Ch.1-10 quiz questions

Zappos.com constantly reminds customers of recently viewed items and informs them when stock is low in an effort to entice the customer to make a purchase. Zappos is trying to improve its Select one: A.consumer index. B.conversion rate. C.culture quotient. D.customer total. E.collection ratio.

The conversion rate is the percentage of purchase intentions that are converted into actual purchases. The correct answer is: conversion rate.

In terms of the 4E framework, in order for a firm's offer to excite its targeted customers, the offer must be Select one: A.unique. B.substantial. C.tangible. D.relevant. E.easy to understand.

To excite customers, an offer must be relevant to its targeted customer. Relevancy can be achieved by providing personalized offers, which are determined through insights and information obtained from customer relationship management and/or loyalty programs. The correct answer is: relevant.

Firms that are engaged in sentiment mining are analyzing data collected from Select one: A.experiments. B.observations. C.social media sites.campaigns. D.in-depth interviews. E.focus groups.

Using a technique known as sentiment mining, firms collect consumer comments about companies and their products on social media sites such as Facebook, Twitter, and online blogs. The data are then analyzed to distill customer attitudes toward and preferences for products and advertising campaigns. The correct answer is: social media sites.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities Select one: A.in international markets. B.that build on their strengths relative to those of their competition. C.where value-based pricing can be ignored. D.for diversification. E.where customer excellence can be substituted for product excellence.

Firms typically are most successful when they focus on opportunities that build on their strengths relative to those of their competition. The correct answer is: that build on their strengths relative to those of their competition.

A key to successful marketing is determining how to meet the correct balance of ________ needs that best appeals to the firm's target markets. Select one: A.functional and social B.postpurchase and prepurchase C.psychological and physiological D.functional and psychological E.safety and situational

Marketers must understand what needs are most likely to drive customers to consider their products, and design offerings to meet those needs. The correct answer is: functional and psychological

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood. Select one: A.consumer goods manufacturers B.Internet marketers C.cable TV networks D.retailers E.wholesalers

Retailers can benefit from geodemographic segmentation because it can help define the types of customers who live near stores. The other examples given are not particularly dependent on geographic proximity. The correct answer is: retailers

Which of the following defines a value proposition? Select one: A.an advertisement that talks about value B.the unique value that a product or service provides to customers C.a display of the position of products or brands in the consumer's mind D.the one feature that will prompt a customer to buy the product E.a special discount offer dropping the price

A value proposition defines the unique value the product or service provides its customers, how it differs from those of competitors, and communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. The correct answer is: the unique value that a product or service provides to customers

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, ________ should engage in brainstorming and evaluating alternatives. Select one: A.the senior managers most involved B.key customers C.elected officials D.any individuals with competing interests E.all parties relevant to the decision

All relevant parties should participate in brainstorming and evaluation. The correct answer is: all parties relevant to the decision

Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy. Select one: A.market development B.market penetration C.segment development D.product development E.diversification

Andy is trying to sell more of her current products to current customers, which is a market penetration strategy. The correct answer is: market penetration

Andy was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. Andy was addressing his ________ risk. Select one: A.physiological B.psychological C.social D.performance E.financial

Andy was worried that his in-laws would judge him by the condition of his condo, which represents a social risk since it relates to the way others see him. Social risk involves the fears that consumers suffer when they worry others might not regard their purchases positively. If Andy had done the painting to preserve his self-image, that would be related to psychological risk. The correct answer is: social

The final stage in the business-to-business buying process is to Select one: A.select the vendor. B.address additional needs. C.prepare an RFP. D.place the order. E.assess vendor performance.

As the final stage in the business-to-business buying process, vendor analysis evaluates a selected supplier's performance in delivering on the current order, helping the firm decide whether or not to continue to do business with the supplier. The correct answer is: assess vendor performance.

Bryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Bryan's firm must look at everything it does Select one: A.to avoid cultural clashes. B.in order to value each person in the organization. C.to sensitize organization members to ethical values. D.for each generational cohort. E.from a consumer's point of view.

Because the consumer is the center of all marketing efforts, value-based marketing aims to provide greater value to consumers than competitors offer. Therefore, the marketing firm must consider the entire business process, all from a consumer's point of view. The correct answer is: from a consumer's point of view.

________ is a disadvantage of secondary research, while ________ is a disadvantage of primary research. Select one: A.Cost; outdated information B.Time required for collection; sources not original C.Potential bias; cost D.Sophisticated training required to obtain it; potential bias E.Outdated information; information not relevant to data needs

Both primary data and secondary data have certain inherent and distinct advantages and disadvantages. Exhibit 10.9 summarizes the advantages and disadvantages of each type of research. The correct answer is: Potential bias; cost

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's Select one: A.strategic business unit control. B.supply chain management. C.locational excellence. D.product excellence. E.operational excellence.

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's careful targeting and marketing mix implementation. The correct answer is: product excellence.

Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using Select one: A.joint ventures. B.exporting. C.direct investment. D.franchising. E.strategic alliances.

Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, the franchisee. A franchising contract allows the franchisee to operate a business—a retail product or service firm or a B2B provider—using the name and business format developed and supported by the franchisor. Fast-food restaurant chains are one category in which franchising is widely used. The correct answer is: franchising.

Which app pricing model is used by the app Candy Crush Saga? Select one: A.paid apps with in-app purchases B.freemium apps C.in-app purchases D.ad-supported apps E.paid apps

Freemium apps are apps that are free to download but include in-app purchases that enable the user to enhance an app or game. In Candy Crush Saga, you get five lives to play in the game. When you lose a life, it takes 30 minutes in real-life time to get that life back. This is where in-app purchases come in. For just $0.99, you can get all five lives back immediately so you can keep playing. Candy Crush Saga is estimated to earn the developer about $1 million a day in revenue from in-app purchases. The correct answer is: freemium apps

Successful firms focus their efforts on satisfying customer needs that Select one: A.are easiest to satisfy. B.are important to all generational cohorts. C.provide minimal core value. D.competitors have tried and failed to satisfy. E.match their core competencies.

In the immediate environment, the first factor that affects the consumer is the firm itself. Successful marketing firms focus on satisfying customer needs that match their core competencies. The correct answer is: match their core competencies.

Learning refers to a change in a person's thought process or behavior that arises from Select one: A.experience. B.risk analysis. C.postpurchase dissonance. D.attitudes. E.cultural norms.

Learning refers to a change in a person's thought process or behavior that arises from experience and takes place throughout the consumer decision process. The correct answer is: experience.

________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings. Select one: A.Positioning B.Prospecting C.Proportioning D.Perceptualizing E.Processing

Market positioning involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. The correct answer is: Positioning

Which generation's members are also known as Millennials? Select one: A.Gen Z B.Gen X C.Gen Y D.Baby Boomer E.the Digital Natives

Members of Generation Y (Gen Y), also called Millennials, include the more than 60 million people born in the United States between 1977 and 2000. The correct answer is: Gen Y

Both the B2B and B2C buying processes begin with Select one: A.central planning. B.need recognition. C.order specification. D.alternative evaluation. E.postpurchase dissonance.

Need recognition is the first step of both the B2C and B2B buying processes. The correct answer is: need recognition.

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.

Occasion segmentation (Behavioral segmentation based on when a product or service is purchased or consumed is called occasion segmentation.)

According to one definition, CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance. Select one: A.social, environmental, and political B.economic, social, and political C.economic, social, and environmental D.financial, economic, and social E.financial, social, and environmental

One definition describes CSR as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line: economic, social, and environmental performance. The correct answer is: economic, social, and environmental

A ________ is often used to illustrate the position of a firm's products or brands in consumers' minds. Select one: A.Tapestry analysis B.loyalty timeline C.psychographic profile D.mass marketing analysis E.perceptual map

Perceptual maps show the position of a firm's products and those of competitors in the minds of consumers. The correct answer is: perceptual map

A home security company will advertise the need for home surveillance products to appeal to which level of Maslow's Hierarchy of Needs? Select one: A.love B.safety C.esteem D.self-actualization E.physiological

Safety needs pertain to protection and physical well-being. The correct answer is: safety

In established businesses, a large proportion of B2B purchases fall into the ________ category. Select one: A.generic buy B.adapted buy C.new buy D.modified rebuy E.straight rebuy

Straight rebuys occur when the buyer or buying organization simply buys additional units of products that had previously been purchased. Many B2B purchases are likely to fall in the straight rebuy category. The correct answer is: straight rebuy

When conducting a research study attempting to understand what features were most important to automobile consumers, Cary's Research Company used a questionnaire containing ________ questions, with a predetermined set of response options. Select one: A.unstructured B.open-ended C.free-form D.in-depth interview E.structured

Structured questions are closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate. The correct answer is: structured

Why should marketers be aware of the BRIC countries? Select one: A.They are likely to be the source of most market growth. B.They are a microcosm of the rest of the world. C.They have had the most dramatic changes in culture and consumer buying patterns. D.They represent almost half the world's population. E.They have stable population growth, which makes them easier to study.

The four BRIC nations seem to have the greatest potential for growth. The correct answer is: They are likely to be the source of most market growth.

As part of her company's SWOT analysis, Cindy is assessing the company's internal environment, including Select one: A.competition B.strengths and weaknesses. C.opportunities and threats. D.demographics. E.the economy.

The internal components of a SWOT analysis are strengths and weaknesses. The correct answer is: strengths and weaknesses.

The idea of value-based marketing requires firms to charge a price that Select one: A.includes the value of the effort the firm put into the product or service. B.matches competitors' prices. C.captures the value customers perceive that they are receiving. D.prioritizes customer excellence above operational excellence. E.covers costs and generates a modest profit.

Value-based marketing is related to customers' perceived value. If a price is set too high, it will not generate much volume. If a price is set too low, it may result in lower-than-optimal margins and profits. Therefore, price should be based on the value that the customer perceives. The correct answer is: captures the value customers perceive that they are receiving.

A firm's organizational culture reflects Select one: A.B2C dynamics. B.a set of values, traditions, and customs. C.a derived set of influences. D.an RFP process. E.a buying center philosophy.

A firm's organizational culture reflects the set of values, traditions, and customs that guide its employees' behavior. The correct answer is: a set of values, traditions, and customs.

The Big Mac Index is a novel measure of Select one: A.GDP. B.purchasing power parity. C.international trade surplus. D.per capita GNI. E.economic growth.

A novel metric that employs purchasing power parity (PPP) to assess the relative economic buying power among nations is The Economist's Big Mac Index, which suggests that exchange rates should adjust to equalize the cost of a basket of goods and services, wherever it is bought around the world. The correct answer is: purchasing power parity.

A ________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. Select one: A.trade agreement B.trading bloc C.quota D.tariff E.duty

A quota designates a minimum or maximum quantity of a product that may be brought into a country during a specified time period. The correct answer is: quota

Juan has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see if they are distinct from each other. Juan is evaluating whether or not each segment is Select one: A.responsive. B.substantial. C.identifiable. D.profitable. E.reachable.

A segment is identifiable if the marketer can identify who is in the segment, and distinguish it from other segments. The correct answer is: identifiable.

With access to the Internet nearly universal in the United States, many potential market segments have become more Select one: A.perceptive. B.quantifiable. C.substantial. D.identifiable. E.reachable.

A segment is reachable if it can be reached for marketing communication and product distribution. Internet access has opened up many new ways to reach consumers. The correct answer is: reachable.

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using Select one: A.the value proposition. B.salient attributes. C.symbols. D.the competition. E.perceptual maps.

A well-known symbol can also be used as a positioning tool. Red, white, and blue colors serve as symbols in this context because they call to mind the U.S. flag. The correct answer is: symbols.

Caren has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to Select one: A.categorize each market segment by consumer demographics. B.develop a positioning strategy. C.decide on a targeting strategy. D.evaluate the attractiveness of each segment. E.establish her overall objectives.

After identifying potential market segments, the next step is to evaluate the attractiveness of each segment. The correct answer is: evaluate the attractiveness of each segment.

Of the seven primary motivations for mobile app usage, which one do people spend the most amount of time on each month? Select one: A.need for shopping B.need for "me time" C.need for socializing D.need for accomplishing E.need for self-expression

Although we need to organize, accomplish, and socialize, we also need to have time set aside just for us—to be unproductive. The most popular need is all about entertainment and relaxation. Not surprisingly, people spend nearly half their time on their smartphone seeking fun. The correct answer is: need for "me time"

The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation. Select one: A.psychographic B.benefit C.loyalty D.geographic E.geodemographic

Benefit segmentation groups consumers on the basis of the benefits they derive from products or services. The ad clearly sets out two benefits: the beer is less filling and yet still tastes great. The correct answer is: benefit

Supermarkets collect information about individual customers through their use of loyalty cards, and then analyze the data to look for patterns in purchases. This is an example of Select one: A.data recovery. B.data modeling. C.data mining. D.data entry. E.data analysis.

Data mining uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables. Some retailers try to customize their product and service offerings to match the needs of their customers. The correct answer is: data mining.

What type of marketing pertains to all online marketing activities? Select one: A.mobile B.Internet C.social media D.channel E.digital

Digital marketing pertains to all online marketing activities, which includes all digital assets, channels, and media, spanning not just online but also social media and mobile marketing. The correct answer is: digital

A firm's macroenvironment includes all of the following except Select one: A.culture. B.political/legal issues. C.demographics. D.competition. E.economics.

Competition is part of the immediate environment, not the macroenvironment. The correct answer is: competition.

Compared to the average company, firms with strong ethical climates tend to Select one: A.have higher turnover. B.invest more in sales training software. C.employ more business development consultants. D.be more socially responsible E.offer more goods and services.

Conscious marketing should be integrated into the very foundation of the firm by its leaders, such as in the firm's mission statement. Then top management must follow through and commit to supporting CSR, a strong ethical climate in the organization, and conscious marketing principles. The correct answer is: be more socially responsible.

Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life. Select one: A.purchase behaviors B.inflationary expectations C.political affiliations D.cultural values E.regional cultures

Consumers in a generational cohort—a group of people of the same generation—have similar purchase behaviors because they have shared experiences and are in the same stage of life. The correct answer is: purchase behaviors

Marketers love consumers who engage in ________, buying their company's product with little thought or consideration of alternatives. Select one: A.reference group consumption B.extended problem solving C.compensatory decisions D.personal problem solving E.habitual decision making

Habitual decision making describes a purchase decision process in which consumers engage in little conscious effort. The correct answer is: habitual decision making

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees? Select one: A.It can adhere to government-mandated safety standards in the workplace. B.It can ensure that pay practices are fair at all levels of the company. C.It can ensure that its packaging materials are recyclable. D.It can pay at least minimum wage when the law requires it. E.Social responsibility isn't relevant where employees are concerned; they are paid for their work and that's enough.

Obeying the law when it comes to minimum wage and safety isn't sufficient to be considered socially responsible—the firm is simply behaving legally. Using recyclable materials would be a socially responsible practice, but it serves society (the environment), not specifically employees. By ensuring fair pay practices, though, Apple would be treating its employees in a socially responsible manner. The correct answer is: It can ensure that pay practices are fair at all levels of the company.

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is Select one: A.secondary data. B.qualitative research. C.syndicated data. D.primary data. E.neuromarketing. Feedback

In political settings, such secondary data can be critical for candidates running for office. The correct answer is: secondary data.

The elements of the digital marketing engagement process are. Select one: A.listening, reacting, and correcting. B.listening, analyzing, and doing. C.analyzing, developing, and engaging. D.listening, engaging, and evaluating. E.exciting, listening, and doing.

The three-stage process for digital marketing engagement involves listening to what customers have to say, analyzing the information available through various touch-points, and implementing (or doing) social media tactics to excite customers. The correct answer is: listening, analyzing, and doing.

Brands can be extremely valuable domestically, but challenging internationally. Companies can help overcome language difficulties in using brands by Select one: A.keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. B.adhering to the UN Convention on Naming Rights. C.avoiding the use of the brand name in advertising and focusing on feature and benefits. D.translating advertising copy for the entire ad except the brand name. E.developing brand names that have no preexisting meaning in any known language.

To avoid the potential embarrassment that language confusion can cause, firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language, such as Accenture (a management consulting firm) or Avaya (a subsidiary of Lucent Technologies, formerly Bell Labs). The correct answer is: developing brand names that have no preexisting meaning in any known language.

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must Select one: A.become secondary to the needs of the remaining stakeholders. B.be aligned with the long-term goals of the firm. C.be reviewed on an annual basis. D.be overridden by the overall goals of the firm. E.change on a regular basis.

To avoid unethical situations causing problems for a firm, it is important that the short-term goals of each employee be aligned with the long-term goals of the firm. The correct answer is: be aligned with the long-term goals of the firm.