Marketing 101 Test 2
Anyone who becomes a member of Twitter, Facebook, or other social networking sites is a
joiner
Which of the following is not a requirement or characteristic of a market?
A large number of people or organizations
Which of the following statements regarding social class is true?
A social class is an open aggregate of people with similar social ranking.
Problem recognition occurs when a consumer
Becomes aware that there is a difference between a desired state and an actual condition.
After purchasing a new Lexus, Brandon sees an infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing
Cognitive dissonance
Axe has been a successful marketer of men's body spray, deodorant, and antiperspirants and is a division of Unilever. Axe supports a variety of fragrances and releases new products which are supported by marketing efforts including racy advertising spots and a company-owned YouTube channel. The individuals who purchase Axe deodorant or body spray for their own personal use represent Axe's _______ market, while retailers such as Target, Kmart, Walmart, and grocery stores such as Kroger represent the company's __________ market.
Consumer; business
Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety of suppliers in the U.S. and abroad. The volume of your raw materials purchases is a function of the customer demand for your firm's motorcycles. Which of the following best describes the type of demand your firm has for these raw materials?
Derived demand
Intuition and expediency are primary characteristics of what sales forecasting methods?
Executive judgment
Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 9.2. Which of the media below would be best for the American Red Cross to use in developing relationships with blood donors, and in soliciting funds for storm-ravaged communities as a result of floods and fires?
In your market research into the buying behavior of a target market, you have confirmed that members of the group do in fact exhibit varying levels of involvement when buying certain products. For example, you confirmed the group has a __________ level of involvement when they are purchasing cars and clothing. When they are shopping for groceries, they exhibit a __________ level of involvement.
High; Low
Beth is looking for a Mother's day gift for her mom and wants to purchase some type of perfume or cologne. She knows the her Mom currently wears a perfume made by Dolce Gabbana called Light Blue. When she arrives at the perfume counter, she notices that Dolce Gabbana has several new scents available and a variety of gift boxes that also include powder and body lotion. Beth is trying to decide what to purchase- whether to try a new fragrance or not. Beth is willing to spend time trying the different scents, but since the gift boxes only cost $75, there's very little risk involved. What type of consumer decision will this purchase most likely be for Beth?
Limited decision making
Hobby Lobby encourages customers to visit their website and "like" their Facebook page. It also enlists customers to post feedback on their company, refer to articles of interests to other Hobby Lobby customers, and offer suggestions for future electronic communication. Hobby Lobby is using a positive marketing strategy for its Facebook page and company website because customer-generated content appears
More authentic than company-generated content.
Ralph Lauren has retail stores in China where Spectators make up the majority of the online population. The Spectators are interested in reading about the latest fashions from the western culture but don't typically create and add their own content. Ralph Lauren wants to match its marketing efforts for its upcoming spring collection with the characteristics of the population. Which of the following should Ralph Lauren do?
Post its own promotional messages on blogs and websites.
After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?
Product supplier search and evalution
The sales prediction technique based on the correlation between sales and other factors- such as population density, per capita income, or family size- is
Regression analysis
While shopping at a local grocery store, Taylor sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as
Routinized response behavior
In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?
Specification development
Julie likes to read the blog connected to the fashion editors at Vogue Magazine. While Julie likes to read the blog, she does not actually create any content herself. Julie would be called a(n)____ with regard to the Vogue blog.
Spectator
A marketer who starts selling to the business market, after having spent most of his career selling directly to consumers, will quickly come to realize that business customers are very demanding. Business customers place a high value on which of the following aspects of a buying relationship?
The mix of services offered by the selling firm
In order for the marketer to achieve effective market segmentation, which of the following conditions must exist:
The segment must have enough profit potential to justify the development of a special marketing mix for the segment.
Brian works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Brian likely used which sales forecasting technique?
Time series analysis
Consumers who act as ____ are becoming increasingly important to online marketers as a conduit for addressing consumers directly.
creators
All of the following describe the demand for business products except
elastic.
Chloe and Max are searching for a health club to join. This purchase will likely be affected by ____ involvement.
enduring
Tiffany was surprised at work today with a cash bonus. As the account executives were preparing to leave the office, their district manager distributed $100 bills and thanked everyone for their efforts. Tiffany was incredibly surprised —she had no idea the company would hand out cash as an incentive or reward. She's wanted a certain pair of shoes she saw at the store but couldn't really justify the purchase. However, since she's received this unexpected cash bonus, Tiffany decides to stop by the shoe store after work to purchase the shoes. Tiffany's purchasing decision is influenced by which category of situational factors?
her mood and condition
Robert is married to Wendy who is an avid user of various social media, such as Facebook, Twitter, and Instagram. Wendy often posts pictures of Robert and their children on these sites, but Robert is concerned about privacy and the digital space. He's heard that once an image or post is submitted to cyberspace, it can never be removed. He's asked Wendy not to post any more pictures of him, their home, or children and especially doesn't want Sarah to mention when they're going on vacation or leaving their home. Robert uses the Internet for work and enjoys e-mail but does not participate in any digital online media. Robert would most likely be categorized as a(n)
inactive
In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand.
inelastic
When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.
institutional
Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at Kmart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called
patronage motives
Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is
product use
The development of a person's self-concept is a function of
psychological and social factors.
As a digital communication technologies have advanced, it is possible for marketers to
reach markets that were previously inaccessible.
Heritage Wines has national distribution agreements with wineries across the United States such as Cake bread and Robert in Napa Valley, California. Heritage Wines receives their inventory from their winery suppliers and makes the wine available to customers- restaurants, bars, hotels, etc., through their sales representatives and extensive catalog. What type of business market does Heritage Wines represent?
reseller
Jennifer is the purchasing manager for the local public school system. Recently, the school received a large grant to make technology-related purchases to enable students to have better access to computers and utilize the Internet. Jennifer is working with the teachers and they recently developed product specifications that are necessary or required for tablet or laptop computers. What is the next stage in the purchase decision process for Jennifer and the teachers?
search and evaluate possible products and suppliers
The process of dividing a total market into market groups because people within each group have relatively similar product needs is called
segmentation.
Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to
select specific target markets.
Dave is an owner and manager of three apartment buildings in northern Minnesota. During an exceptionally hot summer the temperatures soared and the toll on the window air conditioners was too much. Seventeen of them have broken down already, and more are probably going to have to be replaced. He has a total of seventy-five apartment units. Dave is now in the process of deciding how to repair the air conditioning. Should he buy new window units for all the buildings, or should he install central air conditioning? What type of decision is Dave facing?
situational involvement and extended decision making
Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into
social class
An organization that decides to buy all of a certain part from the same company is using
sole sourcing.
The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a
straight rebuy.
Sherwin Williams Company provides paint and supplies to business and individuals through its network of company-owned retail outlets. Sherwin Williams employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Sherwin Williams for their painting projects. Typically, a Sherwin Williams sales representative will focus their efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Sherwin Williams is utilizing the ______ variable for segmenting business markets.
type of organization
The producers of C & H Cane Sugar sell the product in five-pound bags, one-pound bags, and one-pound boxes. When developing its advertising strategy, C & H will most likely use a(n) ____ approach in defining a target market.
undifferentiated
Christy Bridgman is considering the purchase of a new fax machine for her real estate office. She is considering a machine that doesn't have as many functions but is available at a considerably lower price than her current machine. She is engaged in _____ analysis.
value
Winston and Keesha have been married for a year and are starting to establish their decision-making styles as a couple. Keesha enjoys shopping and likes to browse the grocery store aisles rather than using a list. While this is time-consuming, she always discovers some cool product and usually makes some unplanned purchases. Winston appreciates Keesha's efforts and tries to reciprocate by taking care of any purchases for their car or to maintain their home such as getting the oil changed, buying tools, or lawn mowing equipment. Keesha's purchases all of the grocery items can be described as _______ decision making, while Winston's purchases for the car or home maintenance items are called ______decision making.
wife dominant; husband dominant
Some companies use ____ as internal tools for teams working on a project requiring lots of documentation.
wikis
The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?
Concentrated
Retailers like Target and Kmart are considered to be members of which business market?
Reseller
The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?
The government will select a few firms and enter into negotiations with them until the contract is awarded.
Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium. Refer to Scenario 9.2. Politicians could use _____, the ultimate type of social media for reaching those potential voters who want to stay connected to the latest information.
When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered
a government purchase.
The ability to obtain digital information is referred to as
accessibility.
Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. Refer to Scenario 6.1. Positive feelings generated by satisfaction with Skola's response will become part of Steve's
attitude.
The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.
breakdown
Max recently purchased a Ford F150 truck and has owned it for about a week. Earlier in the day, he received a call from Dane, the sales representative who sold him the truck. Dane called to check to see whether Max had any questions or problems with the truck and if he had learned how to navigate all the bells and whistles. Dane also reminded Max about how Ford is highly regarded as one of the best automobile brands and that the Ford truck is the #1 truck brand in the United States. What phenomenon is Dane trying to prevent by contacting her customer?
cognitive dissonance
If Georgia-Pacific, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.
concentrated; differentiated
Adobe markets software such as Photoshop and Lightroom through a subscription service and maintains an extensive website where customers can post reviews, offer tips and suggestions, and ask technical questions. Adobe appreciates the opportunity to create a forum where users of the software can interact with each other, as well as the company. This example relates to the ______ characteristic of online media.
connectivity
A salesperson at Best Buy tells Donovan that the Sony Notebook is one of the most reliable computer notebooks ever made. Donovan, however, has just heard about a second Sony recall for this model because of overheating. If Donovan engages in selective distortion, his most likely response will be to
forget the information from the salesperson.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 5.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be
geographic location.
Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest. Refer to Scenario 7.2. When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center.
influencers
The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the
market potential.
After certain inputs have been selected to reach an individual's awareness, the next step in the perceptual process is perceptual
organization.
The ability of a marketer to identify customers before they make a purchase is called
addressability.
Today's consumer is changing their information searches and consumption behaviors to fit with emerging technologies and trends. Epiphany Farms is an organic farm specializing in vegetable and meat products and also owns a farm-to-table restaurant. The restaurant is implementing _______ that functions using digital codes that's available via computers, cellular phones, smartphones, and other digital devices as part of its business activity.
digital media
Mia is pet-sitting for a friend's dog while he is on vacation. Her friend has given Mia all sorts of information, including the veterinarian's name and phone number, pet emergency center location, and the dog's favorite bedtime snack. The first evening of the vacation, Mia realizes that her friend did not bring the dog's food over, and she has no idea what the dog eats. Her friend's cell phone is "out of range" at the moment, so Mia must go to the grocery store and shop for dog food, even though she has never bought it before now. In this case, even though Mia is not a dog owner, she is likely to be part of the market for dog food for all of the following reasons except _______.
her ability to purchase the dog food is questionable.7
Extended decision making is the type of consumer decision-making process that
is the most complex decision making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.
Psychological influences that determine where a person purchases products on a regular basis are called
patronage motives.
When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.
undifferentiated