Marketing Management Mid-Term Review Questions

_________________ is (are) considered by the customer when making a purchasing decision

1. Costs incurred by the customer in acquiring that bundle of benefits 2. Time invested in purchasing process 3. Opportunity costs of choosing one offering over another

Gatekeepers are important to identify in the B2B buying process because they

1. limit the number of vendors in a given buying process 2.control access to key people 3.create product specifications that block vendors

The Salty Snacks case presents ____ types of snacks.

3

Small changes in consumer demand can lead to considerable shifts in business product demand and it referred to as the ____________

Acceleration effect

_____________ remit monies to purchasers after the fact.

Allowances

Perception drives John's attitudes, beliefs, motivation, and, eventually, his ____.

Behavior

Contingency plans should include ________.

Best-case scenarios, Worst-case scenarios, and Expected-case scenarios

Customer relationship management (CRM) is designed to __________.

Both facilitate higher levels of customer satisfaction and identify the most profitable customers

The St. Louis Rams pump the smell of candy cane's into their stadium because the team feels that the scent adds to the _____ experience.

Brand

Intel makes a product most people never see; however, it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the ______ benefit of brand equity to marketing strategy.

Brand loyalty

Which of the following statement is FALSE as regards to branding:

Branding is sufficient, though not necessary, for a product's success.

Among the three components of the product, which two are the most dynamic in a competitive market place?

essential benefits and brand perception

Generally, the best predictor of consumers future buying behaviors is their _______.

past buying behaviors

In the Salty Snacks case Purchase Duplication is:

proportion

The Salty Snacks case refers to "Penetration" as:

proportion of the consumer panel that bought the brand at least once in the 52-week period.

Honda buys back its cars from consumers. This is an example of ___ market.

C2B

Krista wants to buy a new foaming soap dispenser. Currently the store is running a special that she gets the dispenser for free when she purchases the largest refill of soap. The pricing strategy being used for the dispense and soap is _____________________

Captive Pricing

The brand manager for Kraft Macaroni and Cheese is interested in finding out if changing the shape of the noodles from the rods to circus characters will lead to increased sales. The brand manager needs to conduct ________ type of research.

Casual

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ______ extension.

Category

There are two clocks A and B. Clock A is always 10 minutes behind. Clock B does not run. Clock A is vever right, while Clock be is right twice a day. Which of the following statements is correct with regard to these two clocks?

Clock A is more reliable because it consitently predicts the correct time unlike clock B.

A key difference between a warranty and a guarantee is that:

warrantees assure product will do what it claims to do; guarantees assure product is what it is claimed to be.

Costco and American Express joined together to offer a Costco-American Express card that allows users to get rebates on their purchases at Costco while expanding the reach of American Express to Costco members. This is an example of _______.

Co-branding

A characteristic of B2B companies is that they often make products that end up as ___________ in a finished product.

Components

The two fundamental approaches to learning include ____ and _____.

Conditioning and cognitive learning

Products that consumers purchase that are relatively low cost, purchased frequently, and lacking some amount of interest by the customer are called __________

Convenience goods

Companies translate the essential benefit into physical, tangible elements known as the _________.

Core product

One of the central concepts of the service-profit chain is to _______.

Create an environment in which all employees can be successful

Which of the following does NOT assess total market demand?

Customer LTV

Exceeding customer expectations is often referred to as ___________.

Customer excellence

CRM stands for _________________.

Customer relationship management

The marketing manager of ABC Corp. is interested in ranking customers on the basis of their profitability, so he accesses a database that tells him about the frequency and size of each customer's order along with the actual costs per order. This database is part of the ________ system.

Customer relationship management (CRM)

The recent controversy over the age of Chinese Olympic gymnasts because of differing ages on their passports and in government files exemplifies the difficulty with secondary data _____ in global markets.

Dependability

The relationship between consumer demand for products and demand for B2B products is said to be _______________.

Derived Demand

Differentiated target marketing means ______.

Different value offerings for different target markets

____________ are direct, immediate reductions in price provided to purchasers.

Discounts

As the marketing manager for ABC Co. you are charged with developing marketing strategies for an area that is composed of a diverse population from a variety of countries. To reach this diverse populace you might want to consider efforts that focus on specific ________ when generating strategies

Ethnic groups

Salty Snacks case is an example of

Evaluation Case

Bryan gets reduced fees for his daughter's piano lessons by maintaining her teacher's website. Bryan is practicing the central tenet of marketing called ____________.

Exchange

The Irish Pub is trying to understand why its happy hour business is declining while other pubs in the area are busier than ever. The owner wants to understand the decline in sales volume so she can resolve it. The best type of research to perform at this time would be _________.

Exploratory

The zone of defection describes the area where ______________ reside and are prone to leaving a business and defect to competitors.

Extremely dissatisfied and somewhat dissatisfied customers

Harley-Davidson introduced a cologne. While the Harley brand has a large and loyal customer base, the cologne was not successful. This is an example of the ______ limitation of branding

Failure to persuade the customer because of the misfit between the brand image and the product

Attitudes are _____ or _____, ______ or ________. Attitudes are very seldom if ever neutral.

Favorable, unfavorable, positive, negative

Business markets are characterized by having ___________________.

Few but larger customers

Vegan Videos has decided to conduct exploratory research to clarify its marketing-related research problem. It has decided that it needs to collect primary data, but it has only one week to collect these qualitative data from 20 customers and only 1 researcher. Vegan Videos should use a(n) __________ technique to collect the data to meet its deadline.

Focus Group

Making a change in any of the marketing mix elements will _______________.

Have a domino effect on the other elements

The product experience is called the ________.

Heart of Marketing

The marketing manager for Brand A Razors, a strong national brand, believes he knows how customers will react to a new product offering, but he conducts market research to provide justification for this new product. This violates the _________ aspect of the definition of market research.

Impartial and objective

B2C markets can be characterized as being more ________ than B2B markets.

Impersonal

It is said that B2B demand is more _____________ in general than B2C demand for products or services.

Inelastic

An individual moves through five stages before adopting a product. The five stages include all of the following except ____.

Information Search

The innovation diffusion process __________.

Is how long it takes a product to move from first purchase to last purchase

A service blueprint is a concept borrowed from manufacturing that allows a service firm to ___________.

Map out a complete design and flow of all the activities related to customer service

Pegasus Express, a well-established North American delivery service, wants to expand service into Central and South America. This is classified as ___________ in Ansoff's Product-Market Matrix.

Market development

Which of the following statements is true?

Marketing is NOT a zero-sum game

__________________ require that a certain percentage markup be applied to all products.

Minimum markup laws

One of the strategies of a service company is to take its intangible service and make it __________.

More tangible

The product life cycle (PLC) for a particular product has ________.

More than one life cycle—industry and brand life cycles

Attitudes are learned or at least influenced by __________.

New information

Total demand is a function of three separate situations, which can be described as ___________.

New, repeat, and replacement purchases

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing, housewares, and even cosmetics. Eventually Pierre Cardin wasn't known for anything anymore. This is an example of _____, a disadvantage of co-branding.

Overexposure

Amelie is the marketing manager at a café in Charleston, South Carolina. The chef/owner is about to introduce a new dish and Amelie is planning on pricing the dish low to begin, but slowly raising the price over time. Amelie is utilizing _______________.

Penetration pricing

When a firm's objective is to gain as much market share as possible, a likely pricing strategy is _________________, sometimes also referred to as pricing for maximum marketing share.

Penetration pricing

Maslow's Hierarchy of Needs Theory suggests that humans have wants and needs that influence their behavior. People advance to the next level only if the lower needs are met. The order of the needs is ____________.

Physiological, safety, love/social, self-esteem, self-actualization

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board. A discussion of this would be included in the ________ part of a marketing plan.

Political, legal, and ethical

Once a purchase decision is made, the process continues and is called _____________.

Post-Purchase evaluation

One competitive force not addressed directly by Michael Porter is ________.

Power of other stakeholders

Geoff works at an Aspen ski shop. He has just gotten a shipment of new snowboards and realizes that the company has priced its snowboards higher than the rest of the boards in his shop. Since Geoff took a marketing class in college, he knows that the company is using ______________.

Prestige pricing

Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality, so he sets it high. He knows that after this season, the price will lower. Jean Claude is using ______________

Price skimming

A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its __________________ as well as its ability to translate some of the cost savings to the bottom line.

Pricing strategies

The rate at which new products become accepted is known as the

Product adoption process

The rate at which new products become accepted is known as the _________.

Product adoption process

Carol Ann is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest-priced tickets are in the least desirable seats and the highest-priced tickets are in the most desirable seats, with the rest of the ticket prices falling somewhere in between. Carol Ann is describing ____________________.

Product line pricing

Colgate Palmolive reported fake Colgate toothpaste being shipped in phony packages in the United States. It was not clear where the fake toothpaste originated, but Colgate and other packaged goods companies took a number of steps to reduce counterfeit packaging. Document Security Systems works with manufacturers to make their packaging more secure. This is part of the _____ objective of packaging.

Protection

A marketing manager using VALS is interested in ____________ segmentation.

Psychographic

Doug runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Doug uses _____.

Psychological pricing

'Brand Switching,' meaning customers buying substitute products concurrently, is ______________.

Quite common in the market place

Bella Luna is a specialty baby furniture store. Most of the items in the store are designer, and, therefore, tend to be more expensive than other baby furniture. Recently Bella Luna started to put the manufacturers' suggested retail price next to the price it charges to show the savings. Bella Luna is using ___________________.

Reference Pricing

Fernandez Brothers Inc., provides accounting services to small businesses. Before and after tax season, the partners meet with each client company. It sends a monthly newsletter to update clients with tax changes. The firm's business practices revolve around putting the customer at the center when developing services and practices. Fernandez Brothers has adopted a ________________ approach.

Relationship orientation

There are five kinds of needs. Which of the following is NOT one of them?

Satiation need

Marketing today ____________.

Seeks to add value for consumers by understanding the past (of marketing) and change drivers for the future

The sequential steps to successful segmentation are _________________.

Segmenting, targeting, and positioning

Joe's perceptions are shaped by these three psychological tools: _____, ______, and ______.

Selective awareness, selective distortion, selective retention

The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy. This is an example of _____________.

Selling orientation

Benihana restaurants have the tag line, "an experience at every table." This conveys that _________.

Service is a drama to get customers to new heights of involvement

Which of the following statementshold true for selecting target market(s) from several market segments?

Since all segments are viable, choose only the ones that are closest.

In markets where customers typically witness rapidly changing prices, ________________ can provide a source of competitive advantage.

Stability pricing

American Express recently introduced the One card that incorporates the American Express brand as well as its own brand One. This is an example of combining a family brand with _____.

Stand-alone branding

Mammoth Foods, a major agricultural corporation, recently purchased MJS Organic Foods Co. MJS was established six years ago and has become a major supplier to restaurants in the northeastern United States. The organic herbs, vegetables, and fruit market is expected to have a double-digit growth rate over the next decade. Most likely, MJS would be classified as a ________ under the Boston Consulting Group model.

Star

MRO supplies, materials, repairs, and operational supplies and services are generally purchased through a ______________.

Straight Rebuy

The three main types of buying situations can be characterized as ___________.

Straight rebuy, modified rebuy, and new purchase

A SWOT analysis should not ________.

Suggest solutions to problems

The Coca-Cola Co. gives its bottles the same distinctive shape all over the world because it believes that ________ sensations translate well across global markets.

Tactile

Occupational segmentation recognizes that _________.

The Bureau of Census gives good ideas on occupational segments Workplace peers are a strong reference group that influence purchasing decisions There may be needs and wants demonstrated by consumers based on the job they have

Positioning relies on the communication of one or more sources of value to customers in a way that the customer can easily make the connection between ________.

The customer's needs and wants and what the product has to offer

When product is defined in a marketing context, it is _________.

The total asset balancing between buyer and seller

Ryan pays a market rate to take his young children to daycare that is run by his employer. It is open until 7:00 p.m., a time by which everyone leaves. This service offered by his company offers ________________ utility

Time and place

Paul is the groundskeeper for a golf course. He not only mows the greens and fairways but is also an expert on the grass that is used and how to care for it. The golf pro and club manager consult with him about what new equipment the club needs to maintain the greens. Paul plays the role of __________ in the buying process.

User

With __________________, customers are allowed—even encouraged—to haggle about prices.

Variable pricing

Victorinox, maker of the Swiss Army knife, promises its knives to be "free from defects in material and workmanship for the entire life of the knife." This is an example of a ________.

Warranty