Missed Questions MKTG 409 Exam 1

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several factors determine size of total disposable income.

- total amount of income - rate of unemployment - interest rates - dividend rates

Self-Regulatory Forces

-Better Business Bureau -National Advertising Review Board

firm's salespeople estimate anticipated sales in their territories for a specified period

Sales Force Forecasting Survey

Two Approaches to Environmental Forces:

1) Accepting them as uncontrollable (passive and reactive toward environment) 2) Attempting to influence and shape them (more proactive approach) a. Goodwill toward the brand (working with National Park Service) b. Lobbying for change

At the most basic level, profits can be obtained through relationships in the following ways:

1) By acquiring new customers 2) By enhancing the profitability of existing customers 3) By extending the duration of customer relationships

Markets fall into two categories:

1) Consumer markets 2) Business markets

Demand for business product can be characterized as

1) Derived 2) inelastic 3) joint 4) Fluctuating

Four Major Factors the Influence Business Buying Decisions

1) Environmental 2) Organizational 3) Interpersonal 4) Individual

increases current buying power at the expense of future buying power

Credit

codes of conduct and behavior in the workplace that are acceptable

Opportunity

- a forecaster uses the firm's historical sales data to discover a pattern or patterns in sales over time.

Time series Analysis

segment because they often require different product features, distribution systems, price structures, and selling strategies

Type of Organization

prohibits American companies from making illicit payments to foreign officials in order to obtain or keep business

U.S. Foreign Corrupt Practices Act

Purchasing Methods

description, inspection, sampling, negotiation

a portion of information inputs that reach awareness stands out as the figure and others become the background

figure-ground

Information Search has two apects:

internal search and external search

Primary Concerns of Business Customers

price, product quality, service, supplier relationships

A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likely use which buying method? description inspection sampling negotiation selection

sampling

They help to determine which segment or segments are most attractive relative to the firm's strengths, weaknesses, objectives, and resources

Step 3: Develop Market Segment Profiles

Marketers should examine sales estimates, competition, and estimated costs associated with each of these segments.

Step 4: Evaluate Relevant Market Segments

Identifying the right target market is the key to implementing a successful marketing strategy.

Step 5: Select Specific Target Markets

Synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits.

Strategic Philanthropy

a group of individuals whose characteristics, values, and behavioral patterns are similar within the group and different from those of people in the surrounding culture

Subculture

market products with similar features and benefits to the same customers at similar prices Ex: Diet Coke, Diet Pepsi

Brand Competitors

Marketing Career Prospects

From 25-33% of all civilian workers in the US perform marketing activities

- provide very different products that solve the same problem or satisfy the same basic customer need

Generic Competitors

clusters people by zip codes or neighborhood units based on lifestyle and demographic information.

Geodemographic Segmentation

the amount of money received through wages, rents, investments, pensions, and subsidy payment for a given period

Income

a. The marketing manager first develops a general economic forecast for a specific time period b. Next the manager estimates market potential based on this forecast.

Breakdown Approach

experts create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts

Delphi Technique

marketers ask customers what types and quantities of products they intend to buy during a specific period

Customer Forecasting Survey

If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is ____. $7,800 $14,000 $9,000 $25,000 $20,000

$25,000

Jennifer Spoor is an Account Executive with IBM and was recently compiling information to provide her tax accountant in order to file her taxes. According to her end-of-year statement from IBM as well as her bank account statement, Jennifer earned $58,000 in salary, $12,000 in commission, and $1,000 in interest income. She paid $750 per month in rent for an annual amount of $9,000 and IBM withheld $15,000 in taxes. Based upon this information, how much disposable income did Jennifer have available to spend or save? $56,000 $70,000 $46,000 $61,000

$56,000

The Marketing Environment Consists of 6 forces:

- Competitive, Economic, Political, legal and regulatory, technological, sociocultural

For an Exchange to take place, four conditions must exist:

- First, two or more individuals, groups, or organizations must participate, and each must possess something of value that the other party desires -Second, the exchange should provide a benefit or satisfaction to both parties involved in the transaction -Third, each party must have confidence in the promise of the "something of value" held by the other. -Fourth, to build trust, the parties to the exchange must meet expectations

Non-monetary costs for Customer Value

- time and effort customers expend to find and purchase desired products - Risk - can be reduced by offering good basic warranties or extended warranties for an additional charge

FTC Enforcement Tools

-cease and desist order -consent decree -redress -corrective advertising -civil penalties

5 Conditions for Market Segmentation:

1) Customers needs for the product must be heterogenous 2) Segments must be identifiable and Divisible 3) Marketers must be able to compare the different market segments with respect to estimated sales potential, costs, and profits 4) At least one segment must have enough profit potential to justify developing and maintaining a specific marketing mix for it 5) Company must be able to reach the chosen segment with a particular marketing mix

Some environmentalists and marketers believe companies should work to protect and preserve the natural environment by implementing the following goals:

1) Eliminate the Concept of waste 2) Reinvent the concept of a product 3) Make Prices reflect the cost 4) Make Environmentalism Profitable

Metropolitan areas are categorized as one of the following:

1) Metropolitan Statistical Area 2) Primary Metropolitan Statistical Area 3) Consolidated Metropolitan Statistical area

Situational Factors can be classified into 5 categories:

1) Physical Surroundings 2) Social Surroundings 3) Time Perspective 4) Reason for Purchase 5) Buyer's momentary mood and condition

Business Buying Decision Process

1) Recognize problem 2) Develop product specifications to solve problem 3) Search for and evaluate possible products and suppliers 4) Select product and supplier and order product 5) Evaluate product and supplier performance

5 Major Social Influences

1) Roles 2) Family 3) Reference Groups and opinion leaders 4) Social Classes 5) Culture and Subcultures

People Gain Buying Power in 3 Ways

1) They can use their wealth to make current purchases, 2) To generate income, 3) To acquire large amounts of credit

Forces of the marketing environment affect a marketer's ability to facilitate value-driven marketing exchanges in 3 general ways:

1) They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. 2) Marketing environment forces can determine whether and how a marketing manager can perform certain marketing activities 3) Environmental forces may shape a marketing manager's decisions and actions by influencing buyers' reactions to the firm's marketing mix

6 Primary Psychological Influences

1) perception 2) motives 3) learning 4) attitudes 5) personality and self-concept 6) Lifestyles

Target Market Selection Process:

1. Identify the appropriate targeting strategy 2. Determine which segmentation variables to use 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets

Consumer Buying Decision Process

1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase 5. Post-purchase evaluation

3 types of consumer decision making

1. routinized response behavior 2. limited decision making 3. extended decision making

predicts the net value (profit or loss) for the future relationship with the customer - a customer's value over a lifetime represents an intangible asset to a marketer that can be augmented by addressing the customer's varying needs and preferences at different stages in his or her relationship with the firm - the emphasis changes from share of market to share of customer, focusing on share of customer requires recognizing that all customers have different needs and that not all customers weigh the value of a company equally

Customer Lifetime Value (CLV)

The North American Industry Classification System (NAICS) replaced the Standard Industrial Classification (SIC) system and divides industrial activity into _____ sectors compared to the SIC system which used _____ divisions. 20; 15 10; 20 20; 20 20; 10

20; 10

Government spending accounts for about ___% of the U.S. total gross domestic product (GDP)

Women remain the primary decision makers for _____% of all consumer buying decisions

85%

online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments.

B2B E-Commerce Sites

can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific time frame

Customer Lifetime Value Formula

focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Customer Relationship Management (CRM)

Jessica Bond is a product manager for Crest toothpaste and is working to craft a description of customers who would most likely fit the intended target market for Crest with Whitening toothpaste. Jessica is including demographic characteristics, geographic factors, product benefits sought, lifestyles, and brand preferences in the description. Jessica is completing a competitive analysis. a market segment profile. a sales forecast. a market trend analysis.

A market segment profile

marketing costs

About ½ of a buyer's dollar goes toward marketing costs

__________________________ is the major focus of the marketing concept.

Customer Satisfaction

Volume usage, End Use, Benefit expectations, Brand Loyalty, Price sensitivity

Behavioristic Variables

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation. psychographic product usage benefit end-purpose advantage

Benefit

division of a market according to benefits that consumers want from the product.

Benefit Segmentation

Although all four types of competition can affect a firm's marketing performance, ______________, are the most significant because buyers typically see the different products of these firms as direct substitutes for one another.

Brand Competitors

a. The marketing manager begins by estimating how much of a product a potential buyer in a specific geographic area, such as a sales territory, will purchase in a given period b. Manager then multiplies that amount by the total number of potential buyers in that area

Buildup Approach

Marketers segment _____ markets according to geographic location, type of organization, customer size, and product use. international government consumer business

Business

When Dell Computer Company purchases Seagate hard drives for use in producing computers, Dell is part of the _____ market for hard drives. business consumer resale wholesale

Business

refers to the purchase behavior of producers, government units, institutions, and resellers

Business (organizational) buying behavior

consist of individuals or groups that purchase a specific kind of products for one of three purposes: resale, direct use in producting other products, or use in general daily operations

Business Markets

Part of the buying center, they select suppliers and negotiate terms of purchase

Buyers

group of people within an organization who make business buying decisions

Buying Center

The strength of a person's _________________ depends on economic conditions and the size of the resources - money, goods, and services

Buying Power

Linking products to a particular social cause on an ongoing or short-term basis

Cause-Related Marketing

Which of the following is a primary difference between cause-related marketing and strategic philanthropy? -Cause-related marketing is short term, while strategic philanthropy is a long-term approach that uses its strengths to achieve organizational and social benefits. -Strategic philanthropy fulfills a firm's primary social responsibilities while cause-related marketing fulfills a firm's secondary responsibilities. -Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy almost always positively impacts society. -Cause-related marketing requires extensive financial resources, while strategic philanthropy is not as costly because it uses nonfinancial resources. -Cause-related marketing is the synergistic use of resources and core competencies to address social needs, while strategic philanthropy is used to address a firm's philanthropic responsibilities.

Cause-related marketing is short term, while strategic philanthropy is a long-term approach that uses its strengths to achieve organizational and social benefits.

shipping surplus inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter

Channel Stuffing

Formalized rules and standards that describe what the company expects of its employees. - codes must be periodically revised to identify and eliminate weaknesses in the company's ethical standards and policies

Codes of Conduct

a persons knowledge and information about the object or idea

Cognitive

Companies often participate in charitable causes and make contributions to their communities

Community Relations

Because of the needs of large and small buyers tend to be distinct, marketers frequently use different marketing practices to reach target customer groups

Customer Size

What is the focal point for all marketing activities?

Customers

a forecaster analyzes sales figures for a three to five year period to ascertain whether sales fluctuate in a consistent periodic manner.

Cycle Analysis

Part of the buying center, people who actually choose the products

Deciders

Which of the following statements best reflects environmentalists' concerns regarding pricing? -Companies implementing sustainability practices must price products on par with their competitors—not higher or lower. -Companies implementing sustainability practices must be able to charge higher prices for their products than firms that do not utilize sustainable practices. -Companies implementing sustainability practices must do so profitably and price products so that production costs as well as use of natural resources are recaptured. -Companies implementing sustainability practices should price products to reflect their investment in equipment and production.

Companies implementing sustainability practices must do so profitably and price products so that production costs as well as use of natural resources are recaptured.

the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product

Company Sales Potential

_____________ is defined as the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product. Company sales potential Market potential Company sales objective Market share goal

Company sales potential

Other firms that market products that are similar to or can be substituted for its products in the same geographic area

Competition

You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: What are the strengths and weaknesses of the competitors who are also targeting these markets? Does any firm dominate the market currently? Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches? company sales potential approach SWOT analysis approach breakdown approach competitive assessment approach buildup approach

Competitive Assessment approach

Decision Making Environmental Forces (6)

Competitive Forces Economic Conditions Political Forces Laws and Regulations Technology Sociocultural Forces

When an organization directs its marketing efforts toward a single market segment using one marketing mix

Concentrated Marketing Strategy

Recently, the federal government of the United States began investigating major airline companies such as Delta, American Airlines, and Swissair for possible price fixing allegations. If the airlines are found to be engaged in price fixing, which law could they be charged with violating? Sherman Antitrust Act Clayton Act Lanham Act Consumer Goods Pricing Act

Consumer Goods Pricing Act

consists of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit

Consumer Markets

to protect consumers from deceptive financial practices

Consumer Protection Act of 2010

the process through which a person acquires the knowledge and skills to function as a consumer

Consumer Socialization

behavior that violates the generally accepted norms of a particular society

Consumer misbehavior

- involves organized efforts by individuals, groups, and organizations to protect customers' rights

Consumerism

Which of the following statements about the consumer buying decision process is true? -Consumers progress through the five stages of this process for all limited decision making decisions. -Although all of the steps in the process are used in all decision processes, the order tends to depend on the customer's level of involvement. -The key element of the process that exists in all consumer buying decision processes is the purchase of the product. -Once the purchase of a product has been made, the consumer buying decision process is complete. -Consumers making limited decision making decisions may not go through all five steps of the process.

Consumers making limited decision making decisions may not go through all five steps of the process.

Distinctive product features, attractive package design, generous product warranties, extensive advertising, attractive promotional offers, competitive prices, and high-quality personal service use considerable organizational resources

Cost Estimates

Age, Gender, Race, Ethnicity, Income, Education, Occupation, Family Size, Family Life cycle, religion, social class

Demographic Variables

a period in which unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

Depression

the demand for business products derives from the demand for consumer products

Derived Demand

Frito Lay's Doritos snacks appeal to a wide range of consumers for consumption in their homes, and now through a partnership with Taco Bell, Doritos brand shells under the name "Locos Tacos" are available in Taco Bell. What type of segmentation strategy is Frito Lay utilizing with the Doritos and Locos Tacos products? undifferentiated concentrated differentiated clustered

Differentiated

an organization directs its marketing efforts at two or more segments by developing a marketing mix for each segment

Differentiated Targeting Strategy

disposable income that is available for spending and saving after an individual has purchased the necessities of food, clothing, and shelter - luxury product companies are interested in

Discretionary Income

The ______________ of technology involve the constant change that often challenges the structures of social institutions, including social relationships, the legal system, religion, educations, business, and leisure.

Dynamics

The European Union (EU) has been more proactive in adopting sustainability practices and encouraging organizations to be better corporate citizens. Organizations in Europe may apply for the ________ designation to indicate their products are less harmful to the environment than competing products based upon scientifically determined criteria. EU Seal of Approval Ecolabel Good Housekeeping Seal EU Consumer Reports Seal

Ecolabel

Dimensions of Social Responsibility: (Pyramid of Corporate Social Responsibility)

Economic, legal, ethical, philanthropic

- the process of assessing and interpreting the information gathered though environmental scanning. - evaluate the information for accuracy, try to resolve inconsistencies in data, assigns significance to findings

Environmental Analysis

most heavily influences marketing activities - when it has reason to believe a firm is violating a law it has several enforcement tools

Federal Trade Commission

- process of collecting information about forces in the marketing environment - involves observation; secondary sources such as business, trade, government, and general interest publications; and marketing research. - the internet is the primary, most popular scanning tool

Environmental Scanning

is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.

Ethical Issue

refers to individual and group decisions—judgements about what is right or wrong in a particular decision-making situation

Ethics

The five-step process usually used for target market selection includes identifying the appropriate targeting strategy, determining which segmentation variables to use, developing market segment profiles, evaluating relevant market segments, and deciding which targeting strategy to use.(T/F)

False

- the intuition of one or more executives

Executive Judgement

: it hires professions to help prepare the sales forecasts. These are normally economists, management consultants, advertising executives, college professors, or other individuals outside the firm with experience in a specific market

Expert Forecasting Survey

Which regulatory agency has the most influence on marketing activities? Food and Drug Administration (FDA) Federal Trade Commission (FTC) Federal Power Commission (FPC) Environmental Protection Agency (EPA)

FTC

Bribery is a pricing-related ethical issue. (T/F)

False

Environmental analysis is the process of collecting information about forces in the marketing environment. (T/F)

False

For an exchange situation to arise, only one condition must exist: two or more individuals, groups, or organizations must each possess something that they value and are willing to give up to receive the "something of value" held by the other individual, group, or organization. T/F

False

If other persons within an organization approve of an activity and the activity is legal but not customary in the industry, the activity is probably both ethical and socially responsible. (T/F)

False

Income is the key factor in determining a person's social class. (T/F)

False

Market potential is the amount of a product that an organization could sell during a specified time period. (T/F)

False

Personal computers and cellular phones are technology. (T/F)

False

Product competitors provide very different products that solve the same problem or satisfy the same basic customer need. (T/F)

False

Reciprocal dealing is widespread because it is one of the few avenues not regulated by the FTC, and it facilitates optimal purchases. (T/F)

False

The Council of Better Business Bureaus and the FTC make up the National Advertising Review Board (NARB). (T/F)

False

Technology innovations are supported the most through funding by nonprofit organizations. private businesses. federal government. private universities.

Federal Government

Consumer Protection Legislation

Food and Drug Administration Federal Trade Commission Children's Online Privacy Protection Act (COPPA) - Prohibits websites and internet providers from seeking personal information from children under age 13 without parental consent.

Which of the following is an example of a limitation of the North American Industry Classification System (NAICS)? -Ford Motor Company maintains its own distribution system and frequently ships supplies and/or finished vehicles around the globe to other Ford Motor Company locations. The NAICS may double count this transfer of products which affects the data quality and accuracy. -The NAICS categorizes the industry into 20 sectors which is fewer than provided by the SIC system -The NAICS data is provided every 10 years so the results are not very current. -The NAICS data is less current than the SIC system.

Ford Motor Company maintains its own distribution system and frequently ships supplies and/or finished vehicles around the globe to other Ford Motor Company locations. The NAICS may double count this transfer of products which affects the data quality and accuracy.

Patagonia is a California-based manufacturer of high-quality lifestyle clothing and clothing for outdoor enthusiasts such as mountain climbers. Patagonia operates specialty stores in selective areas which are chosen due to the high concentration of individuals within the chosen market area who are most likely to purchase Patagonia products. Patagonia's stores are located near areas which have natural rock formations or proximity to National Parks where people engage in outdoor activities such as hiking, snow skiing, or climbing. What type of segmentation variable does Patagonia utilize when selecting locations for its retail outlets? demographic geographic lifestyle psychographic

Geographic

Region, Urban/Suburban/Rural, City Size, county size, state size, market density, climate, terrain

Geographic Variables

3 Categories of Products

Good, Service, Idea

a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

Green Marketing

helps establish long-term customer relationships by maintaining, supporting, and enhancing the natural environment

Green Marketing

Occurs when products are promoted as being more environmentally friendly than they really are

Greenwashing

_____ markets are composed of individuals or organizations with diverse needs for products in a specific product class. Concentrated Homogeneous Heterogeneous Differentiated

Heterogeneous

: a market comprised of individuals or organizations with diverse product needs

Heterogeneous Market

The undifferentiated targeting strategy is effective when a large proportion of customer in a total market must have similar needs for the product, a situation termed a

Homogeneous Market

- People resolve ethical conflicts in their daily lives based on their decisions on their own values and principles of right and wrong

Individual Factors

Sensations received through sight, taste, hearing, smell, and touch

Information inputs

How has the Internet impacted supply chains? It has largely reduced supply chain conflict. It has eliminated the need for complex supply chains. It inhibits participants from taking advantage of others. It has made them even more important. It has streamlined supply chains.

It has streamlined supply chains

Alibaba could classify as an independent B2B E-commerce site because _____. -It allows industrial buyers to trade online independently from their businesses -It is a neutral third party that provides a trading forum for a fee -It allows business buyers to bid on items that best meet the needs of their firms -It is focused solely on trading among B2B markets -It links together companies in complex industries that share similar supply chains

It is focused solely on trading among B2B markets

The Federal Trade Commission (FTC) is an organization that plays a significant role in defining the principles and standards that define acceptable conduct in the marketing, promotion and advertising of products and services in the United States. Which one of the following statements is true about the organization? -It is an industry-sponsored organization. -Its primary mission is to protect consumers and promote competition. -It is part of the judicial branch of the federal government. -It protects consumers by stopping unfair, deceptive or fraudulent practices in the job market. -It focuses on the ethical responsibilities of marketers.

Its primary mission is to protect consumers and promote competition

the degree of interest in a product and the importance of the individual places on that product

Level of Involvement

_______ segmentation groups individuals according to how they spend their time, the importance of things in their surroundings, beliefs about themselves and broad issues, as well as some demographic characteristics. Behavioristic Psycho-demographic Lifestyle Microsegmentation

Lifestyle

Which of the following companies would be most interested in tracking consumers' levels of discretionary income? Louis Vuitton Prairie Farms dairy company Wonder Bread Kellogg's cereal

Louis Vuitton

occurs when two or more items are used in combination to product a product

Joint Demand

Recently, a small retailer in New York City was found liable for trademark infringement for importing and selling counterfeit Fendi bags. The trial court awarded Fendi more than $12 million in damages. Which law helps companies protect their trademarks—brand names, logos, and other registered symbols against infringement? Lanham Act Sherman Antitrust Act Clayton Act Consumer Goods Pricing Act

Lanham Act

provides protections for and regulation of brand names, brand marks, trade names and trade marks

Lanham Act

the number of potential customers within a unit of land area such as a square mile

Market Density

requires the "organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it

Market Orientation

Duracell Battery has determined that the total number of batteries sold to consumers in the next year by all battery producers is 5 billion units based on estimates of manufacturers and global expansion of firms. This amount represents the industry's company sales potential. sales potential. sales forecast. market potential.

Market Potential

__________ is defined as the total amount of a product that consumers will purchase within a specified period at a specific level of industry-wide marketing activity. Company sales potential Sales volume Market potential Forecasted sales

Market Potential

the total amount of a product that customers will purchase within a specified period at the specific level of industry-wide marketing activity. - can be stated in terms of dollars or units

Market Potential

a market comprised of individuals, groups, or organizations that share one or more similar characteristics that cause them to have relatively similar product needs

Market Segment

the process of dividing a total market into groups, or segments, that consist of people or organizations with relatively similar product needs

Market Segmentation

- involves making a product available to buyers in one or more test areas and measuring purchases and customer responses to the product, distribution, promotion, and price.

Market Tests

process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment

Marketing

According to the _______________, an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals.

Marketing Concept

The ________________ is a management philosophy guiding an organization's overall activities.

Marketing Concept

A change in the national standards and requirements for school lunches and dietary guidelines is an example of a change in the ____________ for companies like Aramark that serve more than 3.8 million meals in 300 school districts around the United States. product concept marketing mix marketing environment competitive environment

Marketing Environment

Many ethical scandals have occurred today which has led to the decrease of trust within ones company. Once trust is lost, it can take a lifetime to rebuild

Marketing Ethics

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders, including the public, government regulators, private-interest groups, consumers, industry, and the organization itself.

Marketing Ethics

A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing. marketing mix marketing environment marketing concept marketing task product concept

Marketing environment

focusing precise marketing efforts on very small geographic markets, such as community and even individual neighborhoods. Ex: providers of financial and health-care services, retailers, and consumer product companies - used to determine merchandise mix for individual stores

Micromanaging

Karl is the owner of a landscaping company and is considering the purchase of a new skid steer. He's evaluating different brands and models to determine the relative value of each model as well as the benefits they offer. Which of the following would not be considered a customer benefit as part of his determination of the product's value? ease of maintenance monetary price reputation for quality long-lasting durability

Monetary Price

Utility companies like Ameren are classified as ________. monopsonies brand competitors oligopolies monopolies

Monopolies

_____________ competition exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its product. Oligopolistic Limited Monopolistic Pure

Monopolistic

exists when a firm with many potential competitors attempts to develop a marketing strategy to differentiate its product Ex: Wrangler (cowboy image), True Religion (designer image)

Monopolistic Competition

exists when an organization offers a product that has no close substitutes, making that organization the sole source of supply.

Monopoly

Four General Types of Competitive Structures:

Monopoly Oligopoly Monopolistic Competition Pure Competition

an organization makes an initial purchase of an item to be used to perform a new job or solve a new problem

New-task Purchase

Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally produced goods over similar goods that are imported, and they raise revenues for governments. In April 2015, China notified the World Trade Organization Secretariat of a request for consultations with the European Union regarding measures it recently adopted to modify its tariff concessions on certain poultry meat products. This situation of one country (China) seeking an audience with the European Union is an example of which of the following types of forces that constantly impact a company's dynamic marketing environment? political force technological force competitive force sociocultural force

Political Force

a single industry classification system used by the United States, Canada, and Mexico to generate statistics, among the three North American Free Trade Agreement Partners.

North American Industry Classification Systems

exists when a few sellers control the supply of a large proportion of a product. - each seller considers the reactions of other sellers to changes in marketing activities. - Ex: Airline Industry

Oligopoly

The broad nature of technology as it moves through society is referred to as _____. reach dynamics environment self-sustaining impact

Reach

The effects of technology on society can be described by several characteristics. Which of the following characteristics relate to the broad nature of technology as it moves through society? reach diversity self-sustaining impact

Reach

refers to the broad nature of technology as it moves through society

Reach

Purchase choices vary depending on the reason. Could be a gift, could be for you

Reason for Purchase

Roberta is the social media manager for a regional hospital and has participated in several training sessions focused on ethics and ethical behavior. The hospital prominently displays its mission and vision statement and has a formalized code of ethics, which is communicated to employees. One of the ethical principles that's part of the hospital's code of ethics is to be honest and truthful and to tell the truth in all circumstances. Roberta has heard that sometimes medication errors occur and that patients may not be informed if no adverse or negative outcomes result from the administration of the incorrect medication. Roberta is concerned about the application and enforcement of the code of ethics and believes that the ______ factor could impact employees' ethical decisions. corporate culture individual factors opportunity compliance

Opportunity

set of values, beliefs, goals, norms, and rituals that members of an organization share

Organizational/Corporate Culture:

divides consumers in the U.S. into 66 distinct groups based on numerous variables such as education, income, technology use, employment, and social gorups

PRIZM

______ influence which establishments a customer frequents and marketers utilize this process by trying to determine why regular customers might visit a particular store more often and then utilize these factors in manipulating the marketing mix variables to more effectively appeal to those customers. Routine motives Retail motives Convenience motives Patronage motives

Patronage Motives

motives that influence which establishments a customer frequents are called

Patronage motives

include location, store atmosphere, scents, sounds, lighting, weather, and other factors in the physical environment in which the decision process occurs

Physical Surroundings

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment? sociocultural technological competitive economic political

Political

unemployment rises, total buying power declines, - buyers become more price and value conscious

Recession

pricing products at exorbitant levels, and taking advantage of customers who must purchase the product

Price Gouging

price fixing, predatory pricing, failure to disclose the full price of a purchase

Pricing Ethical Issues

Marketers use sales personnel, advertising and packaging to help trigger recognition of such needs or problems

Problem Recognition

occurs when a buyer becomes aware of a difference between a desired state and a actual condition

Problem Recognition

- compete in the same product class but market products with different feature, benefits, and prices Ex: iced tea, juice, a sports beverage, or bottled water instead of soda

Product Competitors

occur when companies ask customers to return products found to be defective

Product Recalls

- arise when marketers fail to disclose risks associated with a product or information regarding the function, value, or use of a product. - also when marketers fail to inform customers about existing conditions or changes in product quality

Product Related ethical issues

Certain products, particularly raw materials like steel, petroleum, plastics, and lumber, can be used in numerous ways in the production of goods

Product use

unemployment is low and total income is relatively high. (high buying power) - in this stage, marketers often expand product offering to take advantage of increased buying power

Prosperity

personality characteristics, motives, and lifestyles

Psychographic Variables

partly determine people's general behavior and thus influence their behavior as consumers.

Psychological influences

In this stage, the consumer chooses to buy the product or brand yielded by the evaluation of alternatives.

Purchase

: if it existed at all, would entail an extremely large number of sellers, none of which would significantly influence price or supply. - products homogeneous and entry to market easy - Ex: Farmers' Market

Pure Competition

forecaster attempts to attribute erratic sales variations to random, nonrecurring events, such as a regional power failure, a natural disaster, or political unrest in a foreign market

Random Factor Analysis

Environmental forces can fluctuate _____ or ______ but are always ______.

Rapidly; slowly; dynamic

economy moves from recession or depression toward prosperity. - high unemployment begins to decline, total disposable income increases, and economic gloom that reduced consumers' willingness to buy subsides

Recovery

Forecaster seeks to find a relationship between past sales and one or more independent variables, such as population, per capita income, or gross domestic product - objective: develop a mathematical formula that accurately describes a relationship between the firm's sales and one or more variables

Regression Analysis

refers to "long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges

Relationship marketing

consist of intermediaries, such as wholesalers and retailers, which buy finished goods and resell them for a profit

Reseller Markets

Great importance to the consumer movement are four basic rights spelled out in a consumer "bill of rights by

Right to Safety Right to be Informed Right to Choose Right to Be Heard

Holiday Computer Associates was recently fined for violating the ________ due to their practice of charging different prices to different customers without any justification. Federal Trade Commission Act Sherman Antitrust Act Robinson-Patman Act Consumer Goods Pricing Act

Robinson-Patman Act

Which legislative action prohibits price discrimination that reduces competition among wholesalers or retailers and prohibits producers from giving disproportional services or facilities to large buyers? Federal Trade Commission Act Sherman Antitrust Act Robinson-Patman Act Consumer Goods Pricing Act

Robinson-Patman Act

sets of actions and activities a person in a particular position is supposed to perform based on the expectations of both the individual and surrounding people

Roles

- are the influences in a society and its culture(s) that bring about changes in people's attitudes, beliefs, norms, customers, and lifestyles.

Sociocultural Forces

a company allocates all of its resources for one target segment

Specialization

Concentrated Marketing strategy allows companies to

Specialize

Potential sales for a market segment can be measured along several dimensions, including product level, geographic area, time, and level of competition

Sales Estimates

the amount of a product a company expects to sell during a specific period at a specified level of marketing activity. - use to plan, organize, implement, and control activities

Sales Forecast

analyst studies daily, weekly, or monthly sales figures to evaluate the degree to which seasonal factors, such as climate and holiday activities influence sales

Seasonal Analysis

companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning

Stakeholder Orientation

A source of information typically utilized by marketers to identify the identities and locations of organizations in specific groups is ____________. It contains information about firms, their names, industrial classification, address, phone number, and annual sales. Standard & Poor's Register Wall Street Journal local newspaper SIC listing

Standard & Poor's Register

Your marketing team is currently working through the target market selection process to identify which customers your firm will target with a new technology product being developed. You are currently in the process step where you must consider the target market characteristics, the product attributes, and the firm's objectives and resources. Which of the five steps in the target market selection process are you currently working on? Step #1 - Identify the appropriate targeting strategy Step #2 - Determine which segmentation variables to use Step #3 - Develop market segment profiles Step #4 - Evaluate relevant market segments Step #5 - Select specific target markets

Step #1 - Identify the appropriate targeting strategy

the characteristics of individuals, groups, or organizations used to divide a market into segment - location, age, gender, and rate of products usage can all be bases for segmenting markets

Segmentation Variables

Perception can be interpreted different ways because, although we constantly receive pieces of information, only some reach our awareness. We would be overwhelmed if we paid equal attention to all sensory inputs, so we select some and ignore others, this process is called

Selective Exposure

- sometimes called self image - is one's perception or view of oneself

Self-Concept

The _____________ nature of technology relates to the fact that technology acts as a catalyst to spur even faster development

Self-Sustaining

Dos Equis has increased its market share through its popular advertisements featuring "the world's most interesting man" and the tag line "stay thirsty my friends." Dos Equis promotes its products using television and print media advertising. The print advertisements also include the statement "Enjoy Dos Equis Responsibly." The additional statement included regarding responsible drinking is an example of which type of regulatory forces affecting marketing activities? federal regulation state regulation self-regulation trade regulation

Self-regulation

marketers help customers learn about their products by facilitating opportunities to experience with them

Shaping

prevented businesses from restraining trade and monopolizing markets. Examples of illegal anticompetitive practices include stealing trade secrets or obtaining other confidential information form a competitors employees, trademark, and copyright infringement, price fixing, false advertising, decelptive selling

Sherman Antitrust Act

Result from circumstances, time, and location that affect the consumer buying decision process

Situational Influences

The forces that other people exert on one's buying behavior are called social influences. These come from reference groups and opinion leaders, social classes, culture and subcultures, roles, and

Social Influences

deals with the total effect of marketing decisions on society

Social Responsibility

refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society

Social Responsibility

include characteristics and interactions of others who are present during a purchase decision, such as friends, relatives, salespeople, and other customers

Social Surroundings

An open aggregate of people with similar social ranking is referred to as

Social class

the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

Sustainability

Example of Good Examples of Services Examples of Ideas

Tangible Item air travel, education, insurance, banking concepts, philosophies, images, marriage counselor

Organizations generally focus their marketing efforts on a specific group of consumers, called a ______.

Target Market

the application of knowledge and tools to solve problems and perform tasks more effiently

Technology

managers try to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general

Technology Assessment

They can affect a person's ability and desire to search for or receive information, or seek and evaluate alternatives

The Buyer's Mood and condition

By the 1950's, both businesses and academics developed new philosophies and terminology to explain why this approach is necessary for organizational success. This emphasized the first need to determine what customers want and then produce those products rather than making the products first and then trying to persuade customers that they need them

The Market Orientation

During the industrial revolution, assembly lines, and mass production made it possible to produce goods more efficiently. Although mass markets were evolving, firms were developing the ability to produce more products, and competition was becoming more intense

The Production Orientation

During first half of the 20th century competition increased and businesses realized they would have to focus more on selling products to many buyers. Businesspeople believed that the most important marketing activities were personal selling, advertising, and distribution

The Sales Orientation

it takes varying amounts of time to progress through the steps of the buying decision process, including learning about, searching for, purchasing, and using a product

The Time Dimension

What happens in a reverse online auction? -The buyer invites businesses to bid to supply the specified good or service in competition with each other. -The seller will accept steep discounts on major business products because it needs to get rid of unsold inventory. -The sellers pay for the opportunity to sell their products to lucrative buyers in hopes of establishing strong relationships. -The seller informs online buyers that it is holding an auction and encourages them to bid in competition with each other. -It becomes more important to agree to the seller's terms than to bid high.

The buyer invites businesses to bid to supply the specified good or service in competition with each other.

Which of the following statements best reflects the level of acceptance of the marketing concept by firms in the United States? - All organizations and businesses around the world have adopted the marketing concept as a business philosophy. - Approximately 50% of all business organizations use a sales orientation today instead of a market orientation. - The marketing concept has yet to be fully accepted by all organizations. - The marketing concept is more accepted as a business philosophy in the United States than in other countries.

The marketing concept has yet to be fully accepted by all organizations.

Clayton enjoys playing video games and has both a PlayStation and XBox system. He prefers the XBox though and purchases more games for the XBox than the PlayStation. Clayton has formed a(n) _____ about XBox. consideration set attitude patronage motive self-concept

attitude

an individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea

attitude

consists of a series of adjectives, phrases, or sentences about an object.

attitude scale

Family decision making processes have been grouped into four categories:

autonomic husband dominant wife dominant syncratic

Which product would most likely use an undifferentiated market segmentation approach to marketing? bicycle computer clothing beef

beef

Despite the hard to predict, changing, environmental forces, marketers try to forecast what may happen (T/F)

True

Glendale High School would be an example of an institutional market (T/F)

True

Marketing Environment forces can fluctuate quickly and dramatically, and are closely interrelated. Changes in one may cause changes in others (T/F)

True

Marketing activities do not always result in exchanges (T/F)

True

Some of the criteria used in the evaluation of alternatives stage of the consumer buying decision process are also used during the postpurchase evaluation stage. (T/F)

True

The Marketing Concept has yet to be fully accepted by all businesses (T/F)

True

The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______ variables for market segmentation. psychographic usage demographic lifecycle behavioristic

behavioristic

Most consumers make trade-off decisions when making their trips to the grocery store to purchase food, paper products, and health and beauty products. Thus, products such as Wonder Bread, Diet Coke, Bounty paper towels, Tide laundry detergent, and Head & Shoulders shampoo would represent ________ competitors. generic brand product total budget

Total Budget

__________ competitors are those who compete for the limited financial resources of the same customers or target market group. Total budget Product Generic Brand

Total Budget

compete for the limited financial resources of the same customers Ex: To Diet Coke: - gum, a newspaper, and bananas

Total Budget Competitors

focuses on aggregate sales data, such as the company's annual sales figures, vonerting a period of many years to determine whether annual sales are generally rising, falling, or staying about the same

Trend Analysis

A recent U.S. Supreme Court decision has nullified federal laws that limited corporate contributions to political campaign funds for specific candidates. (T/F)

True

Canon Business Systems specializes in office automation services, photocopiers, and printers and employs a large number of sales representatives to market its products. Typically, sales representatives are provided with a territory and become specialists according to the type of customer most appropriate to them. Canon divides its market into categories including professional services (accountants, lawyers, and consultants), health care (hospitals, physician offices, and dentists), K-12 education, higher education, corporate, and governmental. Canon is utilizing _____ segmentation for its business markets. product use geographic location customer size type of organization

Type of organization

AMC Theaters that operate movie and entertainment locations across the United States may choose to segment its market based upon the frequency of visits to the cinema. For example, they might classify moviegoers into three groups including fanatical fans, moderate fans, or selective fans reflecting the frequency or number of movies an individual might see within a month. This is an example of market segmentation based on behavioristic variables geographic variables lifestyle motives

behavioristic variables

Billabong was founded in Australia by surfer and surfboard shaper Gordon Merchant in the 1970s. Today, the brand has a strong presence and is known as a lifestyle brand for board-sports including skate, snow, and wake. Billabong has company-owned specialty stores located throughout the United States and plans to open additional outlets in the future. Billabong also markets their clothing and equipment through their website and catalog. Billabong would most likely use _______ variables as a segmentation base for its online and catalog sales but would benefit most from ______ segmentation to determine the locations for future company-owned stores. demographic; geographic behavioristic; geographic geographic; demographic geographic; behavioristic

behavioristic; geographic

when a company designs a single marketing mix and directs it at the entire market for a particular product - all customers in the target market have similar needs, and thus the organization can satisfy most customers with a single marketing mix with little or no variation Ex: Salt, Sugar

Undifferentiated Targeting Strategy

_______ analysis is sometimes utilized during the search and evaluation stage of products/suppliers. During this process, companies may examine the quality, design, materials, and item reduction or deletion to acquire products or services in the most cost-effective way. Value Vendor Profit Strategic

Value

an evaluation of each component of a potential purchase

Value Analysis

Segment according to geographic location, type of organization, customer size, and product use

Variables Segmenting Business Markets

A formal, systematic evaluation of current and potential vendors, focusing on such characteristics as price, product quality, delivery service, product availability, and overall reliability

Vendor Analysis

the accumulation of past income, natural resources, and financial resources

Wealth

their inclination to buy because of expected satisfaction from a product-is, to some degree, related to their ability to buy - a products price and value influence everyone

Willingness To Spend

Tide laundry detergent offers a variety of different versions such as Tide HE Liquid, Tide Liquid with Downy fabric softener, Tide Plus Sport, and Tide with Bleach. The different variations of the product offer consumers the opportunity to fulfill a need based upon their particular circumstances and what they desire in terms of how a detergent might clean their clothes. Tide is using _____ segmentation. micro lifestyle benefit differentiation

benefit

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to ____. -allow an opportunity to obtain diverse expert opinions -allow experts to work separately to reach a consensus as to their forecasts -reach an accurate sales forecast through the use of multiple sales forecasting techniques -determine if the expert forecasting survey is superior to regression analysis -assess the extent to which this year's sales forecast is more accurate than that of previous years

allow experts to work separately to reach a consensus as to their forecasts

A sales representative for a chemical company is meeting with a soap manufacturer in Mexico and hoping to establish a business-to-business relationship to supply surfactants, which helps to keep the ingredients mixed together. The soap manufacturer is using a competitor firm currently and the purchasing agent indicates that she would consider switching firms if the sales representative could provide airline tickets to the United States for the purchasing agent and her family at an estimated cost of $2000. Which of the following is true regarding this interaction and request from the purchasing agent? no ethical issue is present a product-related ethical issue is present a distribution-related ethical issue is present a pricing-related ethical issue is present

a distribution-related ethical issue is present

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at _____. the sales force survey results the results of sales forecasting a market trend analysis a market segmentation discrimination analysis a market segment profile

a market segment profile

The North American Industry Classification System (NAICS) is superior to the SIC system due to its level of comprehensive and up-to-date information capture of global information about industries ability to provide limited information about service industries ability to provide limited information about high-tech product industries

ability to provide limited information about service industries

Which of the following best defines wealth? -funds available after taxes -funds available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter -amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period -accumulation of past income, natural resources, and financial resources

accumulation of past income, natural resources, and financial resources

Disposable income =

after tax income

The owner of the remodeling company, Windows & More believes that sales for replacement windows, siding, sunrooms, and awnings will continue to be strong as more consumers decide to stay in their homes rather than upgrade to a larger, more expensive home. Therefore, based on the economic projections of stable levels of inflation, low to average income growth, but rising costs for some products, he forecasts his sales for the year based on these economic indicators. The owner of Windows & More is using a _______ approach to estimating sales potential. recessionary buildup pyramid breakdown

breakdown

The _____ method to measure a company's sales potential begins by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period. buildup breakdown multiplier gradual

buildup

Which of the following best characterizes the problem recognition stage of the buying decision process? -buyer engages in an internal information search for information to help solve his or her problem -buyer searches for information to resolve a problem -buyer recognizes a discrepancy between a desired state and an actual condition -buyer evaluates alternative brands or products

buyer recognizes a discrepancy between a desired state and an actual condition

U.S. Foods provides food products to institutions such as hospitals, nursing homes, schools, and large companies who offer food services. The director of food service is the only person at St. Joseph hospital who has the authority to sign contracts and is meeting with the account executive from U.S. Foods who is providing some information about new products that could be added to the hospital menu for patients and guests. The director of food service recommends that the account executive meet with the chef to discuss which new products the chef would like added to the order. The director of food service believes that the chef should have the ability to determine what food products he'd like to offer. In this case, the director of food service is acting as a ______, while the chef is a(n) ______ member of the buying team. decider; buyer buyer; decider gatekeeper; decider buyer; influencer

buyer; decider

Individuals who are members of the buying center and serve in a purchasing agent capacity are also called gatekeepers. deciders. buyers. influencers.

buyers

A basic requirement of a market is that the consumer possesses the ability to purchase the product or service. This requirement is a function of a consumer's a. willingness to buy. b. desire to own the product or receive the service c. buying power. d. authority to purchase

buying power

Using the breakdown approach to sales potential, estimates are made _____. -by referring to specific geographic factors -by establishing levels of marketing effort that will be required to achieve specific levels of sales -without reference to industry marketing efforts -without reference to general economic conditions -by starting with general economic conditions

by starting with general economic conditions

occurs when a person fills in missing information in a way that conforms to a pattern or statement

closure

The postpurchase evaluation stage is especially important for high-priced items. Shortly after the purchase of an expensive product, evaluation may result in ______________, which involves doubts in the buyer's mind about whether purchasing the product was the right decision.

cognitive dissonance

An attitude consists of three components:

cognitive, affective, and behavioral

The Buckle, based in Kearney, Nebraska, operates approximately 500 stores across the United States and is known for its denim which they design to fit a wide variety of body shapes and preferences for style for men and women. The Buckle has forecasted that it can sell 15% of all jeans or denim sold in the United States. This percentage represents The Buckle's _________ for denim. company sales potential market potential sales objective sales goal

company sales potential

The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to universities. What type of targeting strategy is the ProMark Company using? extensive concentrated undifferentiated intensive differentiated

concentrated

Ethical standards for a company should ____. -include strategic philanthropy in its business model -consider only the point of view of the customers and the employees -reflect the desires of the company's employees for a quality working environment -conform to industry and societal norms of ethical conduct -be derived from federal, state, and local laws and regulatory agencies

conform to industry and societal norms of ethical conduct

The group of brands after a successful information search within a product category is sometimes called:

consideration set

Business Cycle

consists of four stages: Prosperity, Recession, Depression, and Recovery

The internet has become a major resource during the:

consumer buying decision process

Target was negatively impacted by an international gang of computer hackers who were able to penetrate Target's database and stole information such as names, addresses, credit card account numbers, and digital passwords. This type of activity is called consumer complaints. retail hacking consumer misbehavior. consumer data theft

consumer misbehavior

Misty enjoys taking her daughter grocery shopping with her and often gives her daughter some items to find in the store. Misty's daughter knows the brands that the family likes—for example, they like Coke versus Pepsi, Crest versus Colgate, and Cheer versus Tide. Misty's daughter is engaged in the process of __________ through the shopping process. consumer socialization perception attitude development purchase engagement

consumer socialization

Shaun is going shopping with his dad to buy his first baseball glove for Little League. He listens to his dad talk to the salesperson at the sporting goods store, watches him examine the stitching in the glove, and then rubs his finger over the leather palm. Shaun's observations are part of his _____. consumer development attitude development purchasing evaluation consumer socialization consumer attitude

consumer socialization

____________ and ____________ are often considered to be core stakeholders in developing a marketing strategy.

consumers; competitors

The North American Industry Classification System (NAICS) _____. looks at many industries at one time is used throughout the world contains the most up-to-date information for the NAFTA partners provides less information about service industries generates statistics that will not be useful in comparing countries

contains the most up-to-date information for the NAFTA partners

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations

culture

Value =

customer benefits - customer costs

An appropriate method of developing sales forecasts for companies with a relatively small number of customers is executive judgment. customer forecasting survey. Delphi technique. expert forecasting survey.

customer forecasting survey

Marketers are concerned with building and maintaining relationships not only with ______________ but also with relevant ______________.

customers; stakeholders

Justin works for a mill that provides traditional corn and wheat products, as well as gluten-free products. He has noticed that bakeries and packaged goods manufactures have increased the amount of gluten-free products they are purchasing and seem to be purchasing a greater volume of gluten-free products compared to traditional products. Justin is also noticing a large variety of gluten-free items on store shelves, such as pasta, cookies, and bread. Therefore, the demand for gluten-free products from Justin's mill is inelastic. fluctuating. joint. derived.

derived

The Pillsbury company defines all individual consumers who are purchasers of flour as its target market. It also defines all businesses who purchase flour as its target market. What targeting strategy would be most appropriate in this case? concentrated undifferentiated wide appeal differentiated clustered

differentiated

Which of the following represents a limitation of the North American Industry Classification System (NAICS)? -data includes the United States, Canada, Mexico, and Europe -all industries are included in the classification system -data is only available on a quarterly basis -double counting may occur when products are shipped between two establishments within the same firm

double counting may occur when products are shipped between two establishments within the same firm

Companies are typically evaluated or judged based upon their market share, position in the marketplace, profitability and growth and businesses have been criticized for taking a short-term view of their company's impact. Which level of the corporate social responsibility pyramid does this short-term, outcomes-based perspective reflect? philanthropic legal economic ethical

economic

Sophia is an avid bicyclist and subscribes to cycling magazines and is a member of a local cycling club. She competes in triathlons and enjoys spending time on her bike to stay in shape and to socialize with others who enjoy the sport. She's in the market for a new bicycle —one that is lighter in weight and better designed for triathletes. Purchasing a new bicycle will be affected by Sophia's _____ involvement. low situational enduring perceived

enduring

A person's interest in a product or product category that is ongoing and long term

enduring involvement

Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a young boy. Justin likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as _____. situational involvement dynamic involvement enduring involvement dynamic buying behavior situational buying behavior

enduring involvement

The four major factors influencing business buying decisions are -technological, economical, sociopolitical, and environmental. -environmental, organizational, interpersonal, and individual. -competitive, technological, organizational, and interpersonal. -psychological, interpersonal, organizational, and competitive.

environmental, organizational, interpersonal, and individual.

To assess the products in a consideration set, the buyer uses ______________: objective characteristics (such as size, speed, capacity) and subjective characteristics (such as style and color) that are important to him or her

evaluative criteria

Extended decision making is defined as a process employed when purchasing unfamiliar, expensive, or infrequently purchased items. Which of the following purchases would best fit this style of decision making? low involvement decision making new pair of jeans extended decision making bath towels

extended decision making

The most complex type of decision making, _____________, occurs with high-involvement, unfamiliar, expensive, or infrequently purchased items

extended decision making

Jeff needs to buy his textbooks for the coming semester of college. It is only two weeks before the first day of class, and he still has not made a purchase. Jeff wants to buy them somewhere other than the bookstore since he is still living at his parents' home and won't be on campus until the day before class. Jeff goes online and looks for sites that sell the textbook. Then he remembers that one of his friends had said something earlier about finding the book for a great price. Jeff then calls his friend to get the name of the site. In terms of Jeff's buying decision process, his going online to look for sites was part of _______, and his calling a friend was ______. problem recognition; external search information search; internal informational search external information search; also external information search internal information search; external information search external information search; internal information search

external information search; also external information search

An individual's personal contacts are often influential sources of information because the person trusts and respects them

external search

If buyers cannot retrieve enough information from memory to make a decision, they seek additional information from outside sources in an:

external search

A salesperson at Best Buy tells Donovan that the Sony Notebook is one of the most reliable computer notebooks ever made. Donovan, however, has just heard about a second Sony recall for this model because of overheating. If Donovan engages in selective distortion, his most likely response will be to ____. -buy the Sony -forget the information from the salesperson -ignore the recall as a fluke -focus on positive aspects of the Sony -cease shopping for a computer notebook at this time

forget the information from the salesperson

describing the alternatives and their attributes in a certain manner

framing

Lauren Williams is a sales representative for Otis who primarily strives to market service agreements to companies who have an Otis Elevator in place or a competitor's elevator that is no longer serviced by the original equipment manufacturer. Lauren enjoys her job and especially likes to take treats such as cookies or cupcakes to offices when she visits. Lauren has found that being personable and offering a nice treat to the office staff such as the secretaries or office managers enables her to make appointments with the Facility Managers who make decisions about the service agreements. Lauren is attempting to create positive relationships with the secretaries and office managers who serve a(n) _____ role as a member of the buying team. decider influencer user gatekeeper

gatekeeper

Sylvia Turner is an account executive with GlaxoSmithKline—a pharmaceutical company—and works with physicians who prescribe the medications she represents. She is not able to make appointments with the physicians but works with the office manager to get a few minutes of the doctor's time when she visits the doctor offices. The office manager is usually able to arrange a 5- to 10-minute meeting between Sylvia and the physician. What role of the buying center does the office manager perform? gatekeeper influencer decider purchaser

gatekeeper

Part of the buying center, they are administrative assistants and technical personnel that control the flow of information to and among different roles in the buying center

gatekeepers

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors. generic product total budget oligopolistic pure

generic

Federal, state, county, and local governments make up

government markets

Involves no conscious planning; is a powerful urge to buy something immediately

impulse buying

The major financial sources of buying power are

income, credit, and wealth

Williams Tool & Die manufactures steel and aluminum parts for a variety of automobile manufacturers such as head rest standards and aluminum inserts for beverage holders. Williams Tool & Die typically contracts with the automobile manufacturers for a two-year time frame at an agreed-upon price for the parts. Recently, the price of steel and aluminum has increased, resulting in increased production costs for Williams Tool & Die. However, Williams Tool & Die cannot pass along a price increase to its customers and must absorb the increases in raw materials. The demand for steel and aluminum for Williams Tool & Die is separate joint derived inelastic

inelastic

a price increase or decrease does not significantly alter demand for a business product

inelastic demand

Part of the Buying center, often technical personnel, such as engineers, who help develop product specifications and evaluate alternatives

influencers

churches, some hospitals, fraternities and sororities, charitable organizations, and private colleges are members of:

institutional markets

organizations with charitable, educational, community, or other nonbusiness goals comprise:

institutional markets

Buyers search their memories for information about products that might solve their problem

internal search

Third step of the perception process. Assigns meaning to what has been organized

interpretation

Principles and standards that define acceptable marketing conduct as determined by various stakeholders is referred to as corporate social responsibility. marketing ethics. cause-related marketing marketing concept

marketing ethics

Three types of reference groups

membership, aspirational, dissociative

Eagle Food stores purchases snack products from Frito Lay and usually buys two to three cases each week. They are placing an order for the week of Labor Day—a holiday weekend associated with grilling and picnics and wants to order additional products for the weekend. What type of purchase will Eagle Food stores make for the Labor Day week Frito Lay order? straight rebuy modified rebuy repetitive new task

modified rebuy

Buffalo Trace is a distiller of several brands of Kentucky bourbon. One brand, Blanton, a single barrel bourbon, is placed in a silky cloth bag and packaged in a gold and green gift box to make an appealing display on retail shelves and make purchasers equate the elaborate packaging to the quality and taste profile of the bourbon. The demand for the gift boxes and silky cloth bags is an example of _____ demand. joint derived inelastic fluctuating

joint

refers to changes in a person's thought processes and behavior caused by information and experience

learning

an individual's pattern of living expressed through activities, interests, and opinions

lifestyle

Buyers engage in _________________ when they buy products occasionally, or from unfamiliar brands in a familiar product category

limited decision making

Jeremy loves attending sporting events and likes to wear "team-logo" shirts or sweatshirts for events. He has tickets for an upcoming game and is shopping at a local sporting goods store to buy a new logo shirt or jersey. What type of decision making style will Jeremy most likely use for this purchase? routinized response behavior enduring decision making limited decision making extended decision making

limited decision making

Karl is transitioning from high school to college and will be purchasing a new computer to use for his classes and gaming. He's looking for a computer that offers fast processing speed, light weight, excellent graphics card, and a good value for his money. Karl will likely use ____________ when making the purchase. extended decision making limited decision making enduring involvement decision making complex decision making

limited decision making

A consumer's stage in the family life cycle is often utilized as a segmentation variable for target marketing. Two variables are associated with family life cycle and affect consumers' needs for housing, appliances, food, automobiles, and recreational equipment. These two variables are gender and children living at home. income and marital status. occupation and income. marital status and age of children living at home.

marital status and age of children living at home

The marketing manager for Pillsbury is attempting to determine a sales estimate for the line of products such as cinnamon rolls, pie crusts, and crescent rolls that are available in the refrigerated section of the grocery store and can be baked in the consumer's home for bakery-fresh taste and quality. The marketing manager estimates the ___________ to be $20 million annually for the category of refrigerated or frozen bakery items, while Pillsbury's _____________ is 25% of the overall market. market share; category sales market potential; company sales potential industry share; company forecast demand; supply

market potential; company sales potential

Socially responsible organizations strive for _______________ by adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that their stakeholders expect of them

marketing citizenship

Whitney is an account executive with Simmons Mattress Company and markets directly to hotels and the hospitality market. She enjoys the opportunity to gain a large sale of 100-200 mattresses when hotels are remodeling or building a new facility. Usually, a hotel will replace mattresses every four to five years since they receive so much use and are also monitored by the health department to ensure sanitary conditions are met. Recently, Simmons Mattress Company has unveiled a new and improved mattress for the hospitality industry and Whitney is meeting with the purchasing manager at the Hilton Hotel headquarters to discuss a large order. The Hilton Hotel Company has purchased from Simmons in the past, but the new mattress is a latex foam product and would be unique in that a box spring is not needed. What type of purchasing decision does this represent for the Hilton Hotel Company? straight rebuy modified rebuy new-task purchase contracted purchase

modified rebuy

occurs when a new-task purchase is altered after two or three orders, or requirements associated with a straight rebuy purchase are modified

modified rebuy purchase

An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals

motive

Personal appearance, affiliation, status, safety, and health are examples of __________ affecting the types of products purchased and the choice of stores in which they are bought. They reflect the reasons consumers use when making a purchase. benefits lifestyle personality motives

motives

What are the primary psychological influences that partly determine people's general behavior and impact their behavior as consumers? -reference groups, culture, social class, motives, lifestyles, and attitudes -culture, motives, self-concept, perception, roles, and lifestyles -motives, lifestyles, learning, perception, attitudes, and personality -culture, reference groups, roles, social class, motives, and personality

motives, lifestyles, learning, perception, attitudes, and personality

occurs when a buyer selects and uses several suppliers

multiple sourcing

Types of Business Purchases

new task, straight rebuy, modified rebuy

In order to evaluate the products within a buyer's consideration set, the consumer uses criteria which are both _____ and _____ that are deemed important to the purchaser. extended; routinized selective; comprehensive objective; subjective subjective; evaluative

objective; subjective

A member of an informal group who provides information about a specific topic to other group members

opinion leader

Citibank was recently fined $35 million by the Consumer Financial Protection Bureau and ordered to refund $700 million to customers who were affected by the organization's use of deceptive marketing practices which resulted in overcharging customers. Between 2003 and 2012, the bank's telemarketing sales representatives misrepresented fees, used leading questions and provided ambiguous answers to customers' questions. Citibank is reevaluating the compensation and incentive-based bonus system that's used to motivate and reward employees who serve as account representatives in telemarketing positions. The behavior of Citibank employees to act unethically was most likely a result of -organizational relationship factors that influence ethical decision-making. -individual factors that influence ethical decision-making -opportunity factors that influence ethical decision-making. -social factors that influence ethical decision-making

opportunity factors that influence ethical decision-making

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ____ influence on the business buying decision process. environmental organizational interpersonal individual demographic

organizational

Carlos is the purchasing manager for beer and liquor at his restaurant/bar and enjoys purchasing from Williams Distributing because the company provides a discount of 5% to customers who pay when the products are delivered. Carlos appreciates the opportunity to save money and has become a loyal customer of this company because of the favorable payment terms they offer. This is an example of a(n) _____ influence on the business buying decision process. environmental interpersonal individual organizational

organizational

As discussed in the text, the process of perception includes three stages or steps. After inputs have been selected to be registered consciously, the next stage of the process is organizing interpreting judging retention

organizing

Winston enjoys shopping at the Ralph Lauren store because he loves their attention to personal service, attractive clothing displays, artwork, and convenience to other stores. Winston is influenced by _____ motives which determine the stores he will visit. shopping patronage projective self-image

patronage

There are several factors that influence a buyer's level of involvement. The most significant is the

perceived risk of the purchase

Carter is shopping at a retail store and looking for clothes to wear to school. Almost unconsciously, he's selecting, organizing, and interpreting the sensations that are received through his various senses—sight, sound, touch, and smell. Carter is experiencing the process of perception evaluation shopping motivation

perception

process of selecting, organizing, and interpreting information inputs to product meaning

perception

The second step in the process of perception is:

perceptional organization

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

personality

The North American Industry Classification System (NAICS) is based on the types of ______________ performed. It divides industrial activity into _______ sectors. services; 30 production activities; 20 services and production activities; 50 manufacturing; 40 distribution; 25

production activities; 20

Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company,—known as B-Dubs, has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Buffalo Wild Wings' partnership with the Boys and Girls Club reflects a(n) ____ responsibility that their stakeholders expect of them. economic philanthropic legal ethical

philanthropic

Maslow's Hierarchy of Needs

physiological, safety, social, esteem, self-actualization

Phillip uses a secure system that allows his organization to share information with other organizations that share the same supply chain. The system he uses is most likely an example of a(n) _____________. independent B2B e-commerce site company website private B2B exchange online auction site independent B2B exchange

private B2B exchange

Stefanie is shopping for groceries at her local supermarket. As she picks up laundry detergent, she sees the display of bathroom cleaners and remembers that she is about to run out of it at home. Stefanie tries to remember the specific brand that she used last time, because she thought that was the best in terms of performance and value. In terms of the consumer buying decision process, Stefanie's remembering that she was almost out of bathroom cleaner is the ____ phase of the buying decision process, whereas trying to remember what brand she last used was an example of the _____ phase problem recognition; internal information search problem recognition; evaluation of alternatives information search; postpurchase evaluation information search; evaluation of alternatives problem recognition; postpurchase evaluation

problem recognition; internal information search

An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ____ market. consumer producer reseller government institutional

producer

An electrician who purchases light switches for installation in a client's new construction project is an example of a(n) _______ market. producer reseller government institutional

producer

individuals and businesses that purchase products for the purpose of making a profit by using them to produce other products or using them in their operations are classified as:

producer markets

The four categories of business markets are:

producer, reseller, government, institutional

written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product

product specifications

Marketing Mix

product, price, promotion, distribution

Market segment ________ help marketers understand how a business can use its capabilities to serve potential customer groups and describes the similarities among potential customers within a segment as well as explains the differences among people and organizations in different segments concentrations categories diagrams profiles

profiles

Sherwin Williams Company and Zimmerman Construction have worked together for many years whereby Zimmerman Construction purchases most of their paint and paint-related supplies from Sherwin Williams and Sherwin Williams delivers products directly to the job site in an efficient and convenient manner. The relationship between the two companies is an example of a(n) ________. alliance reciprocity tying arrangement partnership

reciprocity

Willamette Valley Community College often hosts receptions for alumni and business leaders and serves local wine from the Oregon valley. They have an agreement with the Willamette Valley wine cooperative to only serve Oregon wines from the region at their events and purchase directly from members of the cooperative organization. This agreement is an example of _____ that is unique to business markets. reciprocity modified rebuy reselling cooperation

reciprocity

an arrangement in which two organizations agree to buy from each other

reciprocity

a group, either large or small, with which a person identifies so strongly that he or she adopts the values, attitudes, and behavior of group members

reference group

Katy Ramirez is a marketer for a company that produces in-ground swimming pools. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using? the Delphi technique executive judgment time series analysis market tests regression analysis

regression analysis

What are the three purposes for which individuals or groups utilize products in order to be considered a business-to-business or B2B market? -making component parts, creating other products, and selling to other businesses -governmental, institution, and reseller purposes -resale, direct use in producing other products, or use in general daily operations -wholesaling, retailing, and customer service

resale, direct use in producing other products, or use in general daily operations

Sysco Foods provides a wide variety of food products—over 12,000 different products —to customers in the restaurant, hospital, education, and hospitality industry and works with companies such as Hormel Foods to offer high-quality, nutritious, tasty, and sustainable foods. What type of business market does Sysco Foods represent? producer institution government reseller

reseller

A customer uses ________________ when buying frequently purchased, low cost items that require very little search-and-decision effort

routinized response behavior

Marketers of products must provide thorough and complete instructions regarding a product's use as well as testing the product for reliability and quality. These activities relate to the consumer's right to be heard. be informed safety. performance

safety

The final step in the target market selection process is to select specific target markets. When making decisions about which segments to select, a marketing manager should smarket potential. select all segments. sales forecast. choose only those segments that are less costly to reach.

sales forecast

changing or twisting received information. - person receives information inconsistent with personal feelings or beliefs and he or she selectively interprets the information, changing its meaning to align more closely with expectations

selective distortion

The selective nature of perception may also result in two other conditions

selective distortion selective retention

Charlie's cell phone contract allows him to change his equipment every two years and he's getting close to making a change and getting a new phone. He's starting to notice ads for cell phones on TV and in magazines as well as pop-up ads on the Internet and thinks it's strange that there are so many advertisements for different brands of phones at the same time that he's considering a new purchase. What phenomenon is Charlie experiencing? advertising recall advertising awareness selective exposure selective retention

selective exposure

Individuals do not pay attention to all sensory inputs and mostly unconsciously engage in _____ to determine which inputs are consciously recognized. selective consciousness selective retention selective distortion selective exposure

selective exposure

a person remembers information inputs that support personal feelings and beliefs and forgets inputs that do not

selective retention

Hayley and Joel were recently married and are now starting to make joint purchasing decisions. They enjoy traveling and have been saving money so they can travel to exotic and interesting locations on their vacations. They view travel as a way to expand their knowledge and viewpoint—meeting with local people, learning about their culture, touring museums or historical buildings, and enjoying the local food. Hayley and Joel believe that their travel adventures are almost like an educational experience except that they can immerse themselves in the experience instead of just reading or learning about culture or history. Hayley and Joel's love of travel is motivated by their need of ________ , one of Maslow's hierarchy of needs. physiological self-actualization social esteem

self-actualization

Ben and his partner just purchased their first home and are now shopping for a lawn mower. Ben doesn't really enjoy lawn care or gardening and views it as a chore although he does enjoy spending time outside. His yard is pretty small and a standard upright model lawn mower will fulfill his needs. He's visited several stores to check out prices and has read reviews in online forums about different brands. The purchase of a lawn mower for Ben is most likely influenced by _______ involvement. limited enduring exceptional situational

situational

Paola is planning a major golf fundraiser for a local nonprofit organization and is spending several hours each week reviewing Pinterest posts and reading articles about how to implement a successful golf outing. She's not a golfer herself and has never participated in a golf outing before but wants to make sure the event is enjoyed by people who like golf and that it generates the donations her organization needs to deliver their services to the community. Paola's behavior can be explained by the concept of ______ involvement. situational enduring concomitant limited

situational

Possible influences on the decision process

situational, psychological, social

occurs when only one supplier is selected

sole sourcing

RJ Distribution maintains a fleet of vehicles for their delivery drivers and sales representatives to utilize. They've recently expanded and now have a fleet of approximately 55 vehicles. They currently have their fleet insured through State Farm Insurance and are considering making some changes to the coverages. They now recognize that many people are driving very expensive foreign cars such as Mercedes Benz, Audi, and BMW and that the policy limits for damage may need to be increased. What aspect of the buying decision process would the decision to modify policy limits relate to? specification of product/service problem recognition evaluation of alternative suppliers evaluate product and supplier performance

specification of product/service

include those constituents who have a "stake,: or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

stakeholders

occurs when buyers purchase the same products routinely under approximately the same terms of sale

straight rebuy purchase

Coca-Cola recently released the following information as part of its annual report, "We are working to balance the water we use by 2020, returning to our communities and nature an amount of water equivalent to that used in our beverages and their production. We are currently on track to achieve this water goal. In 2013, we replenished an estimated 68% (a calculated estimate of 108.5 billion liters) of the water used in our finished beverages through 509 community water partnership projects in more than 100 countries, and we improved our water use efficiency for the 11th consecutive year with an 8% improvement over 2010." This example indicates Coca-Cola is concerned with the _______ issue of social responsibility. consumerism sustainability philanthropic planning community relations

sustainability

Before marketers develop an appropriate marketing mix, they must collect in-depth, up-to-date information about customer needs. Such information might include data about...

the age, income, ethnicity, gender, and educational level of people in the target market, their preferences for product features, their attitudes toward competitor's products, and the frequency with which they use the product

All of the following are characteristics or requirements of a market except the authority to purchase the product or service. the ability to purchase the product or service the willingness to purchase the product or service the desire to make a profit on the product or service.

the desire to make a profit on the product or service

All of the following are true about business markets except -the purchase may be made to use in production of another product. -the purchase may be made to resell the item -they can be known as organizational markets -the purchase is made by household members who intend to consume the product.

the purchase is made by household members who intend to consume the product.

Which of the following is true about consumer markets? -individuals, organizations, or groups who purchase products for use in manufacturing other goods -individuals, organizations, or groups who purchase products for resale -the purchaser is not buying to make a profit -commonly referred to as B2B markets

the purchaser is not buying to make a profit

The business buying decision process includes five steps or stages in the process. One stage, the _____, is characterized by the business conducting an evaluation of each component of a potential purchase by examining the quality, design, materials, or item reduction in order to purchase the needed items in the most cost-effective manner. -first stage—problem recognition -second stage—specification of product requirements -third stage—search and evaluation of potential products and suppliers -fourth stage—selection of product/supplier and product purchase

third stage—search and evaluation of potential products and suppliers

Aon Insurance Company is an insurance brokerage company that caters to business markets and serves as the expert and consultant to risk managers or business owners to determine their risk profile and insurance needs. Once Aon account executives have determined a customer's needs for insurance, they contact insurance carriers to obtain a quote and then work with the customer to identify the best carrier for their company. Typically, Aon account managers are divided into teams based on the industry such as health care, education, government, or manufacturing. Aon is utilizing the ______ variable for segmenting business markets. product use customer size geographic location type of organization

type of organization

The National Pork Board encourages consumers to buy pork through its advertising messages and theme, Pork—Be Inspired. The National Pork Board is utilizing a(n) _________ targeting strategy. undifferentiated cluster concentrated differentiated

undifferentiated

Part of the buying center, these are organizational members who will actually use the product

users

The formal and systematic evaluation of current and potential suppliers focusing on price, product quality, delivery service, product availability, and overall reliability is known as ______ analysis. cost value strategic vendor

vendor

Mark and Sandy have been married for over 25 years and they are now empty nesters. Over time, Sandy and Mark have developed purchasing habits that influence their styles of decision making for their family. Sandy typically purchases all of the grocery items as well as clothing and gifts which can be described as _______ decision making. However, when they purchase a new vehicle or appliances for their home, they typically spend time shopping together and make a joint decision which is called ______ decision making. wife dominant; mutual wife determined; autonomic wife driven; cooperative wife dominant; syncratic

wife dominant; syncratic

Shelby's new job with the federal government provides a comfortable income and a fairly stable income. She would like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her position in the future. Shelby lacks ____. disposable income willingness to spend buying power credit discretionary income

willingness to spend

Many environmentalists and marketers believe that companies should attempt to reinvent the concept of a product as part of their sustainability goals. Which of the following includes the specification or classification of products that companies should have? -unsalables, consumables, and durable goods -environmental products, renewable goods, and consumables -renewable goods, environmental products, and unsalables -consumables, durable goods, and environmental products

unsalables, consumables, and durable goods

A group of protesters carries signs encouraging people to boycott The Farmer's Market, a small grocery store in an urban area. The protesters claim that Farmer's takes unfair advantage of elderly and minority consumers by charging them as much as 20% higher prices than other locations in the suburbs. This protest is part of what we see today as the ___. cultural diversity movement civil rights movement urban unrest cycle procompetitive movement. consumerism movement

Consumerism movement

Jimmy Johns, Subway, Jason's Deli, and Quizno's all specialize in sandwiches to satisfy consumers' hunger at breakfast, lunch, and dinnertime. Quizno's is known for its toasted sandwiches and appeals to a more upscale customer with its attractive restaurants, "meatier" options, and higher price points. What type of competitive environment best characterizes Quizno's approach to marketing? limited competition monopolistic competition faceted competition oligopolistic competition

Monopolistic Competition

Generic competitors are those who provide very different products that solve the same problem or satisfy the same basic consumer need. Which of the following would not be a generic competitor for Jimmy Johns Gourmet Sandwiches? Kroger Subway Farmer's market Whole Foods

Subway

Which environmental force is credited with transforming the U.S. economy into the most productive in the world? sociocultural economic competitive technological

Technological

Which of the following best characterizes the forces of the marketing environment? -The forces are relatively stable over time and are interrelated with one another. -There are few overlapping aspects of these forces; therefore, a change in one is unlikely to result in a change in another. -The various forces ensure that the marketing environment will remain fairly certain in the future. -These forces change dramatically over time, but a change in one force is unlikely to impact another force. -The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

The forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

The marketing environment forces only impact customers and enable marketing managers to easily adjust to their marketing mix to successfully serve customers. a. The marketing environment forces change dramatically and quickly, and a change in one force is likely to affect the other forces. b. The marketing environment forces are stable and help marketing managers determine the appropriate marketing mix. c. The marketing environment forces only impact customers and enable marketing managers to easily adjust to their marketing mix to successfully serve customers. d. The marketing environment forces can be easily controlled and manipulated by the marketing manager.

The marketing environment forces change dramatically and quickly, and a change in one force is likely to affect the other forces.

Value can be defined as a customer's subjective assessment of benefits relative to costs in determining the worth of a product. Which of the following would not be considered a cost associated with purchasing a product and determining its value? - the time consumers spend to search and find desired products - benefits received in exchange for the product - the monetary cost of the product - the amount of effort consumers spend to identify the right product to purchase

benefits received in exchange for the product

Lay's Potato Chips, Tim's Potato Chips, Kettle Brand Krinkle Cut Potato Chips, and Clover Club Classic Potato Chips are examples of __________ competitors. total budget product generic brand

brand

If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of ____. strategic philanthropy ethical responsibility economic responsibility green marketing cause-related marketing

cause-related marketing

Scenario 3.2. The Whole Foods Market began in 1980 with one store in Austin, Texas, and now maintains over 400 stores across North America and the United Kingdom. According to its website, Whole Foods Market is America's Healthiest Grocery Store™ and "seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture." However, the Whole Foods chain has been implicated in several high profile cases involving price gouging. In 2014, Whole Foods paid an $800,000 fine in California after Santa Monica, Los Angeles, and San Diego brought a civil protection case against the chain, accusing it of overcharging customers. In 2015, the New York Department of Consumer Affairs accused Whole Foods of overcharging its customers by overstating the weight of some prepackaged products. For example, consumers buying vegetable platters priced at $20 each were overcharged an average of $2.50. In another example, eight packages of chicken tenders priced at $9.99 a pound on average cost $4.13 more than they should have. According to a report published in the New York Times, the Department of Consumer Affairs said the fine in New York for falsely labeling a package was as much as $950 for the first violation and up to $1,700 for a subsequent violation. In response to these allegations, joint CEOs Walter Robb and John Mackey issued a video apology and stated they made mistakes and want to show their responsibility for these mistakes. In addition, they mentioned that they would employ a third party auditing system to ensure they are making progress in correctly pricing products and encouraged customers to ask a store employee to check pricing and if a mistake is made, the consumer could receive the item free of charge. Refer to Scenario 3.2. The Whole Foods Market started in 1980 but has expanded over time to 400+ stores across North America and the United Kingdom. Its mission is to be known as America's Healthiest Grocery Store by providing organic products and a commitment to sustainable agriculture. Which of the following factors most likely helped Whole Foods Market achieve success? changes in technological forces changes in cultural values changes in the competitive environment economic changes

changes in cultural values

GameStop operates video game, consumer electronics and wireless services around the globe in over 6,600 stores worldwide. According to their website, "GameStop is committed to delivering innovation to consumers anywhere, anytime and anyway they want it." GameStop enables its consumers to trade-in games and purchase new, pre-owned, digital or physical video game titles and offers the latest in hardware and accessories. The Chief Marketing Officer of GameStop would most likely be concerned with tracking which of the following to help forecast sales volume in the future? consumers' discretionary income consumers' wealth consumers' debt consumers' disposable income

consumers' discretionary income

Which of the following statements is true with regard to credit? credit is unrelated to current levels of buying power credit increases current buying power at the expense of future buying power credit increases future buying power use of credit is unaffected by credit terms

credit increases current buying power at the expense of future buying power

The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in ____. customer demands the legal environment demographics cultural values cultural diversity

cultural values

Scenario 1.1. Use the following information to answer the questions. A new company, Cleanethics is marketing a cleaning product called Bottle Bright. Bottle Bright is available on Amazon.com in two sizes: a 10 count pouch for $7.99 or a twin-pack 10 count pouch (20 tablets) for $11.99. The Cleanethics founders were featured on the popular TV show, Shark Tank and shared their idea and product history. Their journey began appropriately at a trailhead—fresh off a mountain bike ride that was endured with noticeably less than fresh tasting water. They were fed up with the grime that plagued their hydration packs and water bottles, and the lack of suitable methods to clean them. After years of choosing between stains and odors or toxic chemicals, they set out to create the safest and most effective product for maintaining hard-to-clean drinking containers. In addition, the founders conducted considerable market research to determine consumers' needs for cleaning products and likelihood to purchase an environmentally friendly cleaning product. Their background in renewable fuel production provided the relevant experience in chemistry and product development. After countless hours spent researching and testing, their unique all natural formula was born. Bottle Bright cleans water bottles, travel mugs, and other hard-to-clean drinking vessels, is biodegradable, chlorine free, all natural, removes stubborn stains and odors, and is certified by The Natural Products Association. In addition, the founders recognized that the problem of dirty water containers carries more serious risks to people in developing countries and they committed to leveraging sales to give Bottle Bright to the people that need it most. The company uses the slogan, Buy clean, give clean—Clean in Kind to educate and remind consumers about this mission and how a purchase of Bottle Bright tablets will provide clean water to those who need it most. Refer to Scenario 1.1. The target market for Bottle Bright would most likely be: -retailers, such as Amazon that sell Bottle Bright to end consumers -customers who are concerned about the environment and utilize refillable water bottles to reduce their carbon footprint -manufacturers of cleaning products, such as Bottle Bright -consumers in third world countries who have concerns about drinking water safety and cleanliness

customers who are concerned about the environment and utilize refillable water bottles to reduce their carbon footprint

Which of the following statements is true with regard to why disposable income is important to marketers? disposable income is affected by wage levels disposable income is the amount available before taxes are paid disposable income is a ready source of buying power disposable income is impacted by tax rates

disposable income is the amount available before taxes are paid

Meredith Downs, a marketing consultant to organizations regarding corporate social responsibility always emphasizes that firms must first recognize their _______ responsibility to be profitable and provide a return on investment to their owners and investors as well as create jobs and contribute goods and services to the economy. philanthropic economic legal ethical

economic

The Garlic Press is a locally owned retailer who specializes in products for the home chef and a variety of gift items. They pride themselves on offering products that are not available in the big box stores and like to partner with suppliers who are committed to social responsibility. At the recent wholesale market in Atlanta, Georgia, the buyer for linens, Tabitha Ringenberger was interested in purchasing table cloths, napkins, and placemats from a firm who produces the products from recycled materials. The suggested retail prices for placemats were $9.99 each and the wholesale price was $7.99—providing a small markup of only $2 on each placemat. Although Tabitha liked the products, she didn't feel the investment would be appropriate since she typically likes to achieve a 100% markup on wholesale prices. Which dimension of social responsibility is illustrated by Tabitha's decision? philanthropic legal economic ethical

economic

The chief marketing officers of most multinational corporations consider the marketing function as very complex. The practice of marketing is difficult due to the long list of variables and factors that impact a company's marketing success, which are part of the marketing environment. One important factor impacting organizations is the unemployment rate. Which environmental factor is most associated with unemployment rates or the percentage of people employed? economic sociocultural technological regulatory and legal

economic

Which of the following categories of purchase is most associated with discretionary income? clothing expenses education expenses housing expenses food expenses

education expenses

Scenario 3.2. The Whole Foods Market began in 1980 with one store in Austin, Texas, and now maintains over 400 stores across North America and the United Kingdom. According to its website, Whole Foods Market is America's Healthiest Grocery Store™ and "seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture." However, the Whole Foods chain has been implicated in several high profile cases involving price gouging. In 2014, Whole Foods paid an $800,000 fine in California after Santa Monica, Los Angeles, and San Diego brought a civil protection case against the chain, accusing it of overcharging customers. In 2015, the New York Department of Consumer Affairs accused Whole Foods of overcharging its customers by overstating the weight of some prepackaged products. For example, consumers buying vegetable platters priced at $20 each were overcharged an average of $2.50. In another example, eight packages of chicken tenders priced at $9.99 a pound on average cost $4.13 more than they should have. According to a report published in the New York Times, the Department of Consumer Affairs said the fine in New York for falsely labeling a package was as much as $950 for the first violation and up to $1,700 for a subsequent violation. In response to these allegations, joint CEOs Walter Robb and John Mackey issued a video apology and stated they made mistakes and want to show their responsibility for these mistakes. In addition, they mentioned that they would employ a third party auditing system to ensure they are making progress in correctly pricing products and encouraged customers to ask a store employee to check pricing and if a mistake is made, the consumer could receive the item free of charge. Refer to Scenario 3.2. Whole Foods Market mission to be America's Healthiest Grocery Store and provide the finest natural and organic foods available is an attempt by the company to: engage in self-regulatory actions comply with the Consumer Good Pricing Act comply with the Sherman Antitrust Act comply with the Nutrition Labeling and Education Act

engage in self-regulatory actions

Dell Computer conducted research to identify consumer preferences with regard to laptop computers in terms of size, capabilities, storage, graphic cards, and colors. The company initiated multiple research studies and also utilized secondary data obtained through industry sources. The brand managers of Dell Computer next engaged in the process of evaluating the information for accuracy, resolving inconsistencies in the data, and determining how the company could utilize the information. This process of assessing and interpreting the gathered information is known as: environmental analysis environmental research market analytics environmental forces

environmental analysis

Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action? environmental scanning environmental marketing demarketing segmentation environmental analysis

environmental analysis

Frito Lay manufactures and markets snack foods around the globe and within each geographic market area must strive to provide snack products that meet the needs of its customers. Over the years, Frito Lay has been very innovative in developing new products or modifying existing products and engages in extensive marketing research to test various flavors and snack food combinations. Frito Lay generally utilizes focus group research to test consumer responses to new products and based on the results will engage in more extensive marketing research such as field testing or test marketing. Recently, Frito Lay launched a new Doritos chip called Doritos Jacked 3D. The chips were released in summer 2015 across the United States in two flavors—Jalapeño Pepper Jack flavor and a Bacon Cheddar Ranch version, which were most popular with younger consumers. In addition to their unique flavor, the chips are three-dimensional and are thick and triangular with holes and a look of lightness and added crispiness. Frito Lay's use of marketing research to identify two new flavors of Doritos and the potential for success is an example of ___________ while the collection of the marketing research information is an example of __________. environmental force; environmental analysis environmental strategy; environmental management environmental analysis; environmental scanning environmental scanning; environmental analysis

environmental analysis; environmental scanning

The major automobile brands such as Ford, Toyota, GM, and Chrysler are interested in consumers' interest in "smart" technology in new automobiles, and GM recently studied consumers' interest in having 4G LTE wireless access via their automobile. The automobile brands must stay abreast of changing technology as well as consumer trends regarding the use of technology. The automobile company's collection of this type of information is referred to as: environmental scanning consumer engagement research customer analysis target marketing

environmental scanning

Folgers Coffee relies on information from observation, secondary business and trade publication sources, and marketing research to determine consumer needs, changes in sociocultural factors which might influence coffee consumption as well as competitive threats such as the rise in coffee cafes and consumers' continued love of espresso and lattes. Thus, Folgers Coffee engages in _________ and takes a __________ approach to changes in the external environment. environmental analysis; proactive environmental analysis; reactive environmental scanning; proactive environmental scanning; reactive

environmental scanning; reactive

By offering both credit and financing through its GMAC division, General Motors is trying to help consumers ____. -expand future buying power at the expense of current buying power -expand disposable income at the expense of discretionary income -expand current buying power at the expense of future buying power -expand both disposable income and wealth -decrease both disposable and discretionary income

expand current buying power at the expense of future buying power

Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed? codes of conduct and ethics officers memos and cultural manuals work habits and dress codes extracurricular activities and work habits ceremonies and anecdotes

extracurricular activities and work habits

Mitch Ford was hungry and was trying to decide what to have for dinner. He thought about ordering a pizza from Dominos but decided instead to make Orville Redenbacher popcorn since he already had some in his apartment. In this case, Domino's pizza and Orville Redenbacher popcorn are considered ______ competitors. generic product total budget brand

generic

Marketing professionals understand the challenges and implications of marketing in an inter-connected, global economy. While the discipline is primarily focused on building mutually-beneficial customer relationships for the firm, it has many other positive influences on the global economy that many in the general public are not aware of. For example, marketing creates a successful economy and leads to a _______________ for people all over the world. Additionally, ______________ can promote the welfare of customers and the firm's stakeholders. -equal standard of living; green marketing -higher standard of living; socially responsible marketing -higher level of education; target marketing -higher level of political awareness; socially responsible marketing -higher level of healthcare; non-profit marketing

higher standard of living; socially responsible marketing

Zach Turek accepted a sales internship with a global enterprise that provides business solutions and information management services. As part of his summer internship, Zach will be engaged in prospecting activities focusing on the small business customer such as attorneys, architects, accountants, and insurance companies who may need office equipment such as photocopiers, printers, and digital solutions. Zach's territory includes several office buildings in downtown Chicago where visitors must register with security and have an appointment with someone in the building. During training, Zach was shadowing a full-time sales representative who told him that he typically tells a little white lie in order to get past security. He'll use the name of a current customer and indicate that his appointment will be with that customer but he'll actually be prospecting for other customers instead. After spending the day shadowing this sales representative, Zach is feeling concerned about whether or not he made a good choice for his summer job. He hates to lie and although it seems like everyone is doing it, it really bothers him. He doesn't believe he'll be able to use this method of gaining entry past security. Zach doesn't want to compromise his own personal values to be successful with the internship. Zach's dilemma represents the ________ factor that influences the ethical decision-making process. individual organizational relationships opportunity competitive

individual

Which of the following is not one of the methods typically utilized when collecting information for environmental scanning? marketing research media advertising observation trade publications

media advertising

Scenario 3.2. The Whole Foods Market began in 1980 with one store in Austin, Texas, and now maintains over 400 stores across North America and the United Kingdom. According to its website, Whole Foods Market is America's Healthiest Grocery Store™ and "seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, and has an unshakeable commitment to sustainable agriculture." However, the Whole Foods chain has been implicated in several high profile cases involving price gouging. In 2014, Whole Foods paid an $800,000 fine in California after Santa Monica, Los Angeles, and San Diego brought a civil protection case against the chain, accusing it of overcharging customers. In 2015, the New York Department of Consumer Affairs accused Whole Foods of overcharging its customers by overstating the weight of some prepackaged products. For example, consumers buying vegetable platters priced at $20 each were overcharged an average of $2.50. In another example, eight packages of chicken tenders priced at $9.99 a pound on average cost $4.13 more than they should have. According to a report published in the New York Times, the Department of Consumer Affairs said the fine in New York for falsely labeling a package was as much as $950 for the first violation and up to $1,700 for a subsequent violation. In response to these allegations, joint CEOs Walter Robb and John Mackey issued a video apology and stated they made mistakes and want to show their responsibility for these mistakes. In addition, they mentioned that they would employ a third party auditing system to ensure they are making progress in correctly pricing products and encouraged customers to ask a store employee to check pricing and if a mistake is made, the consumer could receive the item free of charge. Refer to Scenario 3.2. The New York Department of Consumer Affairs is planning to contact the Federal Trade Commission (FTC) to investigate Whole Foods Market and its practices regarding inaccurate pricing of prepackaged products. If the FTC believes that the Whole Foods Market has violated a law, the FTC would first: -issue a cease-and-desist order -order Whole Foods Market to stop engaging in inaccurate pricing to avoid prosecution -order Whole Foods Market to refund consumers in order to settle or resolve the complaint -order Whole Foods Market to pay up to $10,000 per day for violating the law

issue a cease-and-desist order

Scenario 3.1. The Harvest Café is a locally owned restaurant providing farm-fresh ingredients to consumers by partnering with farmers in its region. They routinely purchase organic chicken from Singley Farms who also supplies other local restaurants with chicken. Marco Rubio, head chef of the Harvest Café noticed a price increase of almost $1.00 per pound and contacted one of his friends at the Fresh Restaurant in another city to inquire about what they were paying for their chicken. Marco learned that the Fresh Restaurant orders similar quantities of chicken from Singley Farms and pays about 75 cents less per pound than the Harvest Café. Marco was very upset and concerned about this finding since it impacts his ability to fairly compete and keep his menu prices in line with other restaurants, such as the Fresh Restaurant. Marco contacted his attorney to assist him in filing a complaint with the Federal Trade Commission. Refer to Scenario 3.1. The Harvest Café promotes its restaurant as a farm-to-table eatery and lists the names of local farms such as Singley Farms on its menu. Their advertising strategy and menu listings lead consumers to believe that all menu items are locally sourced from farmers in its region. Kenisha Smith was dining at the restaurant and inquired about which farm had supplied the lamb for the lamb chop dish listed on the menu. The waiter didn't know so she asked the chef. The chef told the waiter that the lamb had been ordered from Sysco Foods and was frozen—not fresh nor locally sourced. The waiter told the customer who later filed a complaint with the Better Business Bureau (BBB). What action could the BBB take against the Harvest Café if its investigation revealed deceptive practices regarding locally sourced ingredients? -issue a cease-and-desist order -fine the business $10,000 -order the Harvest Café to provide refunds to consumers -issue a warning to consumers through a local newspaper

issue a warning to consumers through a local newspaper

As a firm fulfills its basic economic responsibilities, it must simultaneously _____. treat its employees equitably follow a code of business ethics utilize green marketing techniques have a philanthropic focus obey laws and regulations

obey laws and regulations

The American automobile industry was historically dominated by "The Big Three," referring to General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ____ structure to a(n) ____ structure. monopolistic; oligopolistic oligopolistic; pure competition oligopolistic; monopolistic competition monopolistic competition; pure competition monopolistic; monopolistic competition

oligopolistic; monopolistic competition

Consumers living in the Midwest who wish to watch current television series, sports, and movies can subscribe to satellite TV services, such as Dish or DirecTV or purchase cable service from Comcast. Since the television service industry is dominated by these firms, the competitive structure is known as a(n): monopoly oligopoly pure competition limited competition

oligopoly

What are the four types of competitive structures discussed in the text? -pure competition, heavy competition, monopoly, and light competition -monopolies, limited competition, pure competition, and oligopoly -brand, total product, budget, and generic -oligopoly, pure competition, monopolistic competition, and monopoly

oligopoly, pure competition, monopolistic competition, and monopoly

The communications industry was historically dominated by "Ma Bell" or the Bell Telephone Company, which later became AT&T. Today, however, the communications industry includes AT&T as well as Verizon, Sprint, T-Mobile, and Nextel to name a few. Therefore, the communications industry is classified today as a(n) ________ compared to a(n) ___________ dominated by the Bell Telephone Company. oligopoly; monopoly monopoly; oligopoly pure competition; monopolistic competition limited competition; monopolistic competition

oligopoly; monopoly

April works as a sales representative for a regional snack foods company that specializes in various flavors of potato chips cooked in peanut oil. The snacks are preferred over the major brands in grocery and convenience stores in the regional market. April has been hoping to qualify for a special incentive contest and is very close to reaching her sales goal to qualify for an all-expense paid cruise to the Caribbean. April decides to slightly adjust the amount of product ordered by each of her customers since she knows that the chips will sell and it's likely the customers won't notice the slight increase in quantity ordered. This is an example of how _______ influences ethical decision-making. corporate culture individual factors opportunity organizational relationships

opportunity

Recently a sales representative faced an ethics examination for overreporting the number of miles he had driven as part of his job in traveling to meet with customers and prospective customers in his territory. The overstatement of mileage is important since the sales representative was reimbursed for the costs based upon the number of miles he had driven. The oversight of the sales representative's accounting office that caught the error in reporting is an important element to influence the _____ factor of ethical decision-making. opportunity corporate culture individual values supervisory

opportunity

Carmella Rodriguez is employed as an inside sales representative at a company that provides information technology products, expertise, and services to small, medium, and large businesses. Carmella works in the education sector and is working hard to qualify for a sales contest sponsored by Apple to promote its iPad to the K-12 education market. Carmella was speaking with Nicole, another sales representative at the firm who is close to reaching the contest goal. Nicole tells Carmella that she's going to have one of her friends place an order for the iPads and then cancel the order after the contest date ends. Carmella asks Nicole whether this is really OK but Nicole says that people do it all the time! The interaction between Carmella and Nicole illustrates the important role of __________ in influencing ethical decisions in marketing. politics individual factors opportunity organizational relationship factors

organizational relationship factors

Brewers Distributing is a regional beverage distributor and has developed a solid reputation as a partner to the community through their sponsorship of charitable events, such as the American Cancer Society's Relay for Life event. Brewers Distributing is a title sponsor of the event and also provides water and soft drinks for participants as well as several employees who volunteer at the event. Brewers Distributing's partnership with the American Cancer Society demonstrate the company is in the ______ level of corporate social responsibility pyramid. legal ethical philanthropic economic

philanthropic

Steve Jobs who was the founder of Apple believed the mission of the company was "To make a contribution to the world by making tools for the mind that advance humankind." Which level of the corporate social responsibility pyramid does Steve Jobs' mission statement reflect? philanthropic economic legal ethical

philanthropic

Danny Livingston runs a successful moving business and focuses his business on the local market of people moving from one home to another or senior citizens relocating from their homes to smaller apartments or assisted living. He is concerned about being a good corporate citizen and donates a portion of his profits to the Alzheimer's Association. He also complies with all the local, state, and federal laws, which apply to his business. According to the pyramid of corporate social responsibility, which dimensions are currently included in Danny's business model? philanthropic and legal philanthropic and ethical legal and ethical legal and economic

philanthropic and legal

Which of the following is the most accurate listing of marketing environmental forces? -economic, competitive, political, legal, technological, and subconscious -competitive, economic, diversity, political, legal, and technological -political, legal, technological, sociocultural, competitive, and economic -subconscious, competitive, sociocultural, economic, technological, and legal

political, legal, technological, sociocultural, competitive, and economic

While Diet Coke and Diet Pepsi are brand competitors, they must also realize that their target customers have other alternatives for quenching their thirst such as juice, water, sports drinks, coffee, or alcoholic beverages. Therefore, they face ____________ competition from companies who compete in the same product class but market products with different features, benefits, and prices. total budget product generic monopoly

product

Panera Bread advertises that they bake bread before sunrise and donate after sunset. The company is committed to "live consciously" and makes donations of leftover product to food banks and shelters in the local community. Panera's action of donating leftover product demonstrates they are concerned about the _______ dimension of corporate social responsibility. social economic legal social philanthropic

social philanthropic

Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The majority of Bridgewater's customers are in the U.S. and Canada. One of Bridgewater's customers is Craft Care, who uses Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care's car seats due to serious injuries, which the company has traced back to Bridgewater's components. If Bridgewater knew about the faulty components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the following marketing issue areas? planning and strategy distribution-related promotion-related product-related quality-related

product-related

Markets that are characterized as ________ competition include a large number of sellers, none of which significantly influence price or supply and provide homogeneous products. monopolistic limited pure oligopolistic

pure

Shoppers in Chicago, Illinois, may purchase fresh produce at a variety of neighborhood farmer's markets such as the Daley Plaza Farmer's Market, known as the longest running farmer's market which is open from May through October. The various farmer's markets allow farmers to sell their produce, bakery items, cheese, and meat products directly to consumers. What type of competitive structure best characterizes the farmer's market environment? oligopoly monopolistic competition monopoly pure competition

pure competition

Patagonia is a clothing manufacturer based in California and encourages consumers who purchase their products to donate the items to local charitable organizations or to return the used products back to Patagonia. According to Patagonia's website, they state "If you own a Patagonia product that's well beyond repair, please return it to us so we can recycle it into something new, or repurpose what can't yet be recycled. We'll pay for the postage or you can drop it off at your nearest Patagonia retail store. Since 2005, we've taken back over 82 tons of clothing for recycling." This initiative supports Patagonia's efforts to implement the ________ goal of sustainability. reinvent the concept of a product eliminate the concept of waste make prices reflect the cost make environmentalism profitable

reinvent the concept of a product

Marketers can demonstrate their commitment to social responsibility by creating programs to protect and preserve the natural environment through sustainability initiatives to conserve natural resources and reduce pollution. Sustainability programs should meet specific goals as part of the program to protect and preserve the natural environment. Which of the following is not one of the goals of sustainability? -incorporate practices to produce products without waste -require consumers to engage in recycling efforts -reclassify products and ensure products are consumed, recyclable or part of a closed-loop system -price products so they reflect the costs associated with the use of natural resources

require consumers to engage in recycling efforts

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? federal regulation state regulation city regulation self-regulation social regulation

self-regulation

Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company—known as B-Dubs has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Buffalo Wild Wings' commitment to support 100,000 kids to participate in team sports by 2017 and donate $6 million in funds to the Boys and Girls Club is evidence of its focus on competitive differentiation. economic return social responsibility. delivering superior quality

social responsibility

Target recognizes the importance of education to the future of the United States and how schools are underfunded. Target is committed to making a difference and donates 5% of its profits to charitable organizations including schools and allows shoppers to designate a school that would receive funds related to the shopper's purchases. Target is a generous contributor and 5% of its profit represents approximately $4 million each week in donations. In the area of education alone, Target has donated more than $875 million since 2010. Target's contribution to education and other community-based nonprofits is an example of the firm's social responsibility economic commitment social marketing green marketing

social responsibility

Mona Weiss and Scott Shields are founders of the company Eco Nuts and were contestants on the popular show, Shark Tank. The Eco Nuts company provides natural products which are environmentally friendly and organic. The company utilizes soap nuts that are berries that grow on a tree in the Himalayas and naturally contain soap called saponin. Consumers simply place several Eco Nuts in a cloth bag and place in their washing machine. The soap nuts can be reused up to 10 times and are naturally biodegradable and reduce the waste associated with plastic bottles of laundry detergent. The founders of Eco Nuts are emphasizing the _________ issue of social responsibility as a strategy to connect with customers and generate sales. community relations consumerism sustainability greenwashing

sustainability

UPS is considering its distribution strategy for the next five years. As part of the strategy development, UPS is investigating the use of radio frequency identification, consumer payments through smart phones, Facebook, and Twitter and how they might use these to interface with their customers. UPS is most likely engaging in ___. product differentiation monopolistic competition technology assessment distinctive promotional methods innovative marketing

technology assessment

In April 2015, the restaurant chain Chipotle announced it would stop using genetically modified food products. "This is another step toward the visions we have of changing the way people think about and eat fast food," said Steve Ells, founder and co-chief executive of Chipotle. This decision indicates a response to concerns about -the marketing environment -target market selection -marketing mix decisions -reduction of marketing costs

the marketing environment

StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about _____. -target market selection -the marketing environment -the reduction of marketing costs -marketing mix decisions -efficiency in marketing activities

the marketing environment

You are a member of the North American region's sales team at a major technology company in New Haven, Connecticut. It is year-end, and there is a mad rush going on to make sure sales targets are met. One of your team members suggests to you that he can quickly boost his sales numbers by calling a friend and asking him to put through an order today, then cancel the order the next week before it ships. You question whether this is ethical, but you need to hit your numbers for the month, so you go along with the tactic anyway. This is an example of ___. -the individual factors that influence ethical decision making -the organizational relationship factors that influence ethical decision making -the opportunity factors that influence ethical decision making -the environmental factors that influence ethical decision making -the social factors that influence ethical decision making

Missed Questions MKTG 409 Exam 1

संबंधित स्टडी सेट्स

Ch 51 & 52 NUR212

Chapter 10

Cyber 100 Final Review

A&P Lab E: Muscles Operating on the Scapula and Shoulder

Chapter 2: Family-Centered Community-Based Care (Prep U)

Geography Chapter 14

Interpersonal skills

Investments 4

ch6,5,9,10 AVR

5 Steps of p-value Hypothesis Testing

S66 10/05

ToolingU Materials

DNT Nutrition Exam 1

"Little Women" lines - Jo March

BUS110 Chapter 12

Module 6

Compensation - Cert

G Psych - Midterm: Julia Dunn (M class)

POM Exam 1

Analytics Exam 2