Marketing Test #2
Which of the following is the most likely result of inflation?
consumers will switch to less expensive options for necessities
Because not all purchase intentions result in an actual purchase, marketers calculate the ________ to measure how effectively a decision to purchase a specific product results in a completed purchase.
conversion rate
Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with __________ demand.
derived
Sales of electric components manufactured by Rick's company depend on sales of new cars, in other words, ________ demand.
derived
________ reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular product.
derived demand
Angela considered all sporting goods stores to be roughly equivalent in most ways; however, she considered REI stores to have an exceptional level of customer service. Customer service, therefore, would be considered a ________ for her in evaluating sporting goods stores.
determinant attribute
Where Caroline grew up, everyone knew everyone else, no one locked their doors, 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
Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's
culture
The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
culture
Which of these is a macroenvironmental factor?
culture
In a modified rebuy situation, __________ are likely to have an advantage in getting the order.
current vendors
John is involved in the buying center of a large organization. He ultimately will determine whether to buy, what to buy, how to buy, or where to buy. What role does John play in this situation?
decider
Roberta works out at a health club, goes to yoga classes, and reads magazines about women's health to satisfy her inner desires. Which of Maslow's needs is Roberta fulfilling?
esteem
The components of global market assessment include all of the following except
ethnic analysis
After posting an RFP for telecommunications equipment, USF Corporation received six proposals from qualified vendors. Next, USF will
evaluate the proposals and narrow the choice to a few suppliers
Ethan considered three important attributes when deciding where he would do his banking: the convenience of the location, hours of operation, and interest rates for CDs. In this situation, these three attributes are called
evaluative criteria
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
The salient or important attributes about a particular product that a consumer bases his or her product evaluation on are called
evaluative criteria
When Catherine was considering different brands of jeans to buy, she could think of only three she would actually consider purchasing. These three brands make up her ________ set.
evoked
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
Unlike a firm's mission statement or employee handbook, a firm's organizational culture often
exists as a set of unspoken guidelines
Learning refers to a change in a person's thought process or behavior that arises from
experience
If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies?
exporting
Mary wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with
exporting
When John was considering buying a new car, he sought out unbiased information and ratings about different makes and models in Consumer Reports magazine as well as from Edmunds.com. Which of the following corresponds most closely to this aspect of the decision process?
external search for information
As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines.
false
Tariffs are intended to make imported goods less expensive and thus less competitive with domestic products.
false
Natalie and her fiancé Mayuree 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, Mayuree is from Thailand and would like to have a monk officiate. Natalie and Mayuree'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
When a manufacturer offers a money-back guarantee on the purchase of its products to show that the products will perform as expected, it is most likely attempting to alleviate which risk?
financial
In the summer of 2002 the euro was valued at slightly less than US$1. By 2008, it had risen to an all-time high of $1.60, but in early 2016, the euro and the dollar were nearly equivalent. This change in value is called
foreign currency fluctuations
When entering into a franchise agreement, the term _____ refers to the firm that is granted the right to operate a business using the franchise name and business concept.
franchisee
Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using
franchising
________ involves a binding contractual agreement between two businesses whereby there is lower risk and less investment than opening units owned wholly by the firm
franchising
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 consumers point of view
When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs.
functional
By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers' __________ needs.
functional and psychological
According to office policy and procedure, any purchase requests that are $3,000 and over must be given to Hassan Reynolds, who will obtain authorization from the chief financial officer. Hassan serves as a(n) ________ in the buying center.
gatekeeper
________ involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
green marketing
Frito-Lay's SunChips line of snack foods uses solar power at one of its eight production facilities to harness the sun's energy to produce its products. This is an example of consumer demand for _________ products.
green-oriented
Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of
greenwashing
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
________ consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy).
gross national income
Marketers love consumers who engage in __________, buying their company's product with little thought or consideration of alternatives.
habitual decision making
Whenever Meredith buys toothpaste, she always automatically reaches for the same brand and puts it in her shopping cart with no thought or effort. Meredith is engaged in
habitual decision making
The university will purchase new computers during the summer to update its computer labs. Although the new computers will be more advanced in terms of their technology, the purchase itself will involve some of the same considerations as those used for previous purchases. This is an example of which of the following types of buying situation?
modified rebuy
When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation.
modified rebuy
When a business buyer decides to change specifications such as quality or options associated with products purchased in the past, the buyer is engaged in a(n) __________ situation.
modified rebuy
The local homeless shelter is expecting to host its largest Thanksgiving dinner this year and has doubled its order for fresh, whole grain bread from the bakery that always supplies it. The bakery has run low on whole grain flour, however, so places a rush order with its main supplier. For the homeless shelter, the buying situation is a(n) _____ and for the bakery it is a(n) _____.
modified rebuy, straight rebuy
Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are
more formal and structured
Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He is eager to move forward, but he must wait until
ned develops a lost of product specifications
Both the B2B and B2C buying processes begin with A. central planning. B. need recognition. C. postpurchase dissonance. D. alternative evaluation. E. order specification.
need recognition
The business-to-business buying process is initiated by which of the following steps?
need recognition
Anna loves Adidas apparel for its style and comfort. She is in need of running pants and purchases a pair with the Adidas logo. This is an example of which type of purchase decision?
limited problem solving
The ________ social network is mainly used for professional networking in the B2B marketplace.
At the Unique Photo Frame company, the buying center proceeds through all six steps in the buying process and involves many people in the buying decision. This is a ________ situation.
new buy
The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation.
new buy
The purchase of capital equipment by a company, which would likely be quite an involved process, is an example of a ________ situation.
new buy
Most B2B buying situations can be categorized into three types: straight rebuys, modified rebuys, and
new buys
A firm's ________ reflects the set of values, traditions, and customs that guide its employees' behavior.
organizational culture
Although she wasn't told this when hired, at her new job Dana noticed that the employees eat lunch at their desks while continuing to work and that on Fridays most everyone dresses casually. These behaviors are most likely part of the
organizational culture
While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm's
organizational culture
Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through
increased choices
Anita is conducting a country market assessment and is focusing on four key elements: distribution channels, transportation systems, communication systems, and commerce. In doing so, Anita is evaluating which component of the market assessment?
infrastructure
In terms of market size and population growth rate, which of the following is a trend that is occurring in the world market that impacts the marketing of goods and services?
marketing to more rural populations is more costly than reaching urban areas
In terms of business markets, organizations like colleges that provide services to people in their care are classified as
institutions
The cost of borrowing money is measured by
interest rates
During the RFP stage, B2B buyers A. recognize obstacles that the firm must work around. B. revise their need recognition analysis. C. invite suppliers to bid on supplying what is requested. D. proceed to vendor analysis. E. negotiate contract terms.
invite suppliers to bid on supplying what is requested
Despite multiple upturns and downturns in its economy, Russia's overall growth prospects appear promising, especially as a consumer market. However, there are still multiple dilemmas for firms trying to market their goods and services. These dilemmas include all of the following except Russia's
involvement in china
The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment
is external``
After need recognition and product specification, many firms using the B2B buying process
issue a request for proposals from invited suppliers
The political/regulatory environment comprises political parties, governmental organizations, and
legislation and laws
Among the factors affecting the consumer decision-making process is the way consumers spend their time and money to live, otherwise known as
lifestyle
When you register your telephone number with the National Do Not Call Registry, you are responding to a need for
privacy
After a series of devasting storms, many states reevaluated the structures built along their coastal areas to determine whether they met building codes, as well as what repairs and new reinforcements were needed to help buildings withstand damage from future storms. Construction companies had to pull together a materials list and provide various suppliers with
product specifications
After need recognition, a business develops __________ that suppliers might use to develop their proposals.
product specifications
In this stage of the business-to-business buying process, firms are likely to narrow their selection to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale.
proposal analysis, vendor negotiation, and selection
Global businesses often find it particularly difficult to understand the ________ of a country's culture.
underlying values
The United States wants to limit the amount of a product that can be imported into the country for a period of time by setting a maximum import quantity. To do so, the United States should institute a(n)
quota
Which of the following is not a demographic listed in your text that would typically be used to identify consumer markets?
religion
The acronym RFP, when used by those involved in business-to-business buying, stands for
request for proposals
Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a
reseller
Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.
resellers
The creation of CVS Health's mobile apps in connection with its onsite MinuteClinics is a response to a __________ trend that surrounds health and wellness concerns.
social
Marketers know that, compared to high school graduates who are working full time, college students
spend their disposable dollars 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
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
Which of the following statements accurately describes the current income distribution in the United States?
wealthy households are outpacing both poor and middle class households
An Internet site whose purpose is to be a major starting point for users when they connect to the web and is often used by smaller companies in the RFP process is referred to as a(n)
web portal
In the B2B buying process, ________ can provide tremendous cost savings for firms because they eliminate periodic negotiations and routine paperwork, and they offer the means to form a supply chain that can respond quickly to the buyer's needs.
web portals
joint venture
when a firm entering a new market pools its resources with those of a local firm to form a new company where ownership and profits are shared
According to your text, the wealthiest 1 percent of the population control approximately what percentage of Americans' total net worth?
34.6%
By 2050, minorities will represent about _____ percent of the population, and nearly _____ percent of the population will be Hispanic.
50, 30
The primary strength of Pepsi is the manufacture, distribution, and promotion of carbonated beverages. These describe which factor of a Pepsi consumer's immediate environment?
Company Capabilities
________ is (are) at the center of the marketing environment.
Consumers
Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its
Corporate Partners
The three types of buying situations
call for different marketing and selling strategies
When Porsche filmed an advertisement in which its vehicles ran over the Great Wall of China, Chinese consumers were left more confused than intrigued. To address or avoid such issues, one important cultural classification scheme that firms can use is Geert Hofstede's cultural dimensions concept. Hofstede proposes that cultures differ on all of the following dimensions except
collectivism
B2B buying decisions are often made by A. governors. B. influencers. C. committees. D. resellers. E. consumers.
committees
The fact that Mercedes-Benz is known by three Chinese names in Asia—peng zee in Cantonese for Hong Kong, peng chi in Mandarin for Taiwan, and ben chi in Mandarin for mainland China—illustrates the importance of developing different ________ for global markets.
communication strategies
Nathan was shopping for a new pair of athletic shoes. Although it would have been nice to take the shoes home immediately after purchasing them, he was willing to trade off immediate availability because he found that he could purchase the shoes online for a 50 percent discount. This is an example of using a
compensatory decision rule
A consumer's external social environment includes A. impulse, habitual, and limited problem solving processes. B. functional and psychological needs. C. universal, retrieval, and evoked sets. D. cognitive, affective, and behavioral environments. E. family, reference groups, and culture.
Family, reference groups, and culture
The ________ prohibited the manufacture or sale of adulterated or fraudulently labeled food and drug products.
Federal Food and Drug act
Which of the following laws was passed to regulate unfair competitive practices and practices that deceive or are unfair to consumers?
Federal Trade Commission Act
Which of the following pertains to the performance of a product or service?
Functional Needs
The most common measure of market potential of an economy is a country's
GDP
All of the following are major trade agreements affecting global marketing except
GNI
Individuals born between the years 2001 and 2014 are called
Gen Z
_______, also known as Millennials, constitutes more than 60 million members in the United States alone who were born between 1977 and 2000.
Generation Y
With its estimated outlay of $561 billion for fiscal year 2016, the Department of Defense represents which type of B2B organization?
Government
Which standardized metric of output is used to gauge the size and market potential of an economy?
Gross Domestic Product (GDP)
Which group of consumers in the United States has an increasing influence on mainstream U.S. culture with buying power that was projected to reach $1.3 trillion in 2015?
Hispanic
The BRIC countries include Brazil, Russia, India, and China. Some commentators suggest adding _________, because of that nation's remarkable transformation into a functioning democracy.
South Africa
The ability of marketers to use wifi, mobile hotspots, 4G, and LTE to more effectively target and reach their customers is an example of which macroenvironmental factor?
Technological advances
In the immediate environment, what is the first factor that affects the consumer?
The Company Itself
In the immediate marketing environment, the first factor that affects the consumer is
The Firm itself
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 if a competitor has a better price or a more convenient schedule. Dawn uses __________ to decide which airline to fly.
a compensatory decision rule
Jordana travels a lot for work and is looking to buy a carry-on bag that fits size and weight regulations. Although she has looked at several brands, she refuses to buy a bag that cannot also fit underneath the seat in front of her. Jordana is basing her decision on
a non compensatory decision rule
Autocratic buying centers are characterized by
a single decision maker
Firms prefer to manufacture in a country that has ________ because it signals a greater opportunity to export products to more markets.
a trade surplus
Used by many smaller companies to help streamline procurement or distribution processes, ________ is an Internet site whose purpose is to be a major starting point for users when they connect to the web.
a web portal
By offering environmentally responsible products, green marketers
add value that other products do not have
Markham Publishing is known for its consultative buying center culture. Recognizing this organizational culture, someone attempting to sell to Markham Publishing should
address the concerns of all buying center members but understand there is just one decision maker
All of the following are one of the six buying center roles except
advisor
When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following except
age
In a(n) ________ buying center, there may be many participants, but one person makes the decision alone.
autocratic
When Leanne gave her presentation to the BigDeal buying center team, she focused on answering Beverly's questions, since she is the decision maker. What type of buying center does BigDeal employ?
autocratic
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
When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the
buyer
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
buyers remorse
In most large organizations, several people are responsible for making a purchase decision. This group is called the
buying center
When Goodwish Marketing decided to upgrade its computer network, many people were involved in the decision. In B2B buying systems, decisions are often made
by a committee after considerable deliberation
Which statement about the changing ethnicity in the United States is true?
African American U.S. households are more affluent than previous studies showed
Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were
B2C and B2B
Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales.
B2B
After World War II, the birthrate in the United States rose sharply, resulting in a group known as
Baby Boomers
Now that the oldest ________ are collecting Social Security, it is clear that this cohort will be the largest population of 50-plus consumers the United States has ever seen.
Baby Boomers
A U.S. company is analyzing its business prospects in Brazil. Marketing executives understand which of the following statements to be true regarding this market?
Brazil, a democracy, welcomes foreign investors
Which of the following accurately represents the countries known as the BRIC countries?
Brazil, russia, india, china
Your text describes the macroenvironmental factors that operate in the external environment by which acronym?
CDSTEP
Broadly defined, ________ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.
Culture
What are the three components that make up a person's attitude?
cognitive, affective, behavioral
When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses.
False, consumer should be at the center
Companies such as Burger King no longer use cartoon characters to promote products such as burgers and fries because the characters do not retain popularity among young children for very long.
False
Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products.
False
Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country.
False
In a joint venture, the burden of ownership, control, and profits falls on the market entry firm.
False
Inflation refers to the cost of borrowing money.
False
Macroenvironmental factors include the company, competition, and corporate partners.
False
Maslow's hierarchy of needs is an interesting concept for psychology, but it has little relevance for marketing.
False
One of the social trends discussed in the text that is shaping consumer values in the United States and around the world is a concern about the vast disparity in income.
False
Russia lags behind most European countries in use of the Internet.
False
Setting high customer expectations is a good strategy that will help avoid customer dissatisfaction in the long run.
False
Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years.
False (Strong middle class)
The consumer decision process begins with a comparison of available alternatives.
False (need recognition)
Socially responsible marketing involves a strategic effort by firms to supply customers with environmentally friendly, sustainable merchandise and services.
False, Green marketing
Which of the following frameworks for analysis is comprised of a company's capabilities, competitors, and corporate partners?
Immediate Environment
According to the text, 14 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
Which of the following is currently a negative factor for foreign investment in India?
Indias retail environment lacks modern supply chain management facilities and systems
When a firm evaluates how other companies react to the firm's marketing activities, it is attempting to understand what aspect of the immediate environment?
Its Competitors
Culture, demographics, social issues, technological advances, economic situations, and the political/regulatory environment are all factors that make up which of the following frameworks of analysis?
Macrenvironmental Factors
Which of the following is the major trade agreement between the United States, Canada, and Mexico?
NAFTA
The discrepancy between a consumer's actual state and desired state is associated with which of the following steps in the consumer decision process?
Need Recognition (1st step)
Which of the following is a macroenvironmental factor included in the CDSTEP acronym?
Political/regulatory environment
________ pertain(s) to the personal gratification consumers associate with the product or service.
Psychological needs
In Maine, the McDonald's menu includes a lobster roll, which is an example of difference in
Regional Culture
After purchasing an expensive pair of shoes, you may question whether or not the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance.
True
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
Brenda wants a new, dependable car that also looks good. She wants to satisfy both functional and psychological needs.
True
Global expansion often begins when a firm receives an order for its product from another country.
True
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
Parties that work with the local firm are its corporate partners.
True
Situational factors sometimes override psychological and social factors in the consumer decision process.
True
The greater the difference between a consumer's unsatisfied need and the desired state, the greater the need recognition will be.
True
When considering a purchase decision, people generally buy one product or service instead of another because they perceive it to be a better value.
True
Although the trend of wealthy households outpacing both poor and middle classes is worldwide, it is particularly prominent in
United States
According to the consumer decision process, after consumers recognize the need for a product, they then engage in
an information search
________ involves the buyer considering his own personal knowledge about a product based on past experience.
an internal search for information
In pricing products in parts of Europe, including Belgium, Italy, Spain, Greece, and France, U.S. companies need to be aware that sales (i.e., temporary promotional discounts)
are allowed only twice per year
In most cases, countries use tariffs to reduce foreign competition, but tariffs are also used
as a response to perceived unfair trade practices
The vast majority of products and services are likely to satisfy
both functional and psychological needs
When studying culture, the challenge for marketers is to determine whether culture
can help identify a particular group that might be interested in the marketers products
All of the following are general types of organizational cultures except
capitalist
All of the following are included in Hofstede's cultural dimensions except
certainty assurance (Power distance, masculinity, individualism, time orientation)
For most of the 20th century, __________ experienced foreign occupation, civil unrest, major famine, and a strict one-party Communist regime.
china
At the Fancy Print Area Rug company, all members of the team must reach a collective agreement that they can support a particular purchase. This is reflective of a(n) ________ buying center.
consensus
The customer whom Carlotta is calling on today has a(n) __________ buying center culture. This means that the decision process will involve reaching agreement among all members of the buying center.
consensus
In the ABC Automotive manufacturing company, one person is authorized to make a decision, but input from others is gathered before doing so. This is reflective of which type of buying center?
consultative
Business-to-business marketing involves buying and selling goods or services by all of the following except
consumers
Whether targeting consumers or resellers, marketers need to focus on
creating value for their customers
Zappos 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 Zappos sends a humorous e-mail 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
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that
countries with high purchasing power today may not continue to show the same growth rate in the future
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 targeting elementary schoolchildren
When Kimberly-Clark introduced rolls of toilet paper without the cardboard core, what social trend did this product respond to?
green marketing
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
BMW, the German company that manufactures automobiles, motorcycles, and other products, owns and operates a manufacturing plant in Spartanburg, South Carolina, in the United States. This is an example of which global entry strategy?
direct investment
Sydney's Emporium has 59 stores in the United States and wants to expand globally. Sydney's wants to achieve the highest possible returns, and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely
direct investment
Which global entry strategy has the highest degree of risk?
direct investment
Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left the university or have newly arrived. Frank also helps Kim make appointments to see professors to discuss textbook choices. Frank acts as the __________ in the business department buying center.
gatekeeper
Many health insurance policies require patients to call and get preapproval for tests or procedures. The health insurance company acts as a(n) __________ for the purchase of these medical services.
gatekeeper
The individual who controls the flow of information or access to important decision makers serves as the ________ in the buying center.
gatekeeper
The processes by which goods, services, capital, people, information, and ideas flow across national borders are referred to as
globalization
The social trend of ________ is causing consumers to question whether or not firms are truly operating with consideration for the environment or simply changing marketing efforts in order to appear that they are.
green consumers
New advertising guidelines requiring marketers to produce food in reasonably proportioned sizes is geared toward which social trend?
health and wellness concerns
The term "trade deficit" refers to
higher levels of imports than exports.
Kerry was in her grocery store and saw a display for a new organic yogurt. She had not planned to buy it, but decided on the spot to buy one and try it. Kerry's purchase represents
impulse buying
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
Which of the following statements regarding the B2B buying process is true?
in the B2B buying process, the search for information and evaluation of alternatives is more formal and structured
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
According to your text, which of the following is not one of the fundamental changes that have resulted in global markets?
increased use of tariffs and embargoes by countries
A company is assessing opportunities in the BRIC companies and determines that _________ is one of the youngest populations in the world and is increasingly adopting global attitudes.
india
When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as
inflation
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center?
influencer
Pharmaceutical companies have been criticized for direct-to-consumer television ads promoting the use of their brands of medication for specific medical conditions. With respect to buying centers, the pharmaceutical company plays the role of ________ in this situation.
influencer
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company's buying center.
influencer
Alternative evaluation often occurs while the consumer is engaged in which of the following steps of the consumer decision process?
information search
Problems with this entry approach can arise when the partners disagree or if the government places restrictions on the firm's ability to move its profits out of the foreign country and back to its home country.
joint venture
Starbucks traditionally has relied on a franchising model to expand internationally. But when it came to India, the coffee chain took another approach. It allied with Tata Group, another huge international name, to create a
joint venture
When a firm pools its resources with that of a local firm to enter a new market, they create a(n)
joint venture
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
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's
legal, banking, and regulatory systems
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
Tariffs protect domestic producers by A. making imported products more expensive. B. increasing brand recognition. C. reducing the cost of production. D. offering subsidies to exports. E. avoiding regulation.
making imported products more expensive
The most visible types of B2B transactions are those in which ________ and service providers sell to other businesses.
manufacturers
Economic measures like GDP and GNI do not fully account for a country's economic health because they measure only
material output
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
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
A(n) __________ situation in B2B marketing is similar to limited problem solving in the B2C process.
modified rebuy
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 vs. perceived cost of search
The fact that a family would spend a lot more time researching the market before buying a new car than it would in the decision to purchase an inexpensive kitchen appliance, like a coffeemaker, can best be explained by which of the following concepts?
perceived benefits versus perceived cost of search
Sandy thinks the east side of her city is a great area to own a home and raise a family. John thinks the east side has a lot of crime, poor schools, and would be a poor choice of location to own a home and raise a family. Sandy and John have different ________ regarding the east side of the city.
perceptions
Western visitors to the Indonesian island of Bali are often aghast when they see the swastika symbol etched above the entrances of some of its temples and homes. Westerners associate the swastika symbol with Nazi Germany while the Balinese associate the symbol with divinity and spirituality. These different associations are based on different
perceptions
Of the five types of risk associated with purchase decisions, which one involves the perceived danger inherent in a poorly performing product or service?
performance
External agencies and government bodies publish safety ratings for cars to help consumers alleviate ________ risk.
physiological
What is the correct theoretical progression of Maslow's hierarchy of needs, from the bottom of the pyramid to the top of the pyramid?
physiological, safety, love, esteem, self-actualization
Sometimes called buyer's remorse, ________ is the internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behavior.
post purchase cognitive dissonance
Marketers that set unrealistically high consumer expectations of a product through advertising or other types of promotion may generate higher initial sales, but it will eventually lead to ________ if the product fails to achieve these expectations.
post purchase dissatisfaction
Which of Hofstede's cultural dimensions relates to a willingness to accept social inequality as natural?
power distance
Netflix uses __________ analytics to suggest which movies we should watch as well as to develop new content that it is confident we will like.
predictive
A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.
quota
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 behaviors
The Economist's Big Mac Index, which suggests that exchange rates should adjust to equalize the cost of a basket of goods and services wherever it is bought around the world, is an example of which of the following metrics?
purchasing power parity
Chris is gathering information about the general economic environment in Nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and
real income
Global marketers are under constant pressure to simplify distribution channels in order to
reduce costs
When she was looking for a new car, Francesca was considering both American- and foreign-made vehicles, but her father and boyfriend both encouraged her to buy American-made brands. Which of the following social factors explains this type of influence?
reference groups
Inflation
refers to the persistent increase in the prices of goods and services
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
Marketers frequently design customer relationship management programs to
retain loyal customers
When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are referred to as their ________ set.
retrieval
General Electric realized that adapting medical diagnostic equipment that had been developed in the United States to sell it in India was ineffective. Few Indian medical providers had sufficient resources to pay $20,000 for the massive machinery. Therefore, GE undertook innovation specific to the Indian market to develop a battery-operated, portable EKG (electrocardiogram) machine for $500. Then it realized that the small, affordable machines would appeal as well to U.S. emergency medical personnel in the field and therefore globalized its offer. This is an example of
reverse innovation
"Black Friday," as the day after Thanksgiving has come to be known in the United States, 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
In established businesses, a large proportion of B2B purchases fall into the __________ category.
straight rebuy
In which B2B buying situation does a buyer or buying organization purchase additional product units, service subscriptions, or both as per previously purchased?
straight rebuy
Maurice is the buyer at the Upper End Clothing Company. He is often the only member of the buying center involved in the process. This is an example of a
straight rebuy
When FedEx Office replenishes its supply of copy paper, it most likely involves a ________ situation.
straight rebuy
The XYZ Company is collaborating with a competitor on a globally based opportunity for mutual benefit, but the two competitors are not investing in one another. This is an example of
strategic alliance
When Cisco Systems Inc. of San Jose, California, and Tata Consultancy Services of Mumbai, India, entered into their __________, they both continued to develop market-ready infrastructure and network solutions for customers, but they relied on each other to provide the training and skills that one or the other might have lacked.
strategic alliance
Which of the following statements best describes global expansion through a strategic alliance?
strategic alliance is a relationship in which 2 firms collaborate on a business opportunity, but do not invest in each other
Typically, B2B buyers ask potential suppliers to
submit formal proposals
When the U.S. government determined the prices of solar panels imported from China were artificially low due to illegal subsidies, it imposed a _________ to help domestic firms compete
tariff
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
The measure of how much one currency is worth in relation to another is referred to as
the exchange rate
According to the elaboration likelihood model, which of the following variables determines whether limited or extended problem solving will operate in a particular purchase decision?
the level of involvement
The global product strategy a firm chooses depends on
the needs of its target market
The most important consideration when a firm chooses a global product strategy should be
the needs of the target market
As noted in your text, the complexity of a global distribution channel is determined by
the number of firms with which the seller needs to deal to get its merchandise to the customer
Glocalization
the process of firms standardizing their products globally, but using different promotional campaigns to sell them
The results of the 2010 census suggest what about the 42 million African American U.S. households?
they are more affluent and suburban
If a firm wants to conduct a country market analysis, it must look at major economic factors using well-established metrics. All of the following are considered a major economic factor that the firm would consider except
trade agreements
Because the United States imports more goods than it exports, it operates under a(n)
trade deficit
The United States imports more goods from China than it exports to China. This is known as
trade deficit
Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports.
true
Mary will not consider shopping at a nearby farmer's market based on negative comments made by her parents; therefore, she has developed a negative attitude toward this specific farmer's market.
true
Sophia owns a string of boutiques in Italy. As such she is allowed to have sales only twice a year, in January and June or July.
true
Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, she also tries to meet with several students to get their feedback on textbooks. She passes this feedback to her managers to guide the development of the publisher's future textbooks. The students are the __________ in the buying center.
users
Many American consumers are purchasing hybrid automobiles even though they are more expensive than conventional compact cars. These consumers
value contributing to a greener environment
The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process.
vendor negotiation
What is the final stage in the business-to-business buying process?
vendor performance assessment
Chris is trying to determine what went gone wrong with the campaign he had planned in Latin America for his company's product. He narrowed the issues down to sociocultural factors, specifically
visible artifacts and underlying values
Although social media are used to build relationships in B2B contexts, B2B marketers normally use ________ for their marketing efforts.
white papers
A generational cohort is a group of people
who are of the same generation.
Which of the following is an example of a reseller?
wholesaler
When Van sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor
will probably not be an advantage in getting a new order