BUAD479 Exam 1 Quiz Questions
A company that develops artificial flavorings for candy manufacturers uses research to refine its market offerings. Its studies require participants to make repeated comparisons between pairs of products; in each pair, the products differ on the key attributes of flavoring strength and price. The research approach of this firm is: -latent class analysis. -conjoint analysis. -cluster analysis. -regression analysis.
-conjoint analysis.
Firms CANNOT create -positioning strategies -segmentation strategies -target strategies -consumer segments
-consumer segments
A brand's position is based on value claims as perceived by: -consumers -investors -suppliers -competitors
-consumers
Marketing capabilities are among the building blocks of a company's business model—how it creates value and captures profits in the marketplace. Which of the following is NOT an example of a firm's capabilities? -brand management -customer relationship management -marketing communications -customer database
-customer database
The goal of cluster analysis is to group customers and determine the number of groups, or clusters, so that the: -distance between two customers in a cluster is maximized. -average distance between clusters is minimized. -distance between two customers in a cluster is minimized. -distance between clusters is averaged.
-distance between two customers in a cluster is minimized.
Advertising that uses evocative imagery, symbols, and situations that tap into feelings may be more effective when decision making is driven by -price -performance -emotions -comparisons to the competition
-emotions
A business-to-business (B2B) positioning strategy can sometimes be less profitable than business-to-consumer (B2C) positioning. When targeting industrial users with its power tools, for example, Black and Decker may have to offer profit-reducing volume discounts, costly product service support, replacement guarantees, and so on, when selling to businesses. Analyzing these profitability implications enables the company to choose value claims that are: -faithful -deiverable -favorable -feasible
-favorable
Which of the following is NOT a defensive competitive strategy? -first mover advantage -steadfast marketing support -retaliation -framing the game
-first mover advantage
For claims about the product, positioning statements should: -avoid any reference to points of similarity with competitor brands -cite all of the benefits that the brand offers -focus on the single, most important value claim -focus only on the points of differentiation between this brand and others
-focus on the single, most important value claim
Company A launches a me-too product that requires minimal investment, enabling the firm to underprice the market leader. The market position most likely occupied by Company A is that of a market: -driver -nicher -follower -challenger
-follower
Mass customization is most appropriate: -for technology products where the cost of new versions is extremely low -in industries with minimal competition -in markets where customers have homogeneous needs -for technology products in emerging markets
-for technology products where the cost of new versions is extremely low
Mass customization is most appropriate: -for technology products where the cost of new versions is extremely low. -for technology products in emerging markets. -in industries with minimal competition. -in markets where customers have homogeneous needs.
-for technology products where the cost of new versions is extremely low.
Conjoint analysis is an approach used to achieve preference-based segmentation by -forcing consumers to articulate why they make certain purchases based on different attributes -forcing consumers to make trade-offs between pairs of products with different attributes -extending the multi-attribute model approach to new product categories -correlating preference data with response data
-forcing consumers to make trade-offs between pairs of products with different attributes
California Closets is a maker of closet organizers and custom storage solutions. Its products are designed for people who live in small spaces. Assuming the company plans to segment its market based on a single variable, which of the following is most appropriate? -behavioral (usage rate) -geography (urban versus suburban) -psychographics (lifestyle) -benefits sought (value)
-geography (urban versus suburban)
John Deere & Co is deciding whether to use a feature-based claim or a benefit based claim for its new JD 750 tractor's positioning. Which of the following is a benefit based claim? -The first hydrostatic transmission -A fully automatic dual-path hydrostatic drive -Drive tracks' design means they are capable of being driven independently of each other -improved maneuverability and flexibility
-improved maneuverability and flexibility
Which of the following approaches is NOT an avenue for changing the position of Arm & Hammer Baking Soda in the minds of consumers in order to extend the product life cycle and increase sales? -enlarging the target market -identifying new usage situations -increasing trade promotions -adding new distribution outlets for the product
-increasing trade promotions
A soda maker promotes the fact that its products are sweetened with Splenda, a brand of sugar substitute owned by the British firm Tate and Lyle and the US firm Johnson and Johnson. A cookware company advertises that its pots feature Teflon, a nonstick coating brand owned by DuPont. Both the soda maker and the cookware company are using a competitive technique known as: -competitive attribute promotion -ingredient branding -complement branding -added value promotion
-ingredient branding
The purchase phase of the decision-making process of purchasing a washing machine includes all of the following EXCEPT -payment method -installation of the product -timing of the product -brand of the product
-installation of the product
PRIZM is a commonly used segmentation system that groups consumers into: -lifestage groups and social groups -lifestage groups and behavioral groups -lifestyle groups and social groups -social groups and behavioral groups
-lifestage groups and social groups
All of the following should be part of Best Buy's in-store marketing strategy to unluence sales of consumer electronics in its stores EXCPET: -the decision to display the product or not -method of product delivery -recognizability of the brand name -acceptability of the price point
-method of product delivery
Among the segmentation variables related to purchase behavior is consumers' share of wallet. This term refers to the: - total amount of money that a consumer spends as a share of that consumer's yearly expenditures -money that a consumer spends with one firm as a share of all the money that the consumer spends in that category -money that a consumer spends with one firm as a share of that consumer's discretionary income -money that a consumer spends with a representative firm as a share of all the money spent by similar consumers
-money that a consumer spends with one firm as a share of all the money that the consumer spends in that category
Estee Foods was the first US company to offer sugar-free candy and chocolates. For over half a century, the firm has targeted its sweets exclusively to the relatively small consumer segment of diabetics and those on sugar-restricted diets, eschewing opportunities to enter larger segments of the candy market. In terms of market position, Estee Foods is a market: -challenger -follower -nicher -leader
-nicher
During which step in the STP marketing process is a value proposition defined and an action plan developed? -targeting -segmentation -planning -positioning
-positioning
Raisin growers, milk producers, and pork processors are examples of companies that have jointly supported promotional campaigns designed to build primary demand for their products. In which type of game have these players engaged? -positive-sum -prisoner's dilemma -negative-sum -zero-sum
-positive-sum
Marketing resources are amount the building blocks in a company's business model- how it creates value and captures profits in the marketplace. Which of the following is NOT an example of a firm's resources? -creative platform -pricing flexibility and expertise -patents and trademarks -e-commerce websites
-pricing flexibility and expertise
For a segmentation to be useful, it must meet several criteria. Which of the following is NOT among these criteria? -identifiable -accessible -substantial -profitable
-profitable
Specialty retailers like Restoration Hardware, L.L.Bean, and Anthropologie make heavy use of direct mail catalogs. Such catalog marketers typically segment their markets based on three factors, each of which describes the nature of different customers' past purchases and correlates well with future purchases. Abbreviated as RFM, the factors are: -recognition, frequency, and monetary value -recall, familiarity, and measurability -recency, frequency, and measurability -recency, frequency, and monetary value
-recency, frequency, and monetary value
Which of the following is among the fundamental elements in the dynamic process for managing marketplace competition? -choose the right game -execute offensive or defensive competitive moves while observing and analyzing rivals' moves -reinforce the existing game to reshape the playing field -analyze the games and their players
-reinforce the existing game to reshape the playing field
If they wish to advertise to children in the United States, companies must craft their campaigns in accordance with the Children's Television Act and other restrictions on the exposure of this audience to commercial messaging. Similarly, to advertise in Europe, firms must carefully observe restrictions on unsolicited advertisements in certain media as stipulated by the European Directive on Privacy and Electronic Communications. Which component of the PARTS model captures the impact of such restrictions? -added values -scope -tactics -rules of engagement
-rules of engagement
Which of the following is NOT a benefit of segmentation for organizations? -segmentation results in better products and services -segmentation enables targeted promotions -segmentation makes marketing more convenient -segmentation helps identify underserved customers
-segmentation makes marketing more convenient
The manager of a chain of gyms is concerned about falling prey to marketing myopia by not defining his competitive landscape properly. How should he define the business to avoid falling into this trap? -cutting-edge workout equipment unmatched by other facilities -the best exercise value for the price -full-service fitness centers with personal trainers -solutions for good health
-solutions for good health
A competitive analysis of Starbucks entering new markets includes all of the following EXCEPT: -espresso drinks being offered by Dunkin Donuts -McDonald's new store format in Saudi Arabia -the positioning of Burger King selling coffee drinks -the number of new coffee drinkers in the United States every year
-the number of new coffee drinkers in the United States every year
Samsung is positioning its newest model TV as having the sharpest picture and the most realistic colors, as well as having the thinnest screen monitor. This is an example of: -breakaway positioning -vertical positioning -horizontal positioning -triangular positioning
-vertical positioning
The step in the decision-making process that is unique to consumers who are actively seeking to buy products that need a prescription is -considering alternative products -visiting the physician -purchasing the product -determining a need for the product
-visiting the physician
The total population of cigarette smokers in many markets is stagnant or decreasing over time. Under such conditions, the goal of tobacco companies is to entice existing smokers to switch brands. These tobacco marketers are playing which type of game? -zero-sum -nash equilibrium -non-zero-sum -positive-sum
-zero-sum
Which of the following is NOT a marketing channel task? -Before-sales service -Demand generation -information/market feedback for strategy development -demand fulfillment
Before-sales service
Which of the following is NOT a situation that can benefit from an MOA? -a need or want is identified, but no product or service is identified to satisfy it -a product exists, but the need or want for that product is not well understood -no product is identified, and no need or want is identified -a new product has been developed, but no price has been determined
a new product has been developed, but no price has been determined
Which of the following is NOT an accurate statement about consequences: -when compared to desired end states, consequences are a more abstract representation of customer needs -consequences can be outcomes experienced from using a product, as well as from simply owning the product -positive and negative consequences are the means by which goal attainment is accomplished or inhibitied -the importance of a particular consequence may vary across different use situations
when compared to desired end states, consequences are a more abstract representation of customer needs
Which information is NOT collected as part of a customer profile? -willingness to pay for specific products -needs and wants -demographic characteristics -important use situations
willingness to pay for specific products
The approach to understanding customer value described in Chapter 5 of the Cadotte and Bruce text book suggests: -attributes are the means by which consumers achieve desired end states -focusing R&D to maximize the precision of a particular feature that is valued by consumers will increase the value of the product -customer value is an economic consideration assessing the variance between the price paid for an item and the cost to manufacture the item -consumers are unable to communicate what they will want in the future because they do not have an understanding of what technological advances will be available for incorporation into product design
attributes are the means by which consumers achieve desired end states
Laddering is a successful interviewing method that explores -attributes preferred, consequences desired and benefits sought -price willing to pay, place willing to purchase and preferred payment method -consequences desired, price willing to pay and exit strategy -the differences between marketing and advertising strategies
attributes preferred, consequences desired and benefits sought
Which of the following choices is NOT an essential element of a positioning statement? -target market -comparison to the competition -most important benefit -product category and type
comparison to the competition
Which of the following participants is NOT part of the buying process? -influencer -user -competitor -purchaser
competitor
You are conducting a context analysis for Apple opening up a new store in Africa. All of the following should be a part of the analysis EXCEPT: -political unrest -the adequacy of the infrastructure -customer characteristics -beer-drinking habits in Nigeria
customer characteristics
In regard to segmentation, all of the following are examples of a customer's behavior or relationship with a product EXCEPT: -loyalty status -demographics -user status -usage rate
demographics
Whole Foods grocery stores has chosen to market its organic products to college-educated consumers. This approach is an example of what type of segmentation? -psychographics/lifestyle -demographics -geographic -benefits sought
demographics
Which activity is NOT a part of the MOA process? -macro environment analysis -establish market requirements -develop a production plan -forecast sales from product markets
develop a production plan
When conducting a five Cs analysis and developing the context, which factor should NOT be included in the analysis? -legal context -firm capabilities -culture -technology
firm capabilities
The objective of a marco environmental analysis is to -identify the major markets in which a new product might compete -identify the relevant demand forces, determine their relation, and predict how they might change in the future -determine the demand for a new product -determine the optimum price for a new product
identify the relevant demand forces, determine their relation, and predict how they might change in the future
With the MOA it is essential to estimate the number of customers in the market. What should be done to ensure a reasonable estimate of the number of customers for your product? -develop a mission statement -identify the target market -consider the purchasing cycle -assess the strengths and weaknesses of the competition
identify the target market
Which of the following is NOT an example of a post-purchse marketing strategy? -a return policy -instructions for washing the product -a process for handling complaints -in-store displays and promotions
in-store displays and promotions
In the Market Opportunity Analysis (MOA) process, the Evaluate Market Opportunity step: -is the final step undertaken to pull the analysis from earlier steps into an overall picture of market opportunity -it is not a step in the MOA process -is the initial step performed in order to quantify the size of the market -is an ongoing process performed in conjunction with every step in the MOA process
is the final step undertaken to pull the analysis from earlier steps into an overall picture of market opportunity
One of the reasons customer value hierarchies is important is that -it increases the level of stability as one moves up the hierarchical stages -it is very easy to implement -it provides a "bottom-up" approach to decision making -it is not necessary to understand the higher level tp implement decision
it increases the level of stability as one moves up the hierarchical stages
Developing a broad understanding of your market includes: -generic product/market -brand -market region -product-type market
market region
Which of the following is NOT part of the product-market structure? -product-type market -brand -market region -generic product/market
market region
"What the market will bear" refers to customer response to which element of your product? -price -benefits -weigh -features
price
Which of the following is most associated with a purchase using cognitive processes compared to emotional factors -real-estate loan -rolex watch -honeymoon -sports car
real-estate loan
The phase 3 post-purchase process for a high-involvement shopper is best described as: -reevaluating the purchase only moderately unless switching brands -evaluating self as astounded or disappointed -reevaluating the purchase little or not at all -reevaluating the purchase to a significant extent and likely to have buyer's remorse
reevaluating the purchase little or not at all
All of the following practices are members of a decision-making unit EXCEPT -gatekeeper -service provider -buyer -influencer
service provider
'Highly satisfied' customers are -six times more likely to repurchase than 'just satisfied' customers -twice more likely to repurchase than just satisfied customers -twenty times more likely to repurchase than just satisfied customers -not any more likely to repurchase than just satisfied customers
six times more likely to repurchase than 'just satisfied' customers
Benson Shaprio's "three degrees of interaction" include all of the following EXCEPT: -synergy -leverage -consistency -integration
synergy
All of the following are examples of the disposal of a product that comes with another product EXCEPT: -Hewlett Packard providing mail labels with new ink and toner cartridge purchases so that the old cartridge can be returned for recycling -an office products store providing a drop-off box for ink and toner cartridge recycling -tempur-pedic describing how to clean its mattresses -a retailer offering a refilled, recycled printer ink cartridge as an environmentally friendly option for consumers
tempur-pedic describing how to clean its mattresses
When designing new or improved products, some manufacturers spend a considerable amount of time just trying to catch up or keep up with new or improved products introduced by the competition. This often results in an inability to achieve strategic, competitive advantage. This would most likely be experienced by firms: -that focus their R&D at the attribute level -with less than 20% market share -that practice lean production -that target several different customer segments
that focus their R&D at the attribute level
According to the chapter, the consequences of product use are -the outcomes that are experienced by the customer -the characteristics of the product used by the customer -the life of the product -the result of the purchase of a product
the outcomes that are experienced by the customer
Which of the following components is NOT included in the description of the MOA process? -the market requirements of the customer -the capabilities and requirements of the distributors -the stage of the product life cycle -the structure of the market
the stage of the product life cycle
All of the following factors drive compensatory versus noncompensatory decision making EXCPET -the opomortance of the various attributes to the consumer -the size of the choice set -resource availability -the total price of the items
the total price of the items
Which one of the following is NOT likely to be true of low-involvement purchases? -they are quick transactions -they are in the mid-price range -they require little effort -they are routine
they are in the mid-price range
The number 1 problem in new products is the failure: -to have enough new features -to be price competitive -to have enough channels of distribution -to be as good as the competition on
to be as good as the competition on
when looking at key inputs to the pricing decision, the feasible zone includes all of the following EXCEPT: -cost of goods sold -price -true economic value (TEV) -perceived value (PV)
true economic value (TEV)
Rockwell Collins is a manufacturer of avionics and communications systems for corporate aircraft. In response to a general slowdown in the business aviation industry, Rockwell announced cutbacks for the items it makes for small and midsize jets. Based on this information, which of the following segmentation variables is Rockwell most likely to utilize? -buying approach -psychographic -geographic -"firmographic"
-"firmographic"
All of the following are examples pf companies anticipating and prompting the next purchase of the product EXCEPT -GEICO insurance company offering a significant discount to consolidate home, car, and boat insurance with one provider -fourtine magazine sending renewal noticies to readers several months before their mangazine subscriptions expire -24 Hour Fitness encouraging consumers to renew memberships -Kingsford Charcoal offering special features that indicate when it is time to buy again
-GEICO insurance company offering a significant discount to consolidate home, car, and boat insurance with one provider
Whole Foods differentiates its grocery stores from traditional stores by offering organic, natural, and locally sourced products. At the same time, its products are, on average, 25% higher in price than those of regular (nonorganic) supermarkets. What type of positioning is Whole Foods using -Natural positioning -Premium or upscale positioning -Vertical positioning -Horizontal positioning
-Horizontal positioning
The makers of Cialis, an erectile dysfunction (ED) drug, are deciding whether to use a rational appeal (lasts four times longer than competitor Viagra), or an emotional appeal (enhances relationship intimacy) in its brand positioning. To arrive at the right decision, management must consider: -The cost of manufacturing Cialisc. -Pharmacies' receptivity to carry the drug -How ED sufferers choose an ED drug, that is, their purchase criteria -the price of Cialis
-How ED sufferers choose an ED drug, that is, their purchase criteria
MyHair, a maker of home hair color, has always offered cheaper versions of the leading brands. Now the company is investing heavily in the development of a product that will enable women to choose their own mixtures of color, conditioner, and shine agents, and allow the company to compete with the market leader's customizable product. Based on this information, which of the following correctly describes MyHair's market position? -Its current market position is unsustainable. -It is currently a follower, but is demonstrating the intention to become a challenger. -It is currently a challenger, but is demonstrating the intention to become a follower. -It is currently a nicher, but is demonstrating the intention to become a challenger.
-It is currently a follower, but is demonstrating the intention to become a challenger.
Which of the following is NOT an offensive competitive strategy? -Launching a fighter brand -Offering differentiation -Comparative advertising -First-mover advantage
-Launching a fighter brand
Which of the following does the marketing process of segmentation, targeting, and positioning (STP) NOT address? -Potential customers -Potential competitors -Which customers to pursue -Differences in customer preferences
-Potential competitors
There are six forces that represent the major influences on an industry's profit potential and on the competitive opportunities for companies within that industry. Which of these forces is most affected by the presence or absence of significant barriers to entry? -Buyers -Potential entrants -Potential substitutes -Complements
-Potential entrants
Relevance is a critical criterion in formulating a value claim for a positioning statement. The makers of Cialis, an erectile dysfunction (ED) drug, are considering a value claim that it "enhances intimacy and relationship." To assess the relevance of this claim, Cialis must determine if the claim -can be endorsed by an authority figure or a celebrity -is unique amount value claims of competitor brands -aligns with specific needs of the target market -is supportable by scientific evidence
-aligns with specific needs of the target market
he PARTS acronym is used to specify the components of a competitive game and provide a framework for analyzing that game. The S in PARTS stands for: -Segment -Strategy -Sustainable Advantage -Scope
-Scope
The manager of a chain of gyms is concerned about falling prey to marketing myopia by not defining his competitive landscape properly. How should he define the business to avoid falling into this trap? -Full-service fitness centers with personal trainers. -Solutions for good health -The best exercise value for the price. -Cutting-edge workout equipment unmatched by other facilities
-Solutions for good health
Sue is considering purchasing a new vacuum cleaner. Which of the following sets is she using when she is ready to make the final decision? -total set -awareness set -consideration set -choice set
-choice set
In Dove's Real Beauty rebranding to replace women's notion of beauty (thin, white, and blonde) with women who are healthy, realistic, and have high self-esteem, the company used a variety of marketing communications vehicles—billboards, TV advertising, YouTube videos, print ads, and so on, to promote its message. At the same time, consumers also weighed in via blogs and parody videos, newspaper columnists wrote about the campaign, and TV talk shows devoted entire programs to the subject. This is an illustration of a brand's value claims and position being: -co-created -manipulated -media-driven -faithful
-co-created
A toothpaste manufacturer believes its most likely customers are parents of young children who value a brand with a kid-friendly taste and texture. The company's segmentation is probably based on: -a combination of demographics and psychographics -a combination of demographics and benefits sought -psychographics -behavioral characterisitcs
-a combination of demographics and benefits sought
What is the order of the levels of the Customer Value Hierarchy? -Attributes, Consequences, Desired End States -Desired End States, Consequences, Attributes -Consequences, Attributes, Desired End States -Attributes, Desired End States, Consequences
Attributes, Consequences, Desired End States
Procter & Gamble wants to introduce a new line of anti-aging cosmetics in Sigapore. Which of the following is NOT a collaborator? -Outsourced manufacturing in China -Suppliers of ingredients from Japan -Walgreens stores -R&D department in the United States
R&D department in the United States
