MGMT 322 Exam #1 Matching, MGMT 322 Exam #1
concentrated targeting strategy advantages
- Concentration of resources - Can better meet the needs of a narrowly defined segment - Allows some small firms to better compete with larger firms - Strong positioning
multisegment targeting strategy advantages
- Greater financial success - Economies of scale in producing/marketing
What are the characteristics of Baby Boomers? How do they behave as consumers?
- born between 1946-1964 - carrying substantial financial burdens, including children educations, mortgages and health care - spend a lot of money on food, cars, personal care, and other personal products - are willing to change brands and try new things - active and feel entitled to enjoy a good life
What are the characteristics of Generation X? How do they behave as consumers?
- born between 1965-1978 - population of 50 million - independent, resilient, adaptable, cautious and skeptical - face a 59% decline in net worth from 2005-2010 - spend 62% more on housing - 50% more on apparel and 27% more on entertainment - SAVING MONEY PRIORITY - not overly concerned with fashion - splurge at stores like Home Depot or pottery barn
What are the characteristics of Millennials? How do they behave as consumers?
- born between 1979-1994 - surpassed population of baby boomers - two stages: entering young adulthood or more established with careers and children - delaying marriage longer - networking and socialization important - savvy online shoppers but still like visiting stores - use online and mobile apps to research product info/find best deals
4P: Place
- concerned with making products available when and where customers want them - the goal is to make sure products arrive in usable condition at designated places when needed
4P: Promotion
- includes advertising, public relations, sales promotion, and personal selling - role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product.
Understand the three alternative targeting strategies (undifferentiated, concentrated, multisegment) and the advantages/disadvantages of each one.
- undifferentiated targeting strategy: a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix - concentrated targeting strategy: a strategy used to select one segment of a market for targeting marketing efforts - multisegment targeting strategy: a strategy that chooses two ore more well-defined market segments and develops a distinct marketing mix for each
undifferentiated targeting strategy disadvantages
- unimaginative product offerings, - company more susceptible to competition
multisegment targeting strategy disadvantages
-High costs -Cannibalization
concentrated targeting strategy disadvantages
-segments too small or changing -large competitors may more effectively market to niche segment
extended decision making
A consumer decision-making process employed when purchasing unfamiliar, expensive, or infrequently bought products
In the context of SWOT analysis, which of the following can be considered a strength of an organization?
A superior production technology
ABC Apparel follows a market-oriented approach, whereas XYZ Apparel believes in a sales-oriented approach. Considering their approaches, it is evident that ______ has/have a competitive edge in today's market.
ABC Apparel
Which activity do flourishing companies consider as the launching point for building relationships with customers?
Attracting new customers
Explain cognitive dissonance, what causes it to occur, and how marketers can reduce it.
Cognitive dissonance is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Marketers can help reduce dissonance through effective communication with purchasers.
Which of the following roles of marketing research is concerned with gathering and presenting factual statements?
Descriptive
Remvault Dairies witnessed a steady decline in the sales of its products due to increased competition in the local market. Remvault Dairies plans to adopt the market development strategy. In this scenario, which of the following is the best step the company can take to rejuvenate its financial losses?
Focus on promoting new uses for old products.
Formal Reference Group
Group in which a consumer formally becomes a member Includes set of stated rules, accepted values, and codes of conduct that members are expected to adhere to
informal reference group
Group that has no membership or application requirements, and codes of conduct that may be nonexistent
Varion Air, an airline company, is providing a promotional offer to mark its first anniversary. Customers will receive a complimentary ticket upon purchase of three business class tickets. In this case, which of the following is a likely outcome of its promotional strategy?
It may increase the sales of Varion Air.
Which of the following statements is true of the marketing concept?
It states that an organization should satisfy customer wants and needs while meeting organizational objectives.
Which of the following strategies seeks to target and effectively serve a single segment of the market?
Niche competitive advantage
Marketing to Hispanic Americans
The Hispanic population's diversity creates challenges for targeting this market. 12 million Hispanics aged 20-34 in the United States 94 percent of U.S. Hispanics have home Internet access. Highly responsive to new media: mobile marketing and social media marketing nearly 60% are of Mexican descent; commitment to family
Which of the following practices can help businesses gain a cost competitive advantage?
Using simplified production techniques
4P: Price
What a buyer must give up in order to obtain a product. - most flexible and quickest element to change - important competitive weapon
external information search
When consumers seek information beyond their personal knowledge and experience to support them in their buying decision.
internal information search
When consumers use their past experiences with items from the same brand or product class as sources of information.
Cash Cows
a business unit that generates more cash than it needs to maintain its market share - low growth market - strategy is to maintain market dominance by being price leader and making technological improvements in the product. ex. personal computers and laptops - Heinz has two cash cows: ketchup and Weight Watchers frozen dinners
Customer Relationship Management (CRM)
a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups
Purchasing Power
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
Target Market
a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
nonaspirational reference group
a group with which an individual does not want to associate
undifferentiated targeting strategy:
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
market development
a marketing strategy that entails attracting new customers to existing products
product development
a marketing strategy that entails the creation of new products for present markets
market penetration
a marketing strategy that tries to increase market share among existing customers
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
probability sampling
a method used by pollsters to select a representative sample in which every individual in the population has an equal probability of being selected as a respondent
Recession
a period of economic activity characterized by negative growth, which reduces demand for goods and services
Learning
a process that creates changes in behavior, immediate or expected, through experience and practice
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
diversification
a strategy of increasing sales by introducing new products into new markets
multisegment targeting strategy:
a strategy that chooses two ore more well-defined market segments and develops a distinct marketing mix for each
concentrated targeting strategy:
a strategy used to select one segment of a market for targeting marketing efforts
Strategic Business Unit (SBU)
a subgroup of a single business or collection of related businesses within the larger organization
Market Segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
_____________ is a firm that specializes in interviewing respondents on a subcontracted basis.
a. A field service firm
Which of these statements is correct with regard to the implementation of marketing objectives?
a. A lot of ongoing communication is involved when executing a plan.
Which of the following is a characteristic of snowball sample?
a. Additional respondents are selected on the basis of referrals from the initial respondents.
______________ is a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases.
a. Behavioral targeting
Which law primarily targets children's products, which are defined as those used by individuals 12 years old or younger?
a. Consumer Product Safety Commission (CPSC)
Which statement is true of the factors determining the level of consumer involvement?
a. Consumers become less involved in the purchase of a familiar product.
The population group born between 1965 and 1978, who value education and knowledge, and who tend to do significant research before making a major purchase is known as:
a. Gen Xers
Zinta Co. has launched a new laptop computer with a bigger monitor and big lettered keyboard. The company uses this model to target senior communities and provides discounts. The company targets thirteen cities in the United States with high populations of seniors. This scenario exemplifies which type of market segmentation?
a. Geodemographic segmentation
Which congressional act protects consumers against terrorist actions?
a. Homeland Security Act of 2002 Correct. Homeland Security Act of 2002 protects consumers against terrorist acts. It created the Department of Homeland Security. See 4-7a: Federal Legislation.
Which of the following is correct about a sustainable competitive advantage?
a. It cannot be copied by the competition.
In the ever-changing marketplace, which of the following statements is true of marketing research?
a. It helps managers take advantage of opportunities in the market.
Which of the following statements is true of nonmarketing-controlled information sources?
a. It includes Internet forums and other forms of public sources of information.
Which of the following statements is true of Generation Y?
a. Its members have been raised from childhood to adulthood in the digital world.
Jack, a Hispanic Millennial, completed his bachelor's degree in the year 2017 and is looking forward to having a successful career. Which of the following behaviors is Jack most likely to be associated with?
a. Jack embraces parts of his original culture.
Which of the following statements is not true of marketing?
a. Marketing focuses primarily on selling goods, services, and/or ideas to customers.
This group is idealistic and pragmatic and the top brand attributes important to them include trustworthiness, creativity, intelligence, authenticity, and confidence. Identify this group.
a. Millennials
Marie and her sister Janet saw an ice-cream vendor. Marie bought herself her favorite chocolate ice cream, and Janet wanted to try a new flavor that the ice-cream man told her about. Marie liked her ice cream, but Janet did not like the new flavor. Which attributes of reinforcement do you observe in this scenario?
a. Positive and negative reinforcements
Which of the following is an element of a marketing mix?
a. Pricing strategies
Which positioning base for a product or service focuses on a personality or type of consumer?
a. Product user
Lauren buys groceries every month from Walmart and rarely does much research on the products she buys. What is the marketing term for this type of consumer behavior?
a. Routine response behavior
Alex purchased a battery-operated drill. Due to a manufacturing defect, the drill overheated and exploded when he used it for the first time. Alex lodged a complaint against the firm that manufactured the drill with the Consumer Product Safety Commission (CPSC). Given the situation, which of the following is most likely to happen?
a. The CPSC can fine the offending firm up to $500,000.
Marketers cannot advertise for adulterated and misbranded food or drug products due to the power of:
a. The Food and Drug Administration
Which of the following statements is true of incomes in the United States?
a. The real median household income has fallen since 2009.
Which of the following statements is true of Baby Boomers?
a. They are most concerned with price and quality when making purchase decisions.
Chipotle stated they were "in the market for Mexican food" by competing on quality instead of price. Chipotle is a company that prides itself on serving "food with integrity." Which mass market targeting strategy did it use when entering the market?
a. Undifferentiated targeting
Using the innovation matrix, the strategic decision to implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands is considered:
a. a core innovation.
The form of research that aims to confirm an existing concept or to learn more about a phenomenon is called ________.
a. basic research
Unlike hedonic value, utilitarian value:
a. can be viewed as a means to an end.
Marina buys a new pair of shoes from Repop, an online store. She logs in to Repop's website and finds that her homepage has been customized to display the status of her latest purchase. In this scenario, Repop is using _____ to exert influence over the decision making journey.
a. contextual interaction
Terra Corp. produces a wide range of furniture, such as cabinets, book cases, and bureaus. It divides its consumer market into several groups of people who have similar interests in wooden furniture. The strategy of dividing its consumer market most likely:
a. enables Terra Corp. to define customer needs and wants more precisely.
New technology that allows marketers to collect detailed information of customers offers marketers a more cost-effective way to reach customers and:
a. enables businesses to personalize their messages.
The ___________________ is an orderly series of stages in which consumers' attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status.
a. family life cycle
The combination of demographics, lifestyles, and geographic categories leads to ______________.
a. geodemographic segmentation
Andrea wants to take her husband, Bill, to an exotic island to surprise him on their tenth wedding anniversary. She has made reservations at an expensive hotel. However, she is now worried whether she is going to get service worth the money she spent. In this scenario, Andrea's inner tension would reduce if:
a. her friends also recommend the hotel.
When considering the roles in decision making that family members play when someone wants to buy a good or service, the member who suggests or plants the seed for the purchase process is called the _________________.
a. initiator
In the consumer decision making process, _____ extends customer interactions to new sources of value, such as related products or partnered businesses.
a. journey innovation
Business firms can stimulate innovation by:
a. letting employees know that they have the freedom to fail.
A product information source that originates with marketers promoting the product is referred to as a(n) ____________________________________.
a. marketing-controlled information source
The process of delivering relevant experiences that are integrated across both physical and virtual environments, throughout the consumer's decision and buying process, is known as ______.
a. on-demand marketing
To position a product as being associated with a particular category of products is positioning by:
a. product class.
Demographics provide the skeleton for developing segmentation strategies, but ___________adds meat to the bones.
a. psychographic segmentation
Linda usually does not spend much time selecting gifts. However, when choosing a fountain pen for her husband's birthday this year, she visited several stores and spent a lot of time asking the sales staff about different features of the pen before making her purchase. This scenario illustrates _____.
a. situational involvement
The most popular technique for gathering primary data is _____.
a. survey research
Jane is a 16-year-old sophomore. She stays abreast of the latest technology and educates her parents about the latest trends in technology. She convinced them to replace her old cell phone with a new one. Given this information, Jane is a _____.
a. teen
The population group that falls between ages 9to 12 and presents great opportunity to American marketers with a huge spending power is known as:
a. tweens.
The underlying elements of a society that distinguishes it from other cultural groups are:
a. values, language, myths, customs, rituals, and laws.
Within the context of the marketing plan, implementation involves:
allocating resources.
Problem Children
also called a question mark - shows rapid growth but poor profit margins
Sampling Error
an error that occurs when a sample somehow does not represent the target population
Measurement Error
an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process
Which term describes the type of group in which family, friends, or a professional organization influences an individual's purchasing behavior?
b. A reference group
Which of the following is NOT correct about big data?
b. Advanced big data databases don't allow the analysis of unstructured data.
Which of the following is true of the FTC's Bureau of Consumer Protection?
b. All of the above are correct. Correct. The FTC's Bureau of Consumer Protection works for the consumer to prevent fraud, deception, and unfair business practices in the marketplace. The bureau also enhances consumer confidence by enforcing federal laws that protect consumers. Additionally, it empowers consumers with free information to help them exercise their rights, to identify and avoid fraud and deception, and to provide a resource for consumers who want information or to file a complaint about fraud or identity theft. See 4-7c: Regulatory Agencies.
____________ is a type of survey that usually involves interviewing business people at their offices concerning industrial products or services.
b. An executive interview
___________ refers to the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data.
b. Big data
Synergy Corp., a large seller of energy-efficient light bulbs, uses extensive promotional strategies to stimulate sales. Marketers at Synergy Corp. have noticed that a competitor is steadily gaining market share, and they want to counter the competition immediately by increasing the sales of Synergy Corp.'s bulbs. Given the situation, which of the following is the quickest step that Synergy's marketers can take to stimulate the sales of its products?
b. Changing the pricing strategy
Companies that successfully implement customer relationship management (CRM) tend to:
b. Customize the goods and services offered to their customers.
Which of the following laws prohibits bribery of foreign officials to obtain business?
b. Foreign Corrupt Practices Act of 1977
Which of the following is the first step in the marketing research process?
b. Identify and formulate the problem/opportunity.
Which statement about the Great Recession of 2007-2009 is true?
b. It began with the collapse of inflated housing prices.
Which of the following statements is true about a marketing plan?
b. It defines the business mission and objectives.
Which of the following is correct about the product development strategy of Ansoff's strategic opportunity matrix?
b. It is a marketing strategy that entails the creation of new products for present markets.
Which of the following best defines the term secondary data?
b. It is data previously collected for any purpose other than the one at hand.
In the context of family life cycle segmentation, which of the following statements is true?
b. Middle-aged married couples with or without children have high average purchase of durables.
People born between 1979 and 1994 and who comprise the largest group in America's workforce are known as
b. Millennials.
Which stage in the consumer decision-making process results from the imbalance between actual and desired states?
b. Need recognition
Which term refers to a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas?
b. Purchasing power
Why do marketers segment their markets and what are the basic criteria for doing so successfully?
b. Segments must be large enough to warrant developing and maintaining a special marketing mix.
Though there was a controversy regarding Kentucky Fried Chicken (KFC) and the news media splashed the story, people were quick to forget about the negative press and continued patronizing KFC and its food. Which type of stimuli/perception does this consumer behavior demonstrate?
b. Selective retention
If the director of a company aspires to become its managing director, works hard toward that goal, and achieves the position. Which of his needs is fulfilled according to Maslow's hierarchy of needs?
b. Self-actualization need
A family that strongly values good health and fitness encourages their family members to take up sports; their grocery list, too, is full of nutritious choices which aid good health. The children in that family follow the same lifestyle pattern when they raise their families. Which term best describes this pattern of behavior?
b. Socialization process
Which of the following is characteristic of companies that embrace a niche market strategy?
b. The strategy is often adopted by small companies with limited resources.
Which of the following statements is true of Gen Xers?
b. They have acquired a disproportionate amount of spending power.
Which of the following statements is true of American teenagers?
b. They prefer face-to-face communication to communicating electronically.
A period of economic activity characterized by negative growth, which reduces demand for goods and services is called ________.
b. a recession
According to family life cycle segmentation, middle-aged married couples with or without children :
b. are difficult to promote by advertisement.
Rolls Royce cars target only the premium car market segment. This is a classic example of:
b. concentrated targeting.
A customer's assessment of whether a organization's goods or services have met his or her needs and expectations is defined as ______.
b. customer satisfaction
Fresnas Cuisine, a restaurant chain, recently introduced fast food on its menu because management recognized that their customers are predominantly young people. This scenario illustrates how _____ influence marketing decisions.
b. demographic factors
The manufacturer of Herbal Essences Shampoo gives away trial packs of conditioner to test the market for its new product. This may refer as:
b. experiential learning.
A(n) ______________ consists of 7 to 10 people who participate in a group discussion led by a moderator.
b. focus group
To increase the sales of low-involvement products, marketing managers can:
b. focus on the package design of the products.
Pine Groove, a cosmetic brand that primarily caters to women, wants to reach out to the less-traditional male market. It conducts research and develops a new product especially for men. In this example, Pine Groove uses _____.
b. gender segmentation
A difference between Gen Yers and Baby Boomers is that, unlike Gen Yers, Baby Boomers:
b. have a strong preference for full service restaurants
When developing marketing research projects, the research design specifies
b. how and when data will be gathered.
To initiate the customer relationship management (CRM) cycle, a company must first
b. identify customer relationships with the organization.
The step of choosing a basis or bases for segmenting a market requires creativity, market knowledge, and ________.
b. managerial insight
In the context of customer relationship management (CRM), _____ offers marketers a more cost-effective way to reach customers and enables businesses to personalize their messages.
b. new technology
The value that a consumer expects to obtain from a purchase is called __________________.
b. perceived value
Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It offers a broad selection of clothing across various price ranges to accommodate consumers at different income levels. In this way, Volten caters to different socioeconomic groups. Volten targets its market segments using _____ as its base for product positioning.
b. product user
The CAN-SPAM Act:
b. prohibits commercial emailers from using false addresses and presenting false or misleading information.
Saraz Inc., a leading brand of apparel, has several branches all over the country. The company's market research shows that teenagers do not choose their brand as often as older age groups. Therefore, the company modifies some of its existing designs to attract teens. In this case, the teenage group can be referred to as a _____.
b. subculture
Which of the following defines computer-assisted personal interviewing?
b.An interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer
Which of the following statements is true of post purchase behavior?
b.Consumers expect certain outcomes from a product after making a purchase.
Which of the following indicates the impact of Patient Protection and Affordable Care Act on marketing?
b.It revamped the U.S. healthcare system and specifically mandated and subsidized health insurance for individuals.
A premise of the Boston Consulting Group model states which of the following?
b.Management must find a balance among the SBUs that yields the overall organization's desired growth and profits with an acceptable level of risk.
Which statement aptly describes the characteristics of the middle class in the United States?
b.They are people who are middle-level white-collar; have education past high school; and with an income somewhat above national average.
Which of the following statements is true of market-oriented firms?
b.They assume that the sale of goods or services does not depend on an aggressive sales force but rather on a customer's decision to purchase that product.
Jane and Kyle, who have been married for four years, recently had a baby girl. Given their current stage in the family life cycle, which statement is most likely true of their spending behavior?
b.They will increase their spending on health care, clothing, housing, and food.
stimulating innovation
build scenarios, enlist the web, talk to early adopters, use marketing research, create an innovative environment, cater to entrepreneurs
optimizers
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
satisfiers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
Which of the following most accurately defines a probability sample?
c. A sample in which every element in the population has a known statistical likelihood of being selected
Which of the following comprise(s) the competitive environment of a firm?
c. All of the above Correct. The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Management has little control over the competitive environment confronting a firm. See 4-8: Competitive Factors.
Which of the following is an advantage of online focus groups?
c. All of the above There are many advantages of online groups: better participation rates, cost-effectiveness, and subjects represent a broad geographic demographic and can more easily include hard-to-access individuals. Typically, online focus groups can be conducted over the course of days and once participants are recruited, they are less likely to pull out due to time conflicts. Online groups do not incur the costs that face-to-face focus groups have for facility rental, airfare, hotel, and food. Because time is more flexible online, respondents can be gathered from all over the world. Additionally, online focus groups allow access to individuals who otherwise might be difficult to recruit. See 9-3b: Uses of the Internet by Marketing Researchers.
Which of the following expresses the role played by marketing research?
c. All of the above are correct. Marketing research has three roles: descriptive, diagnostic, and predictive. Its descriptive role includes gathering and presenting factual statements. For example, what is the historic sales trend in the industry? What are consumers' attitudes toward a product and its advertising? Its diagnostic role includes explaining data, such as determining the impact on sales of a change in the design of the package. Its predictive function is to address "what if" questions. For example, how can the researcher use the descriptive and diagnostic research to predict the results of a planned marketing decision? See 9-1: The Role of Marketing Research.
Which of the following indicates advantages of using secondary data?
c. All of the above are correct. Secondary data save time and money if they help solve the researcher's problem. Even if the problem is not solved, secondary data have other advantages. They can aid in formulating the problem statement and suggest research methods and other types of data needed for solving the problem. In addition, secondary data can pinpoint the kinds of people to approach and their locations and serve as a basis of comparison for other data. See 9-2a: Secondary data.
Which of the following statements is true of the incomes of Baby Boomers in the United States?
c. Baby Boomers' current incomes are relatively low because many have retired.
Claudia is looking to purchase a good phone. After evaluating her options, she has decided to buy an iPhone X, though other brands that have all her required features are offering good value for less money. Prior to buying an iPhone X, Julie may experience some conflict because she is worried that the phone's top-of-the-line technology, which costs much more than its competitors, will be obsolete in a couple of months. What is the marketing term used to describe this feeling?
c. Cognitive dissonance
Which of the following statements is true of a niche strategy?
c. Companies that adopt a niche strategy target a single market segment.
_____ is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer.
c. Extensive decision making
Saving money is a major priority for _________, who are generally economical and look for value when making purchases.
c. Gen Xers
_____ refers to segmenting markets by region of a country or the world, market size, market density, or climate.
c. Geographic segmentation
Which of the following activities is not true of the marketing concept?
c. Implementing effective and high-quality sales techniques to sell goods and services
When conducting marketing research projects, which of the following statements is true of secondary data?
c. It can suggest research methods needed for solving a problem.
Which of the following is a drawback of a sales orientation?
c. It cannot convince people to buy goods that are neither wanted nor needed.
Which of the following statements is true of culture?
c. It encompasses all the things that consumers do without conscious choice.
Which of the following statements is true of a concentrated targeting strategy?
c. It is often adopted by small firms to compete effectively with much larger firms.
Drafi Arts Corp. makes and sells original handicraft products. The management of the company has been successfully using a niche strategy for years. In this case, which of the following is the most likely to be true of Drafi Arts Corp.?
c. It serves only a limited geographic market.
Which of the following exerts the most influence on a consumer's buying decisions?
c. Reference groups
Which of the following specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed?
c. Research design
_____ occurs when consumers change information that conflicts with their feelings or beliefs.
c. Selective distortion
_____ is a process whereby a consumer notices certain stimuli and ignores others.
c. Selective exposure
When two friends, who support two different political parties, only quote statistics that support their favorite political party's strengths but not its weaknesses, which type of perception do they demonstrate?
c. Selective retention
_____ is how consumers see themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.
c. Self-concept
Laura went to Walmart to check the quality, sizing, and price of some branded clothes. But she found the same items at a cheaper price online and bought them online instead of getting them at Walmart. What is this practice called?
c. Showrooming
__________is a learned ability to differentiate among similar products such as different brands of blue jeans.
c. Stimulus discrimination
Which of the following refers to a group of people or organizations for which an organization designs a marketing mix intended to satisfy the needs of that group?
c. Target market
Which federal agency is charged with enforcing regulations against selling and distributing adulterated, misbranded, or harmful food or drug products?
c. The Food and Drug Administration (FDA)
Which statement is true of consumer behavior?
c. The study of consumer behavior includes factors that influence purchase decisions and product use.
Which statement is true about younger Millennials?
c. They are quick to change jobs if they are unsatisfied.
Which of the following about African Americans is true?
c. They generally expect brands to support social causes.
Which of the statements is true of management decision problems?
c. They tend to be much broader in scope than marketing research problems.
Which of the following statements is true of a target market?
c. Uncontrollable elements continually evolve and create changes in a target market.
The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually are not exact, the general idea often holds true. Which consumer market segment is described here?
c. Usage-Rate segmentation
Advertisements of Dove soap show real women in its campaigns and commercials rather than celebrities. Which product positioning has Dove chosen for marketing its soap?
c. Uses or applications by means of positioning
Which of the following is an example of an open-ended question?
c. What do you think about the new ice-cream flavor?
The price component of a marketing mix is:
c. a competitive weapon for companies.
Compared to face-to-face focus groups, online focus groups _________________.
c. access hard-to-recruit subjects.
Bethany is hungry and wants to go to a good restaurant to eat and relax. She chooses Morton's The Steakhouse for its ambiance and good food. Her experience provides_____.
c. both hedonic and utilitarian value
Carrying over a well-known and respected brand name from one product category to another product category is referred to as:
c. brand extension.
If an organization has an SBU that it believes has the potential to be a star, the best allocation of future resources would be to _________ that SBU.
c. build
Wesley Electronics Inc. manufactures electronic gadgets. Its marketing team spent a great deal of money on advertising to create awareness about the company's products among potential customers and employs a variety of methods, such as print, broadcast, and online advertising. According to the steps involved in segmenting a market, Wesley Electronics most likely is:
c. designing and implementing its marketing mix.
A(n) _____ involves interviewing business people at their offices concerning industrial products or services, a process that is very expensive.
c. executive interview
Melina considers herself a fashionista and would like to be perceived as more fashion oriented than her friends and family. However, her family and friends feel she dresses just like them. In this case, the perception of Melina's friends and family contradicts Melina's _____.
c. ideal self-image
A firm that adopts an undifferentiated targeting strategy assumes that:
c. individual customers have similar needs that can be met with a common marketing mix.
Researchers posing as customers who gather observational data about a store are called ______________.
c. mystery shoppers
Becky wants to buy a new cell phone. She asks her friends who are technologically savvy to recommend a good, lightweight phone that is easy to use. In this scenario, Becky is obtaining information using a(n) _____.
c. non marketing-controlled information source
High-quality customer-friendly experiences such as sales, service, product use, and marketing are crucial to the success of ______.
c. on-demand marketing
All of the following are types of reference groups EXCEPT:
c. personal.
The _____ of marketing research is to address "what if" questions.
c. predictive function
Caroline, the manager of a jewelry store, conducts statewide market research and collects data on customer preferences for various jewelry items. Based on her findings, she has to create a forecast of the items that customers are most likely to purchase. In this scenario, Caroline will most likely be performing the _____ of marketing research .
c. predictive role
When considering sampling procedures, a _____ is a sample in which every element in the population has a known statistical likelihood of being selected.
c. probability sample
Social influences are most likely to influence consumer buying decisions by:
c. reducing a feeling of perceived risk or uncertainty regarding a purchase.
Rolex is a prestigious brand of watch that is sold as a luxury product. It has a reputation based on quality and attention to detail. When the company introduces new timepieces, it can count on an existing, well-established market for its new products due to:
c. stimulus generalization.
During an external information search, a consumer is most likely to enlarge his search and consider more alternative brands when:
c. the perceived risk of the product or service to be purchased increases.
Stefanie's mother always shopped at the supermarket once a month. One reason why Stefanie is such an efficient shopper is that, like her mother, she believes, "Buy only what is essential or needed right now." The norms and values passed on to Stefanie are an example of:
c. the socialization process.
The imbalance between actual and desired states is sometimes referred to as:
c. the want-got gap.
A firm using a(n) _____ essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments.
c. undifferentiated targeting strategy
Which of the following statements is true of the attitude of teens in the United States?
c.According to a Packaged Facts study, 75 percent would rather have a new pair of shoes than 50 new MP3 downloads, and 63 percent would choose a new pair of jeans over concert tickets
Which of the following is correct about cluster sample?
c.The population is divided into mutually exclusive groups (such as geographic areas), then a random sample of groups is selected.
evaluation of alternatives
choosing among brands, sizes, styles, and colors
Environmental Scanning
collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
A marketing mix typically involves:
distribution strategies.
Customer Satisfaction
customers' evaluation of a good or service in terms of whether it has met their needs and expectations
Stars
fast growing market leader ex. iPad is one of apples stars
Production Philosophy
focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
secondary data
information that already exists somewhere, having been collected for another purpose
primary data
information that is collected for the first time; used for solving the particular problem under investigation
The management of PQR Electronics believes that success can be achieved with a thorough understanding of its competitive arena and by developing products that satisfy the needs, wants, and expectations of customers. Therefore, PQR Electronics can be said to have a ______ orientation.
market
When a firm believes that the social and economic validation for its existence is obtained from achieving their organizational objectives by satisfying customer wants and needs legally and responsibly, then that firm is said to be ______ oriented.
market
Nessca Inc. is a pharmaceutical company that designs its products to suit the needs of a group of people with similar characteristics. In this case, Nessca should target which of the following market segments?
d. A group of individuals who are diabetic
Which of the following is NOT a key provision of the Patient Protection and Affordable Care Act?
d. A worker can be denied coverage for a preexisting condition.
_____ involves dividing a market into groups such as newborns, infants, young children, tweens, Millennials, Generation X, Baby Boomers, and seniors.
d. Age segmentation
Which of the following is an American value?
d. All of the above Correct. A value is a strongly held and enduring belief. America's core values include self-sufficiency, upward mobility, work ethic, equality, individualism, and achievement-orientation. See 4-2a: American Values.
Unlike Hispanic Americans, most:
d. Asian Americans are born outside the United States.
Identify which statement is true regarding African Americans.
d. Because of their rich heritage, African Americans believe in strong cultural connections.
A firm which produces replicas of famous paintings of reputed and great artists has as its target customers: socialites, celebrities, and the hospitality industry. What type of market segmentation is used in this case?
d. Benefit segmentation
What is the similarity between a stock market and a labor market?
d. Both are composed of people with specific wants that can be satisfied by particular product categories.
Which of the following acts outlaws discrimination in prices to different buyers; prohibits tying contracts (which require the buyer of one product to also buy another item in the line); and makes it illegal to combine two or more competing corporations by pooling ownership of their stocks?
d. Clayton Act of 1914
Freulia Inc. manufactures and sells stationery and office supplies. It is beginning to lose its competitive advantage with the entry of new competitors. In this case, to gain a sustainable competitive advantage, what should Freulia do?
d. Develop the skills and assets of the organization
Which of the following statements is true of nonprobability samples?
d. In a nonprobability sample, the probability of selection of each sampling unit is not known.
_____ is a common base of demographic segmentation.
d. Income
Which of the following statements is true of the social class system in the United States?
d. Interest in organized labor is one of the most common attributes among the working class.
Which of the following statements is true of lifestyle segmentation?
d. It divides people into groups based on socioeconomic characteristics such as income and education.
Which of the following is correct about frame error?
d. It is an error that occurs when a sample drawn from a population differs from the target population.
Which of the following is an advantage of a multisegment targeting strategy?
d. It provides economies of scale in manufacturing and marketing.
Martha visits a department store and discovers that a box of exotic candles will cost 10 percent more than what she had paid six months ago. Similar increases in prices across most goods and services is happening throughout the country. In this scenario, which statement is true?
d. Martha's purchasing power would remain unchanged if she has a pay raise to match the inflation.
Which statement is true about tweens?
d. Most tweens own a mobile phone and almost half of them have smartphones.
_____ is a means of displaying or graphing, in two or more dimensions, where the products, brands, or groups of products are located in customers' minds.
d. Perceptual mapping
_____ refers to how an individual actually perceives himself or herself.
d. Real self-image
Which of the following is NOT an approach companies take to keep innovation strong?
d. Restricting the degree to which people can follow their entrepreneurial passions
Jessica was born in 1994. She spends more time on Facebook than reading magazines. Despite her preference for spending time online at social networking sites, she does listen to the radio and read occasionally. Given this information, which of the following statements is true of Jessica?
d. She is a younger Millennial.
Allen, a Human Resources manager in a multinational firm, is recruiting employees. Rebina, one of the candidates, introduces herself and shares some of her background. From a marketer's point of view, which of the following things she said is considered a demographic factor?
d. She lives in California.
Which of the following is accurate with regard to Asian Americans?
d. The Asian American population growth has been fueled primarily by immigration.
In the customer relationship management (CRM) cycle, which step should be carried out once customer data is analyzed and transformed into usable information?
d. The information must be leveraged.
T his demographic group belonged to the Great Depression generation and had the ability to quietly persevere through great hardships. They were taught to play by the rules and tend to be cautious and are the healthiest, most educated, and wealthiest group of elders. Identify which demographic group is described.
d. The silent generation
Which of the following statements is true of today's consumers in the United States?
d. They are concerned about the nutritional content of their food.
In the context of marketing, which of the following statements is true of nonprofit organizations?
d. They exist to achieve goals other than business-related goals.
Given current demographics in the United States, Millennials:
d. are now greater in number than Baby Boomers.
Hispanic Americans in the United States:
d. are the largest segment of the population to use mobile devices for any type of transaction.
Ryan and Ben are best friends. Ryan regularly runs marathons and is a member of the Marathon Runners Club at his university. Ben also wants to join the club, but he is not a very strong runner. Ben decides to start running every day so that he can participate in marathons and become a member of the club. For Ben, the Marathon Runners Club can be categorized as a(n) _____.
d. aspirational reference group
Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the Gwen 2.0, that becomes highly successful in the market because of its economical price and excellent features. However, this leads to a significant decline in the sales of Prisly Inc.'s other cars. This scenario exemplifies _____.
d. cannibalization
By sending post purchase letters and giving guarantees on products to consumers who have bought their company's products or organization's services, marketing managers can help reduce the consumers' _____.
d. cognitive dissonance
The lifestyle characterized by choosing goods and services according to the activities consumers engage in and the interests they express rather than conforming to a single, traditional lifestyle is called a:
d. component lifestyle.
The purpose of market segmentation is to:
d. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.
A firm that has adopted a societal marketing orientation focuses on ______.
d. enhancing individuals' and society's long-term best interests
A group of brands that results from an information search that a buyer can choose among is referred to as the buyer's ________________________.
d. evoked set
Rochelle wants to purchase a new gaming laptop. She wants to compare two of the latest models of gaming laptops—with similar build, quality, and hardware specifications—from different manufacturers. Rochelle reads reviews of each product on reputable online forums before making her decision. In this scenario, Rochelle seeks data ________________.
d. from a nonmarketing-controlled information source
Unlike external stimuli, internal stimuli:
d. include stimuli such as hunger and thirst.
A firm could benefit from a production orientation when _____.
d. it produces exactly what the market wants
A production-orientated company can survive in a competitive market if ______.
d. its goods and services meet the needs of the marketplace
The process of defining, dividing, and subdividing a large homogenous market into clear identifiable segments having similar needs, wants, or demand characteristics is identified as _____________________________.
d. market segmentation
The process of planning, collecting, and analyzing data relevant to a marketing decision is called ___________.
d. marketing research
Ramelson Inc., a sporting goods footwear and apparel company, features photographs of celebrities wearing its brand of clothing and sports gear. The company launched a commercial for its new line of football cleats. This commercial featured famous football stars as it believes that celebrities can influence customers' buying decisions. In this case, the football stars served as _____.
d. opinion leaders
Opinion leaders are:
d. people who influence others.
In the consumer decision-making process, _____ uses information—either based on past interactions or collected through external sources—to instantaneously customize the customer experience.
d. proactive personalization
Gamers' Page is a magazine that primarily caters to people who are enthusiastic about sports and who enjoy gaming. In this scenario, the editorial board of Gamers' Page uses _____.
d. psychographic segmentation
A closed-ended question designed to measure the intensity of a respondent's answer is called __________.
d. scaled-response question
Nalpas Inc., an apparel company, manufactures clothes for men, women, and children. It further divides its core customers according to demographic variables such as income, ethnic background, and family life cycle. These demographic variables are examples of _____.
d. segmentation bases
Recently, Jenny Inc. launched a new laptop in the market. Blake bought the laptop but was disappointed when several cheaper laptops were successfully launched in the market soon after. To deal with his disappointment, he convinced himself that those laptops were inferior in quality. This scenario illustrates _____.
d. selective distortion
Web-based and mobile technologies that allow the creation and exchange of user-generated content are called:
d. social media.
Marketing Myopia
defining a business in terms of goods and services rather than in terms of the benefits customers seek
bases for segmenting markets
demographic, geographic, psychographic, behavioristic
Ansoff's Strategic Opportunity Matrix
market penetration, market development, product development, diversification
Consumer decision process
need recognition, information search, alternative evaluation, purchase, post purchase
Exchange
people giving up something in order to receive something else they would rather have
Market
people or organization with needs or wants and the ability and willingness to buy
Careers often create a _____ for single parents.
poverty of time
sampling procedures
probability and non probability
When an organization believes that apart from achieving its targets and satisfying customers, it also needs to be responsible for preserving or enhancing individuals' and society's long-term best interests, then the organization is said to have a ______ marketing orientation.
societal
Boston Consulting Group Matrix categories
stars, cash cows, problem children, dogs
As a commitment to diversity and inclusion, Bank of America partnered with the American Ad Council on a campaign known as "Love Has No Labels." The campaign was a roaring success as it touched upon which positioning base of its audience?
Emotion
Which of the following activities is not required to achieve a market orientation?
Employing a high-quality sales force to aggressively promote goods and services
undifferentiated targeting strategy advantages
Potential savings on production and marketing costs
types of reference groups
Primary & Secondary, Formal & Informal, and Aspirational & Dissociative.
4Ps
Product, Price, Place, Promotion
What is a SWOT analysis and how does it work? How can a company use the data in a SWOT to make strategic decisions (i.e., be able to describe the three possible courses of action a company can undertake).
Strengths Weaknesses Opportunities Threats 1. Analyze Internal and External environment 2. Perform SWOT Analysis and document 3. Prepare Action Plan
Market Segmentation
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
selective exposure
The process through which people consciously choose to get the news from information sources that have viewpoints compatible with their own.
4P: Product
The product includes not only the physical unit but also its package, warranty after-sale service, brand name, company image, value and many other factors. Ex. Godiva chocolate has many product elements: the chocolate itself, a fancy gold wrapper, a customer satisfaction guarantee, and the prestige of the Godiva brand name. We buy things not only for benefits but also status, quality or reputation.
behavioristic
Usage/Volume, Benefits, Loyalty, Price Sensitivity
post-purchase behavior
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction
psychographic
These are characteristics such as hobbies, interests, and lifestyle choices.
The AB group of hotels is keen on building relationships with customers. To ensure success in this effort, the attitudes and actions of its employees need to be ________ oriented.
customer
Positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
The collection and interpretation of data about forces, events, and relationships in the external environment that may affect the organization's future or its marketing plan implementation is called:
environmental scanning.
The diagnostic role of marketing research includes
explaining data
secondary reference group
group with whom we do not have direct contact
primary reference group
group with whom we have physical face-to-face interaction
The basic goal of ________ is to increase the short-term cash return without too much concern for the long-run impact.
harvesting
demographic
having certain characteristics in common, such as age, race, or gender
Dogs
in the portfolio matrix, a business unit that has low growth potential and a small market share ex. the mainframe computer
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
Marketing Research
is the process of planning, collecting, and analyzing data relevant to a marketing decision
PQR Corporation is a sales-oriented firm that focuses on high sales. It does not take into account the customer's wants and needs, and instead concentrates on manufacturing products that will reap high profits. This attitude might lead to the firm's missing business opportunities because ______.
its narrow focus on manufacturing specific products does not meet customer needs and wants for a wider range of products
online panels
large numbers of individuals who have agreed to participate in online surveys
routine response behavior
little involvement in selection process, frequently purchased low cost goods, may stick with one brand, buy first/evaluate later, quick decision
aspiration reference groups
nonmembership groups with a positive attraction also exert a strong influence
geographic
of or relating to the natural features, population, industries, etc. of a region
Firm XYZ is known for adopting a strategy that focuses on designing new products based on their assessment of the capabilities of their engineers and on the easy availability of resources. The firm's approach, which emphasizes the ease of production and the talents of its resources rather than the needs and wants of the marketplace, can be attributed to its ______ orientation.
production
need recognition
result of an imbalance between actual and desired states
types of consumer buying decisions
routine response behavior, limited decision making, and extensive decision making
The management at ABC Computers believes that high sales will result in high profit. Together with the company sales force, management devises a sales strategy to promote their new line of convertible laptops based on the assumption that consumers will purchase a product if the company promotes it aggressively. This sales hypothesis can be attributed to the company's ______ orientation.
sales
purchasing profiles of business buyers
satisfiers, optimizers
types of perceptual processes
selective, exposure, selective distortions and selective retention
The popularity of massive music festivals has created an opportunity for fans of electronic dance music to get together and create their own _____.
subculture
techniques for gathering primary research
survey, observation, ethnographic, virtual shopping, experiments
Marketing
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
niche competitive advantage
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Sales Philosophy
the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits
One component of product in a marketing mix is ________.
the company image
Societal Marketing Philosophy
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests
Market Philosophy
the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives marketing orientation is a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept
Perception
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
information search
the process whereby a consumer searches for appropriate information to make a reasonable decision
Customer Value
the relationship between benefits and sacrifice necessary to obtain those benefits
Culture
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
Demography
the study of people's vital statistics, such as age, race and ethnicity, and location
