Marketing Midterm

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Positioning statement:A statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference).

Reference group influence tends to be strongest for (and talk about reference groups) a) privately consumed products b) publically consumed luxaries/ specialty products c) unsought products d) shopping products e) convenience products

- Reference Group Influence: People adopt consumption patterns and behaviors that allow them to associate with desirable others while dissociating from undesirable others - Effects are stronger for purchases that are luxuries rather than necessities and publicly consumed/visible to others

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. A) product line stretching B) social marketing C) product line filling D) internal marketing E) cannibalization

A) product line stretching

According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. A) relative market share B) product development C) market diversification D) product attribute E) market segmentation

A) relative market share

BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________. A) an aggressive brand personality B) high brand equity C) no brand commitment D) negative brand equity E) low brand relevance

B) high brand equity (aka consumer perception of the brand)

An American cola-manufacturing company that primarily targets rebellious and adventurous people most likely uses ________ segmentation. A.benefit B.occasion C.psychographic D.income E.geographic

C.psychographic

unsought products

Consumer has little awareness or interest until a need arisesRequire a good deal of advertising or personal selling to interest peopleLife insurance, retirement investments, funeral servicesMost major new innovations until the consumer becomes aware of them - iPhones

estimating the proportion of people who behave a certain way is one of the primary goals of ______ research a) exploratory b) causal c) descriptive d) secondary e) focus group

Descriptive 1. Purpose: To describe the characteristics of a group - what is the demographic profile of the average customer? To estimate the proportion of people who behave a certain way - what percentage of students prefer this vs this? To make specific predictions or generalizations about the target market - can we predict who will buy this vs this? 2. Data Typically uses large samples Quantitative analysis (numbers) (ex- customer satisfaction survey)

Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made during the ________ stage of the purchase decision. A) information search B) situational analysis C) alternative evaluation D) purchase decision E) postpurchase behavior F) need recognition

E) postpurchase behavior

intangible services

Intangible - services cannot be touched, seen, tasted, heard, smelled, or felt before purchase

Line filling? Line Contracting? Line stretching?

Line filling - adding more items within the current range Line contracting - removing items within the current range Line stretching - expanding product line beyond the current range

Exploratory research purposes and data types

Purpose: Gain background information/ better understanding of the situation Define research problems Generate hypotheses Data Small samples Qualitative analyses (ex- interviews, focus groups, videos)

Which of the following is true about causal research? a) causal research is used to generate hypotheses b) causal research is used to gain background information on the situation c) commonly use surveys d) tested through experiments

Purpose: to test cause and effect relationships - Condition X causes Outcome Y Tested through experiments which included independent(X) and dependent variable (Y) Determine how changes in X cause changes in Y Must contain a control group

market penetration

Seek to increase sales of existing products to existing markets

when Samsung introduced the A-series, a more affordable and lower-end line of smartphones, it was engaging in a) downward line stretching b) product line filling c) upward line stretching d) horizontal line expansion e) product line contracting

a) downward line stretching

Which of the following is the most likely result of a marketing strategy that assumes that everyone is the same and can be a potential customer? In other words, this marketing strategy focuses on common needs and ignores the face that different consumers have different needs a) not all customers will be satisfied b) all customers will turn into ambassadors for the brand c) customers will not show any interest in other companies' products d) all customers will be delighted e) customer-perceived value will increase

a) not all customers will be satisfied

which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility a) provide clean tableclothes and fresh napkins for each new customer b) hold regular employee workshops to encourage consistent customer service c) empower employees to handle customer complaints

a) provide clean tableclothes and fresh napkins for each new customer

A man weighs 180 pounds. He steps on a scale six times and receives the following scale readings: 180, 194, 180, 192, 184, 180. Based on what we discussed in class, this scale would be considered a) valid, but not reliable b) valid and reliable c) reliable, but not valid d) random, but not valid e) neither reliable nor valid

a) valid, but not reliable

Suppose burger king began selling a brand new product, papaya smoothies, in the local US market. Which growth strategy would burger King be pursuing a) Benchmarking b) Product development c) Diversification d) Market development e) Market penetration

b) Product development

Of the various segmentation strategies, which one is by far the most popular a) geographic b) demographic c) occasion d) behavior e) psychographic

b) demographic

which of the following have been used to explain why lower income consumers are more likely to buy expensive, national brands when they go grocery shopping (e.g. buying Tylenol vs. generic painkillers) a) focus group research tends to ignore the needs of lower income consumers b) lower income consumers want to compensate for lacking status c) lower income consumers prefer to shop at Costco d) lower income consumers are aware that expensive, national brands often contain the exact same active ingredients as cheaper, private labels e) lower income consumers are less risk averse than higher income consumers

b) lower income consumers want to compensate for lacking status ????

Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use? a) gender segmentation b) occasion segmentation c) geographic segmentation d) psychographic segmentation e) behavioral segmentation

b) occasion segmentation

Which of the following is NOT an example of A/B testing? a) to see whether Facebook users will be more likely to click an ad with images of children or adults b) to see whether a product is successful before a wide-scale roll-out in the mass market c) to compare the effectiveness of a donation form based on whether there are dollar signs or not d) to see whether a certain online image will increase spending compared to another image e) to see whether email length (longer vs. shorter) will impact click-through rates

b) to see whether a product is successful before a wide-scale roll-out in the mass market

What is NOT true about voluntarily childless couples, otherwise known as DINKS a) DINKS are an attractive market segment for unsought products b) DINKS tend to be better educated c) DINKS tend to hold more professional occupations d) DINKS tend to have more disposable income e) DINKS are an attractive market for entertainment, restaurants, and travel

c) DINKS tend to hold more professional occupations

An advantage of primary data over secondary data is that a) when it comes to certain sources like company data bases, it would have been impossible to get the data otherwise b) It is more affordable to acquire than secondary data c) It entails greater control since the data was collected for the current investigation at hand d) It is quicker to acquire than secondary data e) All of the above

c) It entails greater control since the data was collected for the current investigation at hand

A defining characteristic of probability samples is that a) they are less representative than non-probability samples b) they involve personal judgement in the element selection process c) each person in the target population has a nonzero chance of being included in the sample d) results cannot be generalized from the sample to the population e) all of these reasons apply

c) each person in the target population has a nonzero chance of being included in the sample

____ Means that service quality depends heavily on the quality of the buyer-seller exchange during the service encounter. In other words, this is the type of marketing that occurs between service employees and customers a) internal marketing b) traditional external marketing c) interactive marketing

c) interactive marketing

which of the following is NOT true of reciprocity? a) people may feel obliged to reciprocate to avoid developing a bad reputation b) reciprocity is a type of normative social influence c) people are more likely to reciprocate when they are unsure of how to behave d) the door-in-the-face technique leverages the power of reciprocity e) people may feel grateful for free gifts or favors

c) people are more likely to reciprocate when they are unsure of how to behave

when demand for athletic shoes produced by Nike and endorsed by Michael Jordan is high, Nike intentionally limits how many pairs of shoes are manufactured even though the company is capable of making the produce widely available. Such an action maintains strong demand by limiting supply. This decision contradicts the philosophy of which marketing management concept? a) societal marketing concept b) marketing concept c) production concept d) selling concept e) product concept

c) production concept

Companies that define their missions in terms of products or technologies are considered myopic primarily because ___ a) customer needs are shaped by culture, whereas wants are universal b) consumer preferences with regard to products and technology cannot be measured c) products and technologies eventually became outdated d) products and technologies result in low returns on investment e) most consumers are not comfortable using sophisticated technology during the process

c) products and technologies eventually became outdated

The pharmaceuticals division of omni healthcare holds low market share in an attractive, fast-growing market. According to the BCG matrix, the pharmaceuticals division of omni can be classified as ________ a) star b) bear c) question mark d) cash flow e) dog

c) question mark (these convert to stars but currently consist of low relative market share but high market attractiveness/ growth rate)

According to the Expectancy Disconfirmation Model, when customer perceptions of actual quality are equivalent to customer expectations of quality, you end up with a) dissatisfied customers b) delighted customers c) satisfied customers d) under-promising and over-delivery e) customer lifetime value

c) satisfied customers

____ refers to a market coverage strategy in which a firm decides ignore market segment differences and go after the whole market with one offer a) differentiated marketing b) concentrated marketing c) undifferentiated marketing d) micro marketing

c) undifferentiated marketing

External services marketing

communicate brand's value proposition - company - customers

complex buying behavior

consumer buying behavior in situations characterized by high consumer involvement in purchase and significant perceived differences among brands ex: particularly when consumers are buying an expensive product like buying a car for the first time

Dissonance-reducing buying behavior

consumer buying behavior in situations characterized by high involvement but few perceived differences among brands (usually expensive, risky, purchased infrequently) ex: purchasing a waffle maker. In this case, a customer won't think much about which model to use, choosing between a few brands available.

habitual buying behavior

consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences example: while a consumer buys a loaf of bread, he tends to buy the brand that he is familiar with without actually putting a lot of research and time. Many products fit into this category.

variety-seeking buying behavior

consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences For example, a consumer likes to buy a cookie and choose a brand without putting much thought to it.

according to feature fatigue, which of the following is true? a) before purchase, we want the least expensive produce, but after purchase, we prefer more premium products b) before purchase, we want more product features, but after purchase, we prefer the product that our friends recommended c) before purchase, we want fewer product features, but after purchase, we prefer the products that allow us to show off to friends d) before purchase we want more product features, but after purchase, we prefer more useable products

d) before purchase we want more product features, but after purchase, we prefer more useable products

Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem? a) inconsistency b) variability c) inseparability d) perishability e) intangibility

d) perishability

The following source of information is the most effective at influencing a consumers purchase decision because they are viewed as more credible and trustworthy a) company and social media b) product packaging c) salespeople d) user-generated reviews e) advertising

d) user-generated reviews ???

According to the Brain Drain Hypothesis that we discussed in class, which of the following can result from smartphone usage a) consumers suffer permanent long-term memory loss b) consumers become better at maintaining social relationships c) consumers become better at multi-tasking d) working memory capacity decreases e) consumers become less satisfied with their smartphones

d) working memory capacity decreases

When the iPhone was first launched in 2007, Apply had to do a lot of advertising to interest consumers and to make them aware of this product. What type of consumer product would an iPhone be considered back in 2007? a) convenience product b) undifferentiated product c) specialty product d) unsought product e) shopping product

e) UNSOUGHT

which of the following is NOT true about brands? a) brands provide social value b) brands represent consumers' perceptions and feelings about a product c) brands help with promotional efforts d) brands help with segmentation e) brands are part of a good or service's core product

e) brands are part of a good or service's core product (core product Consists of all the benefits the product will provide for consumers) BRAND Represent consumers perceptions/feelings about a product- Includes the name, symbol, or any other unique element of a product that allows identification of a firm's products and sets it apart from the competition - Functions: o Reduces performance risk, social value, identification, promotional efforts, segmentation, building strong

Soon-Yi Park's chain of travel agencies has identified the lesbian, gay, bisexual, trans community as a growing market that spends an increasing income on travel. Which would be the LEAST effective component of a marketing plan for Soon-Yi to take advantage of this opportunity a) place specially targted ads in gay-themed publications b) advertise on LOGO, the cable television network aimed at gays and their friends and families c) Develop a presence on LGBT-oriented social networking sites d) Position his agency as focused on specialized experiences e) Implement a mass marketing campaign

e) implement a mass marketing campaign

Suppose an electronics company operated under the assumption that customers wanted USB drivers that would offer the most in quality, performance and innovation features. This company overlooked the fact that there could be other data storage solutions altogether. This reflects the ____ concept a) production b) marketing c) selling d) societal marketing e) product

e) product

Internal services marketing

firms have to support and motivate employees -company - employees

Inseparable Services

goods are produced, sold, and then consumed. In contrast, services are often sold, produced, and consumed at the same time/location. A service is inseparable from the service provider

cash cow

high relative market share, low market growth rate

Star

hight market growth rate/ attractiveness, high relative market share

Dog

low growth potential and small market share

question mark

low relative market share, high market growth rate

Interactive services marketing

service quality depends on buyer-seller interaction - employees - customers

Variable Services

services are less standardized and uniform than goods because service quality depends on who provides the services and when, where, and how

Perishable Services

services cannot be stored for later sale or use. If not used, the revenue is lost. Matching supply with demand at any given point in time

If a consumer purchases a brand new Sony flat-screen television, what is the augmented product involved?

tech support and warranty The Core product- Consists of all the benefits the product will provide for consumers - Marketing is about providing benefits, not products The Actual product- Consists of the physical good or service that supplies the desired benefit- Actual product also includes appearance, styling, packaging, and the brand- Ex - a drills core product is the ability to make a particular size hole, but the actual product is a plastic and metal apparatus with a motor The Augmented product - Extra features of the product that might not be necessary for the product to work, but that can enhance the experience - Consists of the supporting features such as customer support, warranty, delivery, installation, and repair service after the sale