Marketing Chapters 5-9

Though the percentages are not always the same, a general rule in business says that the large majority of a firm's revenues come from what percent of its customers?

20% ***The 80/20 rule is a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers. The percentages in the 80/20 rule are not exactly 80 percent and 20 percent but they suggest that a small fraction of customers provides most of a firm's sales.

Members of the World Trade Organization (WTO) member countries account for approximately __________ of world trade.

90% **** The World Trade Organization (WTO) was formed in1995 to address a broad array of world trade issues. There are 153 WTO member countries, including the United States, which account for more than 90 percent of world trade.

What method do marketing researchers use to present and analyze data that involves two or more variables to discover relationships in the data?

A cross tabulation *** Key term definition—cross tabulation.

Which of the following statements about global brands is most accurarte?

A global brand uses the same product formulation or service concept across multiple countries and cultures. ***** A global brand is a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. Global brands have the same product formulation or service concept, deliver the same benefits to consumers, and use consistent advertising across multiple countries and cultures.

During the postpurchase behavior stage of the organizational buying process, which of the following is most likely to occur?

A supplier's performance is formally evaluated. **** In the postpurchase evaluation stage of the organizational buying process, buyers evaluate suppliers using a formal vendor rating system and notify a supplier if their products do not meet their quality standard. If the problem is not corrected, they drop the firm as a future supplier. See Figure 6-4 in the textbook.

The __________ American subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group.

Asian **** Studies show that the Asian American subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group.

Another name for an e-hub is a(n):

B2B exchange. *** Key term definition—e-marketplaces.

The Foreign Corrupt Practices Act of 1977 made what practice illegal?

Bribing an official of a foreign government to obtain business in that country *** The Foreign Corrupt Practices Act (1977) is a law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business.

Researchers who have studied organizational buying identify three types of buying situations: straight rebuy, new buy, and modified rebuy. These are collectively are known as what?

Buy classes **** Key term definition—buy classes.

To allay a mothers' concerns about ingredients in its mayonnaise, Hellmann's successfully communicated the product's high Omega 3 content, which is known to be essential to human health. This is an example of using which attitude change strategy?

Changing beliefs about the extent to which a brand has certain attributes **** Changing attitudes and beliefs about the extent to which a brand has certain attributes is critical for changing consumer purchase behavior if a problem exists. a To allay a mothers' concerns about the health benefits of its mayonnaise, Hellmann's successfully communicated the product's Omega 3 health benefit.

Determining how to collect data, including selecting the appropriate methods, is done during which step of the research process?

Develop the research plan *** According to Figure 8-1 in the textbook, the second stage of the research process is "develop the research plan." During this step, one determines how to collect the data.

__________ is the third step in the five step process of segmenting and targeting markets.

Developing a market-product grid *** The steps in segmenting and targeting markets that link customer needs to marketing actions are: (1) group potential buyers into segments, (2) group products to be sold into categories, (3) develop a market-product grid and estimate size of markets, (4) select target markets, and (5) take marketing actions to reach target markets. See Figure 9-3 in the textbook.

What type of question is the simplest form of a fixed alternative question that allows only a "yes" or "no" response?

Dichotomous *** Text term definition—dichotomous question.

Mexican officials claimed that U.S. apple growers were __________ when they appeared to be selling red and golden delicious apples in Mexico for less than the cost of producing them. This resulted in Mexico adding a tariff to these products.

Dumping *** Dumping is when a firm sells a product in a foreign country below its domestic price or below its actual cost. A trade dispute involving U.S. apple growers and Mexico is a case in point. Mexican trade officials claimed that U.S. growers were selling their red and golden delicious apples in Mexico below the actual cost of production. They imposed a 101 percent tariff on U.S. apples, and a severe drop in U.S. apple exports to Mexico resulted.

For the purchase of a smartphone, Consumer Reports expects that many consumers use price, display, web browsing, and battery life as __________, since it tests products on these dimensions.

Evaluative criteria **** Evaluative criteria represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands. For a smartphone, you may use price, display, voice quality, messaging, web browsing, battery life, or some combination of these or other criteria.

An energy drink company is interested in advertising during a made-for-television movie using subliminal advertising in which logo images are shown only very briefly, for periods of just several milliseconds at a time. Which of the following is the strongest argument against such a marketing tactic?

Evidence suggests that such messages have limited effects on behavior. **** While the Federal Communications Commission has denounced subliminal messages as deceptive, the most important reason to avoid this tactic is because evidence suggests that such messages have limited effects on behavior.

Which of the following is a criterion used to select a target market segment?

Expected growth of a segment *** There are five criteria used for selecting a target segment: market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources. There are also five criteria to use in forming market segments, which are often confused with those used to select segments.

Which segmentation base do organizations use most according to a recent study by the Aberdeen Group?

Geographic *** A recent study by the Aberdeen Group analyzed which segmentation bases were used by the 20 percent most profitable organizations of the 220 surveyed. From highest to lowest, the segmentation bases were: geographic (88 percent), behavioral (65 percent), demographic (53 percent), and psychographic (43 percent).

Which type of product positioning would be used to compete directly with competitors on similar product attributes in the same target market?

Head-to-head positioning *** Companies follow a head-to-head positioning strategy when competing directly with competitors on similar product attributes in the same target market.

Which of the following is a variable that could be used for demographic segmentation of consumer markets?

Household size *** Consumer demographic variables are based on some objective physical (gender, race), measurable (age, income), or other classification attribute (household size, birth era, education, occupation) of prospective customers. See Figure 9-4 in the textbook.

Which type of e-marketplace is described as a neutral third party?

Independent e-marketplaces **** Independent e-marketplaces act as a neutral third party and provide an Internet technology trading platform and a centralized market to enable exchanges between buyers and sellers.

Kenneth, in inside sales, has an office right across the hall from the administrative pool. When he heard they were purchasing a new paper shredder, he said, "I know I don't get much of a say, but please look for one that is quieter. When you use it, my furniture actually vibrates. That thing drives me crazy!" In this instance, Kenneth performs what function in the buying center?

Influencer *** Influencers affect the buying decision, usually by helping define the specifications for what is bought. Though Kenneth may not decide or use the shredder, he'd like to have input on the amount of noise the product will generate.

The purchasing department identifies potential suppliers in which stage of the organizational buying process?

Information search **** The second stage of the organizational buying decision process is information search, during which potential suppliers may be identified. See Figure 6-4 in the textbook.

Which of the following is most characteristic of an organizational buyer in the buying process?

Is technically qualified and professional **** Among the buying process characteristics are buyers that are technically qualified and professional, and who follow established purchasing policies. See Figure 6-2 in the textbook.

Which of the following is an example of a single product with multiple market segments?

Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. *** A one product and multiple market segment strategy simply involves producing a single product and selling it to two or more market segments, as is the case with Johnson's Baby Oil.

Which of the following is a criterion used to select a target market segment?

Market size *** There are five criteria used for selecting a target segment: market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources. There are also five criteria to use in forming market segments, which are often confused with those used to select segments.

The NAICS provides common industry definitions to facilitate comparative measurements of economic activity between the United States and which of the following?

Mexico **** Key term definition—North American Industry Classification System (NAICS).

In routine problem solving, the number of external information sources used is typically which of the following?

None **** For routine problem solving, the purchase process is virtually a habit and typifies low-involvement decision making. An internal search is typically sufficient, so no external source of information is needed. See Figure 5-3 in the textbook.

__________ is the increased customer value achieved through performing organizational functions, such as marketing, production, and operations, more efficiently.

Organizational synergy *** Text term definition—organizational synergy.

What is another term for a gray market?

Parallel importing *** Key term definition—gray market.

Selling virtually the same product in other countries works well for companies such as New Balance Athletic Shoes. This is an example of which type of global marketing strategy?

Product extension *** New Balance is selling virtually the same product in other countries, which is an example of a product extension strategy. See Figure 7-4 in the textbook.

If a consumer is happy with the firm, but natural, hold she gets from her latest purchase of hairspray, this would be considered which variable of the behavioral learning process?

Reinforcement **** Behavioral learning is the process of developing automatic responses to a situation built up through repeated exposure to it. Four variables are central to how consumers learn from repeated experience: drive, cue, response, and reinforcement. Reinforcement is the reward, here the satisfaction with the hold of the hairspray.

Which of the following characterizes organizational buyer-seller relationships?

Relationships may evolve into supply partnerships. **** Organizational buying is more likely to involve complex negotiations concerning delivery schedules, price, technical specifications, warranties, and claim policies. These negotiations also can last for an extended period of time. Reciprocal arrangements also exist in organizational buying. Long-term contracts are also prevalent. In some cases, buyer-seller relationships evolve into supply partnerships.

Kohl's, a department store chain, is an example of which type of organizational buyer?

Reseller **** Wholesalers and retailers that buy physical products and resell them again without any reprocessing are resellers. Kohl's is a reseller.

What kind of question is the following? "Place an 'X' in the space that describes your feelings about the economy." Excellent __ __ __ __ __ Poor

Semantic differential scale *** This question is an example of a semantic differential scale, a five-point scale in which the opposite ends have one- or-two-word adjectives that have opposite meanings. See Figure 8-4, Question 5 in the textbook.

AT&T had to modify advertising in Russia and Poland that showed a "thumbs-up" gesture in what way to avoid an offensive meaning?

Show the back of the hand instead of the palm side *** "Thumbs-up" is a positive sign in the United States. However, in Russia and Poland, this gesture has an offensive meaning when the palm of the hand is shown, as AT&T learned. The company reversed the gesture depicted in ads, showing the back of the hand, not the palm.

Using the same brand name for different products is an application of which concept from behavioral learning theory?

Stimulus generalization **** Stimulus generalization exists when a response elicited by one stimulus (cue) is generalized to another stimulus. Using the same brand name for different products is an application of this concept, such as Tylenol→Cold & Flu and Tylenol→p.m.

__________ has resulted in more open borders, allowing French tire maker Michelin to close 180 of its European distribution centers and now uses just 20 to serve all EU countries.

The EU *** The EU creates abundant marketing opportunities. European wide distribution from fewer locations is more feasible given open borders. French tire maker Michelin has closed 180 of its European distribution centers and now uses just 20 to serve all EU countries.

If you are thinking about buying a new television, which of these would be considered a public source of information for an external search?

The U.S. Consumer Product Safety Commission **** Public sources include various product-rating organizations such as Consumer Reports, government agencies like the U.S. Consumer Product Safety Commission, and TV "consumer programs."

On which segment of global consumers have Adidas, Coca-Cola, and Apple capitalized?

The youth market *** Global consumers consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. Evidence suggests the presence of a global middle-income class, a youth market, and an elite segment, each consuming or using a common assortment of products and services, regardless of geographic location. Levi Strauss, Nike, Adidas, Coca-Cola, and Apple have tapped the global youth market.

Which type of firm views the world as one market and emphasizes cultural similarities across countries rather than their differences?

Transnational *** Text term definition—transnational firm.

Which of the following is a commonly used organizational buying criterion?

Warranties and claim policies **** Organizational buying criteria include: (1) price, (2) ability to meet the quality specifications required for the item, (3) ability to meet required delivery schedules, (4) technical capability, (5) warranties and claim policies in the event of poor performance, (6) past performance on previous contracts, and (7) production facilities and capacity.

Which of the following is a psychological influence on the consumer behavior decision process?

Which of the following is a psychological influence on the consumer behavior decision process? **** Psychology helps marketers understand why and how consumers behave as they do. In particular, psychological concepts such as motivation and personality; perception; learning; values, beliefs, and attitudes; and lifestyle are useful for interpreting buying processes and directing marketing efforts. See Figure 5-4 in the textbook.

Which of the following would most likely be considered a new buy for Trek?

Which of the following would most likely be considered a new buy for Trek? **** Project manager Michael Leighton offers examples of purchasing at Trek: "So, [for] a new buy, we work with our buying centers to find new products, something we've never done before, whether it's a new saddle with a new material or a new technology that goes into the frame that damps vibration or gives a better ride."

One problem typical of __________ is that the U.S. firm may want to return earned profits (repatriate) to the United States, but the local partner in the local firm or its government may oppose this.

a joint venture *** Disadvantages arise when the two companies disagree about policies or courses of action for their joint venture or when governmental bureaucracy bogs down the effort. For example, a U.S. firm may want to return profits earned to the United States, while the local firm or its government may oppose this, a problem faced by many potential joint ventures in Eastern Europe, Russia, Latin America, and South Asia.

Running horizontally across a market-product grid, each row represents an opportunity for efficiency in terms of:

a market segment. *** Running horizontally across a market-product grid, each row represents an opportunity for efficiency in terms of a market segment. For example, if you concentrate on one segment, you might be able to streamline your marketing program efforts.

Asking the firm's salespeople to estimate sales during a coming period is referred to as:

a salesforce survey forecast. *** Text term definition—salesforce survey forecast.

For which of the following items would extended problem solving most likely be used?

an assisted living residence **** Extended problem solving exists in high-involvement purchase situations for items such as automobiles and elaborate audio systems. See Figure 5-3 in the textbook.

The study of consumer __________ helps marketers understand why people choose one brand over another and how they make these choices.

behavior **** Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. It helps answer questions such as why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers.

Golden Beauty, a brand of sun care products from L'Oréal, a French health and beauty products marketer, has advertising featuring dark tanning for northern Europeans, skin protection to avoid wrinkles among Latin Europeans, and beautiful skin for Europeans living along the Mediterranean Sea, even though the products are the same. This is an example of which type of global marketing strategy?

communication adaptation *** L'Oréal, a French health and beauty products marketer, introduced its Golden Beauty brand of sun care products through its Helena Rubenstein subsidiary in Western Europe with a communication adaptation strategy. Recognizing that cultural and buying motive differences related to skin care and tanning exist, it promotes the same products in different ways in different regions.

In a marketing decision, __________ are likely to be restrictions on the time and money available to solve the problem.

constraints **** The constraints in a decision are the restrictions placed on potential solutions to a problem, such as the time and money available to solve the problem.

The fact that American women use more cosmetics than American men while French men use twice as many cosmetics as French women is an example of differences in the nations':

customs *** Customs are the norms and expectations about the way people do things in a specific country.

U.S. organizational markets use three main segmentation bases, which are:

demographic, geographic, and behavioral. *** The three segmentation bases for U.S. organizational markets are geographic, demographic, and behavioral. Psychographic is used only for consumer markets. See Figure 9-7 in the textbook.

The Perth Mint in Australia provides silver blanks to the U.S. Mint, which then creates products for consumers like the collectable American Eagle Silver Bullion Coins. The demand for Perth's silver blanks is called __________ demand.

derived *** Derived demand means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services. The demand for silver blanks depends on consumer demand for coins produced at the U.S. Mint.

A forecast that involves estimating the value to be forecast and making decisions without any intervening steps is referred to as a:

direct forecast. *** A direct forecast involves estimating the value to be forecast without any intervening steps. Example: How many quarts of milk should I buy?

One argument for protectionism is that it:

discourages dependency on other countries. **** The economic arguments for protectionism is that it preserves jobs, protects a nation's political security, discourages dependency on other countries, and promotes development of domestic industries.

A key to positioning a product or brand effectively is to discover the perceptions in the minds of potential customers. This involves taking four steps, one of which includes:

discovering where the company's product or brand is on the relevant attributes in the minds of potential customers. *** A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class, (2) discover how target customers rate competing products or brands with respect to these attributes, (3) discover where the company's product or brand is on these attributes in the minds of potential customers, and (4) reposition the company's product or brand in the minds of potential customers.

An important part of creating a market-product grid is to:

estimate the size of the markets. *** Developing a market-product grid means identifying and labeling the markets (or horizontal rows) and product groupings (vertical columns). Each cell in the grid can show the estimated market size of a given product sold to a specific market segment. See Figure 9-6 in the textbook.

Representatives from Kraft spent several months with consumers in their kitchens, attempting to understand what they wanted in ready-to-serve meals prior to the launch of Kraft Deli Creations. The observational approach Kraft used is called __________ research.

ethnographic *** Ethnographic research is an observational approach in which anthropologists and other trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products or services in their "natural use environment," such as in their car , hotel, or in this case, the kitchen.

In eight small group sessions with customers, 3M heard them complain that standard steel wool pads scratched their expensive cookware. The findings from this research led to the development of 3M's internationally successful Scotch-Brite Never Scratch soap pads. The research method 3M used was:

focus groups. *** Focus groups are informal sessions in which six to ten past, present, or prospective customers are directed by a discussion leader or moderator to identify what they do and don't like about a firm's and its competitors' offerings, how they use them, and special needs they have that the they don't currently address. Often video-recorded and conducted in special interviewing rooms with a one-way mirror, focus groups enable marketing researchers and managers to hear and watch consumer reactions. It is not a panel because the small group meets only once.

Theodore Levitt wrote a book titled The Marketing Imagination. In the book, Levitt argues that consumers around the world are becoming very similar in their wants and behaviors. Levitt asserts that marketers should standardize their marketing strategies and activities in order to benefit from economies of scale. Levitt is encouraging marketers to adopt a(n) __________ marketing strategy.

global *** A global marketing strategy is the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. Levitt encourages marketers to standardize their marketing activities in order maximize efficiency—in other words, to adopt a global marketing strategy.

Two major types of product positioning are _______ and _______.

head-to-head; differentiation *** Two main approaches to positioning a new product in the market are head-to-head and differentiation.

A buying committee differs from the typical buying center in that the former is:

highly formalized. *** For most large multistore chain resellers, such as Sears, 7-Eleven convenience stores, Target, or Safeway, the buying center is highly formalized and is called a buying committee. However, most industrial firms or government units use informal groups of people or call meetings to arrive at buying decisions.

Once a company has decided to enter the global marketplace, it must select a means of market entry. As the firm moves from exporting to direct investment, the amount of financial commitment, risk, marketing control, and profit potential__________.

increases *** Once a company has decided to enter the global marketplace, it must select a means of market entry. As the firm moves from exporting to direct investment, the amount of financial commitment, risk, marketing control, and profit potential increases. See Figure 7-3 in the textbook.

When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using:

internal secondary data. *** Internal secondary data has already been collected that exists inside an organization and serves as the starting point for a new marketing research study because using this information can result in huge time and cost savings for the organization.

Satisfaction or dissatisfaction affects consumer communications; while the satisfied buyer typically tells about three other people about her experience, the dissatisfied buyer:

is likely to complain to about nine people. **** Studies show that satisfaction or dissatisfaction affects consumer communications. Satisfied buyers tell three other people about their experience. Dissatisfied buyers complain to nine people.

Opinion leaders are considered to be __________, so their opinions influence others' choices.

knowledgeable about or users of particular products **** Individuals who exert direct or indirect social influence over others are called opinion leaders. Opinion leaders are considered to be knowledgeable about or users of particular products and services, so their opinions influence others' choices. Opinion leadership is widespread in the purchase of cars and trucks, entertainment, clothing and accessories, club membership, consumer electronics, vacation locations, food, and financial investments.

The market leader for a(n) __________ product must make special efforts to avoid stockout situations so that buyers don't substitute a competing brand.

low-involvement **** If a company markets a low-involvement product and its brand is a market leader, attention is placed on (1) maintaining product quality, (2) avoiding stockout situations so that buyers don't substitute a competing brand, and (3) repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

One popular way to raise household incomes in developing countries is through the use of:

microfinance *** Efforts to raise household incomes in developing countries is evident in the popularity of microfinance. Microfinance is the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.

The nearly 15 percent of adult Americans who do not go to fast-food restaurants in a typical month and who are never likely to become users would be referred to as:

nonprospects. *** Among nonusers of a product, people who might become users are prospects while people who are never likely to become users are nonprospects. See Figure 9-5 in the textbook.

Linear trend extrapolation is a type of trend extrapolation in which the:

pattern is always a straight line. *** When the pattern of trend extrapolation is a straight line, it is linear trend extrapolation. Using linear trend extrapolation, you draw a line to fit the past data and project it into the future to give the forecast values.

A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a __________.

perceptual map *** Key term definition—perceptual map.

Respect is an example of a __________ need.

personal **** Status, respect, and prestige are examples of personal needs. See Figure 5-5 in the textbook.

Important variables in the family life cycle are age, marital status, and:

presence of children. **** The family life cycle concept describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. Figure 5-6 in the textbook illustrates the traditional progression as well as contemporary variations of the family life cycle, which are dependent upon age, marital status, and the presence of children.

Sensodyne ProNamel toothpaste is formulated to re-harden acid softened tooth enamel to increase protection for users' teeth, and this attribute sets it apart from competitors. Sensodyne's advertising promotes this product benefit and is an example of:

product differentiation. *** Product differentiation involves a firm's using different marketing mix activities, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.

Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses:

product groupings. **** Finding a means of grouping the products a firm sells into meaningful categories is as important as forming customers into segments. If the firm has only one product or service, this isn't a problem. But when it has dozens or hundreds, these must be grouped in a way that buyers can relate to them.

The VALS system is a(n) __________ measure of consumers.

psychographic **** Psychographics, the practice of combining psychology, lifestyle, and demographics, is often used to uncover consumer motivations for buying and using products and services. A prominent psychographic system is VALS from Strategic Business Insights (SBI).

Tariffs serve primarily to:

raise prices on imports. *** Tariffs, which are a government tax on goods or services entering a country, primarily serve to raise prices on imports.

According to Michael Porter's diamond of national competitive advantage, clusters of world-class suppliers that accelerate innovation are reflected in:

related and supporting industries. **** Text term definition—related and supporting industries. See Figure 7-2 in the textbook.

Jack co-owns a coin-operated laundry downtown with his two brothers, but he does most of the day-to-day management. Which of the following would most likely be a straight rebuy for Jack?

reordering single-use detergent packets for his vending machine **** For a straight rebuy, the buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without even checking with users or influencers from other areas (in this case, his siblings).

An advantage of using a panel for marketing research is:

researchers can take successive measurements of consumers to determine if they change their purchasing behaviors over time. **** Marketing researchers often want to know if consumers change their behavior over time, so they take successive measurements from the same people.

Market segmentation involves aggregating prospective buyers into groups that have common needs and will:

respond similarly to a marketing action. **** Key term definition—market segmentation.

In marketing experiments, the dependent variable is the __________ and the independent variable is the __________.

result of an action; cause of an action *** The interest is in whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result).

In a(n) __________ auction, many sellers compete to provide goods or services for a single buyer.

reverse *** A reverse auction works in the opposite direction from a traditional auction. In a reverse auction, a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. See Figure 6-6 in the textbook.

Two special methods vital to marketing researchers are __________ and __________.

sampling; statistical inference *** Sampling and statistical inference are defined as special methods vital to marketing. Sampling is a technique to select a group of distributors, customers, or prospects and treating the information they provide as typical of all those in whom they are interested. Statistical inference is then used to generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions.

When following the five-step marketing research approach, developing the research plan is the __________ step.

second *** The five-step marketing research approach includes: Step 1—define the problem; Step 2—develop the research plan; Step 3—collect relevant information; Step 4—develop findings; and Step 5—take marketing actions. See Figure 8-1 in the textbook.

Toro introduced a small, lightweight snowblower called the Snow Pup, which worked well but suffered from slow sales. Toro found that consumers perceived the Snow Pup name to mean that it was a toy or too light to do any serious snow removal. Poor sales may have been the result of __________ because of customers' interpretation of the name.

selective comprehension **** A consumer using selective comprehension is interpreting information so that it is consistent with his or her attitudes and beliefs. In this case, she or he believes that the brand name "Snow Pup" for a snowblower does not connote a confidence for removing snow.

If a marketing manager queries a marketing information system to determine what the influence of a change in the price of a new product is on sales, she is using __________.

sensitivity analysis *** Marketers can use sensitivity analysis to query the database with "what if" questions to determine how a hypothetical change in a driver like advertising or price can affect sales.

Within the industrial market, __________ companies make up about 75 percent of all firms.

service ** The importance of services in the United States today is emphasized by the composition of industrial markets. Companies that primarily sell physical goods (manufacturers, mining, construction, farms, timber, and fisheries) represent 25 percent of all the industrial firms. A diverse array of service companies represents 75 percent of all industrial firms.

Potential buyers within a market segment should be:

similar in terms of the advertising media used. *** One of the five criteria to use in forming segments is that potential buyers within a segment should be similar in terms of common needs that, in turn, lead to a common marketing action, such as product features sought or advertising media used.

In marketing research, the research objectives are the __________ goals of the decision maker.

specific and measurable **** Research objectives are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.

Since 1934, Milsco Manufacturing has been the exclusive source of seats for Harley-Davidson motorcycles as well as an aftermarket provider of parts and accessories such as saddlebags. Milsco engineers work closely with Harley-Davidson on the latter's new product development efforts. Harley-Davidson is using __________ with Milsco.

supplier development **** Supplier development involves the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers, which is true of Harley-Davidson and Milsco.

Marketing research is the process of defining a marketing problem and opportunity, __________, and recommending actions.

systematically collecting and analyzing information **** Key term definition—marketing research.

As a situational influence, antecedent states include:

the amount of cash on hand. **** Antecedent states, which are events that occur prior to the purchase, include the consumer's mood or the amount of cash on hand.

Measures of success are:

the criteria or standards used in evaluating proposed solutions to a problem. *** Key term definition—measures of success.

The problem recognition stage of the consumer purchase decision process will be activated if the consumer perceives a difference between his or her actual and ideal situations and:

the difference is big enough to trigger a decision. **** During the consumer purchase decision process, an individual at the problem recognition stage will perceive differences between his or her ideal and actual situations that are big enough to trigger a decision. Advertisements can activate a consumer's decision process by showing shortcomings of competing or currently owned products.

The phenomenon in which a country's imports affect its exports and its exports affect its imports is referred to as:

the trade feedback effect. *** Text term definition—trade feedback effect.

One challenge associated with selling to organizations is that:

there are often far fewer buyers. **** Firms selling to organizations are often restricted to far fewer buyers.

Organizational buyers include all of the following except:

ultimate consumers. **** Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale are called organizational buyers.

All of the following are independent variables a market researcher may use in a marketing experiment except:

unit sales. *** In marketing experiments, the independent variables of interest—sometimes called the marketing drivers—are often one or more of the marketing mix elements, such as a product's features, price, or promotion (like advertising messages or coupons). The ideal dependent variable usually is a change in the purchases (incremental unit or dollar sales) of individuals, households, or organizations.