MAR 6805 Midterm Review

People who authorize the proposed actions of deciders or buyers are initiators. T/F

F

Selective attention is the tendency to interpret information in a way that will fit out preconceptions. T/F

F

Social class is the fundamental determinant of a person's wants and behavior. T/F

F

The buying process starts when the buyer decides to, or enters, a store or service provider's facility. T/F

F

The demand for a business good is ultimately derived from the demand for raw materials. T/F

F

The most attractive segment is one in which entry barriers are low and exit barrier are high. T/F

F

When Ketan went to college he had a burning desire to join a social fraternity; for Ketan, the fraternity would be a dissociative group. T/F

F

When State Farm uses consumer research to create a mental map of consumers that indicates that consumers perceive State Farm as conservative, safe, responsive, and convenient, they are interested in subliminal perceptions. T/F

F

With non-compensatory models of consumer choice, positive and negative attribute considerations usually net out. T/F

F

2 products with very different performance qualities can have the same conformance quality, if both products deliver their respective promised quality. T/F

T

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction. T/F

T

A local service company has decided to segment its market based on occupation; therefore, it has chosen a form of demographic segmentation for its approach. T/F

T

According to Hertzberg two factor theory, satisfiers will make the major difference as to which brand the customer buys. T/F

T

An example of a subculture would be a person's geographic region. T/F

T

Groups that have an indirect influence on a person's attitude to behavior can be a part of his or her reference groups. T/F

T

James collected primary data when he distributed a survey to dorm residents to discover their attitudes and opinions on campus life. T/F

T

Marketing is managing profitable customer relationships. T/F

T

The technological environment is the most dramatic force in changing the marketplace. T/F

T

Volvo has the reputation of being one of the safest cars on the road. For those that value safety, Volvo would be the logical choice. This is an example of the lexicographic heuristic of consumer choice. T/F

T

Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a different flavored yogurt. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Here, her past experience with the brand prompts her to make the choice. Anne's behavior can be best described as ________. a. self-actualization b. generalization c. fallacy of proposition d. associative networking e. heuristic thinking

b.

Jeremy is concerned about his selection of a new hair spray because he is concerned it will not perform as well as his usual brand, which may result in embarrassing, flat hair in front of others. The type of risk Jeremy perceives is ________ risk. a. financial b. social c. physical d. physiological e. time

b.

Rade and Talion are competitors in the business of manufacturing wristwatches. While Rade promises to deliver design and quality to its customers, Talion promises to deliver durability and cost effectiveness. When both companies deliver their respective promised qualities, they are delivering _________. a. customer support b. conformance quality c. performance quality d. accuracy quality e. unique quality

b.

______ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive. a. selective retention b. selective distortion c. selective choice d. selective attention e. selective embellishment

b.

Which of the following is NOT an accurate description of modern marketing? a. marketing involves satisfying customers' needs b. marketing emphasizes selling and advertising exclusively c. marketing is building value-laden exchange relationships with customers d. marketing is the creation of value for customers e. marketing involves managing profitable customer relationships

b. marketing emphasizes selling and advertising exclusively

The art and science of choosing target markets and building profitable relationships with them is called ____. a. differentiation b. marketing management c. positioning d. marketing mix e. market offering

b. marketing management

_______ involves evaluating the mix of products and businesses that make up the company. a. an internal audit b. portfolio analysis c. profit assessment d. a feasibility study e. SBU identification

b. portfolio analysis

Which of the following is NOT an element of the marketing mix? a. place b. purchase c. promotion d. product e. price

b. purchase

Each society contains _______, groups with shared values emerging from their special life experiences or circumstances. a. consumer bundles b. subcultures c. behavioral niches d. stakeholders e. cliques

b. subcultures

The process of selecting one or more market segments to enter is called market _______. a. positioning b. targeting c. research d. dominance e. segmentation

b. targeting

If a direct-mail marketer wished to direct promotional efforts towards the family of ______, efforts needs to be directed toward parents and siblings of the family members. a. immediacy b. reference c. orientation d. intimacy e. procreation

c.

Pittsburgh-based Consol Energy's coal business largely depends on orders from utilities and steel companies which, in turn, depend on broader economic demand from consumers for electricity and steel-based products like automobiles and appliances because of ________. a. fluctuating demand b. multiple sales call c. derived demand d. multiple buying influences e. professional purchasing

c.

Shoe manufacturers are not going to buy much more leather if the price of leather falls, not will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of __________. a. direct purchasing b. modified rebuy c. inelastic demand d. the acceleration effect e. straight rebuy

c.

Steve has only 20 minutes to have lunch. Although he really likes McDonald's, the line is very long and he is concerned that he will not have a chance to get through the line and eat his lunch before he is due back at work. Steve perceives ________ risk in going to McDonald's today. a. psychological b. physical c. time d. functional e. social

c.

Customers can be grouped and served in various ways based on several factors. These include all of the following EXCEPT ____ factors. a. behavioral b. demographic c. psychographic d. technological e. personality

d. technological

When backed by buying power, wants become _____. a. physical needs b. demands c. exchanges d. social needs e. self-esteem needs

b. demands

Which of the following statements about market segmentation is TRUE? A) It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. B) It is a process of evaluating each segment's attractiveness and selecting one or more to enter. C) It is a process of creating an image or identity of the product in the minds of the target market. D) It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. E) It is the quality of how marketers go to market with the goal of optimizing their spending to achieve good results.

D

______ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and supplier. a. corporate retailing b. marketing channels c. inventory control d. organizational buying e. brand auditing

d. organizational buying

A mission statement is a document embodying an organizations short-term goals. T/F

F

After developing a research plan, a marketing researcher should define the problem and research objectives. T/F

F

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations. T/F

F

People in the same demographic group generally exhibit similar psychographic profiles. T/F

F

As Rita scans the yellow pages section of her phone book looking for a florist, she sees several other products and services advertised. Though interesting on first glance, she quickly returns to her primary task of finding a florist. The items that distracted her from her initial search were most likely stored in which of the following types of memory? A) Short-term memory B) Long-term memory C) Middle memory D) Subconscious memory E) Subliminal memory

a.

For a high school student, Time is highly concerned about environmental issues. He is a strong supporter of the garbage recycling and afforestation campaigns taken up by the environment activists in his neighborhood. HE wants to become a full time volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which if the following reference groups? a. aspirational group b. primary group c. secondary group d. cognitive group e. dissociative group

a.

If a customer's lifetime value is $30,000, interest rate (i) is 5% and sales revenue is generated by the consumer is $16,000, what is the customer's acquisition and retention rate? a. $1,000 b. $1,800 c. $2,500 d. $1,850 e. $1,845

a.

Joe is a computer service technician. People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer. The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products. Within this context, Joe can be called a(n) ________. a. opinion leader b. transactional leader c. role model d. international marketer e. gatekeeper

a.

Marketers embed covert messages in ads or packaging of which the consumers are not consciously aware, yet it affects their behavior. This technique employed by the marketers targets the ________ of a consumer. a. subliminal perception b. voluntary attention c. selective retention d. selective distortion e. selective attention

a.

Miller Beer wanted to evaluate a new market opportunity in the country of Gandia by estimating market potential. The Gandian population is 8,000,000. 50% of population are of drinking age. 25% of those who can drink are actually consumers of alcohol. 50% of those who consumer alcohol prefer beer. On average they consumer 100 bottles of beer per year. Average price for a bottle is $1. What is the market sales potential for beer in Gandia? a. $50,000,000 b. $5,000,000 c. $55,000,000 d. $500,000,000 e. $100,000,000

a.

Which of the following is true for business marketers? a. they deal with fewer and larger buyers than consumer marketers. b. they deal with more and larger buyers than consumer marketers. c. They deal with the same kind of buyers as consumer marketers. d. they deal with fewer and smaller buyers than consumer marketers. e. they deal with more and smaller buyers than consumer marketers.

a.

Which of the following statements is true about the 5 forces identified by Michael Porter that determine the intrinsic long-run attractiveness of a market or market segment? a. a segment is unattractive if buyers possess strong to growing bargaining power. b. the most attractive segment is one in which entry barriers are low and exit barriers are high c. a segment is unattractive is the company's suppliers are unable to raise prices or reduce quantity supplied d. a segment is attractive when there are actual or potential subcultures for the product e. a segment is attractive if it already contains numerous, strong, or aggressive competitors.

a.

Which of the following theories developed by Fredrick Herzberg distinguishes from satisfiers? a. two-factor theory b. probability theory c. psychological constraint theory d. leadership model e. trait-role theory

a.

In the purchasing decision process, the major role of _________ is in selecting vendors and negotiating. a. buyers b. deciders c. gatekeepers d. approvers e. initiators

a. buyers

Price & Malone Corp., a company based in Houston, caters to a market of individuals and households that buy goods and services for personal consumption. Price & Malone caters to a ________ market. a. consumer b. business c. government d. wholesale e. reseller

a. consumer

Regardless of the type of segmentation scheme used, the key is adjusting the marketing program to recognize _________. a. customer differences b. saturated markets c. customer complaints d. the level of disposable income earned by the target group e. the cost-benefit relationship of narrowing the target market

a. customer differences

In a modern customer-oriented organization chart, the _____ of an organization immediately follow the customer segment. a. frontline people b. top management c. marketing department d. lower management e. middle management

a. frontline people

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ____ of the organization. a. macroenvironment b. microenvironment c. marketing intermediaries d. marketing mix e. internal environment

a. macroenvironment

A _______ consists of a group of customers who share similar sets of needs and wants. a. market segment b. market basket c. market level d. vertical marketing system e. market share

a. market segment

_____ is the process of defining a company's mission and long term objectives, then developing functional plans to achieve these objectives. a. strategic planning b. diversification c. SWOT analysis d. Benchmarking e. Market segment

a. strategic planning

When Amy goes shopping for clothes, she goes into every store in the mall looking for the best deal. She is very price conscious. On the basis of loyalty status, Amy can be described as ________. A) a switcher B) a split loyal C) a shifting loyal D) a hard-core loyal E) an antiloyal

a. switcher

When American Airlines decided to review new ideas aimed at first-class passengers on very long flights, like an ultra-high-speed Wi-Fi service and 124 channels of high-definition satellite cable TV, their first step in the marketing research process was to ________. a. develop the research plan b. make the decision c. define the problem and research objectives d. analyze the information e. collect the information

c.

________ is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world. a. assimilation b. consumption c. perception d. cognitive dissonance e. acculturation

c.

Which of the following is the first step in customer value analysis? a. monitor customer values over time b. assess the company's and competitor's performances on the different customer values against their related importance c. identify the major attributes and benefits that customers value d. assess the quantitative importance of the different attributes and benefits e. examine how customers in a specific segment rate the company's performance

c. Identify the major attributes and benefits that customers value.

Mission statements should _______ and be defined in terms of _____. a. be technology oriented; meeting the self-actualization needs of customers. b. address sales and profits; the net return on investments. c. be market oriented; satisfying basic customer needs d. embody the company's short-term plans; current opportunities. e. be product oriented; satisfying the esteem needs of customers

c. be market oriented; satisfying basic customer needs

________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their wants and needs. a. mind mapping b. consumer activism c. consumer behavior d. target marketing e. product differentiation

c. consumer behavior

_______ describes the net present value of the stream of future profits expected over the customer's lifetime purchases. a. activity-based costing b. customer-perceived value c. customer lifetime value d. customer profitability analysis e. customer value analysis

c. customer lifetime value

All of the following are trends in the natural environment expect: a. growing shortages of raw material b. increased pollution c. decreased government intervention d. develop strategies that support environmental sustainability e. all of the above are trends in natural environment

c. decreased government intervention

Sometimes a rise of only 10% in consumer demand can cause as much as a 200 percent rise in business demand for products for the next period. This is an example of _______. a. direct purchasing b. inelastic demand c. elastic demand d. fluctuating demand e. a straight rebuy

c. fluctuating demand

As the manager of an organization that is attempting to build a Marketing Information System (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research. a. consultant reports b. external records and documents c. internal company records d. secondary data from government sources such as the Better Business Bureau e. databases found on the internet

c. internal company records

_________ is the systemic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situations facing the company. a. market segmentation b. internal marketing c. marketing research d. marketing communications e. marketing planning

c. marketing research

In the exact moment you run out of laundry detergent and realize you need to pick some up at the store, you are in the _______ stage of the buying decision process. a. information search b. post-purchase behavior c. problem recognition d. purchase decision e. evolution of alternatives

c. problem recognition

_______ is the totality of features and characters of a product or service that bear on its ability to satisfy stated or implied needs. a. customer loyalty b. value c. quality d. performance e. customer retention

c. quality

A ______ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. a. viral marketing campaign b. sales information system c. data warehousing system d. marketing intelligence system e. product management system

d.

A person's ________ consists of all the groups that have a direct (face-to-face) or indirect influence on his/her attitude or behavior. a. subculture b. social networks c. social class d. reference groups e. family

d.

The business buyer has to make the fewest decisions involved in a _______. a. modified rebuy b. regular buy c. new task d. straight rebuy e. new rebuy

d.

With the ______ heuristic, the customer chooses the best brand on the basis of its perceived most important attribute. a. available b. representativeness c. conjunctive d. lexicographic e. elimination-by-aspects

d.

Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits

d. user status

The primary purpose of ________ is to identify the range of possible brand associations in customers' minds. a. dashboarding b. experimental research c. semantic differentials d. word associations e. laddering

d. word associations

At the top of Maslow's hierarchy of needs (shown in pyramid) are _____ needs. a. social b. safety c. physiological d. esteem e. self-actualization

e.

Researchers usually start their investigation by examining some of the rich variety of low-cost and readily available _____ data, then collect _____data if the needed data don't exist or are dated, inaccurate, or unreliable. a. secondary; econometric b. exploratory; econometric c. primary; secondary d. primary; econometric e. secondary; primary

e.

The associative network memory model views long-term memory as __________. a. a strong internal stimulus impelling action b. the interplay of drives c. a temporary and limited repository of information d. a subliminal perception e. a set of nodes and links

e.

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a _______. a. secondary purchase b. procure-to-pay c. new task d. modified rebuy e. straight rebuy

e.

The sale of turkeys in the United States is highest in mid-to late November, as people buy turkeys to serve at Thanksgiving. Grocery stores who specifically advertise turkeys at this time of year are segmenting on the basis of ________. A) benefits B) user status C) buyer-readiness stage D) demographics E) occasion

e.

With respect to the sampling plan, 3 decisions must be made, 1. the sampling unit- who is being surveyed 2. sample size- how many people should be surveyed, and 3. ___________. a. sample security; how should the sample data be protected b. sample cost; how much does it cost c. sample supervisor; who leads the sampling effort d. surveyor skill; who should conduct the survey e. sampling procedure; how should respondents be chosen

e.

_________ assumed that the psychological forces shaping people's behavior are largely unconscious, and that a person cannot fully understand his or her own motivations. a. Abraham Maslow b. Karl Marx c. John Cacioppo d. Fredrick Herzberg e. Sigmund Freud

e. Freud

Which of the following is NOT a market-oriented business definition? a. "we make high-quality consumer food products." b. "We empower customers to realize their dreams." c. "We create the Hilton experience." d. We bring innovation to every home." e. "We sell success and status."

e. We sell success and status???

The ______ market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. a. global b. e-commerce c. domestic d. consumer e. business

e. business

When a consumer considers a product he or she will choose whichever product or service delivers the highest _________. a. customer profitability analysis b. customer-perceived cost c. customer lifetime value d. customer equity e. customer- perceived value

e. customer perceived value

_______ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives. a. total customer benefit b. failure avoidance rate c. competitor's market share rate d. perceived usefulness e. customer-perceived value

e. customer-perceived value

Which of the following is the first step in strategic planning? a. developing the business portfolio b. setting short term goals c. identifying the organization's weaknesses and the threats it faces d. formulating the key marketing strategies e. defining the corporate mission

e. defining the corporate mission

A _______ is a gathering of 6-10 people carefully selected by researchers based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length. a. pilot group b. ethnographic group c. customer base d. target group e. focus group

e. focus group

_________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. a. respect b. satisfaction c. customer value d. value proposition e. loyalty

e. loyalty

________ refers to a set of distinguishing human psychological traits that lead to relatively consistently and enduring responses to environmental stimuli. a. acculturation b. psychological transformation c. lifestyle d. image e. personality

e. personality

If a marketing manager segments the market into culture-, sports-, or outdoor-oriented groups, he or she is segmenting the market on the basis of ________. a. behavioral occasions b. user status c. readiness stage d. loyalty status e. psychographic lifestyle

e. psychographic lifestyle

Needs include all of the following EXCEPT _______. a. affection b. belonging c. knowledge d. food e. the newest iPhone

e. the newest iPhone