Marketing Exam 2 Cengage 6-10

Unlike other trading blocs, most of the countries in the European Union _______.

have adopted a common currency

When buyers purchase products occasionally or from unfamiliar brands within a product category, they are most likely to use _______.

limited decision making

A janitorial services organization purchases Clorox supplies to use in cleaning places like schools and office buildings. This type of customer would be an example of what type of market for Clorox?

producer

John's lawnmower stopped working midway through mowing his front yard. His interest in researching replacement lawnmower brands is most likely to be _______.

situational involvement

Which of the following is most likely to be a born global firm? a. Skype b. Louis Vuitton c. Starbucks d. H&R Block e. IKEA Hide Feedback

skype

Which of the following would be an example of digital media that marketers can use for promotional purposes? a. Newspaper b. Outside of an electric bus c. Land-line phone d. Smart watch e. Blu-ray player

smart watch

The human requirements for love and affection in Maslow's hierarchy are known as ______ needs

social

Which of the following is an open aggregate of people with similar social rank?

social class

Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as _______.

value analysis

Suppose Lonely Planet, a travel guide book publisher, launched a small bit of software users could download to their computer. This software would provide continual news updates about Lonely Planet activities and link users directly to the company's homepage. This is most likely which of the following?

widget

Which of the following markets may have complex buying procedures due in part to their public accountability?

govt markets

Most companies have entered the global marketplace _______ and _______.

gradually; incrementally

Online marketplaces where buyers and sellers can exchange information, goods, services, ideas, and payments are best described as _______.

B2B e-commerce sites

Alice buys FitJoy snack bars because she feels satisfied after eating. After several months of enjoying the snack bars, Alice no longer feels satisfied after eating them, so she decides to stop purchasing the snack bars. Her change in behavior is referred to as what?

. Learning

Which of the following differs from other international trade alliances in its commitment to facilitating business and its practice of allowing the business/private sector to participate in a wide range of activities?

. The Asia-Pacific Economic Cooperation (APEC)

Eaton sells many industrial products for the lighting and solar industry, including lighting controls, landscape lighting, lighting relay and metering panels, flood lighting, and more. Among its vast array of products, it also sells lighting accessories and lighting solutions for private residences. Refer to Scenario 6.3. Eaton is targeting most of its industrial products to the _______ market and targeting its residential lighting systems to the _______ market.

. business; consumer

High-involvement, unfamiliar, and expensive products such as cars are most likely to involve _______.

. extended decision making

When should an international division structure be used? a. When consumers start to export products outside of the country b. When a large assortment of goods and services are marketed internationally X c. When a firm wants to break into international business with minimal investment d. When an internationally integrated structure is no longer possible e. When a small assortment of goods and services are marketed internationally

????

Which of the following is an example of derived demand?

An increase in coffee drinking is prompting coffee shops to order more coffee grinders.

Which of the following represents the most people? a. Asia-Pacific Economic Cooperation (APEC) b. Southern Common Market (MERCOSUR) c. Association of Southeast Asian Nations (ASEAN) d. North American Free Trade Agreement (NAFTA) e. European Union (EU)

Asia-Pacific Economic Cooperation (APEC)

A buffet restaurant targets its promotions toward those who love "all-you-can-eat" meals. Its promotion targets those who desire to get more for less money and/or those who like variety in their meals. However, the company knows that many of the people who come in will not eat as much. Others, however, may eat way past the value of what they paid. The buffet has balanced this out in its pricing strategy, classifying its diners as light eaters, moderate eaters, and heavy eaters. What type of segmentation strategy is the buffet using?

Behavioristic

Scenario 6.4 Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. Refer to Scenario 6.4. Suppose a sales manager at Mistine wants to determine the company's market potential. She first estimates how many cosmetic products potential buyers will purchase in her sales territory during a given period. She multiples that amount by the total number of potential in that area and then performs the same calculations in the other territories in which Mistine operates. She then adds together the totals to get the company's market potential. What type of approach is the sales manager using?

Buildup approach

Cynthia works at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. She is in charge of strategic planning. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while they will receive a major project from the state, such as renovating a government building in the capital. However, Cynthia's firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses. A market is a group of individuals and/or organizations that have a desire or need for products in a product class and have the ability, willingness, and authority to purchase those products. There are two types of markets. Cynthia's organization targets the

Business Market

What do industry classification systems do for the marketer?

Categorize organizations into groups based on such factors as the types of goods and services provided

________ is the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product.

Company sales potential

Michelle loves to participate in online forums. She enjoys interacting with other people. She recently joined an online community hosted by a company. Michelle loves the company's products and often reads other people's posts. Recently, somebody posted a negative review of a new product on the forum. A representative immediately responded. The representative apologized for the problem and said the firm would reimburse the angry customer. Refer to Scenario 10.2. This ability Michelle has to communicate with other consumers and the company through this online forum is an example of what characteristic?

Connectivity

In which of the following stages of the consumer buying decision process does a person use evaluative criteria to assess a consideration set?

Evaluation of alternatives

Which of the following is calculated during the fourth step of the target market selection process, evaluating relevant market segments?

Cost estimates

Commodities and raw materials are typically purchased using which method of business buying?

Description

At what stage of the target market selection process is the marketer first likely to unveil information that makes a segment less attractive than previously thought?

Develop market segment profiles

In the business buying decision process, what comes after problem recognition?

Develop product specifications

Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. Refer to Scenario 6.4. What type of segmentation strategy is Mistine using?

Differentiated targeting strategy

Consumers tend to view which of the following behaviors as less ethically acceptable regarding illegally downloading protected content from the internet?

Downloading content for personal gain

Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing?

Electronic marketing

Which of the following are most likely to face joint demand? a. Athletic shoes b. Tables c. Engine oil for cars d. Apples e. Jewelry Hide Feedback

Engine oil for cars

The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase the CRM software to keep up with its rivals. This is an example of what type of force affecting business buying behavior?

Environmental forces

The use of bribes, which are illegal for U.S. companies, relate best to which of the following?

Ethical and social responsibility forces

Which of the following has its own currency?

European Union (EU)

Which of the following would be a cost-effective, fairly accurate way of coming up with a sales forecast if product demand is relatively stable and managers at the firm have a long tenure in the field?

Executive judgment

Due to concerns about dishonest advertising, the________ requires social media influencers to clearly disclose any connection they have with brands they promote.

Federal Trade Commission

How does gross domestic product (GDP) per capita differ from GDP?

GDP per capita is the overall measure of a nation's economic standing in relation to population.

Which of the following involves developing marketing strategies as though the entire world (or its major regions) were a single entity?

Globalization

Which of the following is the market value of a nation's total output of goods and services for a given period in relation to its population?

Gross domestic product per capita

Which of the following is the first step of the target market selection process?

Identify the appropriate targeting strategy

Which of the following raises the price of foreign goods? a. The World Trade Organization (WTO) b. Exchange controls c. Quota d. Embargo e. Import tariff

Import tariff

As John stands in line at the grocery store, he notices a new flavor of gum on the nearby stand. He grabs the gum and throws it in the cart. What type of behavior is John exhibiting?

Impulse buying

You are thinking about buying a tablet to help with your classes and for entertainment purposes. When you search your memory for information about products that might address these needs, you are engaging in which aspect of the consumer buying decision process?

Internal information search

A firm with a(n) ________ structure is more likely to engage in direct ownership activities.

Internationally integrated

What is one of the benefits of using a trading company?

It facilitates all marketing aspects of a transaction.

Which of the following is NOT true about digital marketing as a new distribution channel? a. It reduces costs throughout the marketing channel. b. It increases inefficiencies throughout the marketing channel. c. It reduces inefficiencies throughout the marketing channel. d. It increases speed throughout the marketing channel. e. It reduces redundancies throughout the marketing channel.

It increases inefficiencies throughout the marketing channel.

How has the constant sophistication of technology impacted the product part of the marketing mix?

It is requiring companies to continually upgrade their products.

Which of the following are often a political necessity because of nationalism and government restrictions on foreign ownership?

Joint ventures

Refer to Scenario 10.1. Barry decides at the start of his social media efforts to track the amount of clicks his posts receive as a way to measure his success. Click-through rate (CTR) is an example of a(n) _______.

Key Performance Indicator (KPI)

Before creating a social media advertising campaign, Sarah embeds quantitative and qualitative metrics at the onset of her strategy that can allow almost real-time measurement and evaluation. What are these metrics called?

Key Performance Indicators (KPIs)

Which of the following products would a consumer most likely use limited decision making in a purchase situation?

Living room curtains

Suppose the government wants to hire a firm to build a new road. What method of business buying will it most likely use?

Negotiation

Gorton's Seafood buys large amounts of fish to use in its frozen dinners and dinner components. Gorton's Seafood belongs in which of the following business markets?

Producer market

Which of the following represents a sociocultural barrier? a. Lower literacy rates in Africa mean that much of the packaged food sold in stores has pictures on their labels of what is inside the package. Several consumers avoided buying Gerber baby food because they thought the drawing of the baby on the label meant it was made of baby meat. b. A firm wants to obtain a zoning permit in Mexico. Unfortunately, the process will take a long time, and the firm wants to start constructing a building soon. A government official says that for a one-time payment, he will make sure the permit is approved within the next month. c. Due to Russia's involvement in the Ukraine, Europe instituted sanctions against the country. In response, Russia placed sanctions on European imports such as agricultural products. This led to a massive oversupply of agricultural goods in Europe. d. General Motors wants to sell its electric vehicles (EVs) in China and tap into the world's largest market. However, China has laws requiring foreign firms who want to build and sell EVs in the country to partner with a domestic firm. General Motors therefore must enter into a joint venture. e. Iceland has developed a new rule saying that foreign investors must either cash in their bonds or obtain interest on their bonds at extremely low rates. Iceland wants to keep investment in the country.

Lower literacy rates in Africa mean that much of the packaged food sold in stores has pictures on their labels of what is inside the package. Several consumers avoided buying Gerber baby food because they thought the drawing of the baby on the label meant it was made of baby meat.

Which of the following statements about sales estimates is correct?

Market potential places absolute limits on company sales potential.

Mistine is a direct selling cosmetics firm based in Thailand. Originally, it made a name for itself selling an affordable product that was of good quality. It focused mainly on housewives. However, over the years Mistine has expanded its focus, targeting more groups such as teenagers and higher-income women. Unlike many comparable direct selling firms, Mistine engages in much advertising. Its advertising campaigns must be tailored toward the appropriate target market. Refer to Scenario 6.4. Assume that Mistine wants to break into the Kenyan market. It is entering the market for the first time and is unsure about how successful its products will be. Mistine's management team wants to develop a sales forecast for the area. Which of the following would be most appropriate in terms of accuracy?

Market tests

Which of the following is NOT one of the five opportunities for creating value generated by a global presence? a. Exploit economies of global scale b. Adapt to local market differences c. Exploit economies of global scope d. Mine optimal locations for activities and resources e. Minimize the transfer of knowledge across locations

Minimize the transfer of knowledge across locations

ACME Corp. has ordered widgets from Wiley Widgets several times before, but now it would like Wiley Widgets to offer a lower per-unit price in exchange for a larger order. ACME is using which of the following types of business purchases?

Modified rebuy purchase

Amy aspires to be a "super mom." She is a mother of three children and she writes novels for a living so she can be with her youngest children who are not yet in school. When she is not taking care of her children or working on her novels, Amy is usually looking through parenting blogs or reading books about how to be a better parent. One person she really admires is parenting expert Rochelle Davis. Rochelle has written a best-selling parenting book and maintains a popular blog. She stays up-to-date on current trends and is the go-to person for new products geared toward children. Amy views Rochelle as a role model and wants to be like her. Refer to Scenario 7.2. Rochelle Davis' blog is so popular that a local children's toy company regularly sends her product samples in the hopes she will give them a positive review on her blog. Rochelle is most likely which of the following for the local children's toy company?

Opinion leader

Scenario 10.3 Jeff works for a firm that wants to use digital networking sites such as Facebook, blogs, review sites, and more to target consumers on a global scale. Recently, his firm has expanded into a new foreign market. Jeff has looked at the market and has found that the majority of the population is active on the Internet but are spectators. He is looking for the least expensive way to target these customers. Refer to Scenario 10.3. Jeff discovers most of his firm's website visitors from the new foreign market originate from search engines like Google and Bing. What should Jeff do to attract more of these customers?

Optimize the firm's website for search using highly trafficked keywords

Which of the following is NOT one of the ways that business transactions differ from consumer transactions?

Orders by businesses are frequently small and inexpensive

Which of the following categories is a situational factor?

Physical surroundings

On Eaton's website, the firm segments its product offerings as aerospace, filtration, hybrid power, electrical, hydraulics, industrial clutches and brakes, plastic extrusion, and vehicle. What type of segmentation strategy has Eaton most likely adopted?

Product use

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. Angel is segmenting the market based on what type of segmentation variable?

Psychographic

Which of the following does the North American Free Trade Agreement NOT do? a. Make it easier to invest in Mexico and Canada b. Raise tariffs on products imported from Canada and Mexico c. Provide protection for intellectual property d. Expand trade by requiring equal treatment of U.S. firms by Canada and Mexico e. Simplify country-of-origin rules Hide Feedback

Raise tariffs on products imported from Canada and Mexico

Samantha just got the news that she got passed over for a job she wanted. Now she is at the mall looking for a gift for her best friend's birthday. She is in a bad mood and does not want to be there. It's the Christmas season, so the mall is very crowded. After searching for a long time at a jewelry store, she finally finds the necklace her friend wanted. Samantha thinks the necklace is too expensive and is not even that attractive, but she buys it because she knows her best friend likes it. Refer to Scenario 7.3. Which situational factor most contributed to Samantha's purchase?

Reason for purchase

What is probably the best way for consumers to combat fraudulent activities? a. Refrain from giving out personal information unless the site is legitimate b. Use different passwords for each different site c. Stop purchasing items over the internet d. Register with the Federal Trade Commission (FTC) e. Hire a fraud-detecting organization to look for fraudulent transactions Hide Feedback

Refrain from giving out personal information unless the site is legitimate

Shawn works at a retail store that sells a variety of items, including umbrellas. Shawn knows that people buy umbrellas more in the summer season because of the higher frequency of storms. He has identified a formula based on past umbrella sales during the summer season. Shawn believes he can use this formula to predict future sales forecasts with a high degree of accuracy. This is an example of what type of sales forecast?

Regression analysis

Which of the following markets includes wholesalers or retailers?

Reseller markets

_______ and _______ are part of the reseller market.

Retailers; wholesalers

Purchasing agents at ACME Corp. are looking in company files and trade directories, contacting suppliers for information, soliciting proposals from known vendors, and examining various online and print publications. They are in which of the following stages of the buying decision process?

Searching for and evaluating potential products and suppliers

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. In making his decision, Angel is at what stage in the target market selection process?

Select specific target markets

At what stage of the target market selection process is management likely to investigate whether the organization has sufficient financial resources, managerial skills, employee expertise, and facilities to compete effectively in selected segments?

Select specific target markets

Suppose Amy is out shopping for children's clothes with one of her friends. When Amy mentions how much she admires Rochelle Davis, her friend replies that she heard Rochelle is being investigated for allegedly plagiarizing some of her books. Amy tells her friend she must be mistaken as Rochelle has too much integrity to do such a thing. She argues that other people are just jealous because their books are not as popular. This is an example of which of the following?

Selective distortion

When retailers go to great lengths to create physical settings that appeal to their target market and are conducive to making purchase decisions, they are attempting to shape which of the following influences on consumer buying behavior?

Situational

Which of the following influences on the consumer buying decision process result from time, circumstances, and location?

Situational

Which of the following is a website (or app) where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication?

Social network

Shawn went to a restaurant where the beer was mediocre and the place was run-down. The restaurant was out of many of its more popular menu items. Yet Shawn remembered the restaurant fondly because he had dinner with the girl he would end up dating steadily. They really hit it off that night. A few months later he decides to return to the restaurant, only to find that he was disappointed in the food and service. He thinks it's strange because he had such a good experience last time. What situational factor likely influenced Shawn's first experience?

Social surroundings

Which of the following organizational architecture elements is the most difficult to change, especially in the short term?

Structure

Edward lives in Canada. He owns an apparel company. Edward sells his products throughout Canada and would like to expand internationally. Edward reads up on NAFTA and finds strong support for choosing either the United States or Mexico to begin exporting products. Edward likely noticed which of the following advantages of the free trade agreement?

Tariffs have been virtually eliminated on goods produced and traded among Canada, Mexico, and the United States.

Why must online marketers use differentiation to distinguish their products from competitors—even more so than they might have to do with more traditional marketing channels?

The consumer now has unprecedented access to online pricing information, so differentiation is necessary to remain competitive.

Amazon has opened a physical bookstore. What is one benefit that a physical store offers to marketers that online stores might not?

They allow marketers to observe customers interacting with products.

What are web advertisers attempting to do in order to prevent regulation that would limit the information they can collect on users?

They are attempting to engage in self-regulation

Which of the following is NOT a way that consumers rationalize pirating software, video games, and movies online?

They worry about getting arrested

Samantha just got the news that she got passed over for a job she wanted. Now she is at the mall looking for a gift for her best friend's birthday. She is in a bad mood and does not want to be there. It's the Christmas season, so the mall is very crowded. After searching for a long time at a jewelry store, she finally finds the necklace her friend wanted. Samantha thinks the necklace is too expensive and is not even that attractive, but she buys it because she knows her best friend likes it. Refer to Scenario 7.3. Samantha wants to stop by her favorite bookstore before it closes in 15 minutes. However, because she is thirsty, she decides to stop quickly for a drink. She heads over to Boba Tea but notices the line is very long. She notices there is hardly anyone in the Starbucks line and decides to get a latte instead, even though she would have preferred a tea. Which situational factor most contributed to Samantha's purchase?

Time dimension

Which of the following is one of the biggest mistakes a marketer can make when engaging in digital marketing?

Treating it like a traditional marketing channel

Cynthia works at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildings. She is in charge of strategic planning. Mostly her firm has worked with cities such as Tucson and Phoenix. Once in a while they will receive a major project from the state, such as renovating a government building in the capital. However, Cynthia's firm wants to expand its target market beyond government projects. Under her direction, the marketing team launched an initiative to target more potential clients in different areas. Two areas in which Cynthia would like to expand include colleges and large for-profit businesses. How is Cynthia's company segmenting the market for its services?

Type of organization

An internal energizing force that directs a person's activities toward satisfying needs or achieving goals is best described as _______.

a motive

Which of the following companies is the best example of a reseller?

a. Staples b. John Deere c. Priceline d. JPMorgan Chase & Co. e. Apple priceline

Refer to Scenario 10.3. If Jeff were to have cookies installed on the users' computers, they would be able to detect when the user revisits the site. This demonstrates which of the following characteristics of digital marketing?

addressability

Philip is out shopping for a motorcycle. He sees a motorcycle he really likes, but he seems to remember reading something about its gas mileage. He racks his brain trying to remember but is unable to recall the information. He therefore decides to come back another day. He goes home and researches the motorcycle on the internet. During his information search, Philip performed _______ and then _______.

an internal search; an external search

ACME Corp. has concentrated its human resources with international expertise into one unit which serves as the central point for all information flow related to international operations, it is most likely using _______.

an international division structure

ACME Corp. is developing a software program that can run on mobile devices so that customers can interact with the firm, view product information, and see the status of an order. This is best described as a(n) _______.

app

Amy greatly admires Rochelle Davis and those like her. She views them as a(n) _______ that she wants to emulate and be like.

aspirational reference group

Companies often use social media influencers popular with their target market to promote their products. In this case, the influencers represent a(n) _______.

aspirational reference group

Which of the following consists of three major components: cognitive, affective, and behavioral?

attitude

Refer to Scenario 10.1. Suppose Sampson decides to develop a web-based journal in which writers can editorialize and interact with other internet users. This would be an example of a _______.

blog

Logitech is a computer peripherals company that was founded in Switzerland in 1981. From the outset, the founders realized they would need to expand internationally if they wanted to compete in the market. Soon it had offices and/or factories in Switzerland, Taiwan, China, the United States, and Ireland. Its corporate headquarters is in Silicon Valley, but it maintains a factory in China. Eight years after it was founded, Logitech had captured 30 percent of the market share in the computer peripherals industry. Refer to Scenario 9.1. Logitech would most likely be categorized as a _______ firm.

born global

Logitech was founded with the knowledge and resources to accelerate its participation and investment in the global marketplace; it was able to export products soon after being established in market niches in which it competed with long-established firms. This is an example of a(n) _______.

born global

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. Michael is the _______ in the buying center, while Phillip acts as a _______.

buyer; influencer

When a person fills in missing information in a way that conforms to a pattern or statement, this is known as _______.

closure

Jamie works as a salesperson at a car dealership. He takes his sales very seriously. After selling a car to a customer, he waits two weeks and then calls the customer to see how they like their new car. He tries to reinforce the fact that they made a smart investment and that the dealership is there for any problems they might have. Jamie is attempting to reduce _______.

cognitive dissonance

Wyatt has made the decision that it is time to purchase a condo. His apartment is too small, and he is tired of paying rent. His price range is between $200,000 and $250,000. He would like to purchase a condo that is within a half hour of his work. With these criteria set in mind, he sets out to search for his ideal home. Refer to Scenario 7.1. Suppose that after an extensive search, Wyatt has narrowed down his decision to three condos. All fall within his price range, and all of them are in a desirable location in town. These three condos are now a part of Wyatt's _______.

consideration set

An iPad is part of the consumer _________ when bought by end users, but it is part of the business ________ when a salesperson purchases it to take orders.

consumer market; business market

Behavior that violates generally accepted norms of a particular society is best described as _______.

consumer misbehavior

Copying computer software, video games, movies, or music without paying the producer for them is an example of _______.

consumer misbehavior

Two trends have elevated the importance of consumer-generated information: (1) The growing tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions; and (2) _______.

consumers' tendencies to trust other consumers over corporations

Refer to Scenario 9.1. Logitech has many of its products built in China using third parties. However, it has also built its own factories to protect some of its manufacturing trade secrets. For instance, its UE Boom portable speakers were built in its own factories in China. Logitech uses a combination of _______ and _______ when manufacturing products.

contract manufacturing; direct ownership

Which of the following food products would most likely use an undifferentiated marketing strategy?

corn

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Which method of buying does Levi use?

description

ACME Corp. is using all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers. This is best described as _______.

digital marketing

__________ on the internet involves a push-pull dynamic: The firm that provides a product will push to get that product in front of the consumer, while at the same time connectivity aids those channel members that desire to find each other.

distribution

During the final stage of the consumer buying decision process, a person might experience cognitive dissonance, which is _______.

doubts in the buyer's mind about whether purchasing the product was the right decision

Two honey processors were accused of shipping honey from China at incredibly low rates. These rates were deemed unfair because the price was lower in the foreign market than it was in the domestic market. This practice is known as

dumping

________ refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing.

e-marketing

In Mozambique a currency crisis led the government to mandate that citizens from Mozambique could only spend up to $13,600 on their credit or debit cards when shopping abroad. This is an example of a(n) _______.

exchange control

Page visits, reach, and CPM (cost per thousand exposures) are all examples of what type of social media metric?

exposure

Wyatt has made the decision that it is time to purchase a condo. His apartment is too small, and he is tired of paying rent. His price range is between $200,000 and $250,000. He would like to purchase a condo that is within a half hour of his work. With these criteria set in mind, he sets out to search for his ideal home. Refer to Scenario 7.1. What type of decision making will this purchase most likely involve?

extended decision making

Almost all consumers experience cognitive dissonance in the postpurchase evaluation stage.

false

An undifferentiated targeting strategy uses market segmentation. a. True b. False

false

Angel wants to become a successful brewer. He analyzes the target market for beer and finds that there is a market niche for gluten-free beer. Angel considers the types of markets he can target with his beer. He knows that many people perceive gluten as unhealthy and might be inclined to buy his beer due to its gluten-free nature. However, he also knows there is a strong demand among those who suffer from Celiac disease. After doing sales and cost estimates, Angel feels ready to make a decision. Refer to Scenario 6.2. Assume that Angel decides that he wants to specifically target those who suffer from celiac disease. Although he realizes that many consumers avoid gluten simply for health reasons, he believes putting his marketing muscle behind a marketing strategy that would target one specific market segment is the way to go. Angel is adopting a differentiated targeting strategy. a. True b. False

false

Buyers of industrial equipment would most likely use sampling as their purchase method.

false

Chelsea loves her car. Recently, she noticed her tires were getting worn. She took it into the dealership, where she was told that all her tires were worn and should be replaced. Chelsea knows this will be a significant investment. She decided on getting the most expensive tires because they are high quality and she wants the best. She hopes she is making the right decision. At least she will not have to purchase tires for several more years, unless she gets a flat. Chelsea's involvement with her tire purchase is an example of enduring involvement.

false

Consumer misbehavior is consumer behavior that is illegal.

false

NAICS is the industrial classification system used by the majority of countries across the world.

false

Social class tends to be separated into three categories in the majority of societies.

false

The extent of an organization to "think globally, act locally" will largely determine how successful a customization strategy will be.

false

The self-reference criterion is the concept that morality differs from one culture to another.

false

Vendor analysis takes place during the development of the product specifications stage of the business buying decision process.

false

Digital media involves the strategic process of distributing, promoting, and pricing products, and discovering the desires of online customers.

false Electronic marketing is the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing.

Key performance indicators (KPIs) should be embedded at the end of a social media strategy.

false Embedding KPIs at the onset of a social media strategy provides a foundation for making iterative changes to implementation and tactical execution.

Britney has her own blog and is constantly writing new content. When her readers give her positive feedback on a post, she will create more content that is similar. The positive sentiment is an example of quantitative feedback

false . Objectives that are quantitative could include the number of likes on an Instagram post or the click-through rate (CTR) of a Facebook post. Qualitative metrics include sentiment (positive, neutral, negative).

Which of the following consists of three major components: cognitive, affective, and behavioral?

family influence

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. Assume that Acer wants to reach the deciders and purchasers in Christina's organization because it would like to supply the next order of computers. Before they can reach Michael, however, they must first schedule an appointment with his secretary who has worked at the firm for 20 years. It would be wise for Acer not to underestimate the secretary as she most likely acts as a __________

gatekeeper

Olympus Corporation, an international Japanese manufacturer of optics and reprography products, has adopted a structure that interconnects business units and functions such as manufacturing and R&D to create global integration with local responsiveness. This is an example of what type of structure?

global matrix

The term_____ refers to an ethnic category rather than a racial distinction

hispanic

Companies like Target and J.C. Penney sometimes participate in a(n) _________for the retail industry, which acts as a neutral third party and charges a fee for providing a trading forum.

independent B2B exchange

A price increase or decrease does not significantly alter demand for a product with _______.

inelastic demand

For most firms, the early stages of international development are often _______ and not fully _______.

informal; planned

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. Refer to Scenario 8.1. Suppose a church representative stops by looking for a coffee maker. She wants to buy the coffee maker with church funds and use it to brew fresh coffee for church visitors. The woman is a part of which market?

institutional

Sampson works in marketing at a law firm. Recently, he has turned to social media to try and solicit new clients. There has been a class-action lawsuit his company is working on that involves harmful side effects from a well-known medication. It was discovered that this medication caused potential heart defects. Sampson has been using social media channels to inform users who may have suffered from taking this medication about the lawsuit and how his company is the best firm to represent them. He even created a website specially dedicated to the case and encourages users to ask questions. Refer to Scenario 10.1. On the website, Sampson encourages users to ask questions and provide their input. He also provides contact information for his firm if users would like it to represent them. Sampson actively monitors the site so he can immediately answer questions or comments that internet users pose. He wants users to feel comfortable expressing their needs directly. This involves which characteristic of digital marketing?

interactivity

______ involves developing and performing marketing activities across national boundaries.

international marketing

Scenario 8.1 Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified. ________ factors likely influenced Levi as the chief decision maker for his company to go with the supplier?

interpersonal

Which of the following would likely be the hardest to standardize when engaging in international marketing?

media action

Refer to Scenario 8.1. Levi is getting ready to order another shipment of frying pans. However, he wants to switch from cast iron to aluminum. What type of purchase is Levi using?

modified rebuy purchase

Because it imports more products than it exports, so that money is flowing out of the country, the United States has a(n) _______.

negative balance of trade

Any attempt to conduct dishonest activities online would be described as _______.

online fraud

Which of the following is contracting of noncore operations or jobs from internal production within a business to an external entity that specializes in that operation?

outsourcing

a small restaurant in Chicago hires an accounting firm to take care of its taxes and payroll. This is an example of

outsourcing

One of the most significant privacy issues relates to marketers' use of _______.

personal info

The "bricks-and-clicks" model involves maintaining _______.

physical stores and an online shopping site

single industry classification system used by the United States, Canada, and Mexico to generate comparable statistics

potential customers' purchases

Walmart developed an infrastructure for its supply chain called SupplierLink that it placed on the internet. SupplierLink combines information on purchasing, inventory, negotiating, and more. It also allows its suppliers to get information on inventory levels and sales from different Walmart stores. This is an example of a(n) _______.

private B2B exchange

Refer to Scenario 10.3. Suppose Jeff wants to attract more users to his company's products. He decides to do two things. First, he develops an online contest and posts it on the corporate blog and Facebook page. He believes the contest will encourage consumers in that country to spread the word. Secondly, he would like to offer them a temporary discount on products purchased within the next week. Jeff is focusing on the _______ and _______ aspects of the e-marketing mix.

promotion; price

The internet is viewed as a _______ medium because users determine which material they are going to view.

pull

What is the latest stage during which a buyer can terminate the buying decision process?

purchase

Pedro's company just started exporting raw cane sugar to the United States. Unlike some of the other countries that it trades with, there is a set limit to how much raw cane sugar it can export to the United States without paying higher tariff rates. Pedro is confused about this and asks his manager about it. His manager replies that the United States has a(n) _______ on raw cane sugar.

quota

Levi owns a store that sells cooking products to end consumers. He has worked with the same supplier for many years and trusts him completely. Whenever Levi needs to order new inventory from his supplier, he sends him information specifying the type of product, the quantity, the color, and some general quality characteristics. Levi has been with his supplier for years and knows how thorough he is. Finding defective products are so rare that Levi doesn't even bother examining the shipment, other than to make sure the products adhere to the standards specified.Refer to Scenario 8.1. Levi is operating in which type of market?

reseller

When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer, this is best described as _______.

reverse auction

Online marketing efforts make the buying process far more efficient because it _______ and _______.

saves time; reduces costs

The first of two major components of developing a marketing strategy is to _______.

select a target market

When you are using the internet to research a school project, and you ignore the banner ads on websites even though you see them flashing on the page, you are probably engaging in the process of _______.

selective exposure

REI targets individuals who love and appreciate the outdoors. It therefore appeals to customers who have a(n) _______ as outdoor enthusiasts.

self-concept

refer to scenario 10.2 The company created the Facebook group to encourage its customers to share their positive experiences with the community. The company is most likely attempting to influence what metric?

sentiment

One of the most important benefits of e-marketing is the ability of marketers and customers to _______.

share information

A market segment profile describes the ________ among potential customers within a segment and explains the ___________ among people and organizations in different segments.

similarities, differences

The North American Industry Classification System (NAICS) is a(n) _______.

single industry classification system used by the United States, Canada, and Mexico to generate comparable statistics

Air France has partnered with 19 other airlines, including Delta, Czech Airlines, Air Europa, China Eastern, and Kenya Airways, to form Sky Team. Sky Team was developed to increase connectivity to destinations worldwide. Each airline operates as its own firm—Sky Team is meant to increase opportunities for all firms involved. In fact, many airlines serve the same areas. This partnership is most likely a(n) _______.

strategic alliance

Which of the following is most likely to be a benefit of reciprocity? a. Optimal purchasing b. More purchasing options c. More government subsidies d. Strong relationships e. Increased competition

strong relationships

Malaysia and Laos are members of the same trading bloc that promotes trade and economic integration among member nations in the region. One distinguishing characteristic of this trading bloc is that it will not support fully free labor flows or a common currency. Which trading bloc is this likely to be?

the Association of Southeast Asian Nations

The group of people within an organization who make business buying decisions are best described as _______.

the buying center

ACME Corp. managers lack the will and resources to develop international marketing strategies, but are happy when their company's products are purchased by a(n) _______, which then sells them internationally.

trading company

A customer forecasting survey may be useful to a business with relatively few customers.

true

By going global, businesses have an opportunity to create value by exploiting economies of scale.

true

Christina manages the accounting department of a consumer electronics firm. She recently sent in a request to purchase 50 new computers for her accounting staff because the computers they are working on are outdated. Michael was given the task of choosing the supplier and purchasing the products. Since Michael is not as knowledgeable about computers, he turns to Phillip, who works in IT, for advice. Phillip knows all about the latest computers, systems, and software. With Phillip's help, Michael looks at the alternatives and selects Dell as their supplier. Refer to Scenario 8.2. In this example of a buying center, Michael occupies both the buyer and the decider roles.

true

E-marketing and digital marketing are often used interchangeably, but the terms do differ.

true

FedBid is a reverse online auction site for government agencies. A reverse auction is initiated by the buyer, who invites businesses to bid to supply the specified good or service in competition with each other

true

Geodemographic segmentation allows marketers to focus precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods.

true

Michelle bought a $300 dress for homecoming. She wore it to homecoming and had a great time. However, afterwards she decided she did not want the dress. She returned it for a full refund. The cashier did not ask about the missing tags. This is an example of consumer misbehavior.

true

The majority of people who access Facebook now do so through their mobile phones.

true

When a firm wants to make only minimal adjustments to accommodate international sales, the most feasible international organizational structure to adopt is the export department structure.

true

When the core competences of a firm are not related to the product being sold, an attractive mode of entry for entering the international market is licensing.

true

Sampson works in marketing at a law firm. Recently, he has turned to social media to try and solicit new clients. There has been a class-action lawsuit his company is working on that involves harmful side effects from a well-known medication. It was discovered that this medication caused potential heart defects. Sampson has been using social media channels to inform users who may have suffered from taking this medication about the lawsuit and how his company is the best firm to represent them. He even created a website specially dedicated to the case and encourages users to ask questions. Refer to Scenario 10.1. Suppose Sampson develops a short informational video describing the harmful side effects of the drug and the lawsuit. He wants to make sure to put it on a video sharing site that will reach as many people as possible. He should therefore probably upload it on

youtube