EXAM 2 Review Questions

Ben is a double major pursuing a degree in both Finance and Marketing. He's interested in obtaining a position as a personal financial advisor after graduation and is interning with a global financial services company. During his internship, he observes that the most successful advisors wear white shirts, dress very conservatively, keep their faces clean shaven, and read the Wall Street Journal to stay up-to-date with the latest business and world news. Ben starts to read the Wall Street Journal too and modifies his dress and grooming style to be more like the representatives whom he admires. Ben is influenced by _______. a.external forces b.motives c.a reference group d.personality

C

The company Patek Philippe is known for its high-quality, Swiss-made watches priced at $20,000 and above and targeted to a very upscale target market that could afford to pay $20,000 or more for a watch. The advertising for Patek Philippe's watches says, "You never actually own a Patek Philippe, you merely look after it for the next generation." What type of targeting strategy does Patek Philippe utilize?

Concentrated

Clayton enjoys playing video games and has both a PlayStation and Xbox system. He prefers the Xbox, though, and purchases more games for the Xbox than the PlayStation. Clayton has formed a(n) _______ about Xbox. a.patronage motive b.consideration set c.self-concept d.attitude

D

Tiffany is a nervous flyer. At the airport, she purchased an over-the-counter anxiety medication before her flight. Tiffany was influenced by _______. a.the social surroundings b.her physical surroundings c.the time perspective d.her mood or condition

D

SUP ATX is a manufacturer and marketer of stand-up paddleboards and sells its boards to companies in Australia. Which of the following best characterizes SUP ATX? a.Contract manufacturer b.Importer c.Exporter d.Franchisor

Exporter

Income is the key factor in determining a person's social class. True False

F

_______ are the first to adopt a new product. They love trying new products and are fairly risk averse. a.Consumers in the early majority b.Consumers in the late majority c.Innovators d.Early adopters

Innovators

The North American Free Trade Agreement (NAFTA) makes it easier for U.S. businesses to invest in Mexico and Canada and simplifies country-of-origin rules which make it more difficult for _______ to use Mexico as a staging ground for further penetration into U.S. markets. a.Cuba b.China c.Japan d.Russia

Japan

These detailed descriptions include information such as demographic characteristics—age, income and education level as well as an individual's preferences regarding how frequently they dine out and the percent of time they select Biaggi's as a restaurant. What step in the target market selection process has Biaggi's completed by describing its target market customers?

Step 3: Develop Market Segment Profiles

The depth of a product mix is measured by the average number of product types in a product line. True False

T

For heterogeneous markets, market segmentation is the best approach. True False

True

An advantage of a differentiated strategy is that _______.

a company may increase sales because its marketing mixes are aimed at more customers

Which of the following best characterizes the problem recognition stage of the buying decision process? a.Buyer recognizes a discrepancy between a desired state and an actual condition b.Buyer engages in an internal information search for information to help solve his or her problem c.Buyer evaluates alternative brands or products d.Buyer searches for information to resolve a problem

a.Buyer recognizes a discrepancy between a desired state and an actual condition

Limited Pottery makes hand-crafted pottery and dining sets and markets its line of products throughout the United States in specialty stores. It has also several relationships with distributors in France, Germany, and Sweden who represent the company and sell the product to retailers in those countries. Limited Pottery is engaging in which type(s) of global marketing? a.Domestic marketing and limited exporting b.Localized marketing and domestic marketing c.Multinational marketing d.Regional marketing

a.Domestic marketing and limited exporting

_______ is/are defined as a partnership between a domestic firm and a foreign firm or government and is especially popular in industries that require large investments such as automobile manufacturing. a.Joint ventures b.Licensing c.Exporting d.Contract manufacturing

a.Joint ventures

What are the primary psychological influences that partly determine people's general behavior and impact their behavior as consumers? a.Motivation, lifestyles, learning, perception, attitudes, and personality b.Reference groups, culture, social class, motivation, lifestyles, and attitudes c.Culture, reference groups, roles, social class, motivation, and personality d.Culture, motivation, self-concept, perception, roles, and lifestyles

a.Motivation, lifestyles, learning, perception, attitudes, and personality

The _______ was implemented in 1994 and merged Canada, Mexico, and the United States into one market of nearly 454 million consumers. a.North American Free Trade Agreement (NAFTA) b.European Union (EU) c.General Agreement on Tariffs and Trade (GATT) d.Asia-Pacific Economic Cooperation (APEC)

a.North American Free Trade Agreement (NAFTA)

A small, family-owned French winery is considering exporting its champagne to China. Which of the following would be the best measure of market potential for the winery to utilize in making decisions about exporting its wines? a.Per capita gross domestic product (GDP) b.Balance of trade c.Unemployment rate d.Population growth

a.Per capita gross domestic product (GDP)

Charlie's cell phone contract allows him to change his equipment every two years and he's getting close to making a change and getting a new phone. He's starting to notice ads for cell phones on TV and in magazines as well as pop-up ads on the internet and thinks it's strange that there are so many advertisements for different brands of phones at the same time that he's considering a new purchase. What phenomenon is Charlie experiencing? a.Selective exposure b.Advertising recall c.Selective retention d.Advertising awareness

a.Selective exposure

Don, a purchasing agent for a university, is currently buying laptop computers from ComputerZone for use in a new computer lab at the university. While discussing the purchase with the representative from ComputerZone, Don not only approves the purchase for the computer lab, but also decides he would like to purchase additional laptops so that the university can sell them to students. The first laptop purchase is considered a ______, and the additional laptop purchase is considered to be a _______. a.business purchase; business purchase b.consumer purchase; consumer purchase c.business purchase; consumer purchase d.consumer purchase; business purchase

a.business purchase; business purchase

One method of organizing information during the process of perception is called _______, which occurs when a person fills in missing information in a way that conforms to a pattern or statement. a.closure b.retention c.distortion d.figure-ground

a.closure

Price is important to a business customer when making a purchase decision because _______. a.it influences operating costs and costs of goods sold, which impact selling price and profit margin b.buying agents are evaluated on the price they pay for products rather than the quality c.today's consumers are well informed and, therefore, know how much it costs to manufacture a product, and when they are being overcharged d.a higher priced product is always higher quality than a lower priced product

a.it influences operating costs and costs of goods sold, which impact selling price and profit margin

Jack was born in Australia and moved to the United States when he was a teenager. He is an actor and gets paid to give presentations to elementary school students on Australia's culture and traditions as "Outback Jack." When speaking to school children, Jack is _______. a.providing a service b.marketing a product c.selling a good d.selling an idea

a.providing a service

Countries may utilize nontariff trade restrictions such as _______, which place a limit on the amount of goods an importing country will accept for certain product categories. For example, if the United States wanted to increase sales of domestic products such as textiles, it could limit the number of textile products imported into the United States from other countries. a.quotas b.embargoes c.exchange controls d.import tariffs

a.quotas

Meghan would like to open a house cleaning business and is considering several market segments. She has identified four segments for consideration; young urban singles, young married professionals, senior citizens, and college students. She has just completed an analysis of these four segments by assessing such factors as sales estimates, competition, and estimated costs. Meghan is now ready for the next step in the target market selection process, which is to _______. a.select specific target markets b.determine which segmentation variables to use c.develop market segment profiles d.evaluate relevant market segments

a.select specific target markets

Aon Insurance Company is an insurance brokerage company that caters to business markets and serves as the expert and consultant to risk managers or business owners to determine its risk profile and insurance needs. Once Aon account executives have determined a customer's needs for insurance, they contact insurance carriers to obtain a quote and then work with the customer to identify the best carrier for its company. Typically, Aon account managers are divided into teams based on the industry such as health care, education, government, or manufacturing. Aon is utilizing the _______ variable for segmenting business markets. a.type of organization b.product use c.customer size d.geographic location

a.type of organization

Firms that purchase products from manufacturers and resell the products to other firms in the distribution system are known as _______. a.wholesalers b.retailers c.producers d.institutions

a.wholesalers

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product? a.Raw materials b.MRO supplies c.Component parts d.Accessory equipment

b

Sayed is dining at a local restaurant for the first time. One of his friends had told him that the restaurant offered very good food but after arriving, Sayed was questioning whether or not he should stay. The restaurant had a very worn appearance—old and stained carpeting, dim lighting, older tables, and he even noticed a few cobwebs and lots of dust on the various decorations scattered around the restaurant. It really made him wonder what the kitchen might be like and how clean or sanitary the restaurant might be. Sayed decided to stay and did think the food was okay, but he decided this would be his last visit to the restaurant. Sayed's decision not to dine at the restaurant again was most likely influenced by the _______ category of situational influences. a.reason for purchase b.physical surroundings c.social surroundings d.time perspective

b

Which of the following would be classified as an institutional buyer? a.Walmart b.American Cancer Society c.Internal Revenue Service d.Samsung

b.American Cancer Society

Which of the following is most likely to lead to acceptance of a new product being introduced from one country to another? a.Attractive packaging that matches local preferences b.Cultural similarities between the two countries c.Promotion incentives or coupons to purchase the product d.Competitively priced products

b.Cultural similarities between the two countries

The Global Group acts as a wholesaler and takes on the responsibility of finding markets and facilitating marketing on behalf of its client firms. One of its clients, Nature First, is a health and beauty aid company who sells the Global Group lotions, makeup, and other products which it then sells to customers in other markets. What approach to international involvement does the Global Group provide to customers, such as Nature First? a.Strategic alliance b.Trading company c.Joint venture d.Licensing

b.Trading company

Javier always has the latest products. His friends always come to him when seeking advice on new products. Javier is _______. a.in the early majority b.an early adopter c.a laggard d.an innovator

b.an early adopter

Recently diplomatic ties have improved between the United States and Cuba and consumers in the United States could soon benefit from the lifting of _______ on products from Cuba, such as cigars, rum, sugar, as well as fruits and vegetables. Due to this policy, the United States has suspended trade with Cuba due to human rights violations and political concerns. a.quotas b.an embargo c.exchange controls d.an import tariff

b.an embargo

Nike, an American corporation, uses _______ in Vietnam to produce many of its athletic shoes at a specified level of volume to its exact specifications. a.joint venture b.contract manufacturing c.franchising d.licensing

b.contract manufacturing

The Cannon Mills Company markets towels and linens using the brand name, Fieldcrest. Fieldcrest is sold at a variety of retail outlets including Macy's, Target, and Bed, Bath, & Beyond. The Cannon Mills Company offers a variety of models of Fieldcrest products to appeal to customers who are interested in owning the "best" products, those that are "good" and those that are in between. For example, at Macy's the Fieldcrest Luxury bath towels sell for $15, Bed, Bath & Beyond sells the Fieldcrest Resort towels for $12 each, and Target sells the Fieldcrest Home towels for $8 each. Cannon Mills Company is most likely using a(n) _______ targeting strategy. a.cluster b.differentiated c.concentrated d.undifferentiated

b.differentiated

The four major factors influencing business buying decisions are _______. a.competitive, technological, organizational, and interpersonal b.environmental, organizational, interpersonal, and individual c.technological, economical, sociopolitical, and environmental d.psychological, interpersonal, organizational, and competitive

b.environmental, organizational, interpersonal, and individual

The population of a city or county and what type of climate the area experiences are examples of _______ variables used for market segmentation. a.behavioristic b.geographic c.psychographic d.demographic

b.geographic

Alibaba could classify as an independent B2B e-commerce site because _______. a.it allows business buyers to bid on items that best meet the needs of its firms b.it is a neutral third party that provides a trading forum for a fee c.it allows industrial buyers to trade online independently from its businesses d.it is focused solely on trading among B2B markets

b.it is a neutral third party that provides a trading forum for a fee

A(n) _______ is created when suppliers and their customers build and maintain mutually beneficial relationships. a.reciprocity b.partnership c.advocate d.alliance

b.partnership

A nation's political system, laws, regulatory bodies, special-interest groups, and courts all have a great impact on international marketing. These entities are part of the _______ forces that affect international marketing activities. a.economic b.political, legal, and regulatory c.technological d.sociocultural

b.political, legal, and regulatory

Toward the end of the growth stage, all of the following marketing strategies will likely occur, except _______. a.more intense segmentation strategies and the introduction of new flavors or varieties b.repositioning the product to suggest new uses for the item c.promotion focused on encouraging adoption and brand loyalty d.aggressive pricing and price cuts

b.repositioning the product to suggest new uses for the item

The last several years, Frito-Lay has sponsored the "Lays Do Us A Flavor" competition where participants can enter flavor ideas for potato chips. Lays selects four flavors and offers these flavors in grocery and other retail outlets for a limited time. Participants can vote for their favorite flavor and the winner receives a cash prize. This promotion enables Frito-Lay to change the purchase decision for potato chips from _______ to _______. a.situational involvement decision making; enduring involvement decision making b.routinized response behavior; limited decision making c.limited decision making; routinized response behavior d.simple decision making; extended decision making

b.routinized response behavior; limited decision making

The final step in the target market selection process is to select specific target markets. When making decisions about which segments to select, a marketing manager should _______. a.choose only those segments that are less costly to reach b.select segments which provide significant opportunities to achieve organizational objectives c.select all segments d.revert to an undifferentiated approach if the segments are heterogeneous

b.select segments which provide significant opportunities to achieve organizational objectives

St. Francis Hospital system purchases medical supplies from Medline Industries with whom it has done business for the last five years. The hospital and system medical offices typically reorder standard supplies such as gloves, syringes, and other disposable supplies from Medline. This is an example of the _______ type of business purchase. a.new task b.straight rebuy c.modified rebuy d.standard replacemen

b.straight rebuy

The National Pork Board encourages consumers to buy pork through its advertising messages and theme, Pork—Be Inspired. The National Pork Board is utilizing a(n) _______ targeting strategy. a.differentiated b.undifferentiated c.cluster d.concentrated

b.undifferentiated

_______ refer to the group of people within a business who are involved in making business buying decisions. a.New-task decision teams b.Negotiators c.Buying centers d.Purchasing agents

c.Buying centers

Anna recently purchased a Keurig coffee maker and thought she would really enjoy the variety of using different K-cups for tea, coffee, or hot chocolate. However, she's wondering whether she should have purchased an espresso machine instead of the Keurig. What phenomenon is Anna experiencing? a.Anxiety purchasing disorder b.Failed purchase complex c.Cognitive dissonance d.Spurious decision

c.Cognitive dissonance

There are a number of situational influences that impact the consumer's buying decision process. Which of the following is one of those influences? a.Marketers' information influences b.Price influences c.Consumers' mood influences d.Brand influences

c.Consumers' mood influences

_______ is implemented when a company employs a standardized approach to marketing treating all countries or markets where their products are sold as a single entity—marketing standardized products in the same way in each market with no differentiation across markets. a.Internationalization b.Licensing c.Globalization d.Nationalization

c.Globalization

Which of the following is a disadvantage of reciprocity? a.It is an illegal activity. b.It can increase competition. c.It can result in less-than-optimal purchases for the buyer. d.It can lead to longer periods of negotiation.

c.It can result in less-than-optimal purchases for the buyer.

Which of the following best defines the evaluation stage of the product adoption process? a.The buyer purchases the product and will use it again when the need for the product arises. b.The buyer tests the product to determine if it fits his or her needs. c.The buyer considers the product's value versus the competition. d.The buyer searches for information about the product.

c.The buyer considers the product's value versus the competition.

What happens in a reverse auction? a.The sellers pay for the opportunity to sell their products to lucrative buyers in hopes of establishing strong relationships. b.The seller will accept steep discounts on major business products because it needs to get rid of unsold inventory. c.The buyer invites businesses to bid to supply the specified good or service in competition with each other. d.The seller informs online buyers that it is holding an auction and encourages them to bid in competition with each other.

c.The buyer invites businesses to bid to supply the specified good or service in competition with each other.

The buying center includes which of the following entities? a.Retailers b.Wholesalers c.Users d.Suppliers

c.Users

You are the assistant manager for consumer product adoption strategies. Your job requires you to manage the third stage of the five-stage product adoption process. Which one of the following statements is true regarding your job focus? a.You should focus on encouraging the current buyers of your product to become repeat buyers. b.You should focus on providing information about your product. c.You should focus on making sure buyers clearly understand your product's benefits. d.You should focus on making sure buyers are aware of your product's existence.

c.You should focus on making sure buyers clearly understand your product's benefits.

The concept that morality varies from one culture to another and that business practices are differentially defined as right or wrong by each culture is termed _______. a.moral relativism b.economic relativism c.cultural relativism d.global relativism

c.cultural relativism

Sasha is in charge of ordering all of the paper for the elementary school she works for. One teacher has requested green and yellow paper for a special project. Sasha calls her sales representative at the office supply company the school typically orders from and asks about options for paper. The sales representative tells Sasha they have a pastel yellow and a pastel green option, both in reams of 500 pages and 24 lb. This is an example of _______ method of purchasing. a.sampling b.inspection c.description d.negotiation

c.description

U.S. manufacturers utilizing contract manufacturers in China have faced increased concerns about intellectual property and gray market goods. For example, a walk through any of China's open-air markets will demonstrate the frequency with which foreign firms' logos and merchandise are available, such as the famous Burberry beige-black-and-red pattern scarf, Coach purses, and Caterpillar brand shoes. This exemplifies the impact of _______ forces on international business. a.political, legal, and regulatory b.competitive c.ethical and social responsibility d.technological

c.ethical and social responsibility

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) _______ structure. a.geographic area b.internationally integrated c.export department d.international division

c.export department

When a chain of coffee shops adds locations during the growth stage, the objective it is most likely trying to achieve is to _______. a.maintain market share b.increase market share c.fill geographic gaps d.generate cash flow

c.fill geographic gaps

The target market selection process involves _______ steps. The first step is _______ and the last step is _______. a.five; determine segmentation variables; select the target market b.five; select the target market; identify the targeting strategy c.five; identify the targeting strategy; select the target market d.six; select the target market; evaluate the potential of the target market

c.five; identify the targeting strategy; select the target market

A form of licensing in which a company grants another entity the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements associated with the original business in exchange for a financial commitment is called _______. a.joint venture b.strategic alliance c.franchising d.direct licensing

c.franchising

Calloway Golf Company standardizes many of its products worldwide which is an example of _______. a.internationalization b.customization c.globalization d.licensing

c.globalization

Greece has been facing dire economic conditions recently and is seeking ways to raise revenue. Greece could impose a(n) _______ on goods purchased outside its borders and brought into the country. a.foreign tax b.embargo c.import tariffs d.travelers' tax

c.import tariffs

Harvest Café is a farm-to-table restaurant and prides itself on offering fresh, local foods to its customers. They purchase chicken from Heart Farms which are cage-free and organic. Harvest Café typically purchases 20 pounds of chicken each week and usually pays $3 per pound. However, when placing a recent order, the chef noticed that the price had increased to $3.40 per pound. The chef placed the usual order for 20 pounds of chicken and reasoned that he could either reduce the portion size or increase the menu price in order to maintain his profitability goals. This is an example of business products having _______ demand. a.joint b.derived c.inelastic d.fluctuating

c.inelastic

Buffalo Trace is a distiller of several brands of Kentucky bourbon. One brand, Blanton, a single barrel bourbon, is placed in a silky cloth bag and packaged in a gold and green gift box to make an appealing display on retail shelves and make purchasers equate the elaborate packaging to the quality and taste profile of the bourbon. The demand for the gift boxes and silky cloth bags is an example of _______ demand. a.inelastic b.derived c.joint d.fluctuating

c.joint

BMW recently engaged in a(n) _______ arrangement with Maclaren, a stroller manufacturer to expand its market through lifestyle products. According to the Maclaren website, "The BMW Buggy is an engineering-inspired Maclaren Object of Design combining the highest quality materials and signature design details to create a sophisticated stroller. The award-winning Maclaren BMW Buggy is our lightweight, high-performance stroller. Suitable for children from 6 months and up, the car-inspired stroller delivers a padded liner with a luxurious bucket-seat feel, multiple position recline seat, contoured hood with mesh windows and insignia details." a.joint venture b.exporting c.licensing d.contract manufacturing

c.licensing

Arturo owns a custom home building company. He often bids on building supplies on _______ sites to purchase liquidated or returned items. a.private B2B exchange b.reverse auction c.online auction d.B2B marketplace

c.online auction

Companies like Staples and Best Buy are considered to be classified as _______ markets. a.institutional b.producer c.reseller d.government

c.reseller

Kraft Foods purchases flour from Ardent Mills for use in manufacturing at their various plants. The purchasing agent for Kraft foods most likely utilizes the _______ method of business buying. a.description b.negotiation c.sampling d.inspection

c.sampling

Individuals do not pay attention to all sensory inputs and mostly unconsciously engage in _______ to determine which inputs are consciously recognized. a.selective distortion b.selective consciousness c.selective exposure d.selective retention

c.selective exposure

Before fall semester started, Ilario went shopping for a new backpack. He found only two backpacks that were big enough to hold his laptop and books he needed for class. The one Ilario liked the best was neon green, but he was worried he would stand out too much on campus and was worried what others would think of his neon green backpack. He opted for the black backpack instead. Ilario was likely influenced by _______. a.the reason for purchase b.his mood or condition c.social surroundings d.physical surroundings

c.social surroundings

L'Oréal manufactures cosmetics, shampoos, conditioners, and other health and beauty aids. It purchases surfactant chemicals for use in the manufacturing process for several products and has decided to utilize _______ and purchase its entire surfactant product from the Stepan Company. a.vendor analysis b.multiple sourcing c.sole sourcing d.value analysis

c.sole sourcing

In general, an individual who is under 16 years of age and does not work full-time would NOT be considered part of the target market for photocopier machines because _______. a.they would be too young b.they would not be willing to purchase the product c.they would not have the ability to purchase the product d.they would not know how to use the product

c.they would not have the ability to purchase the product

Pi Delta Mu sorority purchases food in bulk to feed its members living in the house. This means it is part of a(n) _______ market. a.reseller b.consumer c.producer d.institutional

d

_______ is considered by some to have the potential to become the world's largest market and one of the most productive manufacturing nations. a.Singapore b.India c.Australia d.China

d.China

Frito-Lay's Doritos snacks appeal to a wide range of consumers for consumption in their homes, and through a partnership with Taco Bell, Doritos brand shells under the name "Locos Tacos" are available in Taco Bell. What type of segmentation strategy is Frito-Lay utilizing with the Doritos and Locos Tacos products? a.Clustered b.Undifferentiated c.Concentrated d.Differentiated

d.Differentiated

_______ are those who choose new products carefully and are viewed as people who are in-the-know by those in the remaining adopter categories. a.Innovators b.Laggards c.The early majority d.Early adopters

d.Early adopters

_______ are often utilized to produce revenue for a country and/or to protect domestic products from foreign competition. a.Warning labels b.Quotas c.Exchange controls d.Import tariffs

d.Import tariffs

Which of the following is most likely to engage in direct ownership activities internationally? a.Import department structures b.International division structures c.Export department structures d.Internationally integrated structures

d.Internationally integrated structures

The increasing use of mobile technology has had which effect on the consumer buying decision process for those consumers utilizing smartphones? a.It has changed the order of the stages because consumers search for information before recognizing their need for a product. b.It has lengthened the process due to the overwhelming amount of information available to consumers. c.It has increased the reliance on information from marketer-dominated sources. d.It has sped up the process because consumers have more opportunities to engage in the process no matter where they are.

d.It has sped up the process because consumers have more opportunities to engage in the process no matter where they are.

In order for a marketer to access information about company locations, number of employees, and chief executives' names quickly, they can utilize _______. a.the Wall Street Journal b.a NAFTA member list c.the NAICS database d.a commercial data service

d.a commercial data service

In the process of manufacturing its vehicles, Ford needs to purchase tires from tire manufacturers such as Goodyear. These tires are best described as _______. a.accessory equipment b.process materials c.installations d.component parts

d.component parts

A product that is relatively inexpensive and frequently purchased would be classified as a _______. a.shopping product b.unsought product c.specialty product d.convenience product

d.convenience product

During the _______ stage of the buying decision process, the company selects the product to be purchased and the supplier. Some companies choose _______ to reduce the risk of disruption caused by strikes, shortages, or bankruptcies. a.second; sole sourcing b.fifth; multiple sourcing c.third; sole sourcing d.fourth; multiple sourcing

d.fourth; multiple sourcing

China attempts to protect its domestic market by levying a(n) _______ on foreign goods such as poultry which results in imported products costing considerably more than products produced or raised within China. a.exchange controls b.quota c.embargo d.import tariff

d.import tariff

SC Johnson is a consumer goods manufacturer. The company's product mix includes home cleaning products, air care, pest control, home storage, and auto care. The president of marketing at SC Johnson would like to add laundry products to its product mix. SC Johnson would be _______. a.increasing the depth of its product line b.increasing the depth of its product mix c.increasing the width of its product line d.increasing the width of its product mix

d.increasing the width of its product mix

Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked members of the computer science department to give input on the purchase decision. In this instance, the computer science department would be acting as a(n) _______, while the purchasing agent is a(n) _______. a.user; decider b.user; gatekeeper c.user; buyer d.influencer; decider

d.influencer; decider

Individuals receive various kinds of stimuli simultaneously throughout the day and marketers try to break through the clutter with advertising and promotion. Katie is reviewing her Facebook updates and notices some advertisements for various products such as McDonald's coffee, Starbucks new lunch menu, and an advertisement for Shutterfly. Later, Katie is out running errands and decides to stop somewhere for lunch. She remembers the ad for Starbucks and decides to try the new lunch items. Katie has engaged in _______. a.selective distortion b.selective processing c.selective exposure d.selective retention

d.selective retention

The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n) _______. a.licensee b.strategic alliance c.joint venture d.trading company

d.trading company

Martin is the brand manager for a product made by Procter & Gamble. The product packaging has remained the same for the last year and, in recent months, he has reduced spending on promotions. Martin's product is likely in the _______ stage of the product life cycle. a.growth b.decline c.maturity d.introduction

decline

The stage of the product life cycle when marketers consider a significant reduction of promotional efforts and the elimination of outlets or marketing channels that are not contributing adequately to profits is the _______ stage. a.decline b.maturity c.introduction d.growth

decline

Global companies are becoming more adept at managing their products, sourcing, and pricing in ways that realize the most profit and must be aware of concerns such as currency exchange rates when conducting their business and exporting products from one country to another country. For example, a U.S.-based company that sells product in Canada must price in Canadian dollars. The level of inflation or deflation and the relationship between the U.S. dollar and Canadian dollar will affect the price that customers will be willing to pay for the products as well as the profit margins realized by the U.S. firm. This is an example of the _______ force which affects international marketing activities. a.political, legal, and regulatory b.economic c.sociocultural d.competitive

economic

A traditional online auction occurs when an online buyer invites businesses to bid to supply the specified good or service in competition with each other. True False

f

Consumers are more likely to be influenced by others in different social classes than by others within their own class. True False

f

Industry classification systems provide a consistent means of categorizing organizations into groups based on factors such as size and location. True False

f

David Tran, founder of Huy Fong Sriracha sauce, believes his product is suitable for everyone. When asked about people that think his product is too spicy, he responds they should "use less." David Tran believes he has a _______ market and uses _______ targeting strategy.

homogeneous; an undifferentiated

The Domino brand is a leading manufacturer of sugar and is part of the ASR Group, the world's largest refiner of cane sugar. Sugar is a staple product that most people keep on hand in their pantry for everyday use as a sweetener or baking ingredient. Domino believes its market is _______, where individuals have similar needs for the product and therefore utilizes a _______ targeting strategy as they can incorporate a single marketing mix and direct it at the entire market for their sugar products.

homogeneous; undifferentiated

A(n) _______ can be a concept, philosophy, image, or issue. a.idea b.good c.product d.service

idea

Jace overcame a drug addiction and is now a motivational speaker. He sends promotional materials to middle and high schools across the United States that provides information on the uplifting, anti-drug "It's Not Worth It" message of his speech. Jace is marketing a(n) _______. a.service b.good c.idea d.product

idea

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets _______. a.services b.tangible products c.goods d.ideas

ideas

Procter & Gamble manufactures detergent, diapers, razors, toothpaste, toilet paper, and a variety of other products. These products make up Procter & Gamble's product _______. a.item b.width c.mix d.line

mix

Ethnicity, city size, benefit expectations, brand loyalty, and personality attributes are all examples of common _______ variables used to divide a market into segments.

segmentation

Mondelēz International is the parent company for many brands including Triscuit, Chicklets, Tang, and many others. The company's product line includes biscuits (cookies and crackers), chocolate, gum and candy, beverages, and cheese and dairy. The company's biscuit product line has more than 15 brands while the gum and candy product line has less than 10 brands. The depth of product mix for gum and candy is _______ than the depth of product mix for biscuits. a.shallower b.deeper c.narrower d.broader

shallower

Peggy is an avid collector of Coca-Cola advertisements printed in magazines during the 1950s and 1960s. She greatly desires to own a specific ad that was featured in a 1954 issue of Life Magazine. This is an example of a(n) _______ product. a.shopping b.unsought c.specialty d.convenience

specialty

An electronics store puts a large screen TV, wired for surround sound, in a quiet corner of the store with couches and a rug, and plays a recently released movie. These actions give the display the look of a family room or den. The store is using the physical surroundings as a way to influence purchase decisions. True False

t

Firms with federal government contracts are required to use multiple sourcing for an item to ensure a steady supply. True False

t

Mondelēz International is the parent company for such brands as Triscuit, Chips Ahoy!, Ritz, Nilla, Trident, Dentyne, Nutter Butter, Sour Patch Kids, and many more. It would be correct to say that Mondelēz's product mix is broad. True False

t

One reason many products do not last past the introduction stage is because initial product prices are high to recoup development and marketing research costs and sales are not high enough to make a profit. True False

t

Supporting services, such as installation and guarantees, are part of a product. True False

t

The depth of a product mix is measured by the average number of product types in a product line. True False

t

During the information search stage of the consumer decision process, buyers may utilize marketer-dominated sources of information. Which of the following is NOT an example of a marketer-dominated information source? a.Recommendations from friends b.Company websites c.Product packaging d.TV advertising

A

Social influences are forces that other people exert on buying behavior and are divided into seven major groups including family, roles, digital, opinion leaders, reference groups, social class, and _______. a.culture/subculture b.perception c.beliefs d.attitudes

A

Needs which are termed _______ needs refer to individuals' needs to grow and develop and to become all they are capable of becoming. a.social b.self-actualization c.physiological d.esteem

B

As discussed in the text, the process of perception includes three stages or steps. After inputs have been selected to be registered consciously, the next stage of the process is _______. a.judging b.organizing c.retention d.interpreting

B ORGANIZING

The different variations of the product offer consumers the opportunity to fulfill a need based upon their particular circumstances and what they desire in terms of how a detergent might clean their clothes. Tide is using _______ segmentation.

Benefit