exam 1 (ch. 1, 2, 3, 4, and 5) ~ quizzes

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established

a sustainable competitive advantage.

Target has announced that it would begin selling organic food products. In doing so, Target is most likely trying to

attract a different market segment.

The fundamental goal of marketers when creating goods, services, or combinations of both is to

create value.

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals

enables firms to make appropriate adjustments.

According to your text, in the broadest terms, the "marketplace" refers to

the world of trade.

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.

Which of the following statements reflects the philosophy of the market-oriented era?

The customer is king.

Avery's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

a sustainable competitive advantage.

The process of value ________, in which customers collaborate in product design, often provides additional value to the firm's customers.

cocreation

Audi's mission statement addresses urbanization, the need to work on traffic flows and safety in urban areas. To that end, Audi is working with Airbus to develop the Pop.Up Next driving and flying transport system that will enable vertical individual mobility. The strategic planners are engaged in

defining the business mission.

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a ________ growth strategy.

diversification

Dream Home Solutions has been a successful small home-remodeling firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Dream Home rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Dream Home is engaged in

effective supply chain management.

Nice 'n Easy sells handcrafted furniture. They have also recently begun offering appraisals of customers' antiques. Nice 'n Easy is

expanding from offering just goods to also offering services.

Justine offers design and consulting services on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on

how different customers perceive the value of her services.

Whenever Kristy has a new manicure customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her manicure service for payment, Kristy is gathering

information.

Hunter Corporation's mission statement

is a broad description of a firm's objectives and the scope of activities it plans to undertake.

A competitive advantage based on location is often sustainable because

it is not easily duplicated.

It was during the market-oriented era that firms first discovered "marketing." In what timeframe did this occur?

just after World War II

By using social media ________ on their mobile phones, customers can check in with HappyCow to find nearby vegetarian restaurants.

location-based apps

Value creation through place decisions for a consumer product involves

making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

Woods, Inc. is a small, local heating and air conditioning business. The local military base is a potential source of growth, and Woods already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. Woods is considering a ________ growth strategy.

market development

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

market segmentation.

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and e-mail in order to participate, the radio station is

offering an exchange.

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Tim's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Tim's demonstrates ________ excellence.

operational

Jeffrey is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeffrey has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeffrey still need to work on?

place

Which element of the marketing mix is most relevant to the activity "delivering value"?

place

Which of the following is the best way to build a sustainable competitive advantage using product excellence?

positioning the product using a clear, distinctive, desirable brand image

Grace phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________ growth strategy.

product development

Tandy's Styles involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. Tandy's is pursuing a ________ growth strategy.

product development

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) ________ macro strategy.

product excellence

When a sweatshirt manufacturer states, "We sell it only in gray because that way we can buy plenty of gray fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?

production-oriented

When the publisher of the well-known Berenstain Bears books wanted to celebrate the 50th anniversary of the series, it initiated a $150,000 campaign. Which of the four Ps does this campaign represent?

promotion

For years, when considering new products, marketers at Bennett's Coffee and Tea asked themselves, "What would Kelsey think?" Kelsey was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Kelsey" represented Bennett's primary

target market segment.

After identifying various market segments that her company could pursue, Shannon evaluated each segment's attractiveness based on size, income, and accessibility. Shannon was involved in

target marketing.

Even though they operate on a limited schedule and offer few extra services, discount, no-frill airlines like Allegiant have been successful. Consumers obviously consider

the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Heidi has been assessing several of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heidi is trying to determine

the product's relative market share.

Tenisha sells consumer electronics. She knows her customers weigh the costs versus the benefits associated with the different options available. Tenisha decides which products to offer and what prices to charge based on the way her customers think. Tenisha operates as if she was in the ________ era.

value-based marketing

What type of marketers constantly measure the benefits that customers perceive against the cost of their offerings?

value-oriented marketers

Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also can enable the company to decide

which kinds of stores to open.

When Starbucks sells its coffee and mugs to the public on its website, it is a ________ sale.

B2C