Marketing Exam 2 - Ormsbee

Which of the following questions is most important for product designers to consider while developing a product?

How would customers use and benefit from the product?

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.

Specialty Product

Product support services

augment actual products

Institutional Markets

consist of hospitals, nursing homes, and prisons that provide goods and services to people in their care

Person marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

Place marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places

Organizational marketing

consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization

Buying center

consists of all the individuals and units that play a role in the business purchase decision-making process

Dissonance-reducing buying behavior

consumer buying behavior in situations characterized by high involvement but few perceived differences among brands

Habitual buying behavior

consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences

Unsought products

consumer products that the consumer does not know about or knows about but does not normally think of buying

Complex buying behavior

consumers are highly involved in a purchase and perceive significant differences among brands -product is expensive, risky, purchased infrequently, and highly self-expressive

Internal marketing

means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction

Supplier Development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

Concentrated marketing

targets a small share of a large market Limited company resources Knowledge of the market More effective and efficient

Differentiated marketing

targets several different market segments and designs separate offers for each

Undifferentiated marketing

targets the whole market with one offer Focuses on common needs rather than what's different

Government Markets

tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder

Consumer buyer behavior

the buying behavior of final consumers - individuals and households that buy goods and services for personal consumption

Business buyer behavior

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Business buying process

the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands

Relative Advantage

the degree to which a consumer perceives that a new product provides superior benefits

Brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

Micromarketing

the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

Market segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

Information Search

the second stage of the buyer decision process in which the consumer is motivated to search for more information

Selective attention

the tendency for people to screen out most of the information to which they are exposed.

In business markets with inelastic demand ________.

the total demand for products is not much affected by short-term price changes

Brand value

the total financial value of a brand

Product position

the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products

Industrial products

those products purchased for further processing or for use in conducting a business

Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________.

a product's rate of adoption

Target market

a set of buyers sharing common needs or characteristics that the company decides to serve

Occupation

affects the goods and services bought by consumers

Selective distortion

is the tendency for people to interpret information in a way that will support what they already believe.

Selective retention

is the tendency to remember good points made about a brand they like

Interactive marketing

means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter

Which of the following is most likely true about a straight rebuy?

A straight rebuy is handled on a routine basis by the purchase department.

Which of the following is an advantage offered by co-branding?

Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.

Variety seeking behavior

Consumers are minimally involved in the purchase and perceive significant difference among brands

Things that affect consumer behavior

Cultural Social Personal Psychological

Demand for outboard motors depends on consumers purchasing fishing boats. This is an example of ________ demand.

Derived

What is the most important consumer-buying organization in society?

Family

Economic situations include trends in:

spending, personal income, savings, interest rates

Total Market Strategy

Many companies use ethnically specific themes in their mainstream marketing strategy because marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________.

Brand positioning

Marketers can position brands at any of three levels. Attributes Benefits Beliefs and values

________ are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.

Opinion Leaders

Which of the following statements is true of social classes?

People within a social class tend to exhibit similar buying behavior

Need recognition

The first stage of the buyer decision process, in which the consumer recognizes a problem or need

New task

a business buying situation in which the buyer purchases a product or service for the first time

Straight rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

Modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

benefit segmentation

Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.

brand personality

Systems selling

buying a complete solution to a problem from a single seller

The ________ refer(s) to all the individuals and units that play a role in the purchase decision-making process.

buying center

Which of the following is an organizational factor that influences business buyers?

company procedures

Business buyers usually face more _______ than consumer buyers

complex buying decisions

Consumers who show their allegiance to brands, stores, or companies help marketers to segment consumers by their ________.

degree of loyalty

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

differentiable

Evaluation of Alternatives

is the third stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Intermarket segmentation

forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

Purchase Decision

fourth stage, is the buyer's decision about which brand to purchase.

Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.

geographic segmentation

A competitive advantage should be

important, distinctive, superior, communicable, preemptive, affordable, profitable

4 Service Characteristics

intangibility, inseparability, variability, perishability

Total Marketing Strategy

integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

Cognitive dissonance

is buyer discomfort caused by postpurchase conflict

Postpurchase behavior

is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

Convenience products

items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort

Specialty products

items with unique characteristics that buyers are willing to expend considerable effort to obtain

Shopping products

less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style

Service-Profit Chain

links service firm profits with employee and customer satisfaction

Consumer markets

made up of all the individuals and households that buy or acquire goods and services for personal consumption

A company that uses well-known celebrities to help sell its products is using ________ marketing.

person

The service profit chain includes internal service quality, satisfied and productive service employees, greater service value, healthy service profits and growth, and ________.

satisfied and loyal customers

Positioning maps

show consumer perceptions of their brands versus competing products on important buying dimensions

Social marketing

uses commercial marketing concepts to influence individuals' behavior to improve their well-being and that of society

Which of the following refers to a cultural factor in the context of segmenting international markets?

values and attitudes