Marketing Test #2

Which of the following scenarios uses snowball sampling?

After Sasha completed the survey, she recommended her friend to the surveyor because they both liked the same cereal

Secondary data on how to improve the sales of an existing product can take the form of

Census Bureau statistics

In what ways can customer complaints about a service benefit a firm?

Complaints tell a company how to address a service failure.

Which of the following strategies exemplifies a geographic segmentation strategy based on customer convenience?

Cracker Barrel Old Country Store® locating its stores along interstate highways.

Which of the following is an example of planned obsolescence?

Every time a company comes out with a new smartphone, it stops making earplugs compatible with its old smartphone.

Which of the following statements accurately describes global versus domestic marketing?

Expanding into a global market often spurs innovation as firms respond to market differences that later become product improvements for all markets

Which of the following best exemplifies the heterogeneity of services?

Fabricio usually loves dining at his local diner, but today he found the food bland and the wait staff slow.

A B2B seller can use mobile applications to create a competitive advantage by integrating its mobile technology into the its own supply chain.

False

Brand is a characteristic of the augmented product component that enhances product value.

False

Diffusion gives marketers a way to figure out who will least likely purchase their product over a period of time, plan an appropriate marketing plan, and forecast lost sales.

False

Firms should keep consistent brand messages across both its domestic and global markets.

False

Firms that want to maintain or improve their competitive position in the marketplace must maintain the success of their existing product line.

False

Hassan is getting ready to purchase his first home. His involvement throughout the buying process will likely be mid-level because this purchase is considered an extend problem-solving purchase.

False

If a market segment exists, then it is therefore accessible to the firm that would like to serve it.

False

In order to ensure that firms sell more products more profitably, marketers need only to understand why individuals and organizations make their purchases.

False

Positioning is a company's efforts to gain competitive advantage via strategic target marketing.

False

Procter & Gamble offers Tide detergents, Charmin bathroom tissue, Crest toothpaste products, and Pampers diapers, as well as a host of other household brands. These products all represent a product line.

False

The Federal Trade Commission (FTC) allows companies to use mobile tracking technology without regulation because it is necessary for business.

False

The local women's fitness center is now offering new spin classes to post-partum women looking to ease back into an exercise routine. These classes exemplify the center's use of demographic segmentation to draw in new customers.

False

Sam, the marketing manager at Indigo Inc., is in the process of market positioning. He has finished analyzing competitors' positions. What should he do next?

He should clearly define the firm's competitive advantage.

A firm that makes a "place" decision in the global market should do which of the following?

Hire logistics professionals to navigate the maze of transportation choices

Among the reasons this was formed was to promote high employment and sustainable economic growth and reduce poverty worldwide.

IMF

Which of the following is true of brand extension?

It enables new products to profit from the recognition that a brand already enjoys.

If the value of the euro appreciates relative to the dollar, what impact would this have on a company seeking to expand globally?

It would reduce the spending power of American consumers seeking to buy European products

Which of the following statements accurately depicts how marketers use perceptual maps?

Perceptual maps provide marketers a visual picture of where products are located in consumers' minds.

Which of the following exemplifies impulse buying in a supermarket?

Picking up a candy bar while waiting in line at the checkout counter

List the steps of the marketing research process in the correct order.

Problem Definition, Plan Development, Data Collection, Data Analysis, Taking Action

Brand has the closest association to _____ in a firm's marketing mix.

Product

Companies use this to understand the differences between customers' perceptions of a service outcome and the customers' initial expectations.

Service Gaps Model

Which of the following exemplifies service failure as a result of an unanticipated external cause?

The game was cancelled due to a hurricane.

Which of the following best defines a target market?

The group of customers toward which an organization has decided to direct its marketing efforts

Which of the following describes why services are considered to be inseparable?

They are produced and consumed at the same time.

A maker of high-quality smart phones risks losing domestic market share if it doesn't market globally like its main competitors.

True

A new smoothie cart has set up shop near the campus of the local community college. The area comprises a diverse population: college students, faculty, commuters rushing to the train or bus station, and local business people. For a marketer, each of these groups represents a potential target market.

True

A service failure needs to be remedied even if the company believes that the customer is wrong.

True

Data can take the form of interview transcripts, video recordings, or field notes.

True

Due to changes in the B2B buying process, sellers are no longer as involved in the process as earlier as they had been before.

True

Five Guys understands the importance of market segmentation as evidenced by its marketing strategies, which are designed specifically to appeal to its market segment. It develops promotional campaigns and advertisements that focus on fresh, high-quality products rather than on lowering prices or offering quicker service.

True

Higher consumer quality perceptions provide benefits for firms, such as higher sales prices, customer satisfaction, and loyalty.

True

Red Wing Shoes focuses on designing sturdy shoes intended for industries such as mining, logging, and farming. Red Wing's focus on customers within these specific industries is known as market segmentation.

True

The soles of Asha's Asics running shoes are wearing thin, so she needs to purchase a new pair. She knows the style she has worn the last two years has been updated, so she plans to purchase the same brand, but in the updated style. This type of purchase is considered a limited problem-solving purchase.

True

This international organization regulates trade among participating countries and helps importers and exporters conduct their business.

WTO

Someone who is acting as an influencer in the buying center may be best illustrated by which of the following scenarios?

While discussing an upgrade to the company's computer software, the head of IT discussed current trends in computing that she would like the company to consider.

Consumer ethnocentrism is defined as

a belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods or services

Select the example that best illustrates B2B marketing.

a fabric company selling its product to clothing manufacturers

An experiment that is performed in a natural setting, like a restaurant or shopping mall, is called

a field experiment

A marketing strategy that consciously addresses customers, markets, and competition throughout the world is known as

a global marketing strategy

The specific combination of goods, services, or ideas that a firm offers to its target market is referred to as

a product

Consumer learning typically begins with

a stimulus that encourages consumers to act to reduce a need or want.

The allocation of promotional resources should be considered in the context of how _____ a segment is.

actionable

The iPhone's smartphone is well-regarded as a stylish phone with several colors and sizes. This is an example of which product component?

actual product component

A company needs to simplify a product before sales will increase; it does this because

an easier-to-understand product will diffuse faster.

Robin, a 28-year-old fashion designer, is very finicky about the brands that she consumes as a customer. She believes in buying brands that she has previously used. When Robin walks into Brown and Grey, a supermarket, she is most likely to engage in _____ to buy toothpaste and mouthwash

an internal information search

Marketers should follow three major steps to decide how to best position their product. The first step is to

analyze competitors' positions.

Thuan came home from school talking about the fidget spinner that his school friends are playing with and buying. This example best illustrates which stage of the consumer adoption process?

awareness

Which of the following accurately represents the order of steps in the consumer adoption process?

awareness, interest, evaluation, trial, and adoption

The name, term, symbol, design, or any combination of these that identifies and differentiates a firm's products is termed as

brand

Haze, a beverage manufacturer, has a business strategy concentrated on developing environment-friendly products. It uses green-colored packaging to indicate the ecofriendly component of its products. This helps Haze's products to stand out and be recognized easily. This scenario exemplifies the use of

brand marks.

A company's attempt to rebuild its brand image and increase positive perceptions of its brand is an example of

brand revitalization.

Which of the following is an example of a convenience product?

breath mints

The group of people who are responsible for strategically obtaining products needed by a firm is known as the

buying center.

Capitalizing on its high brand equity, ReInforay, an established retail and grocery brand, introduces a new product, ReNew, which is an improved variant of its existing hair protein serum. ReInforay soon discovers that after the successful rollout and high sales of its ReNew, the sales volume of its existing product has dropped significantly. Which of the following phenomena does this scenario exemplify?

cannibalization

Which of the following characteristic is unique to services?

cannot be possessed

Mathematical modeling, in which equations are used to model the relationships between variables, is known as

causal research

All of the following represent advantages of a product line extension except

certain market acceptance of the new product.

Tom recently bought a pair of headphones, XOB 10, from Blue for $99. Within a month, Tom's friend, Leo, bought a brand new pair of headphones XGD 20, released by Soundz, online at a reduced price of $86. Tom tried the XGD 20 and found it to be significantly better the XOB 10. In this scenario, Tom is most likely to experience

cognitive dissonance.

The manufacturer of large machinery works with the management of a large factory to improve the way the machinery operates on the factory floor. Which of the following best describes this type of relationship?

collaborative

Antoine wants to know if his main rival in organic baked goods is increasing its prices. He talks to his rival's distributors, suppliers, and some of his rival's customers to get this information. Antoine is engaging in

competitive intelligence.

Business-to-business marketing professionals focus on several major categories of business customers except

consumer markets.

Apple iPhone's overall benefits of communication, information, and connection represent which product component?

core product component

Mountain Dew's efforts to maintain a youthful, energetic, and extreme brand for its consumers helps the firm to develop a successful branding strategy by

creating a consistent brand image.

A domestic firm believes that global consumers want exactly the same products as its U.S. consumers. This belief shows that the firm is most likely ignoring the importance of

cultural fit

In which step of the marketing research process does a marketing researcher convert the information obtained from qualitative research into a form that can be used to solve a marketing problem?

data analysis

Dominique is sitting outside the grocery store and recording what people do with their shopping carts after emptying them. She is gathering information on customer behaviors in order to determine how to make it easier for them to return their shopping carts. Dominque is in which step of the marketing research process?

data collection

To understand which items were most likely to sell from mall kiosks, a company distributed surveys and even held a few focus groups of kiosk shoppers at different malls. The company's actions demonstrate which step of the marketing research process?

data collection

In which stage of the product life cycle is the price usually the lowest?

decline

Information gathered from marketing research allows the firm to

define the relationship between two or more variables

This application is a type of enablement tool.

delivery reminder

Because of successful marketing by the NFL, football has become an even more popular sport among women, and football games around the country are often sold out. This, in turn, has sparked demand for football gear and clothing. This is an example of

derived demand.

In which of the following would primary data be most helpful to a firm?

determining whether price cuts on store-branded products impact what products consumers buy

This process gives marketers a way to figure out who will likely buy their product over a period of time, plan an appropriate marketing mix, and forecast potential sales.

diffusion

Marketers seek to gain this type of adopter's acceptance because this adopter tends to be an opinion leader who is willing to talk to other people about his/her purchase experiences. This type of adopter is referred to as a(n)

early adopter.

Keisha is in the market for a new tablet computer. She has spent quite a bit of time gathering information and thinking about the purchase. She has asked her friends for opinions about the models they own and is happy that she has a wide variety of models from which to choose. Keisha is most likely what type of adopter?

early majority

The North American Free Trade Agreement (NAFTA) was created with the goal of

eliminating tariffs

Grapevine Corporation is interested in expanding its business globally and has begun the process of global marketing research. It considers several methods of gathering data. Which of the following is the weakest strategy it can employ?

exclusively using data that is produced by domestic data collection firms

Which of the following market entry strategies provides a firm with the least risk for entering the global market?

exporting

When customers look beyond their personal knowledge and experience to help them in buying something, they are engaging in

external information search.

Marketing services are intangible and therefore do not yield as much revenue generation as marketing products.

false

The customer was dissatisfied with her Uber experience because the driver was late due to heavy traffic. This is not considered a service failure because it is not something the Uber driver could control.

false

The Blooms & Blossoms company has been selling its garden supplies to retail outlets for years. The company has decided it wants to tap into new markets, so it is looking to sell its garden supplies to county institutions for planting gardens in public parks. If the county institutions purchase the Blooms & Blossoms garden supplies, it would be an example of a(n)

first buy.

For a fee, Sanjay can open a Subway sandwich shop in his hometown of Mumbai. The parent company has agreed to let Sanjay use its company name and will give him marketing and operational support. What type of arrangement is this?

franchising

About 50 consumers are participating in a focus group moderated by marketers. They are asked to list terms and phrases that occur to them when they hear the brand name, 'Rotomatix'. The marketers of the brand use the consumers' responses to gain insight into what consumers think of the brand. This scenario is a typical example of

free association.

Quincy enjoyed the ambiance of the theater and found its ushers to be friendly and knowledgeable. This is a matter of

functional quality.

While traveling overseas, Martin drops and breaks his smartphone. He goes to a local mall and purchases a new one at a much lower price than it would have cost in the States. He decides to purchase several smartphones and brings them back to the States where he plans to sell them on eBay for less than the normal market price. The smartphones are considered to be

gray market goods

Services are are inherently variable and cannot be mass-produced. This defines the service characteristic of

heterogeneity.

A service experience changes each time it is created. This characteristic of services is known as

heterogenous.

When a company generates a collection of product concepts to determine potentially viable new products, this illustrates which step of the new-product development process?

idea generation

When Merrill Lynch decided to tailor its global investment advice and professional money management services to best meet the needs of mass affluents, it was focusing on which demographic variable?

income

To gain the most reliable picture of a country's purchasing power, a company should study that country's

income distribution

The marketing research industry relies on ethical standards to help gain the trust of consumers. Establishing trust

increases individuals' willingness to participate in research.

Which of the following refers to the creation of a new or significantly improved product offering for product marketers?

innovation

Devon is considered to be tech-savvy by his friends. He is willing to take risks when it comes to trying new products and is always the first in his group to get the latest gadget. What type of product adopter is Devon?

innovator

When both the service provider and the customer are present during the service delivery, this is known as

inseparability.

Because services have no physical substance and cannot be touched, stored, or possessed like goods, they are said to be

intangible.

The inseparability of services make which of the following most important?

interaction between customer and service provider

All of the following characterizes service quality except

it is a standardized benchmark.

Institutional markets include all of the following except

local government agencies.

Which of the following is a variable of behavioral segmentation?

loyalty

Which of the following is the main reason that firms seek to innovate their products?

maintain or advance market positioning

Companies use the Service Gaps Model to

manage gap between customer expectations and perceptions.

Ping works for a consumer products company, where he collects, interprets, and reports information that will help his company develop new products to better understand and satisfy customers' needs and wants. Ping's work involves

marketing research

At which stage of the product life cycle are sales the highest?

maturity

Which of the following products most likely has an objective measure of goodness or excellence?

memory subscription to Dropbox

The buying situation in which developing specification for an RFP is the most difficult is during a(n)

new buy.

If Dell, which currently does not offer an e-reader, decided to enter the market with one, this e-reader would be classified as

new category entry

New products that represent the smallest percentage but carries the most potential (and risk) for the company introducing them are referred to as

new-to-the-market products.

Verve, a successful soap manufacturer, sells luxury soaps exclusively for women under the brands Verve Opulent, Verve Imperial, and Verve Divine. It has now added Verve Regal to target a specialized segment of urban men who are particular about their grooming practices. The introduction of Verve Regal represents

niche marketing.

All of the following represent stages in the product life cycle except

obsolescence.

Technical quality of a service is based on the evaluation of the service

output.

Which of the following is an example of a pure good?

paper towels

Services cannot be stored, inventoried, reused, or returned, which makes them

perishable.

Healpro, a painkiller, is a low-cost product developed by S&V, a popular retail chain in the United States. It is sold exclusively in S&V stores. In this case, Healpro is an example of a:

private label brand.

Which step in the marketing research process is the point at which a firm sets its research objectives?

problem definition

A company that sells its exports to another country at a lower price than it sells the same product in its domestic market is known as

product dumping

Apple produces the iPhone, iPad, Macbook Pro, Apple Watch, and Apple TV. As a group, these items represent a

product line.

When marketers segment based on _____, they divide the market into groups according to the reason consumers purchase products.

psychographics

All of the following are differentiating aspects of a product's brand except

quality.

Every time Tess brings her bike in for service, the work is done well and her bike is ready to be picked up at the promised time. In regard to service quality, this is a function of

reliability.

Within which product category would a product labeled "new and improved" be classified?

revamped product

Why has the use of licensing to enter international markets increased significantly in recent years?

rising research and development costs

Jerome has a dish full of dirty dishes and has run out of his favorite dishwashing liquid, so he heads to the corner market to pick up a new bottle. This type of consumer purchase exemplifies which variation of the consumer buying process?

routine problem solving

According to Maslow's hierarchy of needs, once their physical needs have been satisfied, consumers' _____ take precedence.

safety needs

Using this research, firms know how much product to hold in inventory at various points in the distribution network.

sales forecasting

When a customer perceives the quality of a service encounter as negative, it is referred to as

service failure.

A marketing research report allows the marketing manager to

solve the marketing problem

Products that require high consumer involvement in the purchase process are called

specialty products.

When defining the problem in the first step of the marketing research process, a firm should

state what it wants to gain by conducting research.

Fenton orders the same office stationery each month for the same price from the same supplier. This is an example of a

straight rebuy.

One of the criteria for targeting consumer groups is to ensure that the potential target market aligns with the organization's overall values and mission. This criterion is known as

strategic fit.

Segments must be _____ in order to be considered as potential target markets because such segments hold promise of greater rewards (sales, profits, market share, etc.).

substantial

Microshine is a brand of toothpaste. In its earlier campaign, Microshine was advertised as an effective whitening toothpaste. However, due to declining sales, its parent company has decided to rethink its marketing strategy. In its new campaign, Microshine is still portrayed as whitening toothpaste, but it also features a research study where other familiar brands in the market fail to make the grade. In this campaign, Microshine has tried to reposition

the competition.

A guiding principle of service recovery is that

the customer is always right.

A toy company is testing kites to see which one can be flown the highest. In this example, which of the following would be considered a dependent variable?

the height the kite can be flown

The highest level of risk in new-product development occurs when

the product fails to meet the needs of customers

A hospital needed to replace its supply of cleaning agents so it contracted with a janitorial supply distributor for the purchase. How would you best describe this buyer-seller relationship?

transactional

E-commerce is most likely to be associated with which type of B2B buying situation?

transactional relationship

Technology in the global marketing environment is being used for

translation programs that allow customers to view websites in their own language

Leonardo wants to join a new health club. His friend belongs to a club that Leonardo read about on social media. He decides to use his friend's free guest passes to try out the club and see if it meets his needs. This situation illustrates which stage of the consumer adoption process?

trial

The marketers at Garnier included a sample of its new hair conditioner within the pages of the latest Vogue magazine. National sales increased dramatically within a few weeks, an example of this product's

trialability.

Although a service does not involve a physical good, it is still considered a "product."

true

If you were asked to market a product like sugar or salt, it would be best to engage in a(n) _____ targeting strategy.

undifferentiated

U.S. companies often learn about consumer behavior in other regions of the world by

using local marketing research companies in other countries