Final Exam

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Customer profitability analysis (CPA)

If a marketing researcher uses such names or categories as Blue Blood Estates, Winner's Circle, Hometown Retired, or Shotguns and Pickups, when doing segmentation research, the marketing researcher is using ________ clusters.

PRIZM

Consumers often choose and use brands that have a brand personality consistent with how they see themselves, also known as the ________ self-concept.

actual

________ are the most fashion-conscious of all racial and ethnic groups and are more likely to be influenced by their children when selecting a product for purchase, and less likely to be influenced by unfamiliar brands.

african americans

Club membership programs that are open to everyone who purchases a product or service ________.

are useful for building a database of customers but are not very good as long-term loyalty builders

A(n) ________ puts people into a frame of mind, such as liking or disliking an object, moving toward or away from it.

attitude

According to the VALS segmentation system, ________ are conservative, conventional, and traditional people with concrete beliefs. They prefer familiar, US-made products and are loyal to established brands.

believers

Robert is the owner of an automobile manufacturing company. He calls for a board meeting and tells his directors that he wants to build a car that lets the users experience power and exhilaration. He tells them that the car must allow his users to soar from 0-60 mph in about 4 seconds. He also adds in that the price of the car must be affordable enough for anybody making a good salary. In accordance with the given scenario, Robert is trying to segment the market on the basis of ________.

benefits

________ is the sixth largest economy in the world, and it is expected to move into fourth place by 2050, meaning it would economically be larger than countries like Germany, Japan, and the United Kingdom.

brazil

Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding?

channel differentiation

A brand mantra should be ________.

communicative, simple, and inspirational

When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great US designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________.

comparing to exemplars

Within the context of Jennifer Aaker's analysis, identify the brand personality that can be associated with a new product whose promotional messages consistently portray it as being reliable, intelligent, and successful.

competence

Ford believes its cars to be of higher quality than General Motor's but thinks that consumers wrongly believe the opposite. Ford might employ a(n) ________ strategy to change buyers' perceptions of its competition.

competitive depositioning

________ are associations designed to overcome perceived weaknesses of the brand.

competitive points-of-parity

Rade and Talion are competitors in the business of manufacturing wristwatches. While Rade promises to deliver design and quality to its customers, Talion promises to deliver durability and cost effectiveness. When both these companies deliver their respective promised qualities, they are delivering ________.

conformance quality

Brands that meet consumers' initial buying criteria are called the ________ set.

consideration

Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves.

core values

In an attempt to tailor its products to suit the requirements of consumers in India, LG introduced the aero-comfort system. A remote control is programed to regulate both the air-conditioning and the ceiling fan. Consumers can switch off the AC and increase the ceiling fan's flow once the desired temperature is achieved. This not only increases convenience, but also cuts down electricity charges. LG's aero-comfort system is an example of which of the following?

country version product

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

country-of-origin perceptions

Marriage, childbirth, and divorce constitute the ________ that shape the consumption pattern of individuals.

critical life events

Satisfied customers constitute the company's ________.

customer relationship capital

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

customer relationship management

________ focuses on the analysis of individual data on prospects and customers to develop marketing strategies to acquire and retain customers and drive customer behavior.

customer value management

________ combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product service offering of their choice.

customerization

Another term for high customer ________ is customer churn.

defection

The typical approach to positioning is to inform consumers of a brand's category membership before stating its point-of-________.

difference

In ________ marketing, the firm operates in several market segments and designs different products for each segment.

differentiated

Which of the following is NOT one of the ways direct exporting happens?

domestic-based export agents

Richard Petty and John Cacioppo's ________ model, an influential model of attitude formation and change, describes how consumers make evaluations in both low- and high-involvement circumstances.

elaboration likelihood

________ agree to manage a company's export activities for a fee.

export-management companies

A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

false

A segment is attractive when there are actual or potential substitutes for the product.

false

Baby boomers are consumers who have been "wired" almost from birth - playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones.

false

Brands like Victoria's Secret underwear and Kettle gourmet potato chips, which carry a significant premium over middle-market brands, but are easy to trade-up to because they are relatively low-ticket items in affordable categories, are called Masstige brands.

false

Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.

false

Cultural branding is essential for small firms, but ineffective for large companies.

false

Customer satisfaction is the only way by which a firm can increase its profitability.

false

Every consumer must pass through all five stages of the buying process when in a buying situation.

false

Hard-core loyals can show the firm which brands are most competitive with its own.

false

Indirect exports are characterized by high investment, and therefore high risk.

false

Local marketing reflects a growing trend called macromarketing.

false

Luxury brands are usually not global because they target a niche market.

false

Secondary groups require continuous interaction to be effective and meaningful.

false

Straddle positioning refers to a brand using different positioning with different categories of competitors.

false

Straight extension means using an established product's brand name for a new item in the same product category.

false

The value proposition is stated in the price of a product and readily recognized by the average consumer.

false

Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective.

false

Using the industry approach, competitors are defined as companies that satisfy the same customer need.

false

When the licensor provides the licensee with a complete brand concept and operating system, the arrangement is called contract manufacturing.

false

With noncompensatory models of consumer choice, positive and negative attribute considerations usually net out.

false

If a marketing manager employs such marketing techniques as online buzz, student ambassadors, cool events, and street teams to reach target markets, the manager is most likely appealing to the ________ market.

generation Y

Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation.

geographic

Betsy, a teenager, uses most of her after-school hours in either playing tennis or watching movies. She barely manages to concentrate on her lessons for a couple of hours before exams. Being questioned about her substandard performance in school, she points out the teacher's inability to complete the entire course during the school hours as the possible reason. Betsy's behavior is most likely to be associated with ________.

hedonic bias

A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another.

industry

Which of the following was NOT part of the British Airways "Know Me" program?

infiltration of coach class by mystery shoppers

GE Capital, GE's lending arm, uses ________ with financial institutions in South Korea, Spain, Turkey, and elsewhere to reach more geographic and technological markets and to diversify investments and risk.

joint ventures

With the ________ heuristic, the consumer chooses the best brand on the basis of its perceived most important attribute.

lexicographic

The goal of positioning is to ________.

locate the brand in the minds of consumers to maximize the potential benefit to the firm

The aim of customer relationship management is to produce high customer ________.

loyalty

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

loyalty

Hotel chains such as Hyatt and Marriott sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.

management contracts

American Express' "World-Class Service, Personal Recognition," Mary Kay's "Enriching women's lives," Hallmark's "Caring Shared," and Starbucks' "Rewarding Everyday Moments" are examples of brand ________.

mantras

Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories.

narrative branding

Which of the following is the first stage of the internationalization process that can induce firms to enter the international arena?

no regular export activities

Consumers often choose and use brands that have a brand personality consistent with how they think others view them, also known as the ________ self-concept.

others'

________ marketing is about making sure the brand and its marketing are as personally relevant as possible to as many customers as possible - a challenge, given that no two customers are identical.

personalizing

All marketing strategy is built on STP: segmentation, targeting, and ________.

positioning

A person's ________ consist(s) of all the groups that have a direct (face-to-face) or indirect influence on his/her attitudes or behavior.

reference groups

Amtex electronics, a consumer products brand, frequently advertises its products inside supermarkets and retail stores to promote the process of memory ________ and stimulate purchase.

retrieval

Indirect exports have two advantages for a firm: less investment and less ________.

risk

At the top of Maslow's hierarchy of needs (shown as a pyramid in the text) are ________ needs.

self-actualization

The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a ________.

social class

Of customers who register a complaint, ________.

some will do business with the company again if their complaint is resolved

If a buyer is loyal to two or three different brands of soap, this buyer's loyalty status can be described as being among the ________.

split loyals

The starting point for understanding consumer behavior is the ________ model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions.

stimulus-response

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.

terminating the relationship with low-profit customers

In collectivist societies, ________.

the self-worth of the individual is rooted more in the social system than in individual achievement

As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?

to negate competitors' perceived points-of-difference

A company is customerized when it is able to respond to individual customers by customizing its products, services, and messages on a one-to-one basis.

true

A marketer who is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and demand is focused on capturing marketing insights.

true

A person's position in a group is defined in terms of role and status.

true

Brand mantras must communicate both what a brand is and what it is not.

true

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

true

Comparative advertising is not acceptable in Japan, and is illegal in India and Brazil.

true

Contract manufacturing is one mode of licensing that allows a company to start faster, with the opportunity to form a partnership or buy out the local manufacturer later.

true

Cooperative organizations carry on exporting activities on behalf of several producers and are partly under their administrative control.

true

Heavy users of a particular product are often a small percentage of the market but account for a high percentage of total consumption.

true

Most companies would prefer to remain domestic if their domestic market were large enough.

true

Psychographics is the science of using psychology and demographics to better understand consumers.

true

Regional economic integration means companies are more likely to enter entire regions at the same time.

true

Situational factor segmentation variables in the business marketplace include urgency, specific application, and size of order.

true

The competitive frame of reference defines which other brands that a brand competes with.

true

When the brand manager for John Deere sets up advertising, sales promotions, events, and public relations to communicate about the value embodied in its products, she is participating in the "communicating value" management function.

true

The key to attracting potential users of a product or service, or even possibly nonusers, is ________.

understanding the reasons they are not using it

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

value delivery system

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies.

win-back

Which of the following statements about Gen Xers is true?

Gen Xers feel self-sufficiency and the ability to handle any circumstance are key.

Which of the following is an example of image differentiation?

The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.

Which of the following causes a difference between marketing in developed countries and marketing in developing countries?

There are substantial cultural differences between the developed and the developing world.