WVU Marketing 350 Exam 1

A _____ strategy is used when an organization strives to have the lowest costs in its industry and produces goods or services for a broad market.

Cost leadership

Pair the company with the correct Porter's Generic Strategy.

Dell (computers): Cost leadership Nike (footwear): Differentiation Aldi's (grocery store): Cost focus Hummer (automobiles): Focused differentiation

T/F: When a manager notices that increases in call wait times are causing customer dissatisfaction, the manager is looking at an external source of data.

False

________ is defined as the methodical identification, collection, analysis, and distribution of data to discover and solve marketing problems or enhance good decision making.

Market research

________ is 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.

Marketing

________ are the stages of the consumer decision-making process in order.

Problem recognition, search for information, evaluation of alternatives, product choice decision, post-purchase evaluation

________ can be defined as anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, even ideas.

Product

Which of the following is NOT true about product managers?

Product managers have authority over different functional areas (e.g., sales, advertising, production, purchasing, R&D) in which s/he is relying on to develop and implement the strategy.

Which of the following statements is true of secondary data?

Secondary data will not fit the research problem exactly.

________ is a ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.

Social class

Which of the following is TRUE of utility?

The four major kinds of utility are form, time, place, and ownership.

The potential of Zoom, Microsoft Teams, and Google Hangout to replace the need for business travel is an example of _____.

Threat of subsitute products

T/F: A commonly held misconception about marketing is that it is all about advertising and selling.

True

T/F: After shopping around, Janine bought a top-of-the-line Vitamix, but when she got home she was worried that she spent too much and should have bought a less expensive juicer. Janine was experiencing post-purchase dissonance.

True

T/F: An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Attitudes are seldom if ever neutral.

True

T/F: Delivering value to the customer is the core of marketing.

True

T/F: Technology companies such as Apple use market research to understand product users' needs and also to understand the competition.

True

T/F: Values, morals, and beliefs are all part of one's culture.

True

From a customer's perspective, what is defined as a ratio of the bundle of benefits a customer receives from an offering, compared to the costs incurred by the customer in acquiring that bundle of benefits?

Value

The Hernandez brothers manufacture trailers that are used by lawn service companies. The company was started in Texas by their father with one production site and four sales and service locations. Since the sons took over, they have expanded in the last 12 years to include 26 sales and service centers throughout the southeast. In this case, the company is most likely using a generic business strategy based on ________.

growth

Making a change in any one of the marketing mix elements will ________.

have a domino effect on the other elements

Product managers pursuing a growth objective are likely to do all of the following EXCEPT:

increase price.

According to Porter, the two basic sources of competitive advantage are _____ and _____.

low cost and differentiation

To significantly enhance customer choices, Levi combines flexible manufacturing with flexible marketing. Customers may visit the Levi's clothing website or some company-owned stores and order a pair of jeans that will be made especially for them. Levi's has adopted a ________ orientation approach.

mass customization

When companies provide too few products in a product line, they run the risk of ________.

missing important market opportunities

Combining all the products offered by a company is called the product ________.

mix

The manager of Gina's Groceries wanted to see how customers would react to some new displays. To collect this information, she posted employees where they could see the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. In this case, she is using ________ for her market research.

observational data

Frito-Lay is using ________ when offering free in-store samples of Doritos for the express purpose of getting people to try the product, enjoy the product, and finally purchase a bag of Doritos.

operant conditioning

Which of the following is NOT part of the marketing mix?

policy

The marketing manager for Dream Weaver Textiles reads in a trade magazine that the Federal Trade Commission is in the process of revising content labeling requirements for textiles that claim to be natural. In the context of external forces affecting marketing decisions, this represents the ________.

political/legal environment

Mia thinks about how she would like to feel or live today. She is thinking about a(n) ________ state.

preferred

Data collected specifically for the research question under consideration is called ________ data.

primary

Products that have similar features and similar values on those features are referred to as _____.

product form competition

Kitchen Aide offers different series of stand mixers, including a mini-Artisan series, Artisan series, Classic series, Professional series, and Pro-line series. Each series of mixers come with a different size mixing bowl (ranging from 3.5 to 7 quarts), different mixing motor size (e.g., 250 watt motor, 575 watt motor), different accessories, and of course, are offered at different price points, ranging from about $300 to $1,000. This is an example of _____?

product line

Henry Ford is well known to business students for creating the assembly line that enabled mass production of the Model T. This is an example of the ________ orientation.

production

John's beliefs, attitudes, and behaviors are influenced by his friends. His friends can be identified as a(n) ________ group.

reference

A luxury car dealership assigns a service representative to each customer. This service rep handles all routine and emergency service appointments, writes thank-you letters, and advises the car owner when the next service date is anticipated. This dealership has adopted a ________ approach.

relationship orientation

Which of the following competitive forces is NOT addressed directly by Michael Porter?

relative power of other stakeholders

The choice of generic strategy is usually driven by ________ capabilities of the firm, as well as the ________.

resource; competitive landscape

The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of the ________ orientation.

sales

Bella is exposed to around 2,500 messages daily. Since she cannot process, let alone retain, all those messages, she focuses on what is relevant and eliminates what is not. What psychological tool does she employ?

selective awareness

The Girl Scouts introduced a cookie finder app in 2013. In the context of change drivers impacting the future of marketing, this reflects the ________.

shift in generational values and preferences

Today customers have limitless access to facts about companies, products, competitors, other customers, and even detailed elements of marketing plans and strategies. In the context of change drivers impacting the future of marketing, this reflects the ________.

shift in information power from marketer to customer

According to the 2010 U.S. Census, Asian Americans are a high-income, fast-growing racial group in America. In the context of situation analysis, under which of the following macro-level external environmental factors will this be included?

sociocultural/demographic factors

Which of the following is NOT one of the five primary activities in the value chain?

technology procurement

The failure of Apple Newton, the first PDA, highlights the fact that ________.

the best product technically is not always the most successful product

A beer manufacturer has noticed that the cost of hops has increased four times in the last year. A description of this would be found in the ________ section of the SWOT analysis.

threats

Which of the following are two core marketing concepts?

value and exchange

The marketing manager at Little Red Architects, a firm that specializes in the design of school buildings, discovered a glitch in the software that the firm uses. As a result, some of its most recent projects will come in over budget. In the context of SWOT analysis, a discussion of this would be included under ________.

weaknesses

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.

what customers will pay

Americans value hard work and achievement while Japanese citizens value harmony and hierarchy. This shows a difference in ________ factors.

cultural

The primary function of marketing and the entire organization, in a broader context, is to ________.

deliver value to the customer

To remain competitive, firms collect intelligence on a number of external factors. Information related to population change is referred to as ________ information.

demographic

More than any other product discriminator, style offers the advantage to a company of being ________.

difficult for competition to copy

The activities a firm does better than its competitors are known as ________.

distinctive competencies

Information can be misunderstood or made to fit existing beliefs, a process known as selective ________.

distortion

The _____ of a Nikon camera is to capture life's important moments.

essential benefit

The best place in a SWOT analysis for an airline to identify the possibility of acquiring a competitor is ________.

external opportunities

The best place in a SWOT analysis for a wristwatch manufacturer to identify the presence of competitive substitute products is ________.

external threats

The best place in a SWOT analysis to identify problems with hurricanes, earthquakes, major snowfalls, and other natural phenomena is ________.

external threats

Graduating from college, getting married, and having a child all transform an individual's buying habits and are referred to as the ________.

family life cycle

In the context of situation analysis, which of the following is a category for analysis in the internal environment?

firm resources

Apex Jerseys, a manufacturer of sports apparel and sports equipment, has experienced a sharp drop in sales over the last quarter. The marketing manager asks the marketing research department to investigate this alarming development. The first step taken by the researchers in their process should be to ________.

formulate a specific research problem

Soda, coffe, tea, sports drinks, and bottled water are _____ competition.

generic

Jan Smith, the marketing manager of Big Wheel Autos, has noticed that in many European countries more of the population is moving into urban centers. This has resulted in an increased demand for subcompact cars that can maneuver through these congested streets rather than full-size automobiles. In the context of external information sources, this is an example of how ________ can influence marketing management decisions.

geographic changes

A _____ objective focuses on increasing sales or market share.

growth

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________ product.

core

Peter Drucker, the father of modern management, stated that the only purpose of an organization is to ________.

create a customer

Internal forces such as ________ affect consumer choices.

age and attitude

Brand X diapers, a national brand, has been declining in absolute level of sales for the last four consecutive months. The product manager asks the market research department to do a study to determine why sales have declined. The most appropriate research type would be ________.

an exploratory research

Ammon works at Max's Pizza shop. He is a single father and makes only minimum wages. However, by utilizing the new financial terms available, he recently leased a BMW automobile; this is an example of a(n) ________ purchase.

aspirational

Johnson & Marshall, a growing producer of organic tea, creates a group to make purchase decisions that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. This group best represents a(n) ________.

buying center

In the BCG matrix, ________ are characterized by high share and low growth and are the key sources of internal cash generation for a firm.

cash cows

The two fundamental approaches to learning are ________.

conditioning and cognitive learning

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________ goods.

convenience