Marketing Test 1

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents

unmet customer needs/wants.

A generational cohort is a group of people

who are of the same generation.

Christy, who was born in 1955, advocated for casual Friday at her workplace. Christy is a member of which generational cohort?

Baby boomer

Which generation is also known as Millennials?

Gen y

A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether to make this matter public. How should it begin the process of making an ethical decision?

Identify the issues raised by the situation.

________ is the cost to the customers or the fee the bank charges those customers for borrowing money.

Interest

Good marketing is not a random activity.

TRUE Good marketing requires thoughtful planning.

Which of these is NOT one of the main components of a value proposition?

The price of the product or service being offered.

Select the statement that best describes the key traits of Generation Y.

This generation puts a strong emphasis on work/life balance, and some are technologically savvy.

A reference group may have direct or indirect influence on your attitude toward a particular clothing store.

True.

Another name for physiological risk is safety risk.

True.

Each individual's ethical standards are a product of culture and upbringing.

True. Our different cultural and individual backgrounds lead to different sets of ethical standards.

__________ are the three types of attribute sets.

Universal, retrieval, and evoked

The consumer buying process begins when

a consumer recognizes an unsatisfied need

A relational orientation is based on the philosophy that buyers and sellers develop

a long term relationship

When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from

an external source.

price

capturing value

Promotion

communicating value

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

concentrated

The centerpiece of the marketing environment analysis framework is

consumers.

Zappo's online shoe and clothing store has a unique way of dealing with abandoned shopping carts. If a site visitor places items into the shopping cart and then leaves the site without making a purchase, several days later Zappo's sends a humorous email saying, "Let us show you what your shopping cart did while you were gone," along with a photo of a cute dog intended to represent the shopping cart. This attention-getting device is designed to improve the site's

conversion rate.

A firm's macroenvironment includes all of the following

culture, demographics, economics, political/legalissues

The shared meanings, beliefs, morals, values, and customs of a group of people constitute their

culture.

Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set.

evoked. The universal set represents all brands, regardless of whether the consumer is aware of them. The retrieval set represents all brands the consumer can recall. The evoked set represents all brands the consumer would consider buying (as in this case).

Once consumers have recognized a need, they begin to search for ways to satisfy that need. The internal search is characterized by

examining personal memories and knowledge.

A(n)__________ is the trade of things of value between the buyer and the seller so that each is better off as a result.

exchange

A consumer's external social environment includes

family, reference groups, and culture.

Natalie and her fiancée Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by

family, reference groups, and culture.

Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers'__________ risk.

financial

The value of the euro has changed significantly since 2002 with the problems experienced by several European economies. This change in value is called

foreign currency fluctuations.

PRIZM and Tapestry divide and sort small geographic areas into categories using 60 or more demographic and lifestyle characteristics. These market research tools are examples of __________ segmentation.

geodemographic

Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the U.S., what segmentation method would probably be most useful in choosing new locations?

geodemographic segmentation.

Marketers often employ a combination of segmentation methods, using __________ to identify and target their customers, and __________ to design products and messages to appeal to them.

geodemographic segmentation; lifestyle or benefit segmentation

Kim's Kayak Tours initially identified active retirees living in the retirement community nearby as one of its target markets. Kim then tailored her service and marketing message to the interests and schedules of that audience. Kim initially used __________ segmentation and then used __________ segmentation.

geodemographic; lifestyle

Differences in weather and climate create opportunities for

geographic segmentation.

As director of a small art gallery, one of Frederica's major concerns is the preferences of the people who buy her artists' work. Frederica recognizes that the center of her marketing efforts is

her target customers.

Within a perceptual map, a(n) __________ represents where a particular market segment's desired product would lie.

ideal point

Carlos has identified four potential market segments for his Rent-A-Nurse service. He will now compare the segments to see whether they are distinct from each other. Carlos is evaluating whether each segment is

identifiable.

The goal of customer relationship management is to

identify and build loyalty among a firm's most valued customers.

Sally is in the new marketing department of a midsized lawn and garden company. She is working on the first marketing plan the firm has ever used. She has defined the mission and objectives, and she just finished a situation analysis for the firm. The next step is to

identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to

identify issues that need to be addressed.

The Ethical Decision-Making Framework includes all of the following steps

identify issues, gather information and identify stakeholders, brainstorm and evaluate alternatives, and choose a course of action.

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the Framework for Ethical Decision Making, Hisaoki's company failed to

identify issues. Hisaoki failed to identify possible ethical issues in advertising alcoholic beverages at a child-related event.

As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him to

identify potential opportunities. Close attention to the marketing environment and customer needs is one of the best sources of opportunities.

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed?

implementation - During the implementation phase, the company can discuss targeting decisions and implementing the marketing mix appropriately to minimize this risk. Perhaps safe use of the ladder should be emphasized in marketing communications, or perhaps steps should be taken to discourage certain consumers from buying these ladders.

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process.

implementation - The implementation phase is where the marketing mix is implemented, and is thus the place where the use of sweatshop labor becomes a public issue.

Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or

improve products and services at the same cost. This would create additional value for her customers.

Most big box retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to buy things they hadn't planned to buy, or make

impulse purchases.

Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through

increased choices.

According to the text, fourteen cable companies agreed to provide low-cost Internet access to impoverished families for all of the following reasons EXCEPT

increased income from a larger number of subscribers.

Marketers are particularly interested in postpurchase behavior because it

involves actual rather than potential customers.

The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because

it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions.

Stuart wanted to impress Janet with the perfect engagement ring. He had been saving money for months, and he noticed his attitudes and perceptions about diamond rings changing as he began paying attention to ads for rings. Marketers call this process

learning

The political/regulatory environment comprises political parties, governmental organizations, and

legislation and laws.

Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his

locus of control.

Tomas, a bank employee, doesn't feel that his coworkers accept him. He decides to dress more casually, as they do, hoping to be accepted. Which level of Maslow's hierarchy of needs is Tomas trying to work on?

love

One of the benefits of a differentiated targeting strategy is that it allows the firm to diversify its business and

lower overall risk.

When Ron complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his accounts alerting all tellers that Ron was a valued customer and to provide whatever service he requests. The branch management included Ron in its __________ segmentation.

loyalty

The importance of supply chain management is often overlooked in the study of marketing because

many of the activities take place behind the scenes. Supply chain management is extremely important—without it, customers would not be able to obtain products—but most of the activities take place in the background.

Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. Retailers function as

market intermediaries. - Retailers make up one category of market intermediary, which refers to firms that assist in getting products from the manufacturer to the consumer.

At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described?

market-orientated.

Deceptive advertising and promotion of inferior products are examples of __________ ethical issues.

marketing

The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to use its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that

match its core competencies.

When selecting a target market, firms will be most successful if they

match the firm's competencies with a market segment's attractiveness.

Successful firms focus their efforts on satisfying customer needs that

match their core competencies.

An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm to

meet inventory needs.

Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to

minimize negative word of mouth and rumors.

When Mr. How, a Pennsylvania-based discount lumber and hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

misguided geographic segmentation.

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm

must ensure that long-term goals of the firm are aligned with the short-term goals of each individual within the firm. - The firm does not need to always put society's needs above its own; however, it is important to ensure that short-term behavior supports long-term goals.

Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' __________ change(s) over time.

needs, wants, and ability to purchase

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Having a variety of brands allows Adidas to

obtain a bigger share of the shoe market.

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

occasion

Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?

occasion segmentation

Limited problem solving usually relies on

past experience more than on external information.

Generally, people buy one product or service instead of another because they

perceive it to be the better value for them.

There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection?

physiological risk

There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs.

physiological. Many people in India are living at a subsistence level, able to afford little but basic necessities (if that). This indicates that they are at the lowest level in Maslow's hierarchy, physiological needs.

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

place

The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.

political/regulatory

Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over twenty years. Donald is __________ his business relative to his competition.

positioning

Many teenagers, both male and female, have clothes they purchased in the past that they would not be caught dead in today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel

postpurchase cognitive dissonance.

Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?

price

Which element of the marketing mix is most relevant to the activity "capturing value"?

price

When you register your telephone number with the Do Not Call Registry, you are responding to a need for

privacy. Privacy is a major concern for consumers, and the Federal Trade Commission is responding by trying to protect consumers against unwanted telephone solicitations.

Regina wants to position her financial services company. Regina can position her services according to all of the following EXCEPT

profitability.

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full time would focus on

providing classes at convenient times and offering online courses.

Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of __________ segmentation.

psychographic

VALS is the most widely used __________ segmentation tool.

psychographic

Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation.

psychographic; demographic

Americans often equate bigger with better, and prefer larger cars, TV screens, homes, even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process.

psychological

Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs.

psychological

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

purchase behavior. Generational cohorts are presumed to have similar purchase behavior due to similar life experiences and similarity of life stage.

College students can be a less __________ market segment because students' media habits are quite diverse.

reachable

Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating with people in a war zone, Ryan may have trouble with this segment not being

reachable.

The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely

reduce regional cultural differences.

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

reexamine their alternatives.

Beverage firms sometimes hire attractive young people to sit at fashionable bars, sipping the company's latest product offering. The firms hope these models will serve as a(n) __________ and influence consumers.

reference group

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often became __________, influencing other consumers' behavior.

reference groups

In New England, foot-long sandwiches are called grinders, while in many other parts of the country they are called subs. This is an example of the impact of

regional culture.

Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in

regional culture.

When Starbucks first opened, many critics suggested, "No one will pay $4.00 for a cup of coffee." Starbucks' critics suggested consumers would not be __________ to the company's offerings.

responsive

The manager of Plantation River Country Club wanted members of the very upscale club to use the bar and dining facilities more frequently. He offered a two-for-one happy hour special but few members showed up. The manager did not have a grasp of what would make his target market

responsive.

When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set.

retrieval

When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company

sacrificed short-term profits for long-term credibility.

A home security company will advertise the need for home surveillance products to appeal to which level of Maslow's hierarchy of needs?

safety

Maslow's hierarchy of needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are

safety, love, and esteem. Maslow's hierarchy, in order from lowest to highest, is (1) physiological, (2) safety, (3) love, (4) esteem, and (5) self-actualization.

Near the end of the model year, Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.

sales-oriented.

Many entrepreneurs are successful through marketing efforts designed to

satisfy unfilled needs.

When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to

search for information about cars.

Which of the following would NOT be used in calculating the profitability of a segment?

segment perceptions

When Victoria's Secret offers different product lines, such as its Pink line, it is trying to capture the market by

segmenting, targeting, and positioning.

Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to

select a target market.

Janice was disturbed to find that the real estate company she had just started working for did not have a(n) __________, the starting point for creating a strong ethical climate.

set of ethical values - The first step in creating a strong ethical climate is to establish a set of shared ethical values that the company and its employees will respect when doing business.

The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers' decisions.

situational

Marketing enriches society by

sponsoring charitable events

Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions.

store atmosphere

Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is

substantial. A segment is substantial if it is large enough to be worth targeting, and if the segment members have sufficient buying power. "Substantial" is a better answer than "Profitable" because even a small segment with few people who can afford the product could be profitable in some circumstances, depending on price, margin, and so on.

Marketing channel management is also known as

supply chain management

Which of the following is NOT a social trend listed in the text?

technological advances

Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from

the Consumer Reports website.

The center of all marketing efforts is

the consumer

The greater the discrepancy between a consumer's needy state and the desired state, the greater

the consumer's need recognition will be.

Though Asian Americans comprise only 6 percent of the U.S. population, they represent

the fastest growing minority population. Asian Americans are the fastest growing ethnic minority in the United States.

After assessing the market growth potential for his company's baby products in Mexico, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider

the number of competitors, entry barriers, and product substitutes.

One drawback to marketing products on smartphones compared to other kinds of web experiences is

the smaller screen means that less information must convey the same brand image.

The consumer decision process model represents

the steps that consumers go through before, during, and after making purchases.

David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about

the time-poor society.

When referring to exchange, marketers are focusing on

the trading of things of value. Exchange refers to each of the parties involved giving something and getting something in return.

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because

they interact directly with consumers.

One of the goals of value-based marketing is

to offer greater value than competitors offer.

What is the lipstick effect?

treating oneself to a small luxury like lipstick and forgoing a luxury vacation

Firms become value-driven, in part by focusing on the competition.

True. Firms become value-driven by focusing on their customers and competitors.

Foursquare is an example of a location-based social media application.

True. Foursquare, Scvngr, Google Maps, and Loopt are all examples of social media applications that allow users to check in to different locations.

In value co-creation, the customer participates in the creation of a good or service, which provides additional value to the customer.

True. In value co-creation, the firm and the customer work together to create the product or service. This process adds value because the product or service can be tailored to the customer's needs.

Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.

True. Place represents all the activities necessary to get the product to the right customer when that customer wants it. For instance, marketing channel considerations have pushed a growing number of businesses to adopt multiple convenient locations.

When a good or service is promoted, the purpose of the promotion is to inform, persuade, or remind customers.

True. Promotions are generally designed to inform, persuade, or remind potential buyers about a product or service.

Buffalo Wild Wings suggests that its diners check in to its locations using their phones. This demonstrates the use of social media to market a product

True. Social media enables Buffalo Wild Wings to reach young, tech savvy customers, its target market.

Firms have come to realize that good corporate citizenship through socially responsible actions should be a priority because it will help their bottom line in the long run.

True. Socially responsible firms recognize that including a strong social orientation in business is a sound strategy that is in both its own and its customers' best interest. It shows the consumer marketplace that the firm will be around for the long run and can be trusted with their business.

Garage sales and online classified ads are examples of C2C marketing.

True. These are C2C marketing scenarios, where consumers market to each other.

To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. Pokrah University is becoming more value driven through

building relationships with customers. By communicating regularly with students and alumni, Pokrah is working to build closer relationships with these groups.

In delivering value, marketing firms attempt to find the most desirable balance between

providing benefits to customers keeping costs down.

Many firms with complex products have missionary salespeople who assist customers with problems and implementation programs. These salespeople rarely sell products but often become involved in and knowledgeable about specific customers' needs and wants. These salespeople focus on a(n) __________ orientation with their customers.

A relational orientation refers to the building of relationships and the development of a better understanding of customers' needs and wants.

"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason?

"It's a way to show the position of the company throughout the product's life cycle."

Those who graduate from college tend to earn an annual salary that averages about _______ more than a high school graduate averages.

$21,500

The poorest 10 percent of the U.S. population earned less than _______ per week in 2010.

$374

Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit?

$6.00. Segment profitability = (Segment size × Segment adoption percentage × Purchase frequency × Profit margin percentage) - Fixed costs.We will assume that Purchase frequency = 1 (that each household buys just one calendar)We don't know the Price or Profit margin percentage, but (Price × Profit margin %) can be restated as (Price - Variable cost) = Price - $4Substituting numbers, $500 = (1,000 × 30% × 1 × (Price - $4)) - $100$500 = (300 × (Price - $4)) - $100$600 = 300 × Price - $1,200$1,800 = 300 × Price$6 = Price

What percentage of U.S. adults now recycle their soda bottles and newspapers?

50%

Which of the following is an example of greenwashing?

A company donates money to a school reading project so it can advertise itself as environmentally friendly.

Which ethnic group not only tends to be more affluent and suburban than previously thought, but also younger, with 47 percent between the ages of 18 and 49 years?

African American

Which statement about the changing ethnicity in the United States is TRUE?

African American U.S. households are more affluent than previous studies suggested.

Which ethnic group in the U.S. tends to earn more, have more schooling, and be more likely to be professionally employed or own a business?

Asian

As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing.

B2B; B2C. The car manufacturers considered switching from B2B marketing (where they sell cars to dealers, who then sell them to consumers) to B2C marketing (where the car manufacturers would sell directly to consumers).

From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth.

Baby Boomers.

Marketers cater to the ________ cohort with larger fonts in signage and seating options in stores.

Baby boomers

__________ segmentation is the segmentation method most directly related to value creation for consumers.

Benefit

Value-driven firms constantly measure the __________ that customers perceive, compared to the prices of their offerings.

Benefits. Value is the relationship between the benefits and costs.

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?

By ensuring that pay practices are fair at all levels of the company.

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

By protecting the privacy of personal information collected on its website.

How might Starbucks ensure that it behaves in a socially responsible way toward members of its supply chain?

By purchasing coffee beans from suppliers who pay coffee growers a fair price.

Janine was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing.

C2C

Auction sites like eBay have increased opportunities for __________ marketing.

C2C. - Consumers can buy and sell from each other on sites like eBay, increasing the amount of consumer-to-consumer (C2C) marketing that takes place.

Many universities provide physical or electronic bulletin boards to facilitate ride-sharing and exchange of used books among students. These bulletin boards increase __________ marketing.

C2C. These bulletin boards are designed to encourage consumer-to-consumer (C2C) marketing since they make it easier for consumers (students, in this case) to connect with each other.

In the immediate environment, the competition has no effect on consumers.

Competitors are one factor in the immediate environment that affects consumers.

What is MOST likely to happen when inflation increases?

Consumers buy lower priced foods.

__________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.

Demographic

__________ attributes are product or service features that are important to buyers and that are used to differentiate among choices.

Determinant. Determinant attributes are product features that are important to buyers, and that the buyer perceives to be different between brands.

The U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was one of the results mentioned in the text?

Dishonest telemarketers have still been able to get through.

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

False.

A self-values map displays the position of products or brands in the consumer's mind.

False.

A value proposition compares the price of a product to its benefits.

False.

Jason usually buys Nike shoes, so when his friend asked him what shoes he should buy, he said Nike without thinking about it. Jason's response was an evoked set.

False.

Marketers should not encourage customer feedback because it can lead to negative word of mouth.

False.

Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing.

False.

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

False.

Pam didn't go see the movie Gravity because her friends all said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Pam is demonstrating an internal locus of control.

False.

Rachael is visiting colleges before applying to schools. Rachael is likely to be involved in an impulse buying process.

False.

The STP process is made up of strategy, targeting, and promotion.

False.

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising.

False. Although false/misleading ads were one category of often-observed unethical behavior, the most commonly reported behaviors were high-pressure, misleading, or deceptive sales tactics.

Applying age as a basis to identify customers is unethical because it involves stereotyping.

False. Applying age as a basis to identify consumers is quite useful to marketers, as long as it is used in conjunction with other consumer characteristics.

Brainstorming in the Ethical Decision-Making Framework occurs immediately following the identification of issues.

False. Brainstorming occurs after the firm has identified the stakeholders and their issues and gathered all available data.

Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children.

False. Burger King no longer uses SpongeBob because new advertising guidelines do not allow linking unhealthy foods with cartoon characters.

Ronald McDonald Houses are a form of environmental social responsibility.

False. Community social responsibility.

Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation.

False. Consumers are more likely to complain to others about bad experiences than to share praise about good ones.

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations.

False. Corporate social responsibility refers to voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

The members of Generation X are also referred to as Digital Natives.

False. Digital Natives are members of Generation Z, not Generation X.

If a U.S. clothing brand buys from overseas suppliers who manufacture clothing using child labor, this is the supplier's problem, and the U.S. company has no reason to be concerned.

False. Even though the children are not actually employed by the U.S. firm, its reputation—and perhaps even its sales—may suffer from public disclosure of the labor practices of its suppliers.

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.

False. Firms identify potential target markets and ways to deliver the four Ps to them in the implementation phase.

When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke.

False. Habitual decision making involves little conscious effort—these are purchases that we make regularly and by habit, without even considering alternatives.

A company that sells only multigrain, low-calorie bread should use an undifferentiated targeting strategy.

False. If a company had a very specific product, it would probably use a concentrated targeting strategy.

Setting high customer expectations is a good strategy that will help to avoid customer dissatisfaction in the long run.

False. If expectations are set too high, it can lead to dissatisfied customers because the high expectations are so difficult to live up to.

Inflation refers to the cost of borrowing money.

False. Inflation refers to the persistent increase in the prices of goods and services.

Advertising executives are rated as having higher ethical standards than lawyers according to recent Gallup poll data.

False. Lawyers have a slightly higher rating than advertising executives in terms of perceived ethical standards. Neither group gets a high rating.

Macroenvironmental factors include the company, competition, and corporate partners.

False. Macroenvironmental factors are external factors such as culture, demographics, social issues, technological advances, economic situation, and political/regulatory environments. The factors listed in the question relate to the immediate environment.

Merck and Co., having learned from the Johnson and Johnson Tylenol incident, was quick to respond when the first reports of problems with Vioxx arose.

False. Merck had seen evidence that Vioxx was associated with higher incidence of cardiovascular problems at least four years before the drug was withdrawn.

The consumer decision process begins with a comparison of available alternatives.

False. The consumer decision process begins with need recognition.

When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.

False. The consumer, not the firm, should be kept at the center of all activity.

The marketing firm must consider the entire business process from an economic point of view.

False. The marketing firm must consider the entire business process, all from a consumer's point of view.

The process of creating a strong ethical business climate begins with the front-line employees who interact directly with customers.

False. The process of creating a strong ethical business climate begins with a shared set of ethical values and a shared understanding of the implications of these values for the firm.

When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation.

False. The question describes positioning, not psychographics.

One of the social trends discussed in the text that is shaping consumer values in the U.S. and around the world is a concern about the vast disparity in income.

False. The social trends mentioned in the text are a greater emphasis on thrift, health and wellness concerns, greener consumers, privacy concerns, and time-poor societies.

Tweens rarely use any type of technology.

False. This group, a subgroup of Generation Y, has never lived without the Internet or access to cell phones, which makes them technologically savvy.

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate.

False. This is an example of corporate social responsibility because it is a voluntary action designed to help the community at large. While ethical firms are more likely to be socially responsible, the two do not always go hand in hand.

Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise.

False. This is the definition of green marketing.

Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated fat in its Frito-Lay's Ruffles. This form of social responsibility most directly affects shareholders.

False. This most directly affects customers, although if it increases sales of the products, it could affect shareholders down the road.

Vladimir decided not to purchase the iPod shuffle because he didn't think it would hold all of his songs. Vladimir was using his assessment of the iPod shuffle's financial risk in making his decision.

False. Vladimir is worried about the performance risk, or the failure of the product to perform as he needed.

As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.

False. When the euro becomes more expensive relative to the dollar, it means that it costs more dollars to buy European goods, which is likely to lead to a drop in the quantity of European wine purchased by Americans.

The idea that corporate social responsibility is unnecessary because the goal of any corporation is simply to make a profit has been thoroughly discredited and is no longer supported by economists or business people.

False. While some feel that the recent economic crisis argues in favor of social responsibility being a core responsibility of firms, not everyone agrees.

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.

False. it is psychographic segmentation.

Demographics are transmitted by words, literature, and institutions from generation to generation.

False. this is about culture.

The chapter opening case on the fishing industry focused on what ethical dilemma?

Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge.

The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents.

Gen Z

The members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed.

Gen Z

Which of the following groups has never lived without easy access to the Internet and other digital technologies?

Gen z

Which of the following is TRUE regarding modern gender roles?

Gender roles have been blurred in the past several years.

Julie has been doing the family's weekly shopping since she was twelve, although she doesn't particularly like doing it. She tends to question what salespeople tell her and demands convenience. Julie demonstrates characteristics of the __________ generational cohort.

Generation X

Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are more cynical than their parents, and are less likely to believe advertising claims than the generation(s) before them.

Generation X

Tweens are part of which generational cohort?

Generation Y

Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions.

High involvement

How did Johnson and Johnson recently respond to new limits on acetaminophen dosages?

It reminded people not to take more than the recommended dosage.

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action.

Managers. Although all stakeholders should be involved in the earlier steps of the process, management is responsible for choosing the final course of action.

A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you NOT use in talking about marketing?

Marketing isn't essential now, but it will be in a year or two when the product takes off.

After Sharon graduated from college, she found a steady and good-paying job, got married and began to raise a family, and began to receive recognition at work and in the community. Eventually, she began to devote more time and effort to intellectual and aesthetic pursuits. Sharon is moving up

Maslow's hierarchy of needs.

In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers

Mexican products became more expensive while U.S.-made products became comparatively less expensive.

__________ is an extreme form of a targeting strategy.

Micromarketing

Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in

New York, Los Angeles, and Chicago.

For Nike's annual Women's Marathon in San Francisco, the participants received all of the following EXCEPT

Nike shoes.

Credit card companies must now state the interest rate that is being paid and inform consumers what they will pay if they only make interest payments. This is a result of legislation that has been enacted to protect consumers in which of the following areas?

Organizations must adhere to fair and reasonable business practices when they communicate with consumers.

__________ refer(s) to the process by which consumers select, organize, and interpret information.

Perception

__________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of the firm's offerings relative to competitors' offerings.

Positioning

The 1936 ________ specifically outlawed price discrimination toward wholesalers, retailers, or other producers and required sellers to make ancillary services or allowances available to all buyers on proportionately equal terms.

Robison-Patman Act

Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks whether they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?

Satisfying customer needs and wants. By asking about problems, Jami is asking what unmet needs the contractor might have. She hopes that her company may have products that will help to meet these needs.

__________ factors, such as the purchase situation, often override or influence psychological and social issues influencing consumers' purchase decisions.

Situational

Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will NOT specifically help her in this analysis?

The average number of school-age children in families sending a child to the day care center.

What is the best situation in the Circles for a Successful Value Proposition framework?

The firm's benefits overlap with customer needs/wants but not with competitors' benefits.

Giant Food Stores in suburban Washington, D.C., adjusts its ethnic food aisle offerings based on the ethnic groups living near each store. Giant Foods is using geodemographic segmentation.

True

The first step in the STP process is to establish an overall strategy.

True

Value is what you get for what you give.

True Value reflects the relationship between the benefits received and the costs.

After purchasing an expensive pair of shoes, you may question whether the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance.

True.

Automobile manufacturers could build cars specially designed for very tall people (for example, over seven feet), but it is likely that this segment is not substantial.

True.

By 2015, people will access the web more often through smartphones than through laptops and desktops combined.

True.

Consumers involved in habitual decision making engage in little conscious decision making.

True.

Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

True.

For products like pencils and paper clips, marketers should probably use an undifferentiated targeting strategy.

True.

Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving.

True.

Maintaining a unique value proposition can be sustained in the long term only in monopoly situations or monopolistic competition situations.

True.

The 1890 Sherman Antitrust Act prohibited monopolies and other activities that would restrain trade or competition.

True.

When Hakim asked Marta where she wanted to go for lunch, she said Chili's because she went there at least once a week and always liked it. Marta conducted an internal search for information.

True.

When deciding how to promote his new medical oncology center, Dr. Jones decided that he did not need to throw a large grand opening reception. Instead, he promoted the center to the internal medicine doctors in the area, who were the doctors most likely to refer patients to the center. Dr. Jones was engaged in a concentrated targeting strategy.

True. A concentrated targeting strategy is one where the organization selects a single, primary target market and focuses all energies on it. In this case, the local internal medicine doctors make up a single target market.

Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs.

True. A functional need relates to product performance—for example, dependable transportation. A psychological need relates to personal gratification—for example, having a car that looks good.

The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be.

True. A greater discrepancy leads to a more urgent drive to satisfy the need.

Stakeholders typically include the firm's employees and retired employees, suppliers, the government, customer groups, stockholders, and members of the community in which the firm operates.

True. All of these individuals and groups have a stake in how ethical issues are resolved.

Demographic profiles of customers provide an easily understood snapshot of the typical consumer in target markets.

True. Although demographics do not completely describe consumers, they offer a summary snapshot of consumer characteristics that can be useful.

Short-term profit decisions can cause firms to lose customers in the long run.

True. Although firms cannot stay in business long without earning a profit, using profit as the sole guideline can lead to short-term decisions that cause the firm to lose customers in the long run.

Mary will not consider purchasing an American car brand based on negative comments made by her parents; therefore, she has developed a negative attitude toward "American" brand cars.

True. An attitude consists of three components: cognitive, affective, and behavioral. Mary's knowledge of her parents' comments could have influenced one, two, or all three of these components of her attitude.

Marketers are frequently singled out for criticism related to trust, in part because they interact directly with people.

True. Because marketers are in the public eye, it is not surprising that their actions are more visible and therefore subject to more scrutiny and more criticism.

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities.

True. Changes in the environment can be a source of opportunities for the firm.

Coca-Cola launched Coke Zero to avoid cannibalizing current sales and to attract new customers in a segment they might not get with Diet Coke.

True. Coke Zero was targeted at men who might not want to be seen consuming a drink labeled "diet."

Once the marketing strategy is implemented, controls must be in place to be certain that the firm has actually done what it has set out to do.

True. Control is the final stage of the strategic marketing planning process.

Firms with strong ethical climates tend to be more socially responsible.

True. Corporate social responsibility refers to voluntary actions taken by a company to address ethical, social, and environmental impacts of its business operations and concerns of its stakeholders. Highly ethical firms are more likely to be socially responsible; however, the two do not always go together.

When making an important purchase, consumers often consult friends and family. This is considered an external search for information.

True. External search for information occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

Ethical issues are likely to arise at each stage of the strategic marketing planning process.

True. Firms must consider ethical issues at the planning, implementation, and control stages of the strategic marketing planning process.

When Marcia decided she couldn't afford to take a vacation this year, she went to the mall and bought herself a bottle of her favorite expensive perfume instead. This behavior is referred to as the lipstick effect.

True. Frequently called the lipstick effect, some shoppers enjoy the thrill of treating themselves to small luxuries, such as a bottle of perfume, but forgo larger luxury items like a vacation.

Members of Generation Y share a strong emphasis on balancing work and life.

True. Gen Y puts a strong emphasis on balancing work and life. They want a good job, but they also want to live in a location that supports their lifestyle.

It would be logical for bathing suit marketers to use geographic segmentation.

True. Geographic segmentation makes sense since bathing suit demand is dependent largely on weather patterns.

Badger Hardware was planning to raise the pay of its managers but not its front-line employees. To determine the potential ethical issues, it should first identify the issues involved so that it can gather facts related to those issues.

True. Identifying issues is the first step in the Ethical Decision-Making Framework.

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

True. It is possible to be socially responsible yet unethical, which describes this particular company. Its failure to meet its agreements demonstrates ethical issues; however, its community support shows social responsibility.

Marketing has been singled out as the root cause of a host of ethical problems in business.

True. Marketing ethical lapses have led to problems such as unethical advertising and the promotion of shoddy products.

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

True. Perceptual maps include consumers' perceptions of the positions of current brands; they also include ideal points. This makes it easy to visualize the distance between a brand's position and the ideal point, as well as similarities and differences between the images of different brands.

Positioning strategies generally focus either on how the product benefits the consumer or on how it is better than competitors' products.

True. Positioning refers to communicating the unique value the product or service provides to its customers, and how it is better than or different from competitive products.

Jeanne, who lives in Boston, refers to Pepsi as tonic, while Paul, who lives in Chicago, calls it pop. This is an example of a regional culture difference.

True. Regional culture affects many aspects of people's lives, including their vocabulary.

One benefit of having satisfied customers is that they may spread positive word of mouth.

True. Satisfied customers sometimes spread positive word of mouth. They are also likely to become loyal and to purchase again.

The term "time-poor society" refers to the lack of leisure time people have today.

True. Since 1973, reported leisure time has dropped from 26 to 19 hours a week.

Situational factors sometimes override psychological and social factors in the consumer decision process.

True. Situational factors can lead to different decisions than the consumer would make otherwise. This is one reason it is so difficult to predict how a consumer will behave in a specific instance.

An example in the text describes a campaign by Molson Brewery that involved a Facebook campaign targeted toward college students. It was criticized for encouraging underage drinking. This occurred during the implementation phase of the strategic marketing planning process.

True. Sometimes a firm's choice of target market and how it pursues it can lead to charges of unethical behavior. In this case, it occurred during implementation of the marketing plan.

Successful firms focus their efforts on satisfying customer needs that match their core competencies.

True. The firm's competencies are its strengths; the firm is likely to have the most success if it focuses on these, finding customers whose needs it can meet using these strengths.

The three elements of the consumer's immediate environment are the company, competition, and corporate partners.

True. These are the three components of the immediate environment.

As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers.

True. These customers rarely even consider alternative brands or stores, and so are excellent customers.

Parties that work with the focal firm are its corporate partners.

True. This is correct. Firms collaborate with other firms to produce and market their products.

Marketers can introduce ethics at the beginning of the planning phase of the strategic marketing planning process by including ethical statements in the firm's mission or vision statements.

True. This would take place during planning phase.

Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.

True. Typical demographics include age, gender, income and race.

Generally, people buy one product or service instead of another because they perceive it to be a better value.

True. Value is the difference between what we get and what we must give to get it. Perceptions of value usually drive purchase decisions.

BlendMate, a firm that manufactures high-end blenders, donates $10 per blender sold to a local food bank. This is a form of corporate social responsibility.

True. When companies voluntarily embrace CSR, they not only appeal to their shareholders, but to their primary stakeholders—including their own employees, consumers, the marketplace, and society at large. In this case, the company would be supporting a charity that helps society at large.

For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers

a clear, distinctive, and desirable understanding of its products relative to competing products.

Dawn flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent flyer program). Still, she uses an online fare comparison website each time to see whether a competitor has a better price or a more convenient schedule. Dawn uses __________ to decide which airline to fly.

a compensatory decision rule

Jonathan prefers shirts made with 100% cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy.

a compensatory decision rule

Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on

a noncompensatory decision rule. This is a noncompensatory decision rule because no trade-off is possible. No matter how inexpensive or powerful a computer may be, if it weighs more than five pounds, Jordana will not buy it.

A recent poll conducted by Time magazine found that 38 percent of U.S. consumers

actively tried to purchase from companies they considered responsible.

By offering environmentally responsible products, green marketers

add value that other products do not have.

Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except

advertising their products heavily on daytime television.

Apple computer users tend to like the company and love its products. Apple has nurtured this __________ component of its customers' attitudes.

affective

When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT

age. - Income, interest rates, and inflation are among the economic factors.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives.

all parties relevant to the decision

Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as

an afterthought

When Karen realized her dog had fleas, Karen had

an unsatisfied need.

Marketers in the United States are paying increasing attention to ethnic groups because

approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups.

Segmentation, targeting, and positioning

are part of a firm's marketing strategy.

Negative attitudes are typically difficult for marketers to change because

attitudes are learned and long lasting.

Jim wants to position his firm against his competitors. In doing so he should

avoid looking too much like the competitor so that he'd confuse the target segment.

Compared to the average company, firms with strong ethical climates tend to

be more socially responsible.

Alex decides to make a donation to the Autism Research Institute. Which component of Alex's attitude toward autism research does this represent?

behavioral component

The Lite beer commercial with the slogan, "less filling, tastes great," was based on __________ segmentation.

benefit

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using __________ segmentation.

benefit

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online resumés, and look for new jobs. What segmentation method is LinkedIn using?

benefit segmentation.

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be

beyond the norms of corporate ethical behavior - Some managers believe that firms should focus on increasing shareholder value and need not concern themselves with social responsibility.

Being socially responsible is generally considered

beyond the norms of corporate ethical behavior.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should engage in

brainstorming and evaluation of alternatives. - It is too soon to make a choice—at this point, the involved parties should brainstorm and evaluate alternatives.

________ refers to the moral or ethical dilemmas that might arise in a business setting.

business ethics

Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with

buyer's remorse.

The basic difference between a good and a service is that a good

can be physically touched - Goods are tangible things that can be touched; services are intangible. The remaining answers could be true in some cases, but untrue in others.

The United States has often been called the melting pot society, integrating people from many cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture

can be used as a relevant identifier for a particular target group.

When studying culture, the challenge for marketers is to determine whether culture

can help to identify a particular group that might be interested in the marketer's products.

In a recent Gallup survey, which of the following professions was rated lowest in ethical standards?

car salespeople - In the study shown in the text, car salespeople were rated the least ethical profession of the choices given.

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and did a recall. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models?

choose a course of action - When using the Ethical Decision-Making Framework, the first step is to identify the issues. The next three steps are to gather information, brainstorm/evaluate alternatives, and finally to choose a course of action. Toyota, in its recall, had chosen a course of action.

The first step in the STP process is to

clearly articulate the firm's vision or marketing strategy objectives.

The process of value __________, in which customers collaborate in product design, often provides additional value to the firm's customers.

co-creation.

Though he has never owned a Jaguar, Jerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Jerry a car, the company would need to change the __________ component of Jerry's attitude.

cognitive

The three components of an attitude are

cognitive, affective, and behavioral.

For which of the following purchases would consumers most likely engage in limited problem solving?

college courses

When Penguin Catering Services first opened, the owner decided to target only events at resorts in its geographic region. Penguin Catering was using a(n) __________ targeting strategy.

concentrated

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is

consistent with the views of other critics of corporate social responsibility.

The perceptions of __________ are being measured in a perceptual map.

consumers

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.

control

During the __________ phase of the strategic marketing planning process, marketers use systems to check whether each potential ethical issue raised in earlier phases was addressed.

control

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process.

control

The four Ps make up the marketing mix, which is the __________ set of activities that the firm uses to respond to the wants and needs of its target markets.

controllable. what the firm controls and manages. - what the four ps represent.

An online retailer needs to be able to measure how well its website converts purchase intentions into actual purchases. This is known as the

conversion rate.

Zappos.com constantly reminds customers of recently viewed items and informs them when stock is low in an effort to entice the customer to make a purchase. Zappos is trying to improve its

conversion rate.

Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a

corporate partner.

The firms that work along with the focal firm to provide goods and services to consumers are viewed as

corporate partners.

For every consumer who purchases a pair of TOMS shoes for $55.00, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in

corporate social responsibility.- TOMS shoes is engaged in corporate social responsibility by making shoes available to poor children.

Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of

country culture.

Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups

creates opportunities to provide value to each group.

If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT

creating an advertising campaign to target elementary school children.

To attract and maintain habitual purchasers, marketers spend considerable effort

creating strong brands and store loyalty.

product

creating value

Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person's word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences.

cultural

The shared meanings, beliefs, morals, values, and customs of a group of people constitute its

culture

Before going on his first business trip to China, Brad asked his Chinese-American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders.

culture.

Insight Guides, a line of travel books, provides travelers with background information about the people's beliefs, values, and customs. Insight's books educate travelers about a country's

culture.

Which of these is a macroenvironmental factor?

culture.

place

delivering value

Beer marketers know that high school educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a __________ segment of the beer market.

demographic

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of race fans were female. This is an example of __________ segmentation.

demographic

Talbots, an upscale women's clothing store, targets college-educated women between 35 and 55 years old with average household income of $75,000 or more. This is a form of __________ segmentation.

demographic

Television advertising has recently expanded to include mini-ads, which are short ads lasting five to ten seconds. These ads are most useful in advertising to men, since men are more likely than women to channel surf during commercial breaks. This type of advertising will be more useful to marketers engaged in __________ segmentation.

demographic

When marketers look at advertising media, they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see whether the media fit with their advertising agenda.

demographics.

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also

demonstrating corporate social responsibility.

Psychographics is the segmentation method that delves into how consumers

describe themselves.

Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called

determinant attributes.

Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to

develop basic strategies for dealing with their behavior.

In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into Butterball turkeys. In the process, the company

differentiated its product.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) __________ strategy.

differentiated targeting. A differentiated targeting strategy is one in which different target markets are served by different marketing mixes.

Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to

differing demographic data for potential and past viewers.

After assessing the market growth potential and market competitiveness for his company's baby products in Mexico, Harmon wanted to evaluate market access. To do this, Harmon would consider

ease of accessing or developing distribution channels and brand familiarity.

Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in

effective supply chain management.

Education marketers have learned that the primary motivations of most nontraditional college students are self-respect and self-fulfillment. Understanding the values of this market segment allows marketers to

emphasize the benefits these consumers are looking for in a college education.

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the

employees. The primary stakeholders are the employees whose retirement programs are changing.

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to

engage in brainstorming and evaluate alternatives.

After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of

engaging customers and developing long-term relationships. - Benjamin was involved in a relational orientation, hoping to rebuild the long-term relationship with this customer.

People who initiate, organize, operate, and assume the risk of a business venture are called

entrepreneurs

When an accounting firm provides an online training module showcasing real-life decision lapses and their negative effect on the company, it is trying to encourage what type of behavior from its employees?

ethical.

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to

evaluate the attractiveness of each segment.

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?

evaluation of alternatives

The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with

evaluative criteria.

Multinational corporations are recognizing their responsibility to the people who make their products

even if they aren't their employees

Marketers particularly want their brands and products to be in consumers'__________ sets.

evoked

When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would only consider those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set.

evoked

Four Winds Art Gallery recently began offering appraisals of customers' art collections, in addition to continuing to sell paintings. Four Winds is

expanding from offering just goods to also offering services. The paintings are goods, appraisals are services.

Postpurchase cognitive dissonance is especially likely for products that are

expensive, infrequently purchased, and associated with high levels of risk.

Learning refers to a change in a person's thought process or behavior that arises from

experience

Jacqueline was pleased to read a paraphrasing of the Golden Rule, "Do unto our customers as you would have them do unto you," as part of her new employer's mission statement. Next, Jacqueline expects to find in the firm's employee handbook

explicit rules governing all the firm's transactions.

Thanh has to decide which college to attend. This is the most important, riskiest, and most expensive decision she has ever made. She will be engaged in

extended problem solving.

The consumer's level of involvement can lead to two types of buying decisions: __________ and __________.

extended problem solving; limited problem solving

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment is

external

Jennifer's spending decisions are heavily influenced by her family, her peers, and her religious education. These influences on her spending decisions are all ________ influences.

external social environment

Airlines were among the first retailers to embrace loyalty segmentation when they created

frequent flyer programs.

Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryan's firm must look at everything it does

from a consumer's point of view.

When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs.

functional

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets.

functional and psychological

By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers'__________ needs.

functional and psychological

Which of the following is NOT an element of the factors affecting consumers' search processes?

functional versus psychological need. Functional vs. psychological needs are categories of needs that can be recognized. The remaining factors influence information search processes.

Typical demographic data include all of the following

gender, income, race, education.

Marketers often create a special marketing mix for loyalty segments because these segments are

generally profitable.

Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using __________ segmentation.

geodemographic

Retail store chains often use __________ data to identify other locations with similar characteristics and purchasing behavior where it might make sense to open additional stores.

geodemographic

The phrase "birds of a feather flock together" captures the idea of __________ segmentation.

geodemographic

The many demands on consumers today have made it more difficult for marketers to

grab consumers' attention.

Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?

green marketing

Strategic efforts to supply consumers with environmentally friendly merchandise are called

green marketing.

Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called

greenwashing.

ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all natural ingredients, even though ABC's plant was one of the worst polluters in town. The new term for this practice is

greenwashing. The term for disingenuously marketing products as environmentally friendly when they are not is greenwashing.

Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives.

habitual decision making

The Johnson and Johnson Credo

has guided the firm since it was written in the 1940s.

Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was likely shocked and concerned about

his lack of privacy.

Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on

how different customers perceive the value of her services. - Although the other factors might need to be considered in pricing, the primary consideration should be perceived value—and the reason different customers are willing to pay different rates is because they perceive the value differently.

Steve wasn't sure what kind of salsa he wanted to get for his upcoming Super Bowl party. It seemed like there were dozens of varieties to choose from. He noticed that he could sample a few at a station in the store. He tried four, rejected two, and bought several jars of the two he really liked. He also ended up buying a different—and more expensive—kind of tortilla chip after tasting it. Marketers identify this as a success story of

in-store demonstrations.

Brenda was planning a small dinner party and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store, she also found a buy one, get one free deal and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the __________ and ended up spending less than she'd planned.

in-store promotion

When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that

income in the United States has become more unevenly distributed.

By promoting perfume based on youth, style, and sex appeal, Calvin Klein is attempting to

increase the perceived value of its products. - Promotion communicates value to consumers so that they will more easily see the value offered by the product.

The Got Milk advertising campaign, designed to increase consumption of milk, was intended to help market a(n)

industry. The Got Milk campaign advertised the dairy industry as a whole, not any particular brand of milk.

When Diana went to college, tuition was $650 per semester. Now that same college charges $6500 per semester. This number reflects a persistent increase in price known as

inflation

When Kelly began searching for a new car to replace her old, rusty one, she probably relied on __________ sources of information.

internal and external

Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________.

internal locus of control; external locus of control

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation

is a more expensive method for identifying potential customers.

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

is likely more costly than an undifferentiated strategy.

From a firm's perspective, the biggest advantage of RFID is

it enables the firm to track an item from the moment it was manufactured.

Firms use a differentiated targeting strategy because

it helps to obtain a bigger share of the market.

Paul is considering psychographics as a way to segment the market for his small travel agency. This approach to segmentation offers him an advantage because

it is based on underlying reasons people make choices.

When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?

language

Among the factors affecting the consumer decision-making process is/are __________, the way consumers spend their time and money to live.

lifestyle

Christopher bought Timberland boots because he felt they were perfect for his outdoor activities. Patrick bought the same kind of boots because he felt they were stylish, especially with the logo clearly visible. The psychological factor driving Patrick's behavior is

lifestyle

Demographic segmentation is segmentation based on all of the following EXCEPT

lifestyle

When Talbots, an upscale women's clothing store, tries to portray an image of "traditional, conservative, and with good taste," it is appealing to its target market's

lifestyle

Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors' strengths, weaknesses, and

likely reaction to Yuri's promotional activities.

Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will most likely engage in a(n) __________ process.

limited problem solving

Because Americans are working longer hours without increases in real, disposable income, and are using an army of communication devices to keep up with the demands in their personal and work lives, retailers are

making their products available whenever and wherever consumers want them.

Alex has found that both commercial and residential real estate buyers respond positively to his marketing communication message. Alex has identified __________ that respond similarly to his marketing efforts.

market segments

The activity, set of institutions, and process for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called

marketing

Supply chain management is also referred to as

marketing channel management

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of

marketing ethical issues - These are examples of ethical issues of concern to marketers. Even in a firm with a strong ethical climate, some business opportunities that arise may raise ethical concerns and need to be considered in the context of the firm's ethical values.

Marney bought a dress from a retail store. Which core aspect of marketing was Marney most directly participating in?

marketing involves an exchange. - money for dress

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps.

marketing mix

The primary purpose of the __________ plan is to specify the marketing activities for a specific time.

marketing. - A business plan is a formal statement of a set of business goals that are believed to be attainable.

Corporate pilot fish are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a __________ targeting strategy.

micromarketing

Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order shoes with custom color combinations. This is a form of

micromarketing

A(n) __________ is a need or want strong enough to cause the person to seek satisfaction.

motive

According to the text, younger consumers deal with having a lack of leisure time by

multitasking

The greater the discrepancy between a consumer's __________, the greater the consumer's need recognition will be.

needy state and desired state

If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, phone number, and email to participate, the radio station is

offering an exchange. - Marketing is about an exchange of things of value between buyer and seller so that each is better off. In this instance, the exchange is email/personal information for a chance to win a contest. CRM would imply closer tracking of customers than this simple exchange suggests.

Marketers fear negative word of mouth because when consumers are dissatisfied, they

often want to complain to many people.

While on vacation, Martha had her camera stolen. Not wanting to waste vacation time shopping for a new camera, Martha simply purchased another camera just like her old one. For Martha the __________ was low.

perceived benefit versus perceived cost of search

Effective promotion enhances a product or service's

perceived value. Effective promotion communicates value by attempting to ensure that customers understand the value being offered.

American visitors to the Indonesian island of Bali are often aghast when they see the sign for the Swastika resort. Americans associate the swastika symbol with Nazi Germany while Indonesians associate the symbol with the four major elements on Earth. The two groups have different

perceptions.

A __________ is often used to illustrate the position of a firm's products or brands in consumers' minds.

perceptual map

Every year before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is probably concerned with __________ risk.

performance

Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision.

performance risk

Barak is considering buying a hybrid car, but he's not sure that he believes the gas mileage estimates. Barak is concerned about

performance risk.

Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?

place

Marketing channel management is related to which of the four Ps?

place

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?

planning

We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on

product attributes.

Marketing was once an afterthought to

production, In the production-oriented era, marketing was considered unnecessary; all that mattered was producing good products.

Caroline is assessing market growth, market competitiveness, and market access for each segment she has identified. Caroline is assessing the __________ of each potential market segment.

profitability

Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling a __________ need.

psychological

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to

put the campaign on hold while she explores with the staff how they approached the ethical issues.

With access to the Internet nearly universal in the United States, many potential market segments have become more

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

Gloria is opening an upscale women's clothing store in a growing suburban residential area. Gloria knows her target market is upper-income women living within twenty miles. She can't afford to purchase a PRIZM or Tapestry analysis, so she will most likely use __________ as a basis for targeting her market.

real estate values by subdivision

Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether each segment is attractive relative to all of the following EXCEPT

realistic.

production scheduling

responsibility of the manufacturer.

When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm's offering, we say that the segment is

responsive.

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words. the market segment must be

responsive. A segment is responsive if its members react similarly and positively to the marketing mix.

Geodemographic segmentation can be particularly useful for __________, because customers typically patronize stores close to their neighborhood.

retailers

Marketers frequently design customer relationship management programs to

retain loyal customers.

During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers.

sales-oriented. In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising.

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

seems best after weighing the concerns of all stakeholders.

Joanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow's hierarchy of needs?

self-actualization

Beverage companies often use television commercials with images of young people laughing and enjoying themselves on a beach or in a club. These images are designed to appeal to consumers' __________, suggesting "be like me."

self-concepts

To develop psychographic segments, the marketer must understand consumers'

self-values, self-concept, and lifestyles.

Overriding desires that drive how we live our lives are called

self-values.

Black Friday, as the day after Thanksgiving has come to be known in the U.S., is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called doorbusters, and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process.

setting high expectations

André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk.

social

Some websites allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent?

social

Marketers know that, compared to high school graduates who are working full time, college students

spend their disposable income differently.

Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his regulars will encourage them to

spread positive word of mouth.

Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of

supply chain management - Getting a product (in this case, a class) to customers when and where they want it describes the place component of the marketing mix, which involves managing the supply chain.

The marketing goal of getting the right quantities to the right locations at the right time relates to

supply chain management - The question describes the place component of the marketing mix, which involves managing the supply chain.

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols.

Many states have laws regulating the prices businesses charge during emergencies like hurricanes. These laws are designed to protect consumers whose __________ state may impair their ability to make sound purchase decisions.

temporal

There is a saying, "Never go to the grocery store hungry." This saying suggests that a consumer's __________ state may adversely affect purchasing decisions.

temporal

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates

that the impact of unethical actions can affect the organization in unanticipated ways.

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates

that the impact of unethical actions can reach far beyond the corporation. The impact of the CEO's behavior reached beyond his company, affecting members of the community who formerly benefited from the work of the Heritage Foundation.

During the market-oriented era,

the customer was king

In the consumer decision process, we decide how much time and effort to expend searching for information based partly on

the degree of perceived risk associated with the product or service being considered.

In the immediate marketing environment, the first factor that affects the consumer is

the firm itself. The components of the immediate environment are the firm, its competitors, and its corporate partners.

Generation X is known for which of the following characteristics?

the first generation of latchkey children

One of the reasons marketers use loyalty segmentation is

the high cost of finding new customers.

In the Circles for a Successful Value Proposition framework, the value proposition is represented by

the intersection between customer needs/wants and the firm's product's benefits.

Policing potential violations of human rights and child labor laws is an important component of

the mission statement.

Which of the following defines a value proposition?

the unique value that a product or service provides to customers

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on

the value proposition.

If values provide goals, and self-concept is the way we see ourselves, lifestyles are

the way we live our lives to achieve our goals.

In the broadest terms, the marketplace refers to

the world of trade

Marketers should not assume that they can target all Asian consumers in the United States with one strategy because

they speak different languages and come from different cultures.

When an office supply store offers self-checkout, extended hours at its stores, and online shopping with next-day delivery, it is trying to address what social trend?

time-poor society. The time-poor society refers to consumers looking to find short cuts to maximize their time.

After hurricanes like Katrina, many small building contractors will flock to the damaged area, charging whatever customers will pay for temporary repairs to roofs and other parts of damaged homes. These contractors are engaged in a(n) __________ marketing orientation.

transactional - where the seller seeks to make a quick profit and is not concerned about long-term relationships.

Marketing provides the critical function of __________ when companies expand globally.

understanding customers. - Marketing is the part of the organization in the best position to understand customers in all situations.

For products like clothespins, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy.

undifferentiated targeting

For some products, marketers can combine education level with other data like occupation and income to obtain

useful predictions of purchase behavior.

The Johnson and Johnson Credo acknowledges the company's responsibility to

users of its products, its employees, the community, and its stockholders.

Many American consumers are purchasing hybrid automobiles even though they are more expensive than compact conventional autos. These consumers

value contributing to a greener environment.

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.

value-based marketing.

During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.

value-based marketing. In the value-based marketing era, firms began to recognize that value creation was the key to success for most firms.

Since the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many American consumers' concept of

value.

When looking at ethical issues associated with the strategic marketing planning process, questions

vary at each stage of the process

All of the following terms are generally associated with the definition of corporate social responsibility

voluntary, stakeholders, social impact, environmental impact. - Corporate social responsibility generally entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider

what the target market would consider the most important features.

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do NOT help marketers determine

what their customers need.

Value is

what you get for what you give. Value = Benefits - costs of product, or what you get in return for what you give.

Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is

wireless payments from mobile devices.

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems. Previously, they were only expected to answer buyers' questions. The new regulation addressed the marketing ethical problem of

withholding information.

Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. Related to this, the text notes the increasing popularity of

yoga

Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smart phones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of

identifying opportunities to expand.

Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering

information. In this case, Valerie's customer receives a massage, and she receives both payment and information (in the form of the customer's email address) as part of the exchange process.

Marketers must determine the price of a product carefully, based on potential buyers' beliefs about

its value. -Pricing based on buyers' perceptions of value ensures that buyers believe the product is worth its price. Some of the other answers include things that buyers might consider in arriving at a value perception, but they are incomplete answers.

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that

lifetime profitability of relationships matters more than profits from a particular transaction.

One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in

long-term relationships. - value-driven marketing is likely to lead to loyal customers through the relationships that are formed.

Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?

making product decisions. - Since Brian is making decisions about the form his book will take, he is making product decisions. If he were deciding whether to sell it online, in bookstores, or both, it would be a "where and how" (place) decision.

Which of the following is a core aspect of marketing?

making product, place, promotion, and price decisions. - Most of these answers are too broad. Marketers don't generally try to sell to everyone, and they don't necessarily strive to have the lowest price. Instead, they select customers they can successfully serve and design a marketing mix (product, place, promotion, and price) to meet those needs.

When considering career choices in marketing, many students overlook supply chain management because

many of the activities take place behind the scenes. - Supply chain management is extremely important—without it, customers would not be able to obtain products—but most of the activities take place in the background.

During the __________ era, manufacturers and retailers began to focus on what consumers wanted and needed before they designed, made, or attempted to sell their products.

market-oriented.

Many U.S. companies first discovered marketing during the __________ era.

market-oriented. The market-oriented era was when most companies first started thinking in terms of meeting customer wants and needs.

Marketing has traditionally been divided into a set of four interrelated decisions known as the marketing mix, or four Ps, including all of the following EXCEPT

performance

The evolution of marketing progressed along the following continuum:

production, sales, marketing, value-based marketing. - The production-oriented era was followed by the sales-oriented era, then the marketing-oriented era, and finally the value-based marketing era.

Melanie works for a small computer software company. Her boss is constantly improving its products but neglecting customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing.

production-oriented.

The idea that a good product will sell itself is associated with the __________ era of marketing.

production-oriented. - In the production-oriented era, the assumption was that if companies built good products, they would sell without any particular effort.

When a T-shirt manufacturer states, "We only sell it in black because that way we can buy plenty of black fabric and run our plant efficiently," its statement reflects the views that were popular in which era of the evolution of marketing?

production-oriented. This question refers to the production-oriented era, when companies would just manufacture items without taking individuals' needs or wants into consideration.

The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.

sales-oriented.

As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of

sharing information across the organization - Apparently the national headquarters forgot to inform franchisees of the special, suggesting a failure of information sharing.

n the past, manufacturers' representatives did not have up-to-minute data about the products they were selling. Today, manufacturers' representatives are often provided online access to inventory data for the companies they represent. These online inventory systems allow companies to become more value-driven by

sharing information across the organization. the online systems discussed help members of the supply chain share information about inventory levels.

UPS, FedEx, DHL, and other shipping companies support other firms' __________ marketing goals.

supply chain management - Supply chain management includes the shipment/delivery of products, so these companies can be an important part of the supply chain.

Marketing efforts designed to get the product or service to the right customer, when that customer wants it, are called

supply chain management - The question describes the place component of the marketing mix, which involves managing the supply chain.

Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and

the ability to buy them. If Xavier selects customers with an interest in the kinds of products he offers and the ability to purchase, he can communicate the value his offerings provide and offer competitive comparisons as part of his marketing mix.

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider

the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes

the value of their time and energy. -price includes everything the customer gives up to get the product.

Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena operates in the __________ era of marketing.

value-based. Serena attempting to understand her customers' perceptions of value.

Marketing's fundamental purpose is to create value by developing a variety of offerings that will earn income for the company.

False. This is not correct. Marketing's fundamental purpose is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs.

Marketers might wish to sell their products to everyone, but it is not practical to do so.

True. A good marketer will seek out potential customers who have an interest in the product and the ability to buy it.

The power adapters Dell sells with its computers are built by small companies that specialize in power-related accessories. Dell and the power adapter manufacturers are engaging in B2B marketing.

True. Dell, a business, is purchasing supplies from another business, so this is an example of business-to-business (B2B) marketing.

The group of firms that makes and delivers a given set of goods and/or services is called a supply chain.

True. Supply chain (or marketing channel) partners include all firms involved in manufacturing and delivering goods and services, from raw material suppliers to retailers and shipping companies.

Understanding a customer's needs and wants is fundamental to marketing success.

True. The needs and wants of the customer must be an integral part of marketing planning.

The trade of things of value between the buyer and the seller so that each is better off as a result is known as an exchange.

True. This is correct. Buyers complete the exchange by giving money and information to the seller.

Christie has just started with a travel agency, and she has been offering clients and prospective clients a range of packaged tours. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on

Value co-creation. Peter is collaborating with his clients to build custom packages, which is an example of value co-creation.

Georgia, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, one important function Georgia should provide is

advising the production and purchasing departments to produce or order smaller quantities of products.

Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of

alerting the logistics department when to ship products. Jenny is arranging for a shipment through the distribution manager, who handles the logistics function.

Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who only care about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing

all parties to exchange should be satisfied. If all parties to the exchange are satisfied, that indicates that marketers are considering customers' needs as well as the company's welfare. None of the other alternatives ensure that customers' needs are being satisfied.

Marketers involved in value-oriented marketing are constantly balancing

customer benefits with costs of their offerings - Value-oriented marketers constantly measure the benefits that customers perceive against the cost of their offerings. They use available customer data to find opportunities to better satisfy their customers' needs, keep costs down, and develop long-term loyalties.

Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of

customer relationship management

Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be in the buying mode. Franco's system is part of

customer relationship management - Franco's system is one element of a customer relationship management system, in that it tracks customers and seeks to meet their specific needs to build loyalty.

The four Ps:

Product, Price, Place, Promotion

When a manufacturer sells truck and car parts to Toyota, this is an example of B2C marketing.

False. This is an example of B2B (business to business) marketing. B2C marketing would involve selling cars or trucks to individual consumers.

Approximately half of U.S. companies now use social media tools for marketing purposes.

False. 3/4 of US companies use social media for marketing purposes.

A group of firms that makes and delivers a given set of goods and services is known as a distribution channel.

False. A group of firms that makes and delivers a given set of goods and services is known as a supply chain or a marketing channel.

Over the past decade or so, marketers have begun to realize that it is best to structure a firm's customer orientation in terms of transactions rather than relationships.

False. A transactional orientation focuses only on the current exchange, whereas a relational orientation attempts to build a long-term relationship with the customer, resulting in a stream of transactions and (usually) higher profits.

Effectively managing supply chains has a minimal effect on profitability.

False. Effectively managing supply chain relationships often has a marked impact on a firm's ability to satisfy the consumer, which results in increased profitability for all parties.

Entrepreneurial companies are unable to control their marketing mixes.

False. Even start-up companies have control over their marketing mixes (the four Ps). By definition, these are the controllable set of activities that the firm undertakes to respond to the wants of its target markets.

Marketing is an activity that only large firms with specialized departments can execute.

False. Marketing activities can be performed by organizations of all sizes and by individuals.

The text highlights one entrepreneur who was a billionaire by the age of 50. This person is Warren Buffet.

False. Oprah Winfrey.

Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the __________ era of marketing.

Production-oriented. - The production-oriented era of marketing dealt primarily with manufacturing processes and the design of a good product, but without concern for meeting specific customer needs.

__________ is communication by a marketer that informs, persuades, or reminds potential customers about a product.

Promotion

Marketing involves all of the following

conducting exchanges, satisfying customer needs and wants, creating value, and efforts by individuals and organizations.

The fundamental goal of marketers when creating goods, services, or combinations of both, is to

create value. While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers.