Marketing 201: BYU Exam 1
Myth #2: Consumers are no match for the power of marketing.
The Devil made me do it." Marketing does tempt us, but it doesn't make us buy. Consumers buy products because the benefits generally out weigh the costs of ownership.
Purchase
The act of purchasing can create positive, neutral, or negative feelings
Buyer's Response
The buyer's black box interacts with the environmental and marketing stimuli to create a response - choice & consumption
Technological Forces
application of science and research to accomplish a function more efficiently or to solve a problem.
Which of the following is not part of the external marketing environment? social forces technological forces competitive forces arbitrary forces economic forces
arbitrary forces
The most useful way to position a product is to beat all the competition. be endorsed by a celebrity, expert, or other influential individual. fit consumers' lifestyles. deliver what is most valued.
deliver what is most valued
Sales per customer
If customer acquisition costs are high, then sales per customer must be high. Consumable products - frequently purchased, habitual - laundry detergent Durable products - purchased infrequently, complicated questions
________ is an example of a controllable factor, while ________ is an example of an uncontrollable factor. Place; emotional Social; economic environment Regulatory; product Price; competitive environment
Price; competitive environment
Marvin has been busy gathering the age, income, location, and other statistical data about various consumers in Idaho. He is gathering consumer data. ethnographics. demographics. market descriptions. psychographics.
demographics
Statistical data of a population is referred to as gender profiling. demographics. culture. statistics. economics.
demographics
What are two attributes of a foreign direct investment? low risk; low reward high risk; low reward high risk; high reward low risk; high reward
high risk; high reward
At the store, Brooke is shopping for some hand and body soap. As a deal shopper, she has ________ brand sensitivity and ________ price sensitivity. low, low high, high low, high high, low
high, high
Which of the following could represent a threat for Freschetta, a brand of frozen pizza? lack of research and development money to create new products aging factory equipment that increasingly breaks down, slowing down shipments lack of marketing knowledge among executives increasing competition from hot-and-ready pizza like Little Caesar's declining sales in recent years
increasing competition from hot-and-ready pizza like Little Caesar's
While on a trip to Hollywood, Samantha saw Selena Gomez buying a jacket from H&M. As soon as she had the chance, Samantha purchased the same exact jacket. Which factor influenced Samantha's buying behavior? social individual cultural situational
social
Disrupt Habitual Buying with Product Sampling
shoppers taste the new product. Cosco, sams club samples
Dogs
slow market growth, low market share no hope
Sampling Error
small samples from large populations
Which type of external force exerts the broadest and deepest influence on buying patterns? technological forces regulator forces competitive forces social forces economic forces
social forces
Opportunity - Fraud triangle
the condition or situation that allows fraudulent behavior to occur. Generally, managers have the most control over opportunity because they have the ability to limit access to information and assets.
Like strengths, weaknesses are only meaningful when they are delivering value to customers. viewed through the eyes of customers. the CEO doesn't care. your employees are complaining about the problem.
viewed through the eyes of customers.
Joint Ventures
when two or more companies join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities
Which global market-entry strategy potentially offers the greatest profits? market penetration operation wholly owned operation licensing exporting joint venture
wholly owned operation
Market Entry Strategies
various tactics that managers use to enter foreign markets
Generation X
people born between 1965 and 1978; second highest purchasing power
Apple has created a new product, the iRobot, a robot that can perform tasks such as house cleaning, cooking, and babysitting. Since the product resonates with a different market than the rest of Apple's products, what quadrant of the product-market expansion matrix would the iRobot fall into? - market development - market penetration - product and market development - product expansion - diversification
Diversification
Good Segmentation Plan
- measureable and identify unique needs. Similarly, people can be divided into different segments based on where they live (geographic segmentation), their activities and interests (psychographic segmentation), and the benefits sought (behavioral segmentation).
Marketing Research Process
1. Defining the problem and research objectives 2. Design the research project 3. Collect Data 4. Analyze Data 5. Take Action
Consumer Behavior Process
1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase 5. Post-purchase evaluation
Tweens
29 million Americans ages 8-14 with purchasing power at $39 billion per year
The "Bigfoot Pizza" by Pizza Hut failed because it - had a low product quality. - did not address customer pain. - was an unappealing name. - was a "me too" product. - a and d.
A & D - had a low quality & was a "me too" product
Marketing managers create value by meeting customers' - functional needs. - mental needs. - safety needs. - emotional needs. - a and d. - b and d.
A and D - Functional & Emotional Needs
Culture
A group's shared values, attitudes, and practices that shape human behaviors; Culture affects what we eat, how we dress, what we do, how we feel, and how we communicate
Venture capitalists make their livings by deciding on which promising new products to invest in. They look at the revenue model to determine if they should invest or not. Marketers as well should look at this first. Which of the following is not part of a good revenue model? - a management team that has a history of turning a profit - a product idea that is completely new to the market - a product that will be competing in a market generating hundreds of millions of dollars in revenue - a product that demands a price far exceeding its cost
A product idea that is completely new to the market
Price
Amount paid for product. Most difficult element in marketing mix.
Which of the following is a way to "chase customers, not competitors"? a. Use direct marketing technique. b. Address unaddressed customer pain. c. Undercut competitor pricing. d. Offer the same features as "Goliath" competitors. e. a and b.
B - address unaddressed customer pain
To enter global markets, Harley Davidson exports their products, BMW develops foreign based manufacturing facilities, McDonalds joins investors to create a local business, and Coca-Cola makes licensing agreements. Which of the four companies will receive the highest return while also having the highest risk factor? Coca-Cola Harley Davidson BMW McDonalds
BMW
Often, the most powerful marketing strategies begin by seeing the product through the eyes of which of the following? - the hate group - consumer product users - potential customers - the swing group - brand champions
Brand champions
Google Inc. decided last year to enter the computer tablet market. Google's new product, the Nexus 7, was the first device to run Android 4.1. Which strategy did Google use to launch this new product? - market development - diversification - product development - market penetration
Diversification
Cherry Mash is an American candy bar with cherry, peanuts, and chocolate. If Cherry Mash were to consider expanding into Switzerland and didn't mind taking on more risk for the highest return possible, which option should they choose? Create a local business in Switzerland, in which they own half and Nestle (a Swiss company) owns half. Sell the entire company to Nestle. Let Nestle, the world's largest food company, buy the right to use the Cherry Mash name and manufacturing process in Switzerland. Build and operate a manufacturing facility in Switzerland. Produce Cherry Mash bars in America and sell them in Switzerland.
Build and operate a manufacturing facility in Switzerland.
Apple Inc. is the market share leader in portable music players. However, iPod sales growth has considerably slowed down in recent years due to consumers using smartphones as music players. According to the Boston Consulting Group Model, which category would the iPod be under? - question mark - cash cow - dog - star
Cash Cow
Cluster Analysis
Cluster analysis groups together respondents that answer survey questions in similar ways, have similar demographic profiles, or have similar behaviors.
Disrupt Habitual buying with Technology
Competitors force consumers to rethink old products in favor of new, superior technology
Before Susan bought a new laptop, she did some research. She went to Best Buy and talked with a sales representative about the many different features. As convincing as the representative's argument was, Susan held off buying the preferred laptop. Instead she wanted to go home and look at some reviews regarding it before making her decision. This example provides an argument against which myth? Consumers can't resist the power of marketing. Marketers believe in planned obsolescence. Marketers push unwanted products. Marketing is deceptive and dishonest.
Consumers can't resist the power of marketing.
Gatekeepers (Buying Process)
Control the flow of information between the selling firm and the buying firm
Microsoft is reinventing itself in 2013. The first questions board members addressed in a recent board meeting were, "How should we define Microsoft in 2013, and what businesses should we delete or add to our portfolio?" Microsoft is asking questions pertaining to what level of strategy? - financial strategy - industry strategy - consumer strategy - marketing strategy - corporate strategy
Corporate Strategy
Cultural Factors
Cultural factors refer to concepts like being a good parent, striving for self-improvement, seeking peace of mind, knowing that resources are being used wisely, and other values that motivate an individual's core behavior
Taco Bell knows that the lifetime value of a typical 18-year-old customer is $100, and that it takes $50 of advertising per 18-year-old to get the customer to make an initial purchase. This is an example of which profitability driver? - sales per customer - customer acquisition - touch point minimization - customer retention - margin
Customer Acquisition
Dress Barn offers blushPERKS, where customers can earn one blushPERKS credit for every $25 they spend. Collecting ten credits gives a customer $15 off a future Dress Barn purchase. This system is an example of which profitability driver? - sales per customer margin - customer retention - customer acquisition - sales per advertising dollar
Customer Retention?
Allie is starting a new elbow-jewelry business and is thinking about her target market, her USP, and her cost to attract new customers. She is in the ________ phase of the marketing strategy process. - customer marketing - sales per customer - customer retention - units per customer - customer acquisition
Customer acquisition
________ products reduces manufacturing efficiency and increases costs. ________ products forces on people features and solutions that may be a mismatch with culture. Differentiating; Customizing Stagnating; Standardizing Standardizing; Customizing Customizing; Differentiating Customizing; Standardizing
Customizing; Standardizing
You present your market segmentation research to your boss and discuss the different ways to segment your market. Which one of the following would be the best way to segment a market? Divide segments by disposable income. Divide segments by their age and gender. Divide segments by the values they live by. Divide segments by the region they live in. Divide segments by the benefits they seek from shopping at your store.
Divide segments by the benefits they seek from shopping at your store.
Societal Orientation
Do well by doing good - every product or service should provide value to the customers as well as society as a whole
In 1996, McDonald's launched the Arch Deluxe with a $100 million ad campaign. It was similar to McDonald's Quarter Pounder but with a different bun, peppered bacon, and a mustard-mayonnaise sauce. The burger was meant to be the leadoff product in a line of new adult-themed menu items. However, it was discontinued after failing to become popular. McDonald's dropped the Arch Deluxe because the burger was which of the following? dog cash cow question mark star pig
Dog - See Three levels of Strategy
Stimuli Influencing the Buyer
Environment Stimuli - health of the economy, political environment, technological change, natural surroundings, social context, and culture. Marketing Stimuli - competing marketing mixes consisting of various products, prices, places, and promotions. Marketing managers control these stimuli.
International Marketing
Exporting products to one or more countries outside the domestic market and remaining invested solely in the domestic country
Social Factors
Family, reference groups, and opinion leaders, are social factors influencing consumer behavior. - reference groups - friends, classmates, coworkers - opinion leaders - professional golfers, social media influencers
What is the least important reason why firms fail? Firms display unethical behavior. Firms fail to understand opportunity or potential. Firms are profit hungry and product-focused. Firms have poor channel strategy.
Firms display unethical behavior.
Conjoint Analysis
First deconstructs products into component attributes, next estimates the value of each component attribute, and then reconstructs existing and potential products in a way that allows researchers to estimate the value of each product
Competitive Forces
Five Forces model, developed by Michael Porter, based on industrial economics (IE). The five forces include competitive rivalry, power of suppliers, power of buyers, threat of new entrants, and threat of substitutes - determine industry attractiveness
Individual Factors
Gender, age, stage of life, economic condition, occupation, and region of country
Glocal
Go global, act local. Standard platform adapted to local requirements.
________ represents the total amount of money received by a person, household, or family during a particular period of time, usually one year. ________ is the money available after paying taxes. This type of income is the focus of companies offering necessity products such as food, housing, clothing, and transportation. Finally, the money available after paying for taxes and necessities is ________. - Discretionary income; Disposable income; gross income - Disposable income; Gross income; discretionary income - Discretionary income; Gross income; disposable income - Gross income; Disposable income; discretionary income - Gross income; Discretionary income; disposable income
Gross income; Disposable income; discretionary income
Demographic segmentation
Grouping based on differences in age, gender, income, level of education, social class, family composition, religion, and ethnicity
Geographic segmentation
Grouping based on differences in geographic regions, population density, population size, and climate
Psychographic segmentation
Grouping based on differences in personality, motives, or lifestyle
When conducting a survey, Bob found that there were many people who were choosing to not participate. What consequence does a non-response error have on the results? It makes the sample size too small. It makes the data irrelevant. It creates a bias in the data. It makes the surveyor really grumpy.
It creates a bias in the data.
Hierarchical Values Analysis
It is a three-step research process that consists of (1) eliciting distinctions, (2) pyramiding down, and (3) laddering up
Positioning
It is the act of designing the company's product offering so that it occupies a distinct and valued place in the target customers' minds
Low Involvement Decisions
Low-involvement purchases rely on a do-feel learning model in which the customer does (consume) then feels (reinforce the positive attitudes toward the brand) - habitual buying decisions
Myth #4 Marketers believe in planned obsolescence.
Many consumers today believe that firms design and sell products that have a "built-in" limited useful life so it will become obsolete after a certain period of time
Instead of having employees bag groceries, Winco requires customers to bag their own. This is an example of which profitability driver? - sales per customer - customer retention - customer acquisition - touchpoint maximization - margin
Margin
For a marketing manager, the term "margin" most likely refers to which of the following? - Margin is the difference between sales and expenses. - Margin is the difference between price and cost. - Margin is the same as price and cost. - Margin is the difference between revenue and cost.
Margin is the difference between price and cost.
Teflon is a nonstick substance trademarked and sold by DuPont. Early on, it was used in the Manhattan Project to coat valves and seals in pipes holding uranium hexafluoride. In 1954, a French engineer used this same Teflon to create the first Teflon-coated pan after his wife urged him to try the nonstick substance on cookware. DuPont then started to sell Teflon to cookware companies. Dupont's actions are an example of which of the following? - market development - market identification - product development - diversification - market penetration
Market Development
Tostitos's consumers complained that the flat tortilla chips weren't holding salsa well. So the brand manager of Tostitos created several prototypes of chips to see which kind consumers liked the most. Based on what consumers preferred, Tostitos launched its Scoops brand. This is an example of which type of marketing philosophy? - societal orientation - production orientation - market orientation - executive orientation - sales orientation
Market Orientation
Clorox has often been used to clean bathrooms and get white laundry whiter. In recent commercials, Clorox has been advertising to those same users that you can use Clorox to disinfect toys and dog bowls. Clorox is using these ads in an attempt for - market development. - market penetration. - market identification. - diversification. - product development.
Market Penetration
________ helps us understand the marketplace, while ________ tells us how to position, promote, design, distribute, and price the products. Marketing research; market research Marketing mix; marketing research Market research; marketing research Market research; marketing mix
Market research; marketing research
Conditions for Selecting Target
Market size. Is the market large enough to deliver expected profits for the company? Expected growth. Is the market growing? Competitive position. What is the level of competitive rivalry/intensity in the segment? Is your company's differentiated product offering valued by the segment? Cost to reach. Is the market economically accessible?
Since data suggests that only 1 in 10 new products succeeds in today's competitive marketplace, marketing managers must do what in order to persuade potential consumers of the benefits of the new products? - Market through the eyes of new consumers. - Market through the eyes of brand champions. - Market through the eyes of the swing group. - Market through the eyes of existing consumers.
Market through the eyes of brand champions.
Your next door neighbor tells you that you must buy a new car every 4 years because after 4 years of working, the engines break down. He feels that car manufacturers design cars this way on purpose to trap consumers into constantly buying new vehicles. Your neighbor believes in which myth of unethical marketing? Marketing is deceptive and dishonest. Marketers believe in planned obsolescence. Consumers are no match for the power of marketing. Marketers push products consumers don't want to buy.
Marketers believe in planned obsolescence.
Promotion
Marketing activities - trade promotion, advertising, pr/sales
Myth #1: Marketers push products consumers don't want to buy
Marketing is not designed to get consumers to buy products they don't want, don't like, and don't need. In fact, marketing strategy is designed to do just the opposite: find consumers products and services they want, desire, and need.
McDonald's decides to conduct research about what motivates people to purchase the BigMac hamburger instead of the Quarter Pounder, and vice versa. What best describes the type of research did McDonald's performed? Secondary research Marketing research Market research Buyer surveillance
Marketing research?
Max-Diff Analysis
Max-Diff analysis presents a set of attributes or alternatives for which respondents indicate most/least important or most/least appealing. Choice preference
Choosing a Good Segmentation Plan
Measurable: Individuals can be assigned to a segment and counted. Accessible: Individuals in the segment can be reached through the company's promotion and distribution channels. Durable: Segment membership and its size is relatively constant over time. Substantial: The segment is large enough to make products profitable. Unique needs: The needs and/or benefits-sought of the segment membership are homogeneous within each segment and heterogeneous across the segments.
Situational Factors
Needs and wants change depending on the situation
Threats of entrants
New entrants can shake up an industry and cause increased competition as they seek to take market share from existing companies in the industry.
JJ's Southern Barbeque has started to lose customers. JJ is worried about the future of his business. What would be the best way for him to handle dissatisfied customers? Initiate a rewards program for loyal customers. Offer an easy way for customers to voice their complaints. Cut costs to lower the price of the food. Send out coupons in the mail.
Offer an easy way for customers to voice their complaints.
Generational Cohorts
People born during the same period and who share common life experiences.
Segmentation based on Usage
People buy products and pay prices that fit the usage situation
Power of buyers
Powerful buyers (customers) can use their clout to demand and receive lower prices, increased product quality, and more services
Power of Suppliers
Powerful suppliers can drive down industry profits by charging higher prices and/or reducing product and service quality
What is generally the most difficult element to get right in the marketing mix? - promotion - price - product - publicity - place
Price
McDonald's has just introduced a new side to the menu. Sweet potato fries will now be available in McDonald's US restaurants. If the workers advertise sweet potatoes by asking the customer ordering if they want to try the new side, this is an example of what? - market development - diversification - market penetration - product penetration - product development
Product Development
Marketing within the firm creates value for what end purpose? - higher price point - larger margins - profitability - attract and keep the wrong customers
Profitability
Advertising, public relations, sales promotions, trade promotions, and personal selling are examples of what marketing mix: - placement - visibility - promotion - sales - publicity
Promotion
Ethical leadership
Providing support in helping others apply ethics and develop ethical courage.
Regulatory Forces
Regulation protects businesses by promoting competition and fair business practices.
Non-response Error
Respondent doesn't respond to survey. Non-response error creates bias in results.
The add-on sales of fries and a drink at McDonald's is an example of which profitability driver? - customer retention - customer acquisition - sales per customer - margin
Sales Per Customer
Segway had problems selling its futuristic scooter because it was overpriced. - it didn't relieve customer pain. - the product didn't meet customer expectations. - Segway had the wrong target market. - none of the above.
Segway had the wrong target market
Sales Orientation
Sell products once they are made - no input of how made, what's made, or how priced
What is the most useful way to position? Show how you deliver what is most valued. Show how popular people love you. Show how you beat all the competition. Show how you fit consumers' lifestyles. Show that you are just as good as the competition.
Show how you deliver what is most valued.
For every pair of Toms shoes purchased, the firm donates a pair of shoes to a child in need in another country. Which marketing philosophy does Toms use? - societal orientation - product orientation - sales orientation - market orientation
Societal Orientation
Simple Green All-Purpose Cleaner is the leader of non-toxic, biodegradable, environmentally safe cleaning products. It could be said Simple Green follows which marketing philosophy? - corporate responsibility orientation - societal orientation - product orientation - environmental orientation - government regulation orientation
Societal Orientation
In 2009, Walmart started a new eco-friendly marketing campaign focusing on more environmentally friendly products. This is example of what type of marketing philosophy? - sales orientation - environment orientation - market orientation - production orientation - societal orientation
Societal orientation
Gut Feel
Some people prefer to trust their gut and learn from their own hard-knock experiences
Global
Standardized marketing mix - efficient
Threat of substitutes
Substitute products have the potential of replacing existing products because they perform a similar function. As a result, industry profits suffer.
Applications of ethics to business situations
Taking action against fraudulent practices, misleading advertising, and unfair and/or manipulative business practices.
Why has glocalization recently come under fire? The developing world no longer wants modified products of the rich world, but rather desire rich world quality in their own products. Brand names sometimes translate strangely into other languages. Local regulations make it hard for international companies to get into retailers. Glocalization is a production orientation carried out on a global scale. Consumers believe that the world is becoming too full of American advertising icons. The developing world no longer wants modified products of the rich world, but rather desire rich world quality in their own products. See "Standardization Versus Customization" in topic 3 of the e-book.
The developing world no longer wants modified products of the rich world, but rather desire rich world quality in their own products.
Post purchase evaluation
The first moment of truth is comparing the products at the point of purchase. The second moment of truth is evaluating the product while using it.
According to your textbook, 97% of new products fail because The product is not unique and simply not valued Firms fail to understand opportunity or potential Poor channel strategy Unethical behavior
The product is not unique and simply not valued
Which is the first step or first element for conducting good marketing research? The data sample consists of decision-makers, product users, and influencers. The recommendations give strategic direction and how-to marketing tactics. The research questions are interesting and important to the client. The analytical methods give clear answers to marketing issues.
The research questions are interesting and important to the client.
What does it mean if a company is "glocal"? They market locally, and act global. The production efficiency is high. They have superior market suitability. They market globally, and act local.
They market globally, and act local.
If marketers are trying to figure out how to achieve success for a new lip balm product, what should they do? - They should create a product that customers will dislike. - They should create a product that copies the product of their competitor, Burt's Bees. - They should create a product that meets the unaddressed customer pain. - They should create a product that challenges its competitor.
They should create a product that meets the unaddressed customer pain.
Laundry soap is an example of a product we buy out of habit. Laundry soap has evolved through technology from powder to liquid concentrate to a self-dissolving pod. Nicole buys the same box of Tide powder laundry soap every time, but while at Costco, she is given a sample pod to try. This new pod of detergent and stain remover causes Nicole to rethink which kind of laundry soap to buy. How has Nicole's habitual buying been disrupted? It has been disrupted with technology. It has been disrupted with evaluation of alternatives. It has been disrupted with product sampling. Two of the above. All of the above.
Two of the above
Personal Ethical Understanding
Understanding right and wrong, fairness, honesty, personal integrity, and having respect for others.
USP
Unique selling proposition, what makes your product is different or better - benefit, unique, must move masses
Behavioral Segmentation
Using brand sensitivity and price sensitivity - usage situations, brand loyalty, usage rate
Customer Retention
What is the approach to keeping customers and encouraging customers to recommend the product to others?
Customer Acquisition
Which customers are targeted? How will they be made aware of the product? What is your unique selling proposition? How much will it cost to acquire a customer?
Ethical courage
Willingness to pay the personal price for standing up against unethical practices.
Licensing
With licensing, a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how, patent, or some other skill or value.
GoExpert, a US-based company, makes highly versatile video cameras that are waterproof. Voltrix, an Australian company, wants to help GoExpert sell their cameras in Australia by storing them and marketing GoExpert cameras to the Australian people for a percentage of the profits. This proposal is an example of which type of market entry strategy? exporting. licensing. market penetration. upselling. a joint venture.
a joint venture
Market Attractiveness
a scale that measures customer needs, customer purchasing power, market size, market growth rate, and market access
A marketing plan can be defined as - a target market and marketing mix with a budget and time schedule. - a target market combined with the marketing mix. - a marketing plan combined with the target market plan. - a consumer target market with a budget and time schedule. - a marketing mix combined with a consumer positioning plan.
a target market and marketing mix with a budget and time schedule.
Marketing strategy can be defined as consumer target market with a detailed budget plan. - a target market combined with the marketing mix. - a marketing mix combined with a consumer positioning plan. - a target marketing & marketing mix with a budget and time schedule. - a marketing plan combined with the target market plan.
a target market combined with the marketing mix
Green Marketing
ability of marketing firms to enhance their brand image, and perhaps increase their profitability, by adding a "green" feature to their products. "Green" requires products to be environmentally safe, have a reduced impact on negative health consequences, eliminate the use of toxic chemicals during manufacturing, and reduce energy usage.
Grow Old With Me specializes in providing discounts for seniors (over the age of 65) across a variety of activities (restaurant gift cards, movie tickets, and so forth). This company's only promotion/distribution channel is the Internet. Advertising online doesn't seem to be reaching nearly as many seniors as expected, and revenue has been extremely low. Based on this information, which criteria for segmentation is lacking? durable accessible substantial unique needs measurable
accessible
Customization
adapt or modify the marketing mix to suit the local market; culture specific - fit specific needs
Demographics
age, gender, income, race, and ethnicity of particular populations
Before conducting marketing research, Kathy wants to find some insight and direction from previous studies. Kathy also wants to conduct some interviews with her family and friends to get their opinions on her research. Where might Kathy get some information from previous studies? newspapers government trade journals a and c all of the above
all of the above
Colgate recently conducted a consumer research study that indicated that consumers would prefer a Snickers-flavored toothpaste. Rather than blindly listening to the research, they found that the study was flawed and did not launch the Snickers-flavored toothpaste. Which of the following are possible errors they encountered? sampling error non-response error coverage error measurement error all of the above
all of the above
Which of the following was included in the Consumer Bill of Rights, created by John F. Kennedy in 1962? the right to choose the right to safety the right to be informed the right to be heard all of the above none of the above
all of the above
Generation Y
also known as Millennials, were born between 1979 and 1994
Which questions are important to consider when focusing on customer acquisition? - How do we encourage customers to recommend the product to others? - How will customers be made aware of the product? - What is the USP? - All of the above. - b and c
b & c - How will customers be made aware of the product? - What is the USP?
Which generation cohort has the most market buying power currently? tweens generation Y baby boomers generation X
baby boomers
A segment is a homogeneous group of potential customers. Which of the following is the most useful way to segment a market? psychographic behavioral demographic geographic
behavioral
Political models break voters into three groups: love, swing, and hate group. This segmentation approach is called Each product must make a proposition to the customer. The proposition must be one that the competition does not offer. The proposition must be able to generate new customers. Political segmentation. brand champion segmentation.
brand champion segmentation
Social responsibility
businesses and organizations are part of a larger society and they are accountable to that society for their actions
Jeremy is participating in a business-to-business buying decision. After meeting with the involved parties multiple times, Jeremy writes the contract and makes sure his business gets the lowest price possible. Which part of the buying center is Jeremy? buyer decider gatekeeper user
buyer
Which of the following is an example of a product that would typically engage the buyer in routine problem solving? a competition road racing bike an expensive pair of designer shoes cleaning supplies for your new apartment a microwave oven all of the above b and d
cleaning supplies for your new apartment
Which technique is good for classifying credit card users into various segments based on how they respond to the survey? discriminant analysis factor analysis MaxDiff analysis conjoint analysis cluster analysis
cluster analysis
You go to the Apple Store and purchase a brand new MacBook Air computer. During the initial use of your computer, it malfunctions. You are displeased with your product and regret your purchase. As a consumer, you are angry with Apple's marketing department for making this new computer appear fashionable yet functional. You are displaying which type of reaction to marketing? cognitive dissonance consumer rights fair practices the golden rule
cognitive dissonance
Discriminant Analysis
combines traits of factor and cluster analysis (highly correlated variables - used to group together similar brands or sometimes people
Foreign Direct Investment
companies will decide to make direct investments in building up wholly owned operations in other countries - costs and risks are high
Secondary Data
company's internal databases, government agencies, trade and industry associations, business publications, news media, and commercial databases - time and money savings.
Gap Analysis
compares brands based on the importance and performance of their differentiating features and benefits; Gap analysis is displayed in a two-by-two format in which the bottom left quadrant is low importance and low performance; the bottom right quadrant is high importance and low performance; the top left quadrant is low importance and high performance; and the top right quadrant is high importance and high performance
Which of the following is not included in Porter's five forces model? threat of new entrants power of buyers power of suppliers competitive alliances
competitive alliances
Which technique deconstructs products into its basic components or features and estimates their consumer value? discriminant analysis conjoint analysis cluster analysis factor analysis MaxDiff analysis
conjoint analysis
The processes a consumer uses to make purchase decisions, as well as use and dispose of purchased goods and services is known as consumer behavior. consumer surplus. consumer bias. consumer thought. consumer action.
consumer behavior
You and a friend go out to dinner at an expensive restaurant and the service is terrible. Your food has come out cold and you ask the waiter to take it back and he says there is nothing he can do. You and your friend go home and write a bad review on Yelp, a restaurant rating website. This is an example of which of the following? unethical marketing firm power buyer beware consumer power customer retention
consumer power
You are walking through a shopping mall and see a man with a clipboard asking people if he can ask them a few questions as part of a short survey. The data he collects would be classified as a ________ sample. stratified mall random cognitive convenience
convenience
Marketstar, a market research company in Ogden, Utah, conducted a survey for a local home improvement store. Marketstar went to local high schools to survey the students on their interactions with the home improvement store. The survey results influenced the home improvement store to initiate a marketing campaign that promptly failed. The Marketstar survey results were most likely invalid based on what type of market research error? non-response error coverage error measurement error sampling error
coverage error
Alex is marketing manager for a new line of Italian food that wants to launch in Latin America. He knows that social forces affect people's attitudes, beliefs, and lifestyle. This is important information, because these forces shape consumers' behavior. Which social force would be most influential on Alex's product, affecting what people eat? economics surveys demographics culture generational cohorts
culture
Henry Ford thought like a marketer because he saw that people needed a quicker, more convenient, more comfortable way to get from point A to point B. What did Henry Ford "have an eye for" in order to think like a marketer? - goods and services - money and profit - customer pain and problems - ideas and products
customer pain and problems
Domestic Marketing
customers in home country
brand champions
customers who love product and market it to others
Which global marketing strategy is most focused on market fit and suitability? globalization standardization internalization customization glocalization
customization
International
customized marketing mix - suitability
Social Forces
people's attitudes, beliefs, and lifestyle - cultural factors/demographic factors
In July of 1986 the US Air Force selected two contractor teams to demonstrate their prototype for an Advanced Tactical Fighter (ATF) jet. Lockheed Martin and Northrup were selected to produce their prototypes. In the end, the Lockheed Martin F-22 was selected as the ATF for the air force and won the contract. In this example, the US Air Force acts as what part of the business-to business transaction? gatekeeper buyer influencer decider
decider
Sam's mother does all of the grocery shopping for their family. Sam's younger siblings sometimes accompany his mom to the store and beg for various items that they like. Ultimately, Sam's mom is the one to put the items in the cart and purchase them. In this situation what role does Sam's mom play? decider gatekeeper influencer exclusive user all of the above
decider
When beginning a survey, a good manager looks for data previously collected through sources such as the US Census Bureau and other industry associations. A manager doing this is in which part of the marketing research process using which type of data? collect data—secondary data design research project—primary data design research project—secondary data analyze data—primary data
design research project—secondary data
Problem recognition is a discrepancy between ________ and ________ state. desired; actual current; actual current; previous desired; previous
desired; actual
Margin
difference between price and cost.
Sprite and 7UP are very close together on a perceptual map of the soft-drink market. This means that they are more heavily consumed. perceived in very high regards. direct competitors with each other. using identical marketing efforts.
direct competitors with each other
Jessica wants to buy Apple's new product with her next paycheck. She must first pay her taxes, rent, and car payment. What part of her income can she use to pay for the new product? gross income disposable income discretionary income net income
discretionary income
A consumer shops at a grocery store for food, a basic necessity. In this example the consumer is using what part of their income? - net income - disposable income - gross income - discretionary income
disposable income
Old Navy sells fashionable clothing for a relatively low price. What type of income is used to purchase clothing and other necessities? discretionary income gross income disposable income none of the above
disposable income
Regression
divides variables into predictors and outcomes
In 1968, US Electronic Industries Association (EIA) filed a lawsuit, claiming that several Japanese manufacturers were selling televisions in the United States at prices lower than in Japan, causing US manufacturers to record severe losses. This is an example of skimming. subsidies. dumping. racketeering. licensing.
dumping
Many years ago, the European Community Commission accused five different Japanese companies of ________ because the companies were pricing the goods at less than their cost of in the home market. exporting dumping cutting dropping
dumping
The pricing of goods at less than their cost of production or less than their price in the home market is considered price discrepancy. off selling. dumping. undercutting. bailing.
dumping
Nielson Company, a market research company, compiled research comparing the gross income, disposable income, and the discretionary income of consumers. Nielson Company analyzed the external environment using which factor? technological factors competitive factors social factors economic factors
economic factors
The recession of 2008 caused retailers such as Harley Davidson to have a decline in sales and a rise in inventory. This decline and rise is due to which of the following? competitive forces economic forces advertising forces technological forces discretionary forces
economic forces
John was offered a position at Zoogle Corporation—it was his dream job! Shortly after beginning work, John realized that many of his co-workers were not following the ethical policies put in place by Zoogle. Instead of participating in unethical behavior, John confronts his co-workers, who then work together to get him laid off. Which level of ethical strength had John achieved because of this problem? ethical courage applications of ethics to business situations ethical leadership personal ethical understanding
ethical courage
Market Penetration
existing products, existing markets.
Market Development
existing products, new markets.
Corning Glass sold Pyrex in both France and the United States. The same product was marketed differently in the two countries, according to culture. Which type of market entry strategy was used in this scenario? wholly owned operations licensing exporting joint ventures
exporting
What is the order of entry strategies, from lowest risk and return to the highest risk and return? exporting, licensing, joint venture, wholly owned operation wholly owned operation, joint venture, licensing, exporting licensing, joint venture, exporting, wholly owned operation joint venture, exporting, licensing, wholly owned operation exporting, joint venture, licensing, wholly owned operation
exporting, licensing, joint venture, wholly owned operation
Imagine you and your spouse are buying a house for the first time. Which problem solving method would you use to help with your information search? limited problem solving extensive problem solving routine problem solving recognition problem solving repeated problem solving
extensive problem solving
Buyer's Black Box
filled with the buyer's characteristics; filled with decision processes
Exporting
financial risk low, low return. Sending goods to be sold by retailer in foreign market - exporting company has little control over the product
Market Orientation
firm focus - customers needs and wants - customer is king
Production Orientation
firm focuses on production efficiency - supply generates demand - build it an they will come
When a product does not live up to the promise of the concept, generally marketers will use which of the following? perceptual mapping and ethnographic deep dives one-on-one depth interviews and quantitative ad testing focus group concept testing or frustration/satisfaction drivers testing values research
focus group concept testing or frustration/satisfaction drivers
In 2002, Mattel decided to manufacture all of its toys such as Barbie, Fisher-Price, Sesame Street, and Disney overseas in self-owned and self-operated factories. In doing so, Mattel is utilizing which market entry strategy? joint venture licensing exporting foreign direct investment
foreign direct investment
Various hotel brands (Marriott, Hyatt, and Hilton) are evaluated based on the importance and performance of beds, pricing, amenities, bonus programs, and location. These results are displayed in a two-by-two format where the top right quadrant is high importance and high performance. This is an example of which positioning method? consumed most often unique selling proposition hierarchical values analysis perceptual mapping gap analysis
gap analysis
Which of the following positioning methods asks customers to make judgments regarding the importance of a brand's features and benefits to the buying decision? perceptual mapping gap analysis segmentation all of the above
gap analysis
If a telemarketer calls your home to sell you a product, and your son answers the phone, your son is playing the role of a(n) decider. buyer. influencer. gatekeeper. user.
gatekeeper
Baby boomers, generation X, and generation Y are all examples of population groups. - cultures. - generational cohorts. - generalizations. - demographics.
generational cohorts
For the United States, people born during the same time period and who share common life experiences represent - baby boomers. - generational cohorts. - generational connections. - echo boomers. - comrades.
generational cohorts
Positioning Methods: Perceptual Mapping
getting a feel for how customers perceive brands. each brand will be rated on a 0-to-10 scale where 0 means the attribute does not describe the brand at all and 10 means the attribute perfectly describes the brand. Brands near one another are believed to be in direct competition
McDonald's does not sell beef products at their restaurants in India. This is an example of McDonald's acting multi-national. standardized. global. glocal. international.
glocal
McDonald's maintains its Golden Arches worldwide along with several menu items. However, in Japan a Ebi Fillet fillet burger (which is made of shrimp) is sold, which isn't available in America. McDonald's employs which global marketing strategy? standardized glocal international global
glocal
In Paris, McDonald's offers its standard staple, French fries, but offers a unique dipping sauce that can only be found in France. In this example, McDonald's standardized its products. exported its products. internationalized its products. glocalized its products.
glocalized its products
Factor Analysis
groups together highly correlated variables
The CEO at ZTaco recently decided he wanted to start selling Chinese food with his Mexican menu. He did not do any market research before implementing the new change. This is an example of what? false sense of reasoning intuition gut feel false-consensus bias observation techniques
gut feel
Influencers (Buying Process)
hare knowledge and expertise to provide information for evaluating products and services
Standardization
he firm uses the same standardized marketing mix in the foreign market as it uses in the domestic market. Product, price, promotion, and distribution are standardized across countries.
Market Research
helps us understand the demographics of a marketplace - how many people buy, how much people buy, how much people pay, what kind of people buy, which brands perform the best, and what the potential is for new growth or new brands (most startup businesses are interested)
We are analyzing what brand of cereal Scott consumes most often in various situations. We take a three-step research process that consists of eliciting distinctions, pyramiding down, and laddering. This is an example of which positioning method? unique selling proposition gap analysis perceptual mapping hierarchical values analysis consumed most often
hierarchical values analysis
Deal shoppers
high brand sensitivity and high price sensitivity - purchase leading brand at a discount
Brand Loyal Shoppers
high brand sensitivity and low price sensitivity
Stars
high growth, high market share dominant, rapid growth, cash investment
Blaine has finally decided to buy a new exotic sports car and has begun the consumer behavior process. What kind of decision is Blaine involved in? high-awareness low-involvement high-involvement extensive evaluation none of the above
high involvement
Question Marks
high market growth, low market share need significant investment
Green Works by Clorox is marketed to many Americans who are sympathetic to ideas regarding sustainability and environmental protection. Based upon the environmental factors described in the textbook, this is an example of marketers' responses to ecological awareness. environmental activism economic changes. increasingly important cultural values. global warming
increasingly important cultural values.
GoGadget recently made an exciting new helicopter toy that is controlled by a smart phone and is marketed to 18-40 year olds. Bill, a 52 year old, thinks this product is of no use and decides he will never buy this product. This is due to which of the following? individual factors social factors game withdraws reference groups gender
individual factors
Users (buying process)
individuals who use or work with the product or service
In Porter's five forces model, what do the five forces help determine? industry attractiveness company attractiveness industry successfulness company successfulness product successfulness
industry attractiveness
John wants to buy a car and he is spending about an hour each day researching various brands and models. In which phase of high-involvement decision process is John currently engaged? evaluation of alternatives post-purchase evaluation information search problem recognition
information search
You talk with friends and co-workers about which video game consoles they think are the best and then read articles about current and upcoming products that might be released within the next six months. You are currently in what stage of the consumer behavior process? evaluation of alternatives information search problem recognition purchase
information search
Eco Tec Inc. takes advantage of its ability to mass-produce water filters at lower costs, which its competitors cannot replicate. This example of Eco Tec Inc. falls under which part of the SWOT analysis? internal opportunities internal resource of competition internal strengths external opportunities external strengths
internal strengths
Which type of geographic marketing refers to exporting products to one or more countries while remaining invested in the local country? strategic marketing international marketing glocal marketing global marketing domestic marketing
international marketing
Motivation - Fraud Triangle
is the pressure or need felt by the person who commits fraud.
Rationalization
is the process of reconciling or justifying fraudulent behavior
Starbucks announced that it will be opening cafes across India, as a combined effort with the Indian company Tata Global Beverages Limited. Each company will own 50% of the undertaking, called TATA Starbucks Limited. This is an example of which global market entry strategy? licensing joint venture exporting splitting the pie wholly owned corporation
joint venture
When the Clorox company purchased the right to manufacture and sell products under the Brita name in the United States, Clorox entered into a ________ with Brita GmbH. license wholly owned operation business deal exporting deal joint venture
license
Disrupt Habitual Buying with Advertising
logical arguments for making a purchase. peripheral route that entertains rather than provides any logical arguments. Peripheral route - best way
Price Shoppers
low brand sensitivity and high price sensitivity - purchase lowest price products regardless of brand
Convenience shoppers
low brand sensitivity and low price sensitivity - buying products without regard to brand or price
Cash Cows
low market growth, high market share more cash than needed
While grocery shopping, you remembered that you were out of toothpaste and promptly put a tube of your favorite brand of toothpaste in the shopping cart. To you, toothpaste purchases are what kind of decision? low-awareness low-involvement high-awareness high-involvement
low-involvement
The key to having a successful product is to - sell the sizzle, not the features of the product. - make an emotional connection between the product and the customer. - create a greater total value than competitors. - use the newest marketing techniques. - offer a bundle of valued features.
make an emotional connection between the product and the customer
Southwest Airlines was created based on understanding the pain experienced by business travelers waiting in lines. Trying to meet the customers' needs, Southwest created a low cost, customer friendly airline service. Southwest most likely employed which type of marketing philosophy? - environment orientation - sales orientation - market orientation - societal orientation - production orientation
market orientation
Start-up businesses want to find a marketplace that has potential for the growth of their product. What type of research are start-up companies interested in? customer research market research marketing research development research
market research
Customers within a distinct ________ will respond similarly to marketing efforts directed at them. brand segment usage situation market segment geographical location demographic segment
market segment
General Motors divided the car market using sensitivity to price. Miller Lite divided the beer market using sensitivity to calories. Gillette divided the safety razor market using sensitivity to gender. These methods fall under which term in the marketing strategy process? positioning usage situation target market selection market segmentation
market segmentation
Deciders (buying process)
may or may not use the product, but decide which product to buy
Discretionary Income
money available after paying for taxes and necessities - luxury products and services, such as expensive jewelry, lavish vacations, and high-end automobiles, increases as their incomes rise
Disposable Income
money available after paying taxes - necessity products such as food, housing, clothing, and transportation focus on disposable income
Myth #3 Marketing is deceptive and not truthful or honest.
most firms know truth in advertising is important for building trust with their customers. After all, consumer trust is often a key driver of customer engagement and profit.
Kimberly Clark introduced a line of flushable moist wipes to complement the long established Cottonelle and Scott lines of dry bath tissue. This is an example of introducing a(n) - new product to a familiar market. - untested product to an unknown market. - old product to an unfamiliar market. - complimentary product to a dependent market. - new product to an unfamiliar market.
new product to a familiar market
Product Development
new products, existing markets.
Diversification
new products, new markets.
Sam is under a lot of stress at his job. His position is on the line and he needs to get a sales transaction to go through. He tells himself it is okay to possibly break the rules because he is trying to make enough money to support his family. According to the fraud triangle, which aspect is missing from this situation? pressure rationalization opportunity none of the above
opportunity
There is a growing trend among consumers: Many want a high-protein Greek yogurt. Dannon is a yogurt company considering launching a Greek yogurt. For Dannon, this trend represents a(n) strength. threat. opportunity. fad. weakness.
opportunity
The Fraud Triangle
opportunity, motivation, rationalization
Psycological Factors
perception, motivation, learning styles, beliefs, and attitudes can influence a person's buying behavior Perception - selecting, organizing, and interpreting information to create a meaningful picture of the world motivation - driving force that compels or reinforces an action toward a desired goal beliefs - perceptions of how well a brand performs on particular attributes. attitude - consistent feelings about and tendencies toward an object or idea
Attributes of various brands of soda (Coke, Pepsi, Root Beer, and Sprite) are rated on a scale from zero to ten. A rating of ten means the attribute perfectly describes the brand. Then the brands are displayed in a vertical and horizontal dimension, revealing that Pepsi and Coke are near each other. This is an example of which positioning method? hierarchical values analysis gap analysis consumed most often unique selling proposition perceptual mapping
perceptual mapping
Maslow's Hierarchy of Needs
physiological, safety, social, esteem, and self-actualization
Imagine yourself as a marketing manager of a large apparel company. You are faced with a decision to either sell your products to a few high-end exclusive outlets or enter a contract with a wide distribution channel of many retailers. You are using which of the four Ps? - place - price - product - promotion
place
Assume a nation is unstable due to political unrest, labor strikes, or a threat of civil war. What would be the major risk of a corporation considering expansion into that country? competitive risk culture risk legal risk political risk economic risk
political risk
The marketing manager for Little Caesars releases the following statement: "Little Caesars Pizza competes in the fast food category and provides affordable, family-loving, one-stop meals to busy parents when they are looking for a quick, filling meal that everyone enjoys. Little Caesars Pizza, unlike Domino's Pizza or Pizza Hut, is unique because it provides two pizzas for the price of one." This marketing manager is doing what? targeting marketing segmenting positioning
positioning
Primary Data
positioning, sales, advertising, market analytics, store audits, etc...
After taking her car in to get a flat tire fixed, Kayla was told by the mechanics that there was a serious problem with her car and that it would cost $200 to get fixed. Kayla did her research and decided to get the car fixed up. After the car was fixed up, Kayla drove home and received a text message from the mechanic store, thanking her for her business. What phase of the high-involvement decision process was done to try to ensure Kayla would return if she has more car problems in the future? problem recognition evaluation of alternatives information search post-purchase evaluation
post purchase evaluation
An employee of Enron came to the realization that someone in the company was committing fraud. The boss told him that he should look the other way or his job could be in jeopardy. What part of the fraud triangle does this question describe? opportunity unethical behavior pressure none of the above
pressure
Competitive Rivalry
price discounting, advertising, new product offerings, and service quality
Becky and Hannah decide to have a party at their apartment. They want to feed 30 people without spending very much money, so they decide to buy the cheapest frozen pizzas in the store. What kind of shoppers are Becky and Hannah? deal shoppers price shoppers convenience shoppers brand loyal shoppers
price shoppers
Mark and his brother want to open a Mexican restaurant in New York but they do not know if there is enough demand. In order to find out they conduct surveys and ask people around their target neighborhood if they would like a new restaurant. Mark and his brother are collection what kind of research? primary lifestyle experimental secondary demographic
primary
On your date last Friday, you wanted to make hot chocolate but realized you were out of hot chocolate mix. What part of the consumer behavior process were you in? information search realization problem recognition coco withdraws evaluation
problem recognition
Global Marketing
selling or licensing products for sale across the world. Production can even be moved outside home country.
Six months ago, Gary made his last $200 monthly payment on a 9-year old Nissan Sentra that he purchased used three years ago. Last week, Gary calculated that during the past 10 months his average repair costs on the Sentra, which now has 190,000 miles, has been $300 per month-about the same as what he would expect to pay if he were to purchase a new Honda Civic. Based upon the model of consumer behavior, how would you characterize Gary's current state? reward-seeking phase variety seeking problem recognition classification phase post-decision cognitive dissonance
problem recognition
Market segmentation
process of grouping customers into relatively homogeneous sets or groups
Marketing strategy addresses a specific target market with a cohesive marketing mix of which of the following? - product, price, promotion, positioning - product, price, promotion, profit - product, price, promotion, people - product, price, promotion, place
product, price, promotion, place
Super Genius Electronics hires only the most brilliant engineers and programmers. Its employees have created amazingly complex, unique products. The company's CEO says, "We don't even care what our competitors are doing because our products are so innovative. Our customers don't know what they want. Therefore we invent cool products for the future. This is an example of which type of marketing philosophy? - executive orientation - production orientation - market orientation - sales orientation - societal orientation
production orientation
Product
products or services. creates value, customer needs
Of the four ways to segment the market, which way is based on the personalities and lifestyles of people? demographic psychographic behavioral geographic
psychographic
High Involvement Decisions
purchase decisions involve a lot of risk because the purchase is expensive, has social implications, may involve physical danger, or maybe all of the above.
Buyers (buying process)
purchasing agents that write contracts, push for the lowest costs, and ensure the terms of the contract are honored
Measurement Error
questions don't measure what is intended to be measured
In 1998, California passed a bottle bill that refunds money back to the consumers when they recycle their containers. This is an example of which of the following factors? regulatory factors social factors competitive factors economic factors technological factors
regulatory factors
Bob is out of milk and goes to the store to buy more. This example would fall under which problem-solving continuum section? limited problem solving routine problem solving extensive problem solving all of the above none of the above
routine problem solving
Selling pest control door-to-door is an example of which marketing philosophy? - product orientation - market orientation - pricing orientation - sales orientation - place orientation
sales orientation
When the marketing department doesn't have input into what products are made, how they are made, or how they are priced, an organization is mostly likely using which type of marketing orientation? - societal orientation - product orientation - sales orientation - market orientation
sales orientation
Coverage Error
samples do not represent the appropriate decision makers, users, and/or influencers
When Kraft wanted to launch a drinking water enhancer, it initially considered launching it as an extension of its brand Crystal Light, primarily sold to soccer moms. Instead, Kraft decided to launch the product as Mio and successfully marketed it to millennials, who embrace individuality and customization. In deciding whom they should exchange with, Kraft was identifying potential buyers. selecting the target market. identifying intermediaries. segmenting the market. retaining customers.
selecting the target market
Psychological factors can pose challenges for marketing managers. Several processes affect these factors, including ________, which is when people only remember information that is immediately useful for them. selective retention selective attention selective detention selective distortion
selective retention
Honeywell, a major commercial and consumer product manufacturer, decides that it will produce all of its thermostats with an eco-friendly material that doesn't emit dangerous gases during production. Honeywell is following what concept? production orientation green marketing social sustainability target marketing
social sustanibility
Evaluation of Alternatives
some alternatives are eliminated and others are elevated
On a trip to Disneyworld in Florida, you notice that there are many fast food chains that you recognize from home in Southern California. Specifically, there are McDonald's restaurants every few blocks. You feel comfortable eating at these restaurants because they are very similar to the restaurants near your home. This is an example of McDonald's acting as a ________ company within the United States. glocalized typical globalized honest standardized
standardized
Kraft recently launched the Oreo cookie in China, hiring a consultant to help develop the product. The consultant conducted focus groups that evaluated hundreds of recipes to find the right taste for the Chinese market, which made the Oreo one of the most successful cookies in Chinese history. By adapting the Oreo for China, Kraft was avoiding the shortsightedness that comes with standardizing. prototyping. customizing. market testing. globalizing.
standardizing
Rebecca lives in a small town with only one grocery store. When she goes grocery shopping, Rebecca doesn't try to shop for the best deal because she really only has one option. What part of the black box model is having an effect on her decision? buyer's response stimuli influencing the buyer buyer's black box none of the above
stimuli influencing the buyer
SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. strengths, weaknesses, operations, and threats. strengths, weaknesses, opportunities, and tests. strengths, weaknesses, operations, and theories. none of the above.
strengths, weaknesses, opportunities, and threats.
While reviewing customer service reports, the brand manager for Extra Sugarfree Gum noticed a small handful of comments from customers saying that they are allergic to artificial sweeteners—and that Extra should launch a gum made with real sugar instead. He is worried that segmenting customers based on allergies would fail which criteria for segmentation? Choose the most correct answer. accessible substantial measurable reliable
substantial
XYZ Company has just recently launched a new product to a specific market segment. However, the market segment only consists of a small town of farmers. Marketers are worried that the segment size is not large enough to make this product profitable. Which characteristic of good segmentation plans is lacking? substantial measurable unique needs accessible durable
substantial
Social Responsibility
suggests that businesses and organizations are part of a larger society and they are accountable to that society for their actions
Burt's buggy whip company continued to manufacture buggy whips for years after the advent of the automobile, but quickly went out of business because the company failed to monitor competitive forces. regulatory forces. technological forces. economic forces. social forces.
technological forces
Marketing Research
tells us how to effectively position, promote, design, distribute, and price our products once we've decided on a market
What is an example of changes in a consumer's current state? an upcoming premier of a new "Twilight" movie you notice a newly introduced flavor of Ben & Jerry's Ice Cream in the grocery store after buying three new Honda Accord automobiles in six years, deciding to consider other options for your next purchase running out of toothpaste All of the above.
the consumer is out of toothpaste
Baby Boomers
the generation born between 1946 and 1964, greatest buying power of the generational cohorts at $1-2 trillion a year.
Problem Recognition
the perceived difference between an actual and an ideal state
Information Search
the stage of the buyer decision process in which the consumer is motivated to search for more information - Zero moment of truth
Segmentation is grouping customers into relatively homogeneous sets such that customers within a segment are similar to one another in family and cultural situations. their geographic location of residence. the way they respond to the marketing effort directed at them. age and psychographics. their frequency of purchase.
the way they respond to the marketing effort directed at them.
Wal-Mart launched a sustainability campaign to show customers that the company was sensitive to environmental issues. Which element of SWOT analysis did Wal-Mart overcome by doing this? opportunity weakness strength threat
threat
Gross Income
total amount of money received by a person, household, or family during a particular period of time, usually one year
Which of the following could represent a strength for Bounty, a brand of paper towels? growing demand in international markets trusted, well-known brand name laws that make it harder for new companies to enter the paper towel market growing popularity among restaurants as a quick spill cleaner increasing demand for disposable cleaning products
trusted, well-known brand name
Which of the following are used for behavioral segmentation? personality gender usage situations family size lifestyle
usage situations
SunChips® snacks are currently made in 8 cities across the United States. In 2008, the Sunchips plant in Modesto, California, began using solar energy instead of fossil fuel to help make SunChips® snacks. SunChips highlights this feature as a competitive advantage when selling its chips to consumers. This is an example of SunChips's efforts to give their lobbyists more sway in the Obama administration. become a socially responsible company. use green marketing. market to "tree-huggers."
use green marketing