Marketing Midterm
One argument for protectionism is that it
promotes development of domestic industries.
There are five steps involved in segmenting and targeting a market. What should a marketer do once she has developed a market-product grid and estimated the size of markets?
select target markets
________ can be thought of as the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings.
Business Cultures
Though the percentages are not always the same, a general rule in business says that the large majority of a firm's revenues come from what percent of its customers?
20%
________ is a grassroots movement started in the 1960s to increase the influence, power, and rights of customers in dealing with institutions.
Consumerism
Luke has been scheduling fewer employees to work during the matinee hour at the movie theater he manages because it has been slow lately. He recognized a need to manage his
Idle production capacity
For-profit organizations pursue several different types of goals such as profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. Which of these statements is most accurate?
If profits are acceptable, a company may elect to maintain or increase its sales even though profits may not be maximized.
Jack always tries to sit in Becca's section at the grill because her prefers her service over any of the other current waitstaff, so he is considering the ________ aspect of services.
Inconsistency
An Uber ride is considered a ________ because of its intangible nature.
Service
Workplaces that encourage practices such as mindfulness, personal well-being, and "bring your pet to work" days are responding to which environmental force?
Social
The Foreign Corrupt Practices Act of 1977 made what practice illegal?
bribing an official of a foreign government to obtain business in that country
Marketing expertise is gained
C. by even the average person, who has a great deal of shopping experience.
The dynamics of world trade are evolving; ________ is now the largest country measured by world trade.
China
________ often assist companies and their employees with ethical issues by formally addressing contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.
Code of ethics
A busy downtown hotel is distributing questionnaires to past visitors in order to develop ideas about how to improve its conference facilities and services. The hotel is
Collecting primary data
A ________ is a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.
Competitive advantage
Which of the following is a criterion used to select a target market segment?
Competitive position
Intel Core processors are purchased by Toshiba for its laptops, and are thus considered what type of business product?
Components
In a ________ test market, a firm contracts with an outside service that pays retailers for shelf space and can therefore guarantee a specified percentage of the test product's potential distribution volume.
Controlled
The chief marketing officer (CMO) is considered part of which organizational level?
Corporate level
China's state-owned firms agreed to a $9 billion deal to build railways, hospitals, and health centers in the Democratic Republic of Congo in exchange for 10 million tons of copper and 400,000 tons of cobalt, a critical metal used in electric car batteries, which is an example of
Countertrade
The internal response that customers have to all aspects of an organization and its offerings based on direct and indirect contacts is referred to as
Customer Experience
Marketers provide value to the consumer and other stakeholders by doing all of these with their offerings except which?
D. Financing
When Tori was looking for housing in the fall, she saw a "for rent" sign on a house near her school. Though she tried the number on the sign repeatedly, no one answered the phone and there was no way to leave a message. Marketing did not occur because
D. there was no way for the parties to communicate.
A local political party made phone calls to assess likely voter turnout. The only question asked in the telephone interview was if the respondent planned to vote in the fall elections, to which one could answer either yes or no. This question would be considered
Dichotomous
When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $600 in rent, have a $300 car payment, and spend $300 on food and $200 on clothes. The remaining $1,100 would be considered your
Discretionary income
When its beer sales were flat, Budweiser became interested in entering the premixed cocktail segment by providing a product that would appeal to those who don't enjoy traditional beer. It launched Bud Light Lime-A-Rita, a margarita-flavored, beer-based cocktail, sold in cans and bottles and best served over ice. This is an example of
Diversication
A business firm uses market segmentation to respond more effectively to the wants of groups of potential buyers in order to
Increase sales and profits
All of the following are part of the five-step marketing research approach except which?
Investigate the competition
All of the following are true of a salesforce survey forecast except which?
It is a more rigorous form of linear extrapolation
A ________ may be desirable as a market entry strategy if one company does not have the necessary financial, physical, or managerial resources to enter a foreign market alone, or if the arrangement is required by the foreign government.
Joint venture
The market-product focus and goal setting part of the planning phase of the strategic marketing process includes which of the following?
Market segmentation
The outdoor brand The North Face intends to capture some of its competitors' business in Europe in the next few years, even amid the stagnant economic conditions there. The firm cites the active lifestyles there and the relatively low cost of entry for its backpacking and hiking sports gear, which attracts those planning a low-budget "staycation." The North Face most likely has a ________ goal.
Market share
Each display in a marketing dashboard shows a ________, which is a measure of the quantitative value or trend of a marketing action or result.
Marketing metric
The development of online capabilities created the ________, an information- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offerings.
Marketspace
American Red Cross's ________ is to be dedicated "to prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors."
Mission
Ethical duties, such as the fundamental duty to do no harm, would apply to which personal moral philosophy?
Moral idealism
Procter & Gamble markets its popular multipurpose cleaner as Mr. Clean in North America and Asia but uses several different brand names like Maestro Limpio and Mr. Proper in other parts of the world. These differences arise because P&G is a(n) ________ firm.
Multinational
________ makes it possible for U.S.-based Ford Motor Company to invest $60 million in a Mexico City manufacturing plant to produce smaller cars and light trucks for global sales.
NAFTA
The ________ phase of the strategic marketing process usually results in a(n) ________ that sets the direction for the marketing activities of an organization.
Planning; marketing plan
An important ________ for Medtronic's Micra pacemaker is its unmatched small size, about the size of a vitamin capsule, which allows it to be implanted directly into the heart without invasive surgery or the need for electrical leads.
Point of difference
Which of the following is the most important reason that tobacco companies should not consider preteens to be in the market for their products?
Preteens do not have the ability to buy because of legal restrictions.
________ synergies are represented by multiple filled boxed running vertically down the market-product grid, representing an opportunity for efficiency in research and development (R&D) and production.
Product
Dollar Shave Club asks men to "Shave Money, Shave Time" in its commercials; it offers high-quality blades available by mail for a few dollars a month. Dollar Shave Club's advertising promotes the time- and money-saving aspects of its product as an example of
Product differenciation
Whirlpool developed a colorful, compact, automatic clothes washer suitable for the living space specifically for households in developing countries with annual household incomes of $2,000. This is an example of what type of global product strategy?
Product invention
Doritos' introduction of Cool Ranch Doritos is an example of a
Product line extension
Once a company has decided to enter the global marketplace, it must select a means of market entry. As the firm moves from exporting to direct investment, all of the following increase except which?
Production costs
The 4 Ps of the marketing mix include product, price, place, and
Promotion
Wrigley's offers grapefruit-, cucumber-, and tea-flavored chewing gum in China, which is an example of a ________ global marketing strategy.
Promotion adaptation
Becky's daughter was in the sixth grade and growing very fast. In early fall, her daughter tried on her soccer cleats from the spring and, although they were still in good shape, she could barely fit her foot inside. Becky knew she'd need to get her a new pair; she had just begun the
Purchase decision process
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and
Recommending actions
Spotify uses data about musical preference to suggest new music to subscribers. This use of technology aids in Spotify's ________ efforts, in which the company can gain insights into how its products create value for customers.
Relationship marketing
In a marketing decision, constraints are most likely to be restrictions on the ________ needed to solve the problem.
Sampling
In BCG's business portfolio analysis, ________ may need extra cash to finance their own rapid future growth, but when their growth slows they are likely to become cash cows.
Stars
A company is interested in producing a dinosaur game for mobile phones and tablets. It selects a representative sample of boys and girls ages 4 to 8 who currently have access to a mobile device and like dinosaurs. After interviewing the children and collecting other relevant data, the firm then makes generalizations about what all young children want in their apps. The method used is
Statistical inference
All of the following are true of corruption except which?
Stealing trades secrets is a form of corruption.
Which of the following is the best example of a shopping product? Warby Parker glasses Bentley automobile cash from an ATM Roget's Thesaurus Doublemint gum
Warby parker glasses
A General Electric employee was fired after he reported allegations of Foreign Corrupt Practices Act violations in Iraq to his supervisor and GE Energy's ombudsperson. This can be the unfortunate outcome when one becomes a
Whistle-blower
Research shows that ________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.
a distinctive point of difference
The Census Bureau is an example of
a government agency.
When the temperature outside drops below 30 degrees and you need to walk your dog, marketers might say you have ________ to put on a coat.
a need
Current cultural values commonly held in the United States are`
action, equality, and competition.
When performing ________ of the marketplace, you might uncover key trends such as the growing popularity of brand advocates, the increasing application of virtual reality and augmented reality, and the surging scrutiny regarding the collection and use of consumer data.
an environmental scan
When a pharmaceutical company purchases a new fleet of Toyota Priuses for its sales staff, each of whom travels many miles daily on client visits, the company is considered
an organizational buyer.
Which two of the following demographic segmentation variables would firms use to segment organizational markets?
annual sales and number of employees
In the new-product development process, the ________ stage assesses the total "fit" of the proposed new product with the company's mission and objectives—from whether the product or service can be economically produced to the marketing strategy needed to have it succeed in the marketplace.
business analysis
Customer relationship management (CRM) is the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that
buyers will choose them and become advocates.
A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they
can help identify the strategic role the new product might serve in the firm's portfolio.
Walmart has been opening Walmart Neighborhood Market stores that are one-fifth the size of its supercenters and intended to compete with stores like Dollar General. One risk to this effort is
cannibalization.
Before Pepsi-Cola stamped freshness dates on its cans, few consumers considered cola freshness an issue. After Pepsi spent about $25 million on advertising and promotion, a consumer survey found that 61 percent of cola drinkers thought it important. This is an example of using which attitude change strategy?
changing the importance of attributes
Selective ________ involves interpreting information so that it is consistent with your attitudes and beliefs.
comprehension
________ are a marketer's product, service, or brand points of contact with a consumer from start to finish in the purchase decision process.
consumer touchpoints
When it was introduced, Jergens Ultra Healing Extra Dry Skin Moisturizer was an example of a
continuous innovation
Venmo's ________ can be described as providing P2P money transfers with seamless utility, while engaging a messaging feed that allows users to see when, where and why their friends are spending money.
customer value proposition
Colgate-Palmolive secured the endorsements of dentists to make the claim that Colgate Total toothpaste is the number-one recommended toothpaste by most dentists, a tactic that is most effective at
decreasing perceived risk
As consumer demand for new cars increases, tire makers and steel and aluminum suppliers may experience an increase in demand for their products, which is an example of
derived demand.
Google's driverless car is an extreme example of the complexity of which step of the new-product process?
development
For the purchase of a smartphone, an independent rating agency indicates that many consumers use price, display, camera quality, and battery life as ________, because it assesses products on these dimensions.
evaluative citeria
For which of the following items would extended problem solving most likely be used? flying lessons Correct a concert ticket a yoga mat a bus ride tennis balls
flying lessons
When a consumer has evaluated alternatives in the purchase decision process and selected one, he still must determine when to buy and
from whom he will buy
A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a
perceptual map.
Devin wasn't going anywhere for spring break; she just wanted to sit around and binge watch something on Netflix. She went next door to talk to a friend who shared her taste in television and got a recommendation for Master of None. Devin's information search was shortened by a discussion with her neighbor, which is a
personal source
The bike-sharing service ofo has 200 bicycles on Nasim's college campus. He has a subscription to the service so he can simply check out a bike at one of the "boxes" painted on the concrete sidewalks on campus and return it to any box at a later time. The service encourages appropriate behavior with the bikes through a point system. Providing bikes at boxes on campus would constitute which element of the marketing mix for ofo?
place
The furniture company delivered her new couch on Thursday and Samantha used it all weekend. Although she really liked the color and style, she didn't think it was very comfortable. At which stage of the purchase decision process is Samantha?
postpurchase behavior
Target has used ________ to identify 25 products that, when bought together or over time, predict a woman's likelihood of being pregnant as well as her child's expected due date.
predictive modeling
Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses
product groupings
A cohesive marketing mix and the related budget comprise
A marketing program
For Nike, shoes and clothes are among its product
lines
Which of the following statements about global brands is most accurate?
A global brand uses consistent advertising across multiple countries and cultures.
When companies price their products very high in some countries but competitively in others, they face which problem?
A gray market
The ________ subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group.
Asian American
Sarai volunteers at an elementary school tutoring students in math. She spends each Monday afternoon helping out, and she usually feels great about it because she contributes to her community. Is this an exchange?
B. Yes, because tutoring is exchanged for something of value—a good feeling.
Consumer ________ helps answer questions such as why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers.
Behavior
In an inflationary economy, which of the following is true?
Both the costs to produce and buy products are increasing.
Which of the following is an example of a single product with multiple market segments?
Botox is a drug marketed to some groups as a way to reduce signs of aging on the face, and to others as a treatment for migraines.
All of the following are independent variables a market researcher may use in a marketing experiment except which?
Dollar sales
The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory conditions are referred to as
Environmental forces
________ serve as guidelines on how to act rightly and justly when faced with moral dilemmas.
Ethics
Researchers have ridden alongside motorcycle enthusiasts to understand the relationship between riders and their beloved Harley-Davidsons. This is an example of ________ research.
Ethnographic
After the planning and implementation phases of the strategic marketing process is a phase known as
Evaluation
Comparing the results of the marketing program with the goals in the written plans to identify and act on deviations occurs during the
Evaluation phase
When a marketing researcher uses business periodicals and U.S. Census reports, she is using
External secondary data
A new KitchenAid refrigerator has a separate cooling system for the freezer, which lessens the humidity in the refrigeration section and reduces spoilage. The change adds to the refrigerator's ________ utility.
Form
A visionary organization must set a direction that describes its
Goals
To forecast sales and schedule production needs Boeing asks its prospective customers what their likely purchases will be in the next five years, which is considered a
Survey of buyers intentions
Evaluating the decision and the process used for marketing research occurs in which stage of the process?
Take marking actions
________ often triggers a business model change, as it has for Netflix, Barnes & Noble, and Uber.
Technology innovation
Oral-B now has a toothbrush that can connect to your smartphone to provide real-time feedback on your brushing. This is an example of a(n) ________ force that could impact other industries.
Tecnological
________ has resulted in more consistency in regulations, so Colgate-Palmolive Company now markets its Colgate toothpaste with one formula and package across numerous European countries at one price.
The EU
________ decides on trade disputes between members across the world and issues binding decisions.
The WTO
Brick-and-mortar retailers are noticing a change in how many consumers shop. Sometimes they visit a store and scan an item on their smartphones, only to find the same product at a less expensive online retailer like Amazon.com. This turns the store into nothing more than a showroom for products. A SWOT analysis of Best Buy's marketing environment should consider this change in consumer shopping behavior a(n) ________.
Threat
In a marketing decision, constraints are most likely to be restrictions on the ________ needed to solve the problem.
Time and money
Products that the consumer does not know about or knows about but does not initially want are referred to as
Unsought products
McDonald's does not sell beef hamburgers in its restaurants in India because the cow is considered sacred by almost 85 percent of the population, which is considered a difference in ________ from American consumers.
Values
When Apple introduced its iPhone X with Face ID at a high price tag, it used __________ to avoid direct competition with Samsung, LG, and others.
differentiation positioning
The goal of marketing is to both ________ the needs of prospective customers.
discover and satisfy
Positioning a product or brand effectively involves taking four steps, one of which is
discovering how target customers rate competing products or brands with respect to important attributes for the class.
Mexican officials claimed that U.S. apple growers were ________ when they appeared to be selling red and golden delicious apples in Mexico for less than the cost of producing them. This resulted in Mexico adding a tariff to these products.
dumping
Electronic hacking and illegal trespassing for the purposes of acquiring a competitor's proprietary information is considered
economic espionage.
Consumer products are classified based on the attributes used in making the purchase decision, the frequency of purchase, and the
effort spent by the consumer.
Benefits to society from effective marketing include
enhanced competition and lower prices.
Utilitarianism is a personal moral philosophy that focuses on "the greatest ______ for the greatest _______."
good; number
When Coca-Cola introduced New Coke it was a marketing failure. Someone in the marketing department likely thought the new recipe was a disaster waiting to happen, but didn't speak up. This is most likely an example of
groupthink
Two major types of product positioning are
head-to-head and differentiation.
Which of the following is considered a durable good? headphones laundry detergent gasoline a concert ticket tax preparation
headphones
Marketers of ________ products know that their consumers constantly seek and process information about objective and subjective brand attributes.
high involvement
Sometimes consumers skip or minimize one or more stages in the five-stage purchase decision process, depending on their
level of invovlement
A French cooperative called Sodima allows General Mills to sell Yoplait in the United States in return for a fee, a global market entry strategy known as what?
licsensing
In 2019, a marketing manager for New Balance's Fresh Foam Zante shoe needs to forecast sales through 2021. She begins with the known totals for 2018 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like higher inflation and predicted moves by the competition. This type of forecast is referred to as
lost-horse forecasting
Important variables in the family life cycle are age, presence of children, and
marital status
In a complete market-product grid analysis, each cell in the grid can show the estimated ______ of a given product sold to a ______.
market size; specific market segment.
Designing ads and setting prices for new product lines are examples of which of the following?
marketing tactics
Which of the following is the largest living generational cohort?
millennials
The National Institute of Cancer used fMRI brain imaging to decide which potential anti-smoking advertising campaign elicited the largest amount of brain activity. This is an example of which type of marketing research?
neuromarketing
The raw information obtained by iTunes about what songs are downloaded by its users would be considered ________ data.
observational
Which of the following is a variable that could be used for demographic segmentation of consumer markets?
occupation
The entertainment industry in the United States is dominated by Viacom, Disney, and Time Warner, so they operate in which form of competition?
oligopoly
Market segmentation involves aggregating prospective buyers into groups that have common needs and
will respond similarly to a marketing action.
There is a growing group of young individuals in the United States that live in their vans, documenting their picturesque adventures on Instagram with the hashtag, #vanlife. This group could most likely be isolated for marketing purposes using which consumer segmentation basis?
psychographic
The VALS system is a(n) ________ measure of consumers.
psycographic
Action item lists have an important advantage over typical meeting minutes in that they
put strong pressure on people to achieve their designated tasks.
Russia allows the United States to ship up to 60,000 tons of frozen beef into the country annually under its import
quota
If Israel is happy with how his new Lifeproof phone case protected the phone when he dropped it in the snow, this would be considered which variable of the behavioral learning process?
reinforcement
Luke sees a public service announcement from the CDC reminding everyone to get a flu shot this fall, and he goes to the student health center to get one. The CDC is attempting to appeal to consumers' ________ needs according to the Maslow hierarchy.
safety
You are asked to complete a short survey after attending a free comedy show on campus. If the first question asked you to give an overall impression of the comedian, and had a five-point scale ranging from "hilarious" on one end to "not funny" on the other end, it would be what type of marketing research question?
semantic differential scale
Potential buyers within a market segment should be
similar in terms of the product features sought.
In marketing research, the research objectives are the ________ goals of the decision maker.
specific and measurable
Using the same brand name for different products is an application of which concept from behavioral learning theory?
stimulus generalization
Orbitwheels are a cross between a skateboard and pair of inline skates. Riders insert each foot in a large wheel that rotates sideways. Orbitwheels differ from a skateboard in that they are self-propelled by the rider's wave-like motion so the need to push off the ground every few feet to get moving is eliminated. The product has been popular among some kids, especially athletic teen boys. Athletic teen boys could be described as the ________ for Orbitwheels.
target market
All of the following are true of tariffs except which?
tariffs lower prices on imports
Which of the following most directly impacted the legal concept of caveat emptor in the United States?
the Consumer Bill of Rights
Social responsibility refers to
the belief that organizations are accountable to a larger society for their actions.
Inseparability in services refers to the fact that
the consumer cannot distinguish the service provider from the service itself.
As a situational influence, antecedent states include
the consumer's mood.
Back translation is
the practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors.
A disadvantage of using social media for marketing research is
the sample of individuals from whom content is gleaned may not be statistically representative of the marketplace.
In marketing, ideas are
thoughts that lead to a product or other marketing actions.
Not only do businesses see benefits from the protections of ________, consumers do as well; they allow consumers to correctly identify the products they want to purchase.
trademarks
Market segments are homogeneous in two ways: prospective buyers have common needs and they
will respond similarly to marketing action.