Marketing exam 1

A company sometimes defines a total market as its target

true

Ads for beauty products often suggest that purchasing these products will bring love, helping to fulfill one's social needs.

true

Marketers must consider the different nationalities represented within the Hispanic and Asian-American subcultures because of the unique culture, history, and buying patterns of each ethnic group.

true

Grocery stores and supermarkets are a part of producer markets.

false

The four categories of consumer markets are producer, reseller, government, and institutional.

false

​If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities?

1,000

Forever 21 is developing a program to get to know its customers. Which of the following is NOT a reason why Forever 21 needs to understand consumer buying behavior?

All customers are the same when it comes to buying behavior.

ACME was not the first to bring a selfie stick to market, but it is now introducing a selfie stick that can also be used as a cane, an umbrella, and a knife for self-defense. Which of the following is ACME benefiting from as a late mover?

Being able to improve on the product design and marketing strategy

A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy.

Concentrated

Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon's $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon?

Customer lifetime value

Amos works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Amos was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Amos's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?

Delphi technique

When Coca-Cola initiated a telephone survey to determine the effectiveness of a recent advertising campaign, one of the questions the interviewer asked was, "Have you ever heard of a cola made with zero-calorie, plant-based stevia?" This is an example of which of the following kinds of questions?

Dichotomous

A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

False

If a company spends twice as much as any of its competitors on marketing efforts, and if each dollar spent is more efficient in generating sales, the firm's sales potential will be low relative to competitors' sales potential.

False

Learning associated with purchase behavior is not particularly affected by consequences.

False

Marketing cost analysis uses sales figures to evaluate a firm's current performance.

False

Price is of concern to a business marketer primarily because of its psychological impact on purchasing agents.

False

​The actual physical production of goods is a marketing activity.

False

​The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

False

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation.

Lifestyle

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Market density

Which of the following is NOT an example of the implementation of the marketing concept?

McDonald's reduces the labor costs to produce its sausage-egg biscuits.

​For most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar?

One-half

United Airlines introduced a new "basic economy" seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering?

Price

Schlotzsky's wants to collect data about employee satisfaction within its organization. It decides to survey a sample of 500 employees by having a computer program automatically pick which employees will be in the sample. If it uses the payroll database as the list of names to choose from, which type of sampling method is Schlotzsky's using?

Random sampling

Which of the following statements about marketing environment forces is NOT true?

They do not influence customers' reactions to a firm's marketing mix.

Your company is seeking to hire a consultant to assist with completing a specialized marketing research project that is focused on tech-savvy, young consumers. One of the firms describes its state-of-the-art marketing research system as follows: "It's a social intelligence system that provides insightful, actionable information about what people are saying about your brand. It integrates information from millions of sources and empowers you to, among other things, help your organization understand and even shape relevant conversations in the social media sphere." Based on the description, which of the following is the best reason for hiring this company?

This company's expertise and information systems are a good fit for the project.

It is a good idea to consider parents as part of the target market when marketing new children's lunchboxes that stay colder longer.

True

Just as attitudes are learned, they can be changed.

True

Reseller markets consist of intermediaries that buy finished goods and resell them for profit.

True

The marketing plan is

a written document detailing activities to be performed to implement and control marketing actions.

A business advantage of the concentrated targeting strategy for any company is that it

allows a firm to develop a special marketing mix for a single market segment.

MasterCard provides credit cards to individuals who use their cards for purchases of meals, gifts, travel services (e.g., transportation, hotel), fuel, and more. MasterCard makes extensive use of purchase information to aid in management and marketing decisions as well as in its marketing efforts to enhance the number of businesses that accept payment by the MasterCard. MasterCard leverages its information about consumers by analyzing the charging history of credit card members, website traffic, and information gleaned through the use of "cookies" and monitoring of social media, such as Twitter, Facebook, Instagram, and Pinterest. MasterCard believes data provides significant insights. What type of information does MasterCard utilize?

big data

Apple has been successful by anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

The marketing mix is built around the

customer

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

description

Nancy knows her business has a problem because of an increasing number of consumer complaints received recently. She has decided how to make this problem a precise, researchable statement and should next move on to

designing the research project

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is

developing market segment profiles

Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

distribution

If Little Caesars wants to determine the impact of different coupon offers on pizza unit sales, it needs to conduct

experimental research.

All consumer buying decisions include all five stages of the buying decision process.

false

If Progresso were to offer single-serving packages of soup, it would be using segmentation based on

family life cycle

Aaron of WP International, a major marketer of word-processing software, calls the administrative assistant of Kimberly, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The administrative assistant plays the role of ____ in this purchase decision.

gatekeeper

Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as

helping potential customers satisfy their needs with Ace shelving products.

In placing a tire order with Goodyear, River City Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. River City 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

Within the information search step of the consumer buying decision process, what two primary aspects exist?

internal and external search

Coca-Cola executives realized that more consumers are concerned with health. It has since expanded into the bottled water and bottled juice markets. This is an example of a firm identifying and capitalizing on a

market opportunity

Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use?

market penetration

Dyson is known for product innovation and the creation of products that go beyond consumer expectations, such as the AirBlade hand dryer, AirMultiplier bladeless fan, and the Supersonic hair dryer. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends and preferences and to determine the potential for success of new products.

marketing research

A business customer evaluates the characteristics and quality of the products being considered to determine whether they

meet specifications

If Kashi, the maker of Go Lean breakfast cereal, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through

observation

All of the following are important concerns of business customers except

obtaining products that exceed specifications to ensure the best possible product performance.

Anh has been hired by a market research company to collect data about the drinking habits of 25- to 35-year-old urban professionals. Anh is to go to "happy hour" with a group of individuals and observe what type of alcoholic beverages they order, how often, and what brands. The data that Anh will obtain is ______ and she will use ______ in its collection.

primary; ethnographic techniques

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

Stan owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Stan negotiated with Capitol Dodge, a dealer, with the agreement that GreenScapes would be the service company Capitol Dodge used for all of its landscaping needs. This is an example of

reciprocity

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

segmentation

Xavier loves Chipotle Mexican Grill. He loves the food and views it as being socially responsible. The other day he read in the paper that several people got sick from E. coli from Chipotle Mexican Grill restaurants. The article also detailed safety measures Chipotle was instituting to prevent this from happening again. Xavier would expect nothing less from Chipotle. He feels confident that Chipotle will institute highly effective safety measures. This is most likely an example of

selective retention

According to Maslow's hierarchy of needs, human beings have five levels of needs they are constantly seeking to satisfy. The need for love and affection is an example of one of humans' _________________ needs.

social

A company's customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its

stakeholders

Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in

the sociocultural forces of the marketing environment.

All of the following are steps in the marketing research process except reporting research findings. interpreting research findings. understanding your customer. collecting data. designing the research project.

understanding your customer

In the consumer buying decision process, the information search stage

yields a group of brands that a buyer views as possible alternatives.

Which of the following statements is incorrect?

​Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

Business decisions made in creating a marketing mix

​are only as good as the organization's understanding of the needs of the target market.

According to the marketing concept, an organization should try to

​provide products that satisfy customers' needs and allow the organization to achieve its goals.