MARK Exam 2
Walmart marketers have determined in their research design that they want to hear from grocery shoppers in major cities in the United States. They decide to focus on the five metro areas where Kroger has seen the biggest growth: Phoenix, Detroit, Los Angeles, Atlanta, and Dallas-Fort Worth. Every person 23 years of age or older in those cities will have an equal chance of being selected to participate in the survey. This is an example of _______. a cluster sample a quota sample a systematic sample a convenience sample
a cluster sample
what is a multinational corporation?
a company that is heavily engaged in international trade, beyond exporting and importing
motive
a driving force that causes a person to take action to satisfy specific needs
subculture
a homogeneous group of people who share elements of the overall culture as well as the unique elements of their own group
stimulus discrimination
a learned ability to differentiate among similar products
what is undifferentiated targeting strategy?
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Ren is a business development consultant for a solar energy company. The company is seeking to expand its business with commercial accounts. Ren typically works in the education market specializing in smaller school districts where he can meet with the superintendents and school board to discuss the benefits of utilizing solar power. Ren's market segment would be categorized as a(n) _______. institution reseller producer government
institution
what is Mercosur?
latin american trade agreement
Emma was raised in the southern part of the United States where it's common to ask guests visiting the house, "would you like a Coke?" This expression is used to inquire if the guest would like a beverage to drink, not necessarily a Coca-Cola or Coca-Cola product. In contrast, people living in the Midwest might ask if the guest would like a pop or soda pop. The use of these expressions by people living in different areas across the United States demonstrates that culture is _______. inherited dynamic insignificant learned
learned
Christina is considering expanding her women's fashion boutique to include clothing for expectant mothers. However, she's concerned about whether her geographic market has enough women who are pregnant to justify her expenditures. Furthermore, she's heard that the birth rates are down across the United States. Which criterion for successful segmentation is of most concern to Christina? Accessibility Substantiality Identifiability Responsiveness
sustainability
Recently, there has been a growth in assisted living centers across the United States as the number of adults aged 65 and older increases due to individuals living longer. This phenomenon indicates that companies that choose to develop senior living centers can be assured that this market segment meets the criterion of _______, meaning that it is large enough to warrant developing and maintaining a special marketing mix. responsiveness identifiability accessibility substantiality
sustainability
want
recognition of an unfulfilled need and a product that will satisfy it
who are the full members of Mercosur?
Argentina, Brazil, Paraguay, Uruguay
who are the associate members of Mercosur?
French Guiana, Suriname, Guyana, Chile, Colombia, Ecuador, Peru, and Bolivia
nudge
a small intervention that can change a person's behavior
The Western Store is a retail outlet that specializes in western-style boots, jeans, shirts, and hats. The business frequently uses radio advertising on country radio stations, Pandora, and Spotify. In addition, The Western Store sponsors several high school students who compete in rodeo competitions. The store has about 3,000 followers on Facebook and Instagram. This information indicates that The Western Store's targeted markets are _______ and able to be reached via promotions and social media. identifiable responsive accessible substantial
accessible
reference group
all of the formal and informal groups in society that influence an individual's purchasing behavior
opinion leader
an individual who influences who opinions of others
what is an export broker?
an intermediary who plays the traditional broker's role by bringing buyer and seller together
Once Netflix marketers have finished conducting focus groups and surveys, they can move on to which stage of the market research process? Specify the sampling procedures Prepare and present the report Collect primary data Analyze the data
analyze the data
jilting effect
anticipation of receiving a highly desirable option only to have it become inaccessible
stimulus
any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
what are optimizers?
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
what is satisficers?
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
what is repositioning?
changing consumers' perceptions of a brand in relation to competing brands
what are segmentation bases (variables)?
characteristics of individuals, groups, or organizations
LUS Brands is based in Canada. The company was founded by Sahar Saidi, who is the ultimate "curly girl." Over the years, she had tried every hair care product on the market for curly hair and was always disappointed. She decided to create her own formula. After years of research and development, Sahar created shampoo, conditioner, and styling cream for women with curly hair. LUS Brands is using a(n) _______ targeting strategy. customized concentrated undifferentiated multisegment
concentrated
N2Care has one product, the MEDCottage, that is pre-fabricated and pre-equipped with medical equipment used by nursing homes. N2Care is utilizing a(n) _______ targeting strategy. multisegment concentrated undifferentiated mass marketing
concentrated
Which of the following statements is true regarding trends that are leading to the continued growth of customer relationship management as a tool for targeted marketing strategies? Consumers will demonstrate loyalty to companies and brands that have earned their loyalty and that reinforce that loyalty at every purchase occasion. Consumers have more time than ever before to conduct information search prior to purchasing products or services. One-size-fits-all marketing is appropriate for most consumer goods. Mass-media advertising will increase in importance as marketers utilize technology to gather detailed information about their customers.
consumers will demonstrate loyalty to companies and brands that have earned their loyalty and that reinforce that loyalty at every purchase occasion
Hoover manufactures vacuums and wanted to expand its manufacturing capabilities. Hoover contracted with an India-based firm and invested funds to provide technology and equipment in a new manufacturing plant in Mumbai. In exchange, Hoover received vacuums that were produced in India and could be sold worldwide. This practice is called _______.
countertrade
L'Oréal, a beauty brand, offers a variety of powders and liquid foundation for women with different skin tones. The company's website offers guidance to women to help them assess their skin color—from fair, porcelain skin to a deep, dark complexion. L'Oréal is utilizing _______ segmentation by offering a range of products to meet the needs of all women and diverse ethnic backgrounds. demographic psychographic geographic benefit
demographic
N2Care is marketing its MEDCottages to senior citizens and their family members. In addition, the company must consider the family life cycle stage of consumers' purchasing MEDCottages. N2Care is primarily using _______ segmentation. demographic geographic usage-rate psychographic
demographic
During her external information search, Yūka discovers she has many brands to choose from: Canon, Nikon, Pentax, Sony, Panasonic, Fuji, and more. Based on price and functionality, Yūka is able to narrow down the brands she will actually consider purchasing to Nikon, Canon, and Sony. These three brands represent Yūka's _______ evoked set universal set want-got gap need recognition set
evoked set
Hayley is a senior in high school who wants to major in healthcare administration in college. She's engaged in some information search activities and has identified three schools within a three-hour drive of her home that offer a major in health care management or administration. These three schools are known as Hayley's _______. purchase set evoked set information set deliberation set
evoked set
The search and evaluation process lasted a full month for Carlos. His level of involvement in the purchase of his truck was _______ and he had a _______ level of involvement. extensive decision making; high routinized response behavior; low limited decision making; low limited decision making; high
extensive decision making; high
Over the last 30 or so years, Toyota, a Japanese firm has made a considerable investment in the United States and has several manufacturing plants where it produces vehicles for the U.S. market. Its two plants in Kentucky make the Camry, Lexus ES 350, and Avalon. A plant in Texas produces its truck line— the Tundra and Tacoma. In total, Toyota annually produces more than 1.2 million vehicles in the United States. Which method of global marketing best describes Toyota's manufacturing operations in the United States?
foreign direct investment
Heritage Glass in rural Tennessee expects 60 to 70 percent of its sales to come from regions outside of the United States including the Philippines, Europe, and South America. Heritage Glass has a _____ vision.
global
Chun and her mother are shopping for back-to-school supplies. Chun enjoys visiting clothing stores such as American Eagle with bright lighting, energizing contemporary music, and up-to-date fashions. Even if Chun doesn't purchase anything at American Eagle, she enjoys the experience and has received _______ value. contemporary utilitarian hedonic platonic
hedonic
self-concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
Petco provides products and services for individuals who own pets. Petco might use _______ to tailor marketing mixes to meet the needs of specific customers such as those who own cats, dogs, fish, birds, or other animals. in-store displays advertising market segmentation consolidated marketing
market segmentation
what is global marketing?
marketing that targets markets throughout the world
what is a niche?
one segment of a market
what is market?
people or organizations with needs or wants and the ability and willingness to buy
The Dollar Store has created a unique following of budget-oriented shoppers by offering products priced at $1 and up. It is considered a "value" store where customers can buy generic and brand-name items at deep discount compared to full-service grocery retailers such as Kroger or Meijer. The Dollar Store is using _______ as a positioning base to differentiate its stores from its competition. use or application emotion price and quality product user
price and quality
Carlos currently drives a sedan, which doesn't allow him to go off-road for hiking, hunting, or camping trips. He's traveled with his friends in their trucks and likes the ability to have the cabin comfort of a car but the flexibility of cargo space for hauling equipment. Carlos' friends agree that Chevrolet, Ford, and Dodge are all good brands for Carlos to research. Carlos' friends represent his _______, a _______ influence that impacts consumer decision making. reference group; cultural family; cultural primary membership group; social ideal self-image; psychological
primary membership group; social
Caterpillar is a manufacturer of heavy machinery that is sold through its network of dealers around the world. A popular Caterpillar product is the skid steer loader, which is commonly used in general construction, agriculture, and landscaping. Segmenting Caterpillar's skid steer loader customers by industry enables it to better satisfy customer needs by matching its product and available attachments to the industry focus of the customer. Caterpillar is using _______ as a segmentation variable. company size volume of purchase product use geographic location
product use
Danita is 40 years old and has always wanted to learn to speak Italian. She's noticed several television advertisements for Babbel promoting its system of foreign language instruction. The ads show professional people like her learning new languages and being successful. According to Maslow's hierarchy of needs, Danita's desire to learn Italian would fulfill a _______ need. physiological safety self-actualization social
self-actualization
what is the balance of payments?
the difference between a country's total payments to other countries and its total receipts from other countries
what is position
the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
culture
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
what is gross domestic product (GDP)?
the total market value of all final goods and services produced in a country for a given time period
routine response behavior
the type of decision making exhibited by consumers buyign frequently purchased, low-cost goods and services; requires little search and decision time
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
The Good Sleep Hotel chain offers a simple solution to individuals who need to purchase one or more nights away from home—a good night's sleep! The company has one style of room, all with the same amenities, size, and ability to accommodate up to four people with two queen-size beds. Good Sleep Hotel believes that everyone deserves a restful night away from home. Focusing on this simple need enables the company to reduce its marketing expenditures and costs associated with offering different types of rooms such as singles or suites. The Good Sleep Hotel chain is using _______ targeting. undifferentiated focused concentrated multisegment
undifferentiation
what is capital intensive?
using more capital than labor in the production process
churning
when a significant number of customers are switching brands
consumer decision-making process
a five-step process used by consumers when buying goods or services
stimulus generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
what is countertrade?
a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
what is the Group of Twenty (G-20)?
a forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
evoke set (consideration set)
a group of brands resulting from an information search from which a buyer can choose
social class
a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and show share behavioral norms
what is a target market?
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
aspirational reference group
a group that someone would like to join
nonaspirational reference group
a group with which an individual does not want to associate
what is perceptual mapping?
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
Maslow's hierarchy of needs
a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization
Luxury goods such as designer handbags and watches are highly favored in developed countries such as France, Italy, Germany, the United States, and other countries around the globe where consumers have high discretionary income and enough purchasing power to afford these items. Thus, _____ factors are important considerations when selecting global markets for export opportunities.
economic
Captiva designs and manufactures a line of swimsuits for active women pursuing surfing, sailing, and other water sports. The brand is becoming popular since it is designed by women and is perfect for active lifestyles. Captiva uses its website to fulfill orders from women around the world but has its offices in the United States. Which stage of global business best describes Captiva's operations?
first stage
Lihua is learning about global market standardization. She was explaining to a friend the types of products that could easily be standardized for sale around the world except for language differences. Which of the following products could most likely be standardized?
flash drive
Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company are products that feature the company's name or logo. Branded merchandise is available in over 150 countries through agreements known as _____, in which, for a fee, Caterpillar allows other firms to use its name or logo on products such as hats, boots, apparel, and scale model replicas of its equipment.
licensing
FitNFantastic is an independently owned CrossFit fitness studio, and it is currently struggling to identify its market opportunity. The owner, Badara, received his degree in sports physiology but has never taken any business courses. He's recently been doing some research about market segmentation and learned that if he were to adopt a marketing segmentation strategy, his business might benefit. Which of the following is one of the benefits for firms that use market segmentation? Market segmentation helps marketers define customer needs and wants more precisely. Real-time data obtained from point-of-sale systems is not effective in understanding buyer behavior. Firms who emphasize product quality can more effectively execute marketing strategies that drive growth. Market segmentation leads to a less defined understanding of customer lifestyle.
market segmentation helps marketers define customer needs and wants more precisely
Marketers for REI Adventures utilize Facebook technology to find "lookalike audiences." Which of the following traits found on users' Facebook pages could be categorized as a psychographic segmentation base? (Select three) Member of a kayaking group on Facebook Likes blues and rock musicians on Facebook Lives in Nashville, TN Follows hiking tour companies on Facebook Relationship status is listed as single
member of a kayaking group on facebook likes blues and rock musicians on facebook follows hiking tour companies on facebook
Gustavo was shopping at Hollister for jeans. He noticed a sign near the plain T-shirts that advertised "buy one, get one half off." Since he often wears plain T-shirts, Gustavo spontaneously decided to purchase a white shirt and a black shirt. The sign served as a(n) _______ to influence consumers to make impulse or unplanned purchases. prompt non-marketer-controlled stimulus internal source nudge
nudge
Brandon has always enjoyed playing video games. He started live streaming and recording videos as well as giving product reviews. Over time, Brandon has developed a following on YouTube, and he is now endorsed by several video game companies who view him as an important _______ who can influence others to purchase goods and services. media personality cultural icon reference group opinion leader
opinion leader
what is licensing?
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
extensive decision making
the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought time; requires use of several criteria for evaluating options and much time for seeking information
showrooming
the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same time
what is the exchange rate?
the price of one country's currency in terms of another country's currency
perception
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
what is market segmentation?
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
what is benefit segmentation?
the process of grouping customers into market segments according to the benefits they seek from the product
internal information search
the process of recalling information stored in the memory
external information search
the process of seeking information in the outside environment
what is dumping?
the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter
perceived value
the value a consumer expects to obtain from a purchase
real self-image
the way an individual actually perceives himself or herself
ideal self-image
the way an individual would like to be perceived
Which of the following statements regarding market segmentation is true? There are no scientific procedures for selecting appropriate segmentation variables when choosing a basis for segmenting the market. A successful segmentation scheme must produce segments that meet the five basic criteria for market segmentation. The first step in segmenting a market is to select segmentation descriptors. The final step in the market segmentation process involves selecting markets.
there are no scientific procedures for selecting appropriate segmentation variables when choosing a basis for segmenting the market
WeatherTech manufactures custom floor mats and accessories for automobiles. WeatherTech is predominantly an online retailer that fulfills customer orders from its website. In most cases, customers can navigate the website and identify products that are made to fit their vehicle. However, some customers may have questions before or after purchase. Which of the following actions can WeatherTech implement to stimulate positive word-of-mouth about its business and to address customer questions? Include a toll-free number on the website which is answered by a service representative on the first or second ring and who is knowledgeable enough to address any questions or concerns a customer might have Utilize an e-mail or web-based system through which customers can send an email to [email protected]; responses are addressed within 2-3 business days Refer customers to a link on the website with "frequently asked questions" Include a toll-free number on the website at which callers can receive an automated response with menu options from which customers can select to indicate the reason for the call
Include a toll-free number on the website which is answered by a service representative on the first or second ring and who is knowledgeable enough to address any questions or concerns a customer might have
Miguel lives in Mexico and is studying at a university in Monterrey. He's interested in studying abroad and chooses a program in Angers, France that is approved by his university. He's interested in learning more about the city of Angers and locates a website sponsored by the local tourism board. Miguel doesn't read or speak French. Which of the following could most easily help Miguel use the tourism website?
Language translation software
In 2012, the ______ was signed by Colombia, Chile, Peru, and Mexico to create a single region for the free movement of goods, services, investment, capital, and people.
Pacific Alliance
what is the World Bank?
an international bank that offers low-interest loans, advice, and information to developing nations
Marianne recently moved from the Midwest to South Florida to pursue a career in real estate. She enjoys yoga and Pilates and hopes to find a studio in her new city so she can continue her fitness routine. This example demonstrates the impact of _______ as an individual influence on consumer buying decisions. personality life events age gender
life events
what is global marketing standardization?
production of uniform products that can be sold the way all over the world
Capital Finance provides investment consulting services to businesses. It has contracts with several companies around the globe, including companies in Thailand, Australia, and India. The Internet has enabled Capital Finance to serve customers around the globe. It is estimated that _____ percent of global trade is facilitated by digital technology.
50
Marketers at Walmart will be gathering their primary data over the next several months. Due to the large number of grocery shoppers they would like to reach, the marketers expect this will take several months to complete. Marketers would like a low-cost form of survey research and to receive moderate-quality data. Which of the following forms of survey research would best fit these requirements? Focus groups Mall or grocery store intercept interviews A one-time mail survey In-home personal interviews
a one-time mail survey
value
a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
connect self-schema
a perspective whereby a consumer sees himself or herself as an integral part of a group
separated self-schema
a perspective whereby a consumer sees himself or herself as distinct and separate from others
what is product differentiation?
a positioning strategy that some firms use to distinguish their products from those of competitors
what is the 80/20 principle?
a principle holding that 20 percent of all customers generate 80 percent of the demand
learning
a process that creates changes in behavior, immediate or expected, through experience and practice
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
selective exposure
a process whereby a consumer notices certain stimuli and ignores others
selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
non-marketing-controlled information source
a product information source that is not associated with advertising or promotion
marketing-controlled information source
a product information source that originates with marketers promoting the product
secondary membership group
a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
primary membership group
a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
what is the family life cycle (FLC)?
a series of stages determined by a combination of age, marital status, and the presence or absence of children
what is cannibalization?
a situation that occurs when sales of a new product cut into sales of a firm's existing products
What is a multisegment targeting strategy?
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
what is the concentrated targeting strategy?
a strategy used to select one segment of a market for targeting marketing efforts
what is a market segment?
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
what are FLOATING exchange rates?
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
what is countervailing duty?
a tax on imported good to offset a subsidy or other financial assistance given to a foreign exporter by its government that enables the foreign exporter to sell at an artificially low price in the global marketplace
utilitarian value
a value of derived from a product or service that helps the consumer solve problems and accomplish tasks
norm
a value or attitude deemed acceptable by a group
hedonic value
a value that acts as an end in itself rather than as a means to an end
personality
a way of organizing and grouping the consistencies of an individual's reactions to situations
Many customers appreciate the benefits of joining Amazon's Prime membership program that provides free shipping on many products. However, some products on Amazon's site are sold by companies outside the United States and are not eligible for Prime shipping since they are shipped directly by the exporter. Which of the following statements is true regarding Amazon and the suppliers who export their items?
amazon's marketplace has enabled many small firms to participate in global business
who are buyer for exports?
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
what is an export agent?
an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market
what is the International Monetary Fund (IMF)?
an international organization that acts a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
Yūka ultimately purchases a Canon and is happy with her purchase as most of the students in her class purchased the same camera. Another student, Jayden, has been using a Canon for several years. He often gives his classmates suggestions that classmates utilize when buying accessories and lenses. Jayden is likely _______. in Yūka's nonaspirational reference group an opinion leader influencing others' real self-image trying to influence the socialization process
an opinion leader
Margo is a division vice-president at a large insurance company. She dreams of purchasing a Range Rover Sport vehicle that retails for approximately $70,000. She thinks the brand offers the highest level of luxury in a sport utility vehicle. In addition, she associates the Range Rover brand with prestige, wealth, and success. Once she's able to own a Range Rover, Margo will feel like she's "made it." To Margo, the people who own and drive Range Rover vehicles serve as a(n) _______ reference group. standard aspirational non-aspirational primary membership
aspirational
In a global economy, products and services are exchanged around the world. Ford Motor Company has production plants in Mexico and purchases component parts from various suppliers around the world which are imported to Mexico to be used in production. Once the automobiles are completed, the finished cars are exported primarily to the United States and Canada. The difference between the value of exports of a country and the value of its imports over a given period is called _______.
balance of trade
Quentin recently purchased a Ford F-150 truck to use in his construction business. He had considered other models but decided the Ford was the best value. After owning the truck for two weeks, he received an e-mail from his sales representative at the Ford dealership thanking him for his purchase. In addition, the sales representative included a link to a review of the Ford F-150 in Car and Driver where it was chosen as the top-rated truck. Quentin had been confident about his purchase decision prior to his purchase but felt even more positive about his purchase after receiving the e-mail from his sales representative and reading the magazine review. The follow-up e-mail and article helped to mitigate any _______ Quentin have felt in the postpurchase stage of the decision process. jilting effects product ambivalence asymmetric ownership cognitive dissonance
cognitive dissonance
Avery was a multi-sport athlete in high school. She now teaches aerobics and spin classes at her university's fitness center. She wears only Nike shoes and sports apparel and has adopted the Nike slogan, "Just Do It" as her personal statement and the way she approaches life. She believes in herself and feels stronger, fitter, and more competitive when wearing or using Nike products. Avery is also an unpaid ambassador for the brand and often posts photos of herself wearing Nike products on her social media accounts. Avery would be classified as being in the _______ loyalty group with Nike. situational enduring committed satisfied
committed
The amount of information search a consumer will conduct depends on several factors. For example, Carmen is interested in purchasing a new laptop computer. Carmen is highly knowledgeable about technology since she majored in business information systems and enjoys reading about trends and new products in magazines and online forums. She has owned Dell computers and had positive experiences with the brand. Carmen plans to spend approximately $1,500, and she would like the laptop to last at least two years. Based on this information, which factor influencing information search will lead Carmen to spend more time conducting an external search? Consumer interest Confidence Perceived risk Knowledge
consumer interest
Cabi is a women's fashion clothing brand based in Los Angeles, California. Cabi's design team in Los Angeles creates its fashion line sixteen months to two years in advance. The design team selects fabrics and other details to create the clothes. Cabi then hires manufacturers in China to produce the items according to the specifications. Once completed, the garments are shipped to California on container ships that take up to two months in transit. It's a complex process but one that enables Cabi to control costs. Which method is Cabi using to engage in global marketing?
contract manufacturing
After a successful run in New York, the Nederlander would like to take Evita to a theater in Argentina as Eva Perón was a much-loved historical figure there. This decision was likely based on the Nederlander Group's examination of Argentina's _______.
cultural factors
Pranav works for a German company that provides components for automobiles. He is preparing for a trip to China to meet with car manufacturers and had a short session on business etiquette. One recommendation regarded the presentation of business cards. The recommendation stated that it's a much more formal process in China and that it was important to use two hands when presenting a card to another person. Pranav is learning about the importance of _____ in global business.
culture
Pasua is an Amazon Prime member who appreciates the convenience and flexibility of ordering products from Amazon. She typically shops using the Amazon app on her phone. Pasua is always amazed how Amazon's suggestions of products she might like are so on-point. She frequently purchases one or more of Amazon's "recommended for you" items as impulse purchases. Amazon is using _______ as a targeting tool based on its ability to track interactions with customers. automated intelligence management (AIM) customer feedback marketing (CFM) computer-assisted marketing (CAM) customer relationship management (CRM)
customer relationship management
Rogers and Hollands, a jewelry store chain, is often based in shopping centers. The chain primarily promotes engagement rings and wedding bands to couples who are seeking rings as an outward sign of their relationship commitments. This is an exciting time for couples, and Rogers and Hollands enjoys working with couples to find just the right ring to fit their budgets and style preferences. The focus of Rogers and Hollands on the engagement and wedding ring market exemplifies its use of _______ segmentation. demographic benefits psychographic geographic
demographic
Unilever was able to identify an expanding middle class within certain emerging markets and capitalized on this opportunity with several initiatives. In India, Hindustan Unilever Limited (HUL) trained local women to be rural sales agents, selling Unilever products within their communities. This initiative was a result of _______ in the external environment.
demographic factors
what is positioning?
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
Nederlander's first expansion globally was to purchase three theaters in London, England. This strategy of entering global markets is called _______.
direct investment
what is usage-rate segmentation?
dividing a market by the amount of product bought or consumed
Following natural disasters such as hurricanes and tornadoes, the demand for building products such as drywall or gypsum panels and lumber increases. Sometimes, these events lead to higher prices for building products as demand exceeds supply. However, due to global exporting, the prices might decline. U.S. gypsum manufacturing companies complained that China-based Knauf Tianjin was _____ products and selling panels for lower prices than they charged in China.
dumping
what is the principle of comparative advantage?
each country should specialize in the products or services that it can produce most readily and cheaply and trade those products or services for goods and services that foreign countries can produce most readily and cheaply
After test driving a few vehicles, visiting websites, and reading expert reviews, Carlos has narrowed his choice to three options: Ford F-150, Chevrolet Silverado, and GMC Sierra 1500. Carlos believes these three vehicles are fairly comparable on his primary criteria of performance, off-road capabilities, fuel efficiency, and towing capacity. What stage in the consumer decision-making process is Carlos in? Evaluation of alternatives Need recognition Information search Purchase
evaluation of alternatives
Matcha green tea has become a very popular beverage in recent years. Soar Organic produces some of the finest matcha green tea and works with sales agents and distributors in the United States, Canada, and Australia to aid with international financing, shipping, and supporting Soar Organic's export needs. The sales agents who reside in the countries to which Soar Organic is exporting are called _______.
export agents
Mei-Ling is a college junior majoring in finance and economics. She is interested in applying for internships and plans to attend her next college job fair. She wants to purchase a business suit to wear to the job fair and at subsequent interviews. Mei-Ling wants to look her best and wear appropriate attire. Since making a first impression is important, Mei-Ling will likely take considerable time to visit stores and try on multiple suits before she makes her purchase decision. Mei-Ling has never purchased a suit before, and this is the first time she will buy an expensive item without her mother assisting in the decision. Which type of decision-making will Mei-Ling utilize in purchasing her suit? Limited decision making Extensive decision making Routine response behavior Rational decision making
extensive decision making
Harry's, a men's grooming company, markets razors and hair styling products. Harry's uses a variety of promotional media including advertisements on ESPN to create awareness about its brand and to influence purchase consideration. Recently, Ravindra was watching ESPN and decided to give Harry's a try. The advertisement also helped him realize that he wasn't very satisfied with the disposable razors he had been using. In this case, the advertisement acted as a(n) _______ stimulus to trigger Ravindra's need recognition for a new shaving product. external internal formal impersonal
external
Eddie Bauer has 275 store locations across the United States. It utilizes a sophisticated, data-driven approach to identifying the styles and selections that each of the stores will offer, dividing the country into eight distinct regions such as the west coast, west north central, east north central, and south Atlantic. Each region contains two or more states; for example, the west south-central region includes Texas, Oklahoma, Arkansas, and Louisiana. Eddie Bauer believes each state within a region is relatively similar in terms of climate, so the chain can determine styles that are best suited to those temperatures and weather patterns. For example, those living in the northeast or midwest would have a greater need for winter parkas than consumers in the west or east south-central regions. Based on this example, Eddie Bauer is using _______ segmentation. benefit demographic geographic psychographic
geographic
Canon is a Japanese firm specializing in imaging and optical products such as cameras, photocopiers, and printers. The company recognizes that consumers around the world have similar needs regarding the functions of cameras, photocopiers, and printers. Therefore, Canon can create and manufacture models that are sold around the world with few to no modifications. This is an example of _______.
global marketing standardization
Solumbra designs and manufacturers protective clothing which helps people reduce the risk of skin cancer from exposure to ultraviolet rays. Its hats, shirts, shorts, and pants are sold globally through its website as well as through retail accounts in specialty stores. Solumbra's product line is consistent across its global markets which provides efficiency in manufacturing. Minimal modifications are made to the information and language on the product tag. Solumbra is utilizing a(n) _____ strategy for product decisions.
global marketing standardization
socialization process
how cultural values and norms are passed down to children
Sherman's is a furniture and appliance retailer serving a tri-city area. The company is interested in identifying viable markets in order to be more effective in marketing its products and services. Which of the following descriptions meets all the characteristics of a market? Apartment residents who live in furnished apartments with all utilities included in their monthly rent College students who reside in residence halls furnished by their university Individuals or couples who own their own home, needing to purchase new or replacement furniture and appliances, with the disposable income or access to credit to afford new items, and a desire to purchase Senior citizens who live in townhouses or duplexes but utilize their own furniture and appliances, and who have savings, but may be living on a restricted budget with little interest in replacement items
individuals or couples who own their own home, needing to purchase new or replacement furniture and appliances, with the disposable income or access to credit to afford new items, and a desire to purchase
Consuela is a busy mom of three children ranging from 3 to 8 years of age. The kids usually accompany Consuela on trips to the grocery store, and she's often amazed at how frequently they ask for items that are not on the shopping list. The youngest is usually asking for a toy, the middle child wants candy, and the oldest wants ice cream. As part of the family decision process, the children perform the role of _______. decision maker influencers purchaser initiators
initiators
Apple recently announced that it was investing billions to build a new manufacturing facility near its headquarters in California to produce screens for computers, tablets, and smartphone devices. This investment is part of Apple's strategy to control all component parts of its products and to return production to the United States, a process called _______.
inshoring
Tamika enjoys shopping at Target. She learned through Target's Instagram posts that a collection from Vineyard Vines would be available in stores and online for a limited time and in limited quantities. Tamika set a reminder on her phone and accessed the Target website at the time the collection was to debut. She found an item she wanted to purchase. However, when she clicked "purchase," she received a message the item was sold out. Within minutes, the entire collection was sold out. Tamika was disappointed and experienced the _______ effect. product failure jilting cognitive dissonance unmet value
jilting
Before the release of Netflix's Black Mirror: Bandersnatch, an interactive choose-your-own-adventure film, marketers knew they would want to gather feedback from subscribers on the content and unique format. Because subscribers could view Bandersnatch multiple times and choose varying paths, surveying subscribers soon after viewing was key. Additionally, marketers wanted to be able to reach subscribers in several different geographic regions and countries. Which of the following survey methods would best meet the criteria set forth by Netflix marketers? Telephone interviews A one-time mail survey In-person focus groups Mobile surveys
mobile surveys
Yeti is based in Austin, Texas. The company produces a variety of high-quality products such as coolers, beverage containers, chairs, bags, and branded apparel. It is a publicly traded company operating in the United States, Europe, Canada, Asia, and Australia and manufactures products in the United States, China, and Thailand. A brief look at Yeti's current job openings reveals professional positions in the United Kingdom, the Philippines, and Thailand. Assuming Yeti has office locations in these countries, it would be classified as a ______ firm.
multinational
REI Adventure trips range from a women's kayaking weekend in the San Juan Islands to a five-day family adventure in Olympic National Park. REI Adventure is using a(n) _______ target marketing strategy. multisegment concentrated niche undifferentiated
multisegment
The purchase of health and beauty aid products can be overwhelming due to the number of choices. For example, Procter & Gamble offers its Old Spice brand for men, Head & Shoulders for individuals needing dandruff control, and Pantene Pro-V formula that "transforms your hair by making it stronger." Procter & Gamble utilizes a unique marketing mix for each brand of shampoo, giving the company many benefits such as greater sales volume, higher profitability, larger market share, and economies of scale in manufacturing and marketing. Procter & Gamble is using _______ targeting. multisegment focused undifferentiated concentrated
multisegment
Dell is a technology manufacturer and marketer best known for its computers. In the laptop category, Dell offers several branded options: XPS, a premium model; Alienware Gaming, for the most up-to-date gaming features; Inspiron, satisfying basic computing needs; and Chromebook, as a budget model. Dell uses a different marketing mix for each model in order to specifically target customers whose needs "fit" or "match" the features provided by the laptop. Which type of segmentation strategy is Dell using to market laptops? Undifferentiated targeting Niche marketing Multisegment targeting Focused targeting
multisegment targeting
In India, water can be scarce. As a result, Unilever sells the RIN detergent bar. The bar utilizes an anti-foam molecule developed by Unilever to halve the water and time needed for rinsing laundry. This product development was impacted by _______ in the external environment.
natural resources
Birgit likes to eat healthy foods. She recently visited Bed Bath & Beyond to purchase a high-speed blender to make smoothies, soups, sorbet, and other whole food-based recipes. Birgit compared several brands such as the Ninja Professional ($125), Vitamix ($300), and Kitchen Aid Classic ($80). Birgit decided to purchase the Ninja Professional and was pleasantly surprised at how well it blended spinach, apples, cucumbers, soy milk, and ice when making her morning green smoothie. She made her choice because of the _______ value of the Ninja but was then thrilled when she received more value than she expected from its performance. perceived hedonic inherent utilitarian
perceived
what is free trade?
policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions
The Nederlander Producing Company has expanded to China through a strategic partnership with the China Arts and Entertainment Group (CAEG). They are hoping to open a production of Ghost, based on the movie by the same name. Nederlander has been forced to cut one song from the show due to censorship imposed by the nation's government. Which external factor does this reflect?
political factors
Remote geographic locations such as the Bahamas must rely on imported goods since the country cannot produce everything it needs. However, the Bahamas is well known for its cigars and rum, which are exported around the world. The principle that captures this example of goods imported to the Bahamas and exported from the Bahamas is called the _______.
principle of comparative advantage
what is contract manufacturing?
private-label manufacturing by a foreign company
consumer behavior
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
If the Nederlander Producing Company wanted to take the production of Newsies to a theater in Paris but realized that some of the song lyrics would need to be changed in order for French audiences to understand the jokes, it would be using a _______ strategy.
product adaptation
McDonald's operates restaurants around the world. The company seeks to make modifications in its menu selections and promotions to appeal to each local market. McDonald's recognizes how individual customer differences in culture and local ingredients impact its business opportunities. Thus, McDonald's is a global company that is acting locally to ensure its success. This strategy is known as _______.
product adaptation
Unilever also recognized that lower-income consumers in emerging markets may not be able to afford Unilever products. As a result, Unilever offers single-use packets of their existing soap and shampoo products at a lower price than traditional sizes. This is an example of a _______ strategy.
product adaptation
Four Roses produces bourbon in Kentucky. It has a growing export business due to the global popularity of the beverage. Some countries, such as China, impose tariffs on bourbon produced in the United States to strengthen their own domestic brands. This strategy is known as _______.
protectionism
Maui Jim is a manufacturer of premium sunglasses. It is considered a top brand. The glasses are sold directly through the company's website and resellers such as Sunglass Hut. The company's website features a browsing menu titled "Activity" where customers can shop the sunglass line by activities such as golf, fishing, running, hiking, tennis, and water sports. Maui Jim is using these activities as a segmentation approach to appeal to customers who enjoy these various activities by providing specific models of sunglasses to "fit" each activity. Maui Jim is using _______ segmentation by focusing on consumers' active lifestyles. psychographic geographic benefits demographic
psychographic
Prisha is an avid music fan. She enjoys attending music festivals in her local city as well as around the country. Her favorite festival is Lollapalooza, held each summer in downtown Chicago, Illinois, but she's also traveled to Austin, Texas, for the South by Southwest festival. Prisha is always surprised to see so many companies with booths and representatives who are interested in interacting with concertgoers, but she assumes it's a great way for them to connect with younger customers like herself who are between the age of 18 and 30. Companies like State Farm, a leading property and casualty insurance company, believe that the best way to create relationships with customers is to join them in activities they enjoy. Which type of market segmentation best captures this combination of age and interest in contemporary or alternative music? Geographic Benefit Demographic Psychographic
psychographic
The FabCab website suggests its units are appropriate for hobby spaces, artist studios, backyard escapes, and offices. They have chosen _______. demographic segmentation psychographic segmentation geographic segmentation usage-rate segmentation
psychographic segmentation
Farmers who grow wheat and corn in Australia can export their grains to Japan. However, Japan has limits on the quantity of grain that can be imported into the country. Japan is using _____ to limit trade.
quotas
what is global vision?
recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
Marketers for REI Adventures utilize Facebook technology to find "lookalike audiences." Which trait found on users' Facebook pages could be categorized as a demographic segmentation base? Likes craft beer brands on Facebook Relationship status is listed as married Follows Alex Honnold, professional rock climber, on Facebook Lives in Tucson, AZ
relationship status is listed as married
JCPenney, a U.S.-based retail chain of 870 stores, is more than 110 years old. Since its first days as a single store location in Wyoming until today, it has experienced many transformations. The store has made changes in inventory, advertising messages, and store design to appeal to an ever-changing customer base. In recent years, JCPenney has been using a _______ strategy and now advertises that "We're always helping you find amazing deals on all your favorite items." Thus, JCPenney is attempting to change consumers' perceptions about its stores in relation to its competitors. customized multisegment repositioning concentrated
repositioning
need recognition
result of an imbalance between actual and desired states
what is inshoring?
returning production jobs to the United States
Robert is a college freshman. For the first time, he is making purchases on his own for many items such as toothpaste, shampoo, deodorant, and laundry detergent. On a recent visit to Walmart, Robert picked up a tube of toothpaste and a container of laundry detergent. He easily recognized the brands his family used and didn't spend any time comparing alternatives or even looking at prices. Robert utilized _______ decision making. routine response behavior extensive simple limited
routine response behavior
Maya and Damone are married with two young children. They own a home and recently made some improvements around the house. They installed a Ring doorbell and a motion-detecting security light by their garage. Both units are connected to the Ring application that notifies Maya and Damone any time a person is in view of either device. In addition, they can program the application to record video. The Ring doorbell and motion-detecting light fulfill Maya and Damone's need for _______. social safety self-actualization physiological items
safety
LucÍa is an avid coffee drinker. She often stops to purchase a morning or mid-afternoon coffee at Dunkin'. She likes the convenience of the drive-through, and her favorite store always gets her order right. However, depending on her schedule and location, she's equally as likely to stop at Starbucks or McDonald's for a coffee. LucÍa would be classified as being in the _______ loyalty group with Dunkin'. satisfied neutral committed competitive
satisfied
Often Running is a retail store that caters to individuals who enjoy running and walking. However, the store understands that not all individuals are the same, and many may share one or more characteristics that lead them to have similar product needs. For instance, runners participating in high school or college track teams may need several different types of shoes for training, including running shoes, indoor track shoes, and outdoor spike shoes. The group of runners who are members of a track team would represent a market _______ to the business. position element priority segment
segment
what is demographic segmentation?
segmenting markets by age, gender, income, ethnic background, and family life cycle
what is geographic segmentation?
segmenting markets by region of a country or the world, market size, market density, or climate
What is psychographic segmentation?
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
what is geodemographic segmentaion?
segmenting potential customers into neighborhood lifestyle categories
Rishaan likes cars and associates German automobile manufacturers with high levels of quality. He drives a Volkswagen Jetta and highly values the company. Recently, Volkswagen was fined due to emissions violations in its diesel cars that only activated anti-pollution controls when they were tested. On the road, Volkswagen's diesel models emitted up to 40 times more toxic fumes than permitted by law. One of Rishaan's friends, Jeff, asked him about the Volkswagen diesel emissions problem, but Rishaan said he wasn't aware of any problems. Jeff was surprised at Rishaan's response because he distinctly remembers forwarding an article to Rishaan about the problem and discussing the issue with him. What could account for the difference between Jeff and Rishaan's recollection of this issue? Cognitive dissonance Selective retention Personality Selective distortion
selective retention
José is shopping at Kohl's for dress pants and notices several varieties of Dockers brand pants by Levi's. Although Dockers come in a range of colors and fits, he's not interested in the brand because his father has always worn Dockers. José thinks he's hipper and more stylish and that Dockers are for individuals who do not care about style. Which aspect of individual influences on buying decisions is demonstrated by this example? Gender Self-concept Family life cycle Personality
self-concept
what is exporting?
selling domestically produced products to buyers in other countries
what is outsourcing?
sending U.S. jobs abroad
Aditi and Sam are newlyweds. They will be hosting a dinner party for Sam's parents who are knowledgeable and savvy wine drinkers. Aditi doesn't know much about wine but wants to serve a bottle of wine with dinner. She visits a local liquor store specializing in wine and spends quite a bit of time looking at various wines and speaking with a knowledgeable salesperson at the store. This is an example of _______ involvement and how it can impact a customer's purchase decision process. product enduring situational shopping
situational
Aetna Insurance is a dominant provider of health insurance, and it contracts with businesses to offer employee health insurance. Aetna typically relies on standard segments of business customers based on the number of employees working at the firm. Small businesses are those with fewer than 100 employees; medium-sized businesses employ 101 to 999; and large enterprises have 1,000 or more employees. Aetna's segmentation is based on company _______. geographic location volume product use size
size
Yūka is strongly considering the Sony camera as the price point and features meet her requirements. She reviews the recommended cameras on the syllabus and notices her instructor did not include any Sony cameras. She worries the other students in her class may not take her seriously as a photographer if she buys the Sony camera. Yūka is concerned about _______. social visibility psychological risk situational risk social risk
social risk
Which stage of the marketing research process should Walmart marketers complete next? Collecting primary data Specifying the sampling procedures Analyzing the data Identifying and formulating the problem/opportunity
specifying the sampling procedures
involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
what is a balance of trade?
the difference between the value of a country's exports and the value of its imports over a given period
Fastenal is a distributor of industrial tools and supplies. It operates more than 2,000 branch locations across the country. It focuses primarily on the business-to-business market and has identified several distinct markets to target: 1) smokestack industrials, 2) modern warehouse, 3) mom-and-pop services, and 4) white-collar industrial. These descriptors help Fastenal's account managers to create a unique message and product or service appeal to the distinct market segments. According to the text, at which step of the market segmentation process are segment descriptors determined? Third Fourth First Second
third
Global marketing must take into consideration the value of its country's currency in relation to the countries' currency where its products will be sold. Over the last several years, the U.S. dollar has been strong, meaning that it has a higher value than the currency in other countries. If the U.S. dollar is strong, which of the following is true?
trade deficits may grow
Carlos ends up purchasing the Ford F-150. The sales representative was able to obtain the color and options Carlos wanted, plus offered a great financing package. After the sale, the dealership sent Carlos gift cards to the local car wash and reminded him that he had made a great decision. The dealership was likely ______. attempting to increase Carlos' selective retention trying to reduce cognitive dissonance becoming an opinion leader for Carlos reducing Carlos' want-got gap
trying to reduce cognitive dissonance
Tyrion is a purchasing analyst for Dow Chemical. He is responsible for negotiating agreements with raw material manufacturers used as input for various Dow Chemical products. He prides himself on his organized and rational approach to his job purchasing chemicals and attempts to utilize the same approach in his personal life. He recently ordered ink cartridges from Amazon for his printer in his home office and received free shipping since he's a Prime member. He also likes how Amazon offers the opportunity to re-order items from his previous orders. How would you classify the value Tyrion received from his purchase of ink cartridges from Amazon? Basic Functional Utilitarian Hedonic
utilitarian
Bertrand's parents are originally from France. They have spoken to him in both English and French for as long as he can remember. However, he thinks that they spend more time correcting his pronunciation and use of grammar when he speaks French compared to when he speaks English. Over time, Bertrand has learned that this is common for French families as they desire to speak "perfect" French. Thus, these families share a common _______ of speaking perfect French, which is one component of culture. language denominator social class value
value
what is an absolute advantage?
when a country can produce a product or service at a lower cost than any other country or when it is the only country that can provide the product or service
what is joint venture?
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
what is the multidomestic strategy?
when multinational firms enable individual subsidiaries to compete independently in domestic markets
what is protectionism?
where a nation protects its home industries from foreign competitors by establishing artificial barriers such as tariffs and quotas
