographic segmentation.

geodemographic segmentation.

Population density and city size are _______ variables used for market segmentation. geographic demographic psychographic environmental geodemographic

geographic

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be geographic location. type of organization. market density. product use. customer size.

geographic location.

When asked where Laser Tools, Inc., markets its products, company president and founder Roger Helms says that "the world is just one big market." He feels anyone not taking this stance is systematically passing up profitable business. Helms's international marketing strategy is best described as customization of marketing. globalization of marketing. limited exporting. full-scale international marketing. export agenting.

globalization of marketing.

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as customization. internationalization. globalization. regionalization. nationalization.

globalization.

Standardizing many Nike and Adidas shoe models worldwide is an example of globalization. customization. nationalization. culturalization. internationalization.

globalization.

The recently created Department of Homeland Defense is a member of the _____ market. regulatory reseller government producer institutional

government

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's gross domestic product. gross domestic product per capita. gross national product. balance of trade. unemployment rate.

gross domestic product per capita.

Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle. maturity growth introduction market testing decline

growth

Aggressive pricing is typical during the ___________ stage of the product life cycle. decline growth introduction plateau stabilization

growth

An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle? Introduction Growth Stabilization Expansion Decline

growth

In which stage of the product life cycle do profits begin to decrease? Introduction Growth Maturity Decline Recovery

growth

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy? Decline Expansion Growth Introduction Stabilization

growth

Which stage of the product life cycle begins when a business reaches the break even point with the product? Maturity Growth Introduction Market testing Decline

growth

A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called harvesting. investing. realigning. divesting. mixing.

harvesting

If PepsiCo and Coca-Cola use celebrities to challenge the taste of the other firm's cola, this is referred to as ___________ positioning. direct focused head-to-head avoidance parallel

head-to-head

A(n) _____ is a concept, philosophy, or image. product good idea service issue

idea

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets services. ideas. goods. tangible products. features.

ideas

A duty levied by a nation on goods bought outside its borders and brought inside is called a(n) import duty. embargo. quota. export tariff. import tariff.

import tariff.

If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n) embargo. import tariff. travelers' tax. export tax. foreign duty.

import tariff.

The purchase of products from a foreign source is called exporting. dumping. importing. licensing. venturing.

importing

When the American company Exxon purchases crude oil from Saudi Arabia, it is engaging in licensing. importing. free trade. exporting. dumping.

importing

An unplanned buying behavior resulting from a powerful urge to buy something immediately is called impulse buying. habitual buying. compulsive response behavior. non-problem solving. cognitive dissonance.

impulse buying.

Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of limited problem solving. impulse buying. routinized response behavior. addictive consumption. situational involvement.

impulse buying.

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is pruning items from the product line. generating cash flow. maintaining their market share. filling geographic gaps. increasing their share of the customer.

increasing their share of the customer.

Before the 1990s, most firms entered international markets globally and quickly. incrementally and slowly. incrementally and quickly. domestically and slowly. regionally and quickly.

incrementally and slowly.

Demand for business products is also known as ______ demand. derived corporate business buying manufacturing industrial

industrial

Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of poor timing. the failure to match product offerings to customer needs. technical problems. overestimation of market size. ineffective branding.

ineffective branding

Demand for a business product is ___________ if a price increase or decrease will not significantly affect that demand. elastic inelastic derived joint separate

inelastic

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand. derived inelastic joint fluctuating higher

inelastic

During the evaluation of alternatives stage of the consumer buying decision process, framing most likely influences the decision process of ___________ buyers. younger older wealthier veteran inexperienced

inexperienced

In the process of perception, individuals receive sensations through sight, sound, taste, smell, and hearing. These sensations are called selective inputs. olfactory receptors. information inputs. perceptual motives. psychological influences

information inputs.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) _______ in the product adopter categories, and is more likely to be _____. innovator; an early adopter early adopter; an innovator early majority; an early adopter innovator; an early majority innovator; a late majority

innovator; a late majority

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and late adopters. nonadopters. innovators. middle adopters. middle majority.

innovators

People who enjoy trying new products and are often the first to do so are known as early adopters. the early majority. market mavericks. innovators. laggards.

innovators

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ___________ of the alternative machines. descriptions inspections a sampling specifications reputations

inspections

Large tools and machines used in a production process for a considerable length of time are classified as installations. accessory equipment. component parts. raw materials. MRO supplies.

installations.

Churches, charitable organizations, and private colleges are considered _____ buyers. corporate government institutional producer nonprofit

institutional

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) ___________ market. producer consumer reseller institutional government

institutional

Nestlé Food Company is a Swiss-based company that operates several divisions in the United States and other countries. This classifies Nestlé as a(n) strategic alliance. national marketer. international proprietorship. multinational enterprise. limited exporter.

multinational enterprise.

Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n) strategic alliance. joint venture. export-driven corporation. multinational enterprise. trading company.

multinational enterprise.

Firms that have operations or subsidiaries located in many countries are referred to as multinational enterprises. strategic alliances. joint ventures. international marketers. export alliances.

multinational enterprises

During the introduction stage of a successful product, profits are usually at their highest point. negative and decreasing. negative and increasing. positive and increasing. declining.

negative and increasing.

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ______ for a purchase decision. sampling negotiation inspection elimination description

negotiation

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase. modified rebuy straight rebuy new-task reevaluated repetitive

new-task

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a _________ purchase. straight rebuy reciprocal delayed new-task modified rebuy

new-task

Evaluative criteria for brands within the consideration set are both selective and expansive. objective and subjective. internal and external. extended and routinized. perceptive and selective.

objective and subjective.

After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual organization. attention. retention. interpretation. redefinition.

organization.

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process. environmental organizational interpersonal individual demographic

organizational

Institutional markets are a) intermediaries who resell goods to make a profit. b) federal and state government units. c) state or local government units. d) consumers who buy products for their own use. e) organizations that seek nonbusiness goals.

organizations that seek nonbusiness goals.

The contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation is known as outsourcing. licensing. franchising. contract manufacturing. contract sourcing.

outsourcing

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n) reciprocity agreement. partnership. intra-organizational group. alliance. tying arrangement.

partnership.

Many suppliers and their customers invest time and resources to build and maintain mutually beneficial relationships which are often called partnerships. co-ops. monopolies. reciprocity. alliances.

partnerships.

Luis likes shopping at Stein Mart, a discount department store, because he likes the prices, products, and services the store provides. His selection of this store as a regular stop when shopping is influenced by ___________ motives. self-concept self-image projective depth patronage

patronage

Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at KMart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called social needs. learning processes. patronage motives. product attitudes. retailer attitudes.

patronage motives.

Psychological influences that determine where a person purchases products on a regular basis are called convenience responses. patronage motives. shopping motives. pattern responses. routine decisions.

patronage motives.

In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account __________, which provides insight into market potential. per capita gross domestic product gross domestic product the quantity of exports the quantity of imports total consumer income

per capita gross domestic product

As Brianna walks to classes, she selects, organizes, and interprets the sensations she is receiving through her sense organs. Brianna is experiencing the process of exposure. motivation. learning. attitude formation. perception.

perception.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position. perceptual map ideal cluster product position chart market graph product matrix

perceptual map

When, in their information search, consumers focus on communication with friends and relatives, they are utilizing ______ sources. internal personal marketer-dominated direct organizational

personal

The three most commonly used psychographic segmentation variables are personality, perception, and learning. personality, perception, and behavior. motives, attitudes, and lifestyles. attitudes, personality, and perception. personality, motives, and lifestyles.

personality, motives, and lifestyles.

Hereditary characteristics combined with personal experiences that together make an individual unique form one's self-concept. attitudes. lifestyle. personality. role.

personality.

The results of many studies have been inconclusive regarding the association between buyer behavior and personality. perception. motives. social class. learning.

personality.

Jana now feels that her teeth are not white enough after seeing advertisements for whitening toothpaste. Marketers promote these brands based on ___________ needs, appealing to sex appeal. physiological esteem self-actualization psychological social

physiological

Special interest groups and regulatory bodies are ______ forces that must be taken into account in international marketing. socioeconomic technological economic social and ethical political and legal

political and legal

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, NY and New York City. Case is most likely in which of the following stages of the product adoption process? adoption trial evaluation interest awareness

interest

As Jeff runs out of shaving cream, he immediately tries to remember what he did the last time this happened. He is engaging in external search. consideration set development. internal search. cognitive dissonance. alternative evaluation.

internal search.

When Trevor realizes his liquor cabinet supply was devastated by last weekend's party, he first retrieves information from his memory about what types of liquor he and his friends like most and then asks the attractive clerk at the liquor store what she would recommend. Trevor started with a(n) _____ search and then progressed to a(n) _____ search. consideration; evaluative focused; broad internal; external routinized; extended self; inclusive

internal; external

Assignment of meaning to organized information inputs is called motivation. redefinition. learning. interpretation. selection.

interpretation.

When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is poor timing. the company's failure to match product offerings to customer needs. ineffective branding. design problems. overestimation of market size.

poor timing

Doubts in a buyer's mind about whether the purchase decision made was the right one may occur during the cognitive dissonance. purchase. evaluation of alternatives. internal search. postpurchase evaluation.

postpurchase evaluation.

As Steve is shopping for groceries, he notices a product on the shelf and remembers that he is about to run out of it at home. In terms of the consumer buying decision process, Steve just experienced problem recognition. high involvement. postpurchase evaluation. information search. evaluation of alternatives

problem recognition.

Products used directly in the production of a final product but are not easily identifiable are categorized as accessory products. component parts. MRO supplies. assembly components. process materials.

process materials.

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ___________ market. consumer producer reseller government institutional

producer

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets. consumer institutional producer government reseller

producer

Swiss-based Nestlé has taken a global approach to marketing its chocolate products. Which of the following is most easily standardized? Product Promotion Distribution Advertising Price

product

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called the product mix. the product life cycle. product positioning. product promotion. product development.

product positioning.

End use, price sensitivity, and brand loyalty are all _____ variables that can be used in market segmentation. psychographic usage demographic geodemographic behavioristic

psychographic

The development of a person's self-concept is a function of learning. psychological and social factors. reference groups and opinion leaders. roles and family influences. subcultures.

psychological and social factors.

A limit on the amount of goods an importing country will accept for certain product categories during a specified time period is called a(n) exchange control limit. embargo. quota. import tariff. balance limit.

quota

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n) embargo. boycott. exchange control. import tariff. quota

quota

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves into Japan, that firm is facing a(n) tariff. embargo. restrictive product standard. quota. balance of trade restriction.

quota

Minerals, chemicals, timber, and agricultural products are considered process materials. accessory materials. MRO supplies. component parts. raw materials

raw materials

A practice in which two businesses agree to buy from each other is a new task purchase. a straight rebuy. a modified rebuy. reciprocity. a straight purchase.

reciprocity.

Abbott's Office Supplies buys furniture and filing cabinets from Craine Furniture. Craine buys paper, pens, and folders from Abbott's. The two firms are engaged in cross-selling. tying agreements. producer marketing. reciprocity. competitive bidding.

reciprocity.

Bob Denton of Denton Pest Control buys equipment from a supplier because that supplier hires him to spray the warehouse for insects periodically. This practice is known as cost-benefit analysis. cooperative selling. reciprocity. supplier agreement. modified rebuy purchase.

reciprocity.

A forecasting method that predicts sales based on relationships between past sales and other variables is called regression analysis. customer forecasting surveys. the Delphi technique. random factor analysis. time series analysis.

regression analysis.

The sales prediction technique based on the correlation between sales and other factors such as population density, per capita income, or family size is executive judgment. time series analysis. regression analysis. a market test. an expert survey.

regression analysis.

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets. consumer institutional producer government reseller

reseller

Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ___________ market. consumer producer government reseller wholesaler

reseller

Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective exposure. distortion. retention. information. organization.

retention.

Maria reads through the newspaper fashion flyers containing advertisements for sweaters from Polo, purses from JC Penney, and tennis shoes from Foot Locker. She remembers only the shoe ad, thanks to the recent tear in her own Reeboks. Maria has engaged in selective distortion. decision making. analysis. retention. reading.

retention.

Jonathan is torn between buying a new swing set for his kids and buying a new set of Ping golf clubs for himself. Jonathan is experiencing attitude formation. belief assessment. role inconsistency. cognitive dissonance. personality.

role inconsistency.

Stacy is going to the store to buy a gallon of milk. She will most likely use ___________ in her consumer decision-making process. routinized response behavior limited problem solving extended problem solving perceptual scanning evaluation of alternatives

routinized response behavior

While shopping at a Kroger grocery store, Tom sees a display of his favorite brand of diet cola. He buys a six-pack to take home for the weekend. This purchase process would be described as routinized response behavior. extended problem solving. limited problem solving. situational perception. enduring involvement.

routinized response behavior.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the company sales potential. revenue estimate. company sales prediction. market potential. sales forecast.

sales forecast

Guess? Will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's sales potential. market potential. sales forecast. market sales. selected market.

sales forecast.

During the decline stage of the product life cycle, sales rapidly decrease. market share is maintained. competition is at a peak. profits begin to fall. profits peak and then begin to decline.

sales rapidly decrease

The third stage in the business buying decision process is to evaluate product specifications to solve the problem. evaluate products relative to specifications. select and order the most appropriate product. evaluate product and supplier performance. search for products and suppliers.

search for products and suppliers.

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ___________ variables. marketing classification segmentation stratification dividing

segmentation

Age, rate of product use, location, and gender are all examples of common demographic variables. geographic characteristics. targeting strategies. psychographic variables. segmentation variables.

segmentation variables.

When individuals choose which information inputs will reach their awareness and ignore other inputs, they are using perception. selective distortion. selective exposure. cognitive dissonance. selective retention.

selective exposure.

People's needs to grow, develop, and achieve their full potential are referred to by Maslow as ______ needs. ego esteem self-actualization social safety

self-actualization

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products. shopping specialty service convenience unsought

shopping

Company sales forecasts are least likely to be based on executive judgment. customer surveys or sales force surveys. time series analysis. market tests. single-variable segmentation.

single-variable segmentation.

Temporary and dynamic factors that result from a particular set of circumstance a consumer is facing when making purchase decisions characterize enduring involvement. extended problem solving. selective exposure. situational involvement. selective retention.

situational involvement.

Human requirements for love, affection, and a sense of belonging would be classified by Maslow as _____ needs. safety esteem social physiological self-actualization

social

An open aggregate of people with similar social ranking is referred to as a reference group. social class. role. caste. subculture.

social class

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into family types. geographic regions. reference groups. social classes. attitudinal segments.

social classes.

A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called motivational influences. social influences. roles. personality influences. cultural influences.

social influences.

Which product listed would most likely be purchased through routinized response behavior? Car Desk Shirt Soft drink Television set

soft drink

An organization that decides to buy all of a certain part from the same company is using single-supplier purchasing. multiple sourcing. same vendor analysis. straight rebuy. sole sourcing.

sole sourcing.

During the maturity stage product modifications are unnecessary. there is less emphasis on changing a product's price. marketing strategies are rarely altered. some competitors are forced out. limited advertising expenditures are required to maintain market share

some competitors are forced out.

As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product. convenience unsought disposable shopping specialty

specialty

Buyers do not compare alternatives when shopping for ______ products. convenience specialty shopping unique unsought

specialty

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product. shopping unique specialty historical unsought

specialty

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product. convenience shopping specialty unsought durable

specialty

A product item is best described as a component of a marketing mix. particular brand. specific characteristic of a product. specific version of a product. unit of measure for the product.

specific version of a product.

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called descriptions. product features. criterion. purchase requests. specifications.

specifications.

Marketers of computer software, music CDs, and books are particularly affected by cultural differences in socioeconomic status of citizens. advances in technology. differences in cross-cultural exchange behavior. ethical codes of conduct for businesses. standards regarding intellectual property.

standards regarding intellectual property.

When a business routinely purchases the same product with similar terms of sale, the purchase is called a new-task. repetitive purchase. straight rebuy. modified rebuy. standard order.

straight rebuy.

Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ___________ to work together on a worldwide basis. licensing agreement export trading company joint agreement strategic alliance multinational enterprise

strategic alliances

Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as trading companies. contract manufacturers. joint ventures. strategic alliances. licenses.

strategic alliances

Another name for the European Union is the Common Market. the European Market. the Euro. NAFTA. AECO.

the Common Market.

The country with the highest GDP is Japan. the United Kingdom. Brazil. the United States. China.

the United States

The group of people within a business who are involved in making business buying decisions is referred to as the new-task team. negotiators. purchasing agents. deciders. the buying center.

the buying center.

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as the "when-in-Rome" approach. the Fraedrich Principle. cultural relativism. the self-reference principle. the self-reference criterion.

the self-reference criterion.

The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is the regression method. customer forecasting. a market test. sales force forecasting. time series analysis.

time series analysis

The forecasting techniques that assume past sales patterns will continue into the future are all variations of regression analysis. random factor analysis. seasonal analysis. time series analysis. past sales forecasting surveys

time series analysis.

A ___________ is an organization that links buyers and sellers in different countries but is not involved in manufacturing. trading company exporter joint venture strategic alliance licensee

trading company

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. When Gillette developed the Venus razor in 1998, in which stage of the product life cycle was the Venus? Introduction Growth Profit Maturity Decline

introduction

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a franchise. contract manufacturer. strategic intermediary. trading company. joint venture.

trading company

A large farming cooperative that focuses on the production of fruits and vegetables uses a business that sells the farmers' products in foreign countries and also provides consulting, insurance, legal assistance, and warehousing to the cooperative. This business would most likely be called a(n) trading company. export specialist. contract wholesaler. licensor. strategic partner.

trading company

When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process. awareness interest evaluation trial adoption

trial

When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process? Awareness Interest Evaluation Trial Adoption

trial

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is geographic location. type of organization. secondary product use. customer size. market potential.

type of organization.

Nick Arnold's Auto Towing Service would best be described as a(n) __________ product. convenience unsought specialty durable shopping

unsought

When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as specialty products. installations. unsought products. shopping products. convenience products.

unsought products.

According to Coleman's major social class categories, the social class in our society that favors prestigious schooling, neighborhoods, and brands is the upper class. middle class. upper-lower class. working class. lower class.

upper class.

Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on customer size. psychographics. demographics. use of product. geographic location.

use of product

Katie is buying her first car and has narrowed her choices down to a Honda Civic, a Toyota Prius, or a Volkswagen Jetta. Katie goes on-line and posts questions to others who have experience with any of these cars, asking for reviews. Katie is most likely using a blog. an opinion leader. using her reference groups for information. experiencing enduring involvement. exerting social influence.

using a blog.

Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in ___________ analysis. vendor downsizing strategic value profit

value

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way. cost value profit strategic SWOT

value

Reseller markets consist mainly of consumers. retailers. wholesalers and retailers. manufacturers. industrial users.

wholesalers and retailers.

One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix width. depth. length. volume. dimension.

width

What measure of the product mix involves the number of product lines a company offers? Quality Consistency Depth Width Size

width

According to Coleman's social class categories, the social class that includes approximately 40 percent of the population, shops for bargains, and buys sports and recreational equipment is the upper class. middle class. first class. working class. lower class.

working class.

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that thre are more departure times and more stops in smaller towns along the way. Megabus is most likely in which of the following stages of the product life cycle? Introduction Growth Maturity Decline Rejection

introduction

Sales start at zero and profits are negative during the ____ stage of the product life cycle. decline growth initial maturity introduction

introduction

The four major stages of a product life cycle include prosperity, recession, depression, and recovery. specialty, convenience, shopping, and unsought goods. decline, stabilization, exposure, and growth. introduction, growth, maturity, and decline. awareness, interest, trial, and adoption

introduction, growth, maturity, and decline.

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and balancing weights for the truck tires. Such business products are characterized as having ____________ demand. derived inelastic joint fluctuating higher

joint

Demand for a business product is _____ when two or more items are used in combination to produce a product. inelastic joint fluctuating derived partnered

joint

If a U.S. bicycle tire manufacturer has to form a partnership with the government of Indonesia in order to gain access to the country's rubber, a _____ has been formed. multinational enterprise contract manufacturing arrangement strategic alliance franchise joint venture

joint venture

Timex, a U.S. based watchmaker -- recently entered into a partnership agreement with the Australian government to make watches. What type of partnership agreement does this situation most likely represent? Trading company Licensing arrangement Strategic alliance Joint venture Direct ownership arrangement

joint venture

Changes in an individual's thought processes and behavior caused by information and experience is called learning. attitude formation. patronage motives. personality. motivation.

learning.

Marketers often provide consumers with experience to their products, including free samples and trial offers, to facilitate consumer patronage motives. attitudes. perception. distortion. learning.

learning.

The World Trade Organization accomplishes all of the following except educating companies about international trade rules. lending money to businesses interested in developing international markets. serving as a forum for trade negotiations. helping settle trade disputes. providing legal ground rules for international commerce.

lending money to businesses interested in developing

A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's motivational structure. routinized response behavior. level of involvement. cognitive dissonance. evaluative criteria.

level of involvement.

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called licensing. exporting. a strategic alliance. a joint venture. contract manufacturing.

licensing

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation. psychographic social class lifestyle personality family life cycle

lifestyle

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is motive. social class. personality. stage in family life cycle. lifestyle.

lifestyle

Shane spends most of his free time participating in extreme sports and traveling to exotic locations with a group of close friends who share his interests and opinions about most things. This is a description of Shane's self-concept. lifestyle. personality. attitudes. role.

lifestyle.

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in international marketing. global marketing. limited exporting. product licensing. unplanned exporting.

limited exporting

When a new variety of Kashi whole-grain breakfast cereals is first introduced, consumers will most likely engage in______ when deciding whether or not to purchase this new product. extended problem solving limited problem solving situational solving behavior routinized response behavior automatic processing behavior

limited problem solving

Jenny plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Jenny is engaging in routinized response behavior. extended problem solving. limited problem solving. impulse buying. intensive problem solving.

limited problem solving.

When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in enduring purchase behavior. routinized response behavior. extended problem solving. impulse searching. limited problem solving.

limited problem solving.

A group of closely related product items that are related because of marketing, technical, or end-use considerations is a product category. dimension. extension. line. mix.

line.

Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer. menus mixes lines life cycles ensembles

lines

The width of a product mix is measured by the number of product dimensions in the product line. features in each brand. items in the product line. lines a company offers. specialties a company offers.

lines a company offers.

Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods. similar; more higher; fewer higher; more lower; more lower; fewer

lower; fewer

Family life cycle is most typically based on income. geographic location. marital status and age of children. occupation. buying power.

marital status and age of children.

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that different rail lines wanted engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco- Engine, and its Dash 9, suited for shortline transport. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the company sales potential. breakdown approach. market potential. buildup approach. company sales forecast.

market potential

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the competitor sales potential. sales objective. forecasted sales. company sales potential. market potential.

market potential

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's sales potential. market potential. target growth rate. sales forecast. sales objective.

market potential.

A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle. maturity growth introduction market reduction decline

maturity

A common business objective of the ___________ stage of the product life cycle is to generate cash flow. maturity growth introduction market reduction decline

maturity

Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle. introduction decline growth maturity competitive

maturity

Price strategies become more mixed during the ___________ stage of the product life cycle. growth maturity decline introduction late introduction

maturity

The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle. decline evaluation growth introduction maturity

maturity

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle. introduction growth stabilization maturity decline

maturity

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle. maturity growth introduction market reduction decline

maturity

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? Maturity Growth Introduction Market reduction Decline

maturity

Which stage of the product life cycle is characterized by intense competition? Decline Plateau Introduction Maturity Stabilization

maturity

Retail-site location analyses, unique product offerings, and special advertising campaigns are all examples of the use of market density. demographic segmentation. behavioristic segmentation. environmental segmentation. micromarketing.

micromarketing

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase. new-task repetitive straight rebuy repetitive order modified rebuy

modified rebuy

When the requirements associated with a new-task purchase are changed the second or third time, this is called a ___________ purchase. modified rebuy continued new-task contractual straight rebuy negotiated rebuy

modified rebuy

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is lifestyle. motives. personality. benefit expectations. personality attributes

motives

Buyers' actions are affected by one or more internal energizing forces geared toward satisfying needs, which are called motives. lifestyles. perceptions. attitudes. traits.

motives.

Approximately ____ of the world's purchasing power is outside of the United States. 1/10 1/3 2/3 1/2 9/10

2/3

About what percentage of the annual U.S. gross domestic product is government spending? 2 percent 10 percent 20 percent 30 percent 50 percent

20 percent

Which of the following products is most likely to be purchased on the basis of contract negotiation? Eggs Office supplies Used cars A custom-made bulldozer Wheat

A custom-made bulldozer

Which of the following forecasting methods is least dependent on historical sales data? Regression analysis Trend analysis Time series analysis Cycle analysis A market test

A market test

Which of the following statements does not apply to convenience goods? A) Consumers are brand loyal to convenience products and are not likely to substitute other brands. b) Convenience products require minimal shopping effort. c) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. d) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. e) Colas, gasoline, and bread are good examples of convenience goods.

A) Consumers are brand loyal to convenience products and are not likely to substitute other brands.

Chloe and Max are searching for a health club to join. This purchase will likely be affected by ___________ involvement. low internal enduring evoked perceived

enduring

Which of the following is used to help maintain a more favorable balance of trade by a country? Limiting imports Limiting exports Establishing exchange controls Increasing gross domestic product Changing political systems

Limiting imports

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? Lowering prices after developmental costs have been recovered Raising promotion expenditures as a percentage of total sales Moving from intensive to selective distribution Raising prices to encourage competitors to enter the market Reducing the number of product models in the product line

Lowering prices after developmental costs have been recovered

Which of the following alliances/agreements is the United States not a part of? NAFTA APEC GATT WTO MERCOSUR

MERCOSUR

The trade alliance that includes Brazil, Argentina, Chile, and other countries is known as OPEC. APEC. MERCOSUR. NAFTA. the Common Market.

MERCOSUR.

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and production activities. service assistance. specialty industrial products. computer programming and operation services. MRO supplies.

MRO supplies.

Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. What method should Lil' Angels use to forecast sales in new regions? Sales force survey Time series analysis Correlation method Market test Regression analysis

Market Test

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called? Micromarketing Population Market density MSA PMSA

Market density

__________ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments. Market segmentation variables Market segment profiles Segmentation grids Market differentiation indexes Market concentrations

Market segment profiles

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method? Time series analysis Market test Executive judgment Regression analysis Survey

Market test

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? Executive judgment Customer surveys Time series analysis Market tests Regression methods

Market tests

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. What product(s) is Megabus marketing? a) Megabus is a service and therefore is not marketing a product. b) The ride between cities is a service product and is the only one Megabus is marketing. c) The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology. d) The ride between cities, which is a convenience product. e) The ride between cities, which is a shopping product.

c) The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology.

A product line is defined as a) products that can be designated as a unique offering among the organization's products. b) products that an organization makes available to consumers. c) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. d) a specific group of products that are offered to the market. e) products that are sold by the same firm or a division of a firm.

c) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

Changing people's attitudes toward a firm and its marketing program is a) simple when advertisements are used. b) impossible, even if the firm uses advertisements. c) a long, expensive, and difficult task that may require extensive advertising campaigns. d) unnecessary, since consumer attitudes are of little importance. e) rarely attempted through the use of marketing practice.

c) a long, expensive, and difficult task that may require extensive advertising campaigns.

Mattel views the toy market as composed of four age groupings, each with different needs and desires. Each of these groups are known as a) an undifferentiated market. b) heterogeneous. c) a market segment. d) a marketing mix. e) a concentrated market.

c) a market segment.

Inelastic demand simply means that a) buyers will not make a modified rebuy purchase. b) demand depends on how many items are purchased. c) a price increase or decrease will not significantly change the demand for an item. d) when price goes up, demand goes down. e) when supply is reduced, the price will increase.

c) a price increase or decrease will not significantly change the demand for an item.

Compared with the SIC system, the North American Industry Classification System (NAICS) will a) look at many industries at one time. b) be used throughout the world. c) contain the most up-to-date information for the NAFTA partners. d) provide less information about service industries. e) generate statistics that will not be useful in comparing countries.

c) contain the most up-to-date information for the NAFTA partners.

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is a) determining the demographic variables of the target market. b) developing market segment profiles. c) determining which segmentation variables to use. d) selecting specific target markets. e) evaluating relevant market segments.

c) determining which segmentation variables to use.

The depth of a product mix is measured by the average number of a) convenience products as compared with the number of specialty products. b) different product lines offered by the company. c) different products offered in each product line. d) specialty products as compared with the number of convenience products. e) product features that the company offers.

c) different products offered in each product line.

In order to be considered a market, people do not have to have a) a need or desire for a particular product. b) the ability to purchase the product. c) discretionary income to purchase the product. d) the willingness to use their buying power. e)the authority to buy the specific products.

c) discretionary income to purchase the product.

A culture can be divided into subcultures according to a) personality characteristics of individuals in that culture. b) motives that members of that cultural group have for their behavior. c) geographic regions or human characteristics, such as age or ethnic background. d) income levels. e) information to which consumers allow themselves to be exposed.

c) geographic regions or human characteristics, such as age or ethnic background.

A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market. a) undifferentiated b) heterogeneous c) homogenous d) differentiated e) concentrated

c) homogenous

The first step in the target market selection process is a) determining which segmentation variables to use. b) selecting specific target markets. c) identifying an appropriate targeting strategy. d) evaluating relevant market segments. e) developing market segment profiles.

c) identifying an appropriate targeting strategy.

When products are introduced into one nation from another, acceptance is far more likely a) if prices are set very low. b) when bribes are paid to local officials to aid distribution. c) if there are similarities between the two cultures. d) if packaging is adjusted to match local preferences. e) when retailers are given incentives to push the products

c) if there are similarities between the two cultures.

Facilities, factories, and production lines with very large equipment are all classified as a) accessory equipment. b) permanents. c) installations. d) component parts. e) MRO facilities.

c) installations.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Toyota's production of commercials that featured Hispanic actors and the Spanish language is an example of marketing to a) cultural self-concepts. b) social classes. c) subcultures. d) roles. e) social strata.

c) subcultures.

Franchising offers all the following benefits for franchisers except a) franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. b) franchisers can retain control of their name while increasing global penetration of their products. c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties. d) the franchiser's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. e) franchisers do not have to put up a large capital investment.

c) the franchisee's revenue stream is fairly consistent because franchisers pay fixed fees and royalties.

Generally speaking, individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because a) they would not desire such products. b) they would not be willing to purchase such products. c) they would not have the ability to purchase such products. d) such markets are narrowly defined geographically. e) they are not authorized to purchase such products.

c) they would not have the ability to purchase such products.

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. The fact that Alicia had remembered the gas mileage of the Toyota Sienna incorrectly is most likely an example of a) selective expression. b) selective retention. c) perceptual extension. d) perceptual bias. e) selective distortion.

e) selective distortion.

Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Karla has asked several of her friends and family members where they have their cars repaired, since she has been experiencing a problem with her car starting when the weather is cold. Karla has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. However, one of her friends, Steve, had a very poor experience with Skola's. Once he complained to them, they fixed the situation and now he prefers their auto shop over others. A dissatisfied Skola's Auto Repair customer told a friend about his experience. The friend has been a long-time Skola's customer and the next day, didn't remember what her friend told her. This is an example of a) perceptive perception. b) selective exposure. c) selective distortion. d) receptive exposure. e) selective retention.

e) selective retention.

Relying on executive judgment for forecasting may be adequate when a) levels of marketing efforts put forth by competitors vary considerably. b) recent events give the executive specific impressions of product demand. c) product demand is erratic. d) the executive conducts surveys. e) the executive has considerable experience and product demand is relatively stable.

e) the executive has considerable experience and product demand is relatively stable.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a) that he's absolutely right, the government doesn't deal with small businesses. b) although the government will deal with small businesses, he will never make a profit off a government contract. c) that any government, federal, state, or local would laugh at the size of his business. d) the government rarely considers new suppliers when making purchasing decisions. e) the government buys products from all sizes of business, but there is some red tape.

e) the government buys products from all sizes of business, but there is some red tape.

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is a) salespeople are generally optimistic about the future and will provide excellent forecast targets. b) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast. c) this tends to be the fastest way to determine a good sales forecast for the upcoming period. d) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers. e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

e) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

To find a target market, a firm can use the a) total market strategy and the undifferentiated strategy. b) product differentiation strategy and the customer differentiation strategy. c) demographic strategy and the psychographic strategy. d) socioeconomic strategy and the psychological strategy. e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

e) undifferentiated strategy, the concentrated strategy, and the differentiated strategy.

Differences in standards of living, credit, buying power, and income distribution are all examples of _____ forces that must be considered in international marketing efforts. economic cultural ethical technological legal

economic

All of the following describe the demand for business products except elastic. derived. joint. inelastic. fluctuating.

elastic.

The United States' prohibition against importing cigars from Cuba is an example of a(n) health control. quota. embargo. exchange control. import control.

embargo.

Sales usually start to decline during the __________ stage of the product life cycle. beginning of the termination end of the growth beginning of the decline beginning of the growth end of the maturity

end of the maturity