Marketing Test #2

To prevent intrusions, companies install combinations of hardware and software called _____ to keep unauthorized Net users from tapping into private corporate data.

Firewalls

Segmentation by benefits is a type of product-related segmentation used to:

Focus on the attributes that people seek in a product

Which of the following statements regarding differentiated marketing is not correct?

Homogeneous products never need differentiated marketing

An imbalance between a consumer's actual and desired states is a(n) _____.

Need

A company that chooses to focus its efforts on satisfying only one market segment for profit is using a _____ strategy.

Niche marketing

When groups establish values and behaviors they deem appropriate for their members, those values and behaviors are called group _____.

Norms

Identify and describe the 4 categories of business markets. (SA)

-Commercial market -- individuals and firms that acquire goods to be used directly or indirectly in producing other goods and services. -Trade industries -- retailers and wholesalers that purchase goods for resale to others. -Government organizations -- all levels of government that purchase a wide variety of items for use in providing public benefits. -Institutions -- hospitals, universities, churches, and other not-for-profit groups.

List 5 of the differences between B2B marketing and B2C marketing. (SA)

-Consumer purchase decisions are usually made by one person. Organizational purchases often take longer, have more decision makers involved, and can follow rigid purchasing procedures. -Business products tend to be more technical and require a higher level of customer service than consumer products. They may also have to conform to strict specifications. -Businesses often require non-standard products for which prices and terms must be negotiated. Consumers usually purchase "off the shelf." -Organizations usually buy in larger quantities than consumers. Consumer product companies tend to advertise more, especially on television and in print media. Businesses use trade publications, conventions, and peer organizations to advertise. -Business channels are usually short and direct due to the quantities and complexity of the products involved. Consumer channels tend to be longer but less technical.

E-marketing empowers a business with all of the following capabilities except:

A monopoly position.

What is stereotyping?

A preconception about a group of people which can alienate a potential market

The personal determinants of consumer behavior include:

An individual's needs and motives.

Peer pressure is closely related to which purchasing behavior concept?

Asch phenomenon

Comparing B2B e-business with B2C e-business, we find that:

B2B transactions volume accounts for more than 90 percent of e-business activity

Joining a local bowling league for social interaction is an attempt to meet _____ needs.

Belongingness

The product-related segment of the consumer market based on the attributes people seek when they buy a product is called the _____ segment.

Benefits-sought

The product-related segmentation of consumers based according to the strength of their attachment and allegiance to their preferred products is called _____ segmentation.

Brand loyalty

A _____ is an example of a product which has target markets differentiated by age groups.

Breakfast cereal

The single group within society that is most vulnerable to reference group influence is:

Children, who base most of their buying decisions on outside influences

Define cognitive dissonance. How can marketers manage a consumer's cognitive dissonance? (SA)

Cognitive dissonance is the anxiety that results from an imbalance between a person's attitudes, beliefs, and knowledge. It is a form of dissatisfaction with the purchase. Dissonance tends to occur more with high-involvement and higher-priced products, especially when the alternatives would have proven to be a better choice. Marketers can eliminate dissonance by providing information to support the product, either written or through customer service. Courtesy phone calls as follow-up are examples of one-to-one marketing to ensure customer satisfaction. Marketers can also capitalize on the failure of competitors to satisfy consumers with previous sales by enticing the consumer to switch products, thus increasing consumer satisfaction.

The most important goal of a marketing Web site is to:

Communicate product information and build relationships with customers

Channel conflicts can be defined as:

Conflicts among manufacturers, wholesalers, and retailers.

Kyle plans to buy new tires for a converted bus his family uses for camping trips. The tires are the same type used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for this bus are classified as _____ products.

Consumer

The post purchase evaluation of the consumer decision process attempts to measure the:

Consumer satisfaction with the purchase

Education, individualism, freedom, health, and volunteerism are some of the:

Core values in U.S. culture.

VALS defines eight personality types that impact purchasing decisions. Which set of traits is not a part of the VALS matrix?

Creators and Definers

The broadest environmental determinant of consumer behavior is:

Culture

Socioeconomic market segmentation is another name for _____ segmentation.

Demographic

_____ describes the wide range of transactions taking place via Internet applications such as e-mail and virtual shopping carts.

E-business

Big Martin Corporation uses its Web site to target customers and promote its products. Big Martin is engaged in:

E-marketing

In the market segmentation process, demand forecasts and cost projections are used to determine the profit and return on investment that can be expected from:

Each market segment being considered

Neuromarketing is defined as:

Eliciting emotions to stimulate purchases

Marketers applying a positioning strategy want to:

Emphasize a product's unique advantages and differentiate it from competitors' options

Trevor Miguel, a Mexican national, is relocating to America. He is in search of a home, and is highly involved in the purchase decision. Trevor would be involved in which of the consumer problem-solving behavior?

Extended problem solving

In the process of market segmentation, once market potential has been estimated, the next step is to:

Forecast probable market share

During the search step of the consumer decision process, the consumer:

Gathers information about the attainment of a desired state of affairs.

Psychographic segmentation is based on:

Grouping people according to their values and lifestyles.

Which of the following statements reflects Carla's interpersonal determinants concerning her purchase of an Apple computer?

Her family always insists on buying Apple products.

Product-usage segmentation can be an important tool for marketers as they attempt to:

Identify heavy users and lure them away from a competitive brand

Which of the following has been the result of a rise in single-person households?

Increase in single-serve food products

By enabling the coordination of all promotional activities to produce a unified, customer-focused promotional message, e-marketing helps reach consumers through:

Integrated marketing.

When e-business buyers and sellers communicate online and negotiate prices, they are engaged in:

Interactive marketing.

Jorge plans to buy a car and discusses the purchase with his parents. Their influence on this buying decision is considered:

Interpersonal

Cognitive Disonance:

Is more likely to occur as the cost and complexity of the purchase increases.

Mattel Toy's sells only specialty products, such as American Girl dolls, online because:

It does not wish to enter in direct competition with its wholesale and retail partners.

All of the following statements concerning B2C e-business are correct, except:

It outstrips B2B marketing in terms of transaction volume.

Reference group influences would most likely have the greatest impact on which product purchase?

Mercedes Benz

A basic measurement of Web site effectiveness is the conversion rate, which is the:

Percentage of Web site visitors who make purchases.

The click-through rate is a measure of the:

Percentage of people presented with a banner ad who click on it.

Rachael, an advertising executive, shops for clothing at a trendy store in town. The sales clerk shows her the latest styles in bright prints and bold colors. Although these are the styles worn at her office, she rejects them and purchases a wardrobe in neutrals and black. Rachael's decision is most likely driven by _____ factors.

Personal

The term _____ is used to describe a high-tech scam that uses authentic-looking e-mail or pop-up messages to get unsuspecting victims to reveal personal information.

Phishing

A person who is satisfying the most basic level of needs is operating at which level of Maslow's Hierarchy of Needs?

Physiological

The tagline used by Omega watches, "We measure the 100th of a second that separates winning from taking part." is an example of which of the following positioning strategies?

Price/quality

Corporate Web sites are intended to accomplish all of the following except:

Provide a transaction gateway for goods and services.

Which type of segmentation is generally a good supplement to segmentation by demographic or geographic variables?

Psychographic

Reference groups have a greater impact on the purchasing decision when the:

Purchase is unique and conspicuous.

Life cycle stages include all of the following except:

Remarried

Which of the following actions is shaped by effective application of learning theory within a marketing strategy context?

Repeat purchase behavior

Which of the following consumer problem-solving behaviors requires the least effort?

Routinized response behavior

References to the Internet's global reach have to do with its:

Sbility to communicate inexpensively with consumers anywhere at any time.

The three main reasons why people shop online include all of the following except:

Security

In the VALS system, action-motivated consumers are those who:

Seek physical activity, variety, and adventure.

Which of the following is the most appropriate list of criterions for effective market segmentation?

Segments match marketer's capability, measurable purchasing power, effectiveness to serve the segment, good profit potential

A positioning map:

Shows how consumers view a product relative to competitive products

What are perceptual screens? Explain ways in which marketers can overcome these screens. (SA)

Since consumers are bombarded with marketing messages, many pay attention to only those messages that manage to break through their perceptual screens—the mental filtering processes through which all inputs must pass. Marketers must determine which stimuli evoke responses from consumers and then create a message that will stand out and gain the attention of prospective customers. Some evidence indicates that consumers respond best to large ads. Colour and contrast in advertising are also important stimuli. The concept of closure—the human tendency to perceive a complete pic-ture from an incomplete stimulus—can be used to marketers' advantages. Testimonials from opinion leaders and other experienced purchasers can open individuals to new products

The best choice of product to market using an undifferentiated marketing strategy would be:

Table salt

Legal contracts regarding real estate, insurance, and other financial transactions are now possible online due to the development of:

The electronic signature.

Which of the following is a basic requirement for effective market segmentation?

The market segment must have measurable purchasing power and size.

The determination of whether pencils are consumer products or business products is based on:

The purpose for which the pencils are purchased

The cohort effect describes:

The tendency of members of a generation to be influenced and bound together by events occurring during the key formative years when they were 17 to 22 years of age.

The first step in creating an effective Web site is to:

Understand the purpose of the site.

The strategy sometimes referred to as mass marketing is also known as:

Undifferentiated marketing

List and provide an example of each of the 6 Positioning Strategies. (SA)

a) attributes—"Aim toothpaste controls tartar" b) price/quality—"Spur gasoline is good gas, reasonably priced" c) competitors—"Avis is number two, so we try harder" d) applications—"Drano opens clogged drains" e)product users—"Miller High Life is for the blue-collar, heavy beer drinker"

Identify and describe the four bases for segmenting consumer markets. (SA)

a)Geographic segmentation is the process of dividing the overall market into homogeneous groups on the basis of their location. The technology of Geographic Information Systems is making this activity significantly more effective. b)Demographic segmentation involves dividing consumer groups according to sex, age, income, occupation, education, household size, and stage of the family life cycle. c)Psychographic segmentation consists of developing psychological profiles of different consumers developed from asking them to agree or disagree with activities, interests, and opinions of others. Profiles are then grouped and assessed for marketing feasibility. d)Product-related segmentation focuses on such attributes as product usage rates, the benefits people seek from the product, and consumers' brand loyalty to the product.

High-involvement decisions typically involve _____ and _____ products.

expensive; complicated

The Asch phenomenon states that individuals will:

follow the majority opinion even if it contradicts the individual's beliefs.

The number of alternatives a consumer actually considers in making a purchase decision is referred to as _____.

the evoked set