MKT 303 Final
Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________ growth strategy.
market development - A market development strategy employs the existing marketing offering to reach new market segments, whether domestic or international.
Which step in the buying process is most likely to happen in a straight rebuy situation?
need recognition - Straight rebuys often enable the buyer to recognize the firm's need and go directly to the fifth step in the B2B buying process, skipping the product specification, RFP process, and proposal analysis and supplier selection steps.
The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation.
new buy - The most complex and difficult is the new buy because it requires the buying organization to make changes in its current practices and purchases. As a result, several members of the buying center will likely become involved, and the level of their involvement will be more intense than in the case of modified and straight rebuys.
The __________ situation usually involves more members of a buying center and involves more time to complete than the other buying situations.
new buy - The new buy decision is generally the most complex since the organization does not have experience with purchasing the product, nor any existing vendor relationships. For this reason, the process often takes longer and involves a larger buying center.
All of the following groups are included in the diffusion of innovation curve except
nonadopters. - The five groups in the diffusion of innovation curve are innovators, early adopters, early majority, late majority, and laggards.
Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from
observability. - Observability refers to the ability to see the new product in use. Home tours would be one way for potential customers to see a new product installed in a house.
Because of the way __________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store.
off-price retailers - Off-price retailers offer an inconsistent assortment of brand-name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase excess inventory at the end of the season and do not receive special considerations given to traditional retailers.
Where on a product's packaging would one most likely find nutrient content and country of origin?
on the label - Product labels may highlight specific ingredients, vitamin content, nutrient content, and country of origin.
Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates __________ excellence.
operational - Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Getting customers the merchandise they want, when they want it, in the required quantities, and at a lower price are all elements of operational excellence.
For new product marketers, early adopters are important because they tend to be
opinion leaders. - Early adopters, who are not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.
In the product development process, what takes place between concept testing and market testing?
performing product development - The third stage of the product development process, between concept testing and market testing, is the actual development of the product.
Of the various types of blogs, which one do marketers have the lowest level of control over?
personal - Personal blogs are written by people who receive no products or remuneration for their efforts. Thus, of the three types of blogs, marketers have the lowest level of control over this type.
There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow's hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs.
physiological - Many people in India are living at a subsistence level, able to afford little but basic necessities (if that). This indicates that they are at the lowest level in Maslow's hierarchy, physiological needs.
There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection?
physiological risk - Physiological risk (or safety risk) refers to the fear of actual harm, as could happen in this situation. This might also be considered an example of performance risk, since the product has failed, but it was not one of the options offered.
Which element of the marketing mix is most relevant to the activity "delivering value"?
place - The marketing mix activities are promotion (communicating value), product (creating value), price (capturing value), and place (delivering value).
f Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?
planning - Firms should begin establishing an ethical climate at the planning phase by including ethical statements in the firm's mission or vision statements.
Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms'
positioning strategy. - These firms are positioning themselves against the competition, emphasizing their local presence in order to suggest that this local experience helps them do a better job of serving consumers.
The diffusion of innovation theory is useful to marketers in helping them
predict which types of customers will buy their product immediately and later. - The diffusion of innovation theory can help firms predict which types of customers will buy their products or services immediately upon introduction, as well as later as they gain more acceptance in the market.
The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except
price competition with protracted price wars erodes profits. - Price competition and price wars are more likely to emerge in the maturity stage.
Because there are many firms with similar products in purely competitive markets,
price is determined by the laws of supply and demand. - Since products in purely competitive markets are not differentiated, price tends to fluctuate based on supply and demand.
Retailers' coupons, rebates, and online discounts are types of
pricing promotions. - Retailers might offer pricing promotions—such as coupons, rebates, and in-store or online discounts, or perhaps buy-one-get-one-free offers—to attract consumers and stimulate sales.
When a research team has gathered data for specific research needs, this is known as
primary data. - Primary data are those data collected to address specific research needs. Secondary data are data that were originally obtained for another purpose but that may assist in answering the research question.
We often see advertisements touting a product as being made with natural ingredients, or being long-lasting. Marketers using these types of promotions are positioning their products based primarily on
product attributes. - Natural ingredients and long-lasting effects are examples of attributes that may be salient (important) to the target market.
Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy.
product excellence - Product excellence entails having products with high perceived value and effective branding and positioning. The innovations described are in the area of the product offering, and so they represent product excellence.
The ____________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
product launch - In the product launch step, execution and coordination of the marketing mix is essential.
A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.
product line - A product line is a subset of the product mix, a collection of associated items that consumers either use together or think of as part of a group of similar products or services.
In most companies, portfolio management is typically done at the SBU or __________ level of the firm.
product line - In general, marketing resources are allocated to SBUs or product lines. The corporate level is too high unless it is a very small company with just a single product line, and the sales representative level is generally too low.
After need recognition, a business develops __________ that suppliers might use to develop their proposals.
product specifications - Product specifications are detailed descriptions of the business's specific requirements for the purchase occasion.
Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than _________________ segmentation.
psychographic; demographic - Firms are finding that psychographic segmentation schemes like VALS are often more useful for predicting consumer behavior than are demographics. This is because people who share demographics often have very different psychological traits.
Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct
quantitative research. - Qualitative research is often done in part to obtain preliminary insights. Once this is complete and the researcher understands the research topic, the project can proceed to conduct quantitative research, attempting to obtain definitive answers to the research questions.
Historically, prices were
rarely changed except in response to radical shifts in market conditions. - Historically, prices rarely changed except in response to radical shifts in market conditions.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is attractive relative to all of the following except
realistic. - When evaluating a segment's attractiveness, we consider whether the segment is substantial, responsive, profitable, reachable, and identifiable.
Global marketers are under constant pressure to simplify distribution channels in order to
reduce costs. - Global distribution networks form complex value chains that involve middlemen, exporters, importers, and different transportation systems. These additional middlemen typically add cost and ultimately increase the final selling price of a product. As a result of these cost factors, constant pressure exists to simplify distribution channels wherever possible.
Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in
regional culture. - Regional culture refers to cultural differences across different areas of a country.
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
relative advantage. - Inkjet printers offered a substantial relative advantage compared to dot-matrix printers.
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following except
rent on the restaurant building. - Rent is unlikely to be based on hours opened, so this will be a fixed cost. All the other costs could rise when the hours are extended.
In vendor-managed inventory systems,
retailers send sales information to the manufacturer. - Vendor-managed inventory systems transmit store sales and inventory information to manufacturers so that they can reorder needed merchandise.
A distribution center is typically operated by
retailers, manufacturers, or distribution specialists. - Retailers, manufacturers, and distribution specialists can all operate distribution centers.
From a marketing perspective, what role is played by professional bloggers?
reviewing and giving product and service recommendations - Professional bloggers review products and give recommendations on products and services. Consumers seem to trust professional bloggers' reviews much more than corporate blogs and other more traditional media, like advertising.
During the __________ era, firms had excess capacity and used personal selling and advertising to generate customers.
sales-oriented - In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising.
Near the end of the model year, the Move-Them-Out automobile dealership had an unusually high inventory level. The manager increased her advertising spending and gave extra incentives to its salespeople. Move-Them-Out operates as if it were in the __________ era.
sales-oriented - In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising.
The prevailing marketing strategy of the __________ era was to find customers for inventories that went unsold.
sales-oriented - In the sales-oriented era, manufacturers had the capacity to produce more than customers really wanted or were able to buy. Firms found an answer to their overproduction in becoming sales oriented; they depended on heavy doses of personal selling and advertising.
Customers interacting with omnichannel retailers most desire a(n) ________ experience.
seamless - To determine how much integration is best, each retailer must address issues such as integrated CRM, brand image, pricing, and the supply chain in order to provide consumers with a seamless experience.
Which of the following would not be used in calculating the profitability of a segment?
segment perceptions - A calculation of segment profitability uses segment size, estimated segment adoption percentage, purchase behavior (frequency and price), profit margin percentage, and fixed costs.
After Sharon graduated from college, she found a steady and good-paying job, got married and began to raise a family, and began to receive recognition at work and in the community. Eventually, she began to devote more time and effort to intellectual and aesthetic pursuits. Sharon is moving up to what level on Maslow's Hierarchy of Needs?
self-actualization - Sharon's steady job took care of the two lowest levels in Maslow's hierarchy (physiological and safety needs). Marriage took care of the third level (love), and recognition addressed needs for esteem, the fourth level. Sharon's current activities address the final level, self-actualization.
Frieda has just received a major order from Northrop Corporation for her firm's hydraulic lift equipment. After reviewing the order information, Frieda will
send an acknowledgment that the order has been received. - The acknowledgment confirms receipt of the order and the terms specified (price, quantity, delivery schedule, and so on).
Medical services and assisted living care are examples of
services an aging population will increase the demand for. - The aging population in particular has increased the need for health care specialists, including doctors, nurses, and caregivers in assisted living facilities and nursing homes, and many of those consumers want their specialists to provide personalized, dedicated services.
All of the following are primary needs that apps meet except the need to
share. - There are seven primary needs that apps meet: the need to find "me time," socialize, shop, accomplish, prepare, discover, and self-express.
In a process called __________, a customer visits a store to touch, feel, and even discuss a product's features with a sales associate, and then instantly compares the prices online to see whether a better deal is available.
showrooming - Shoppers want to shop anytime they choose. In a process called showrooming, a customer visits a store to touch, feel, and even discuss a product's features with a sales associate, and then instantly compares the prices online to see whether a better deal is available.
Which of the following is most likely to be characterized by pure competition in the United States?
spices - With pure competition, a large number of sellers offer standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals.
A(n) __________ occurs when the purchasing agent orders additional units of products that have previously been purchased.
straight rebuy - A straight rebuy occurs when the company is buying more of a product it has bought in the past.
Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets.
surplus - Firms would prefer to manufacture in a country that has a trade surplus, or a higher level of exports than imports, because it signals a greater opportunity to export products to more markets.
Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using
symbols. - A well-known symbol can also be used as a positioning tool. Red, white, and blue colors serve as symbols in this context because they call to mind the U.S. flag.
Commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen are sources of
syndicated data. - These are sources of syndicated data—secondary data that can be purchased from firms that collect it.
After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in
target marketing. - A key component of target marketing is the evaluation of potential target segments' attractiveness.
When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in
test marketing. - Test marketing is a limited product test in a specific geographic area, in which the entire marketing mix is tested.
Because there are many firms in monopolistic competition markets,
the many competitors will focus on product differentiation. - Monopolistic competition occurs when there are many firms competing for customers in a given market but their products are differentiated.
GDP is defined as
the market value of goods and services produced in a country in a year. - The most common way to gauge the size and market potential of an economy, and therefore the potential the country has for global marketing, is to use standardized metrics of output. Gross domestic product (GDP), the most widely used of these metrics, is defined as the market value of the goods and services produced by a country in a year.
The more substitutes that exist in a market,
the more sensitive consumers will be to changes in the price of a particular product. - Substitutes, by offering reasonable alternatives, typically make consumers more sensitive to price changes.
The most important consideration when a firm chooses a global product strategy should be
the needs of the target market. - Just as with domestic marketing, all global marketing decisions should consider the needs of the target market.
During the __________ era, manufacturers and retailers recognized they needed to give their customers greater value than their competitors did.
value-based marketing - Before the turn of the 21st century, better marketing firms recognized that there was more to good marketing than simply discovering and providing what consumers wanted and needed; to compete successfully, they would have to give their customers greater value than their competitors did.
A customer orientation toward pricing implicitly invokes the concept of
value.
Jenna has a large family and likes to stock up on large packs of basics like toilet paper, paper towels, and large bottles of condiments like ketchup. Jenna would most likely prefer to shop for these items at a(n)
warehouse club. - Warehouse clubs are large retailers that offer a limited and irregular assortment of food and general merchandise. Customers are attracted to these stores because they can stock up on large packs of basics at lower prices than are available at other retail stores.
Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.
weakness - The management of the just-in-time system is an internal issue; if it is being done badly, that makes it a weakness.
Marco was assigned to help create a positioning strategy for his employer's products based on product attributes. He should consider
what the target market would consider the most important features. - Positioning should be done with the target market's needs in mind. What matters is which attributes are salient (important) to potential customers.
Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers all of the following except
which competitors they should collaborate with. - The largest retailers in the world dictate to their suppliers what should be made, how it should be configured, when it should be delivered, and, to some extent, what it should cost.
Today, many developed countries are experiencing __________ population growth.
zero or negative - In general, developed countries are experiencing zero or negative population growth, while most less developed nations are experiencing rapid population growth.
Which of the following is an unstructured question?
"What are the most important characteristics for choosing a brand of shampoo?" - Unstructured questions are open-ended and allow respondents to answer in their own words.
As use of the Internet took off, car manufacturers were tempted to sell directly to consumers, but decided instead to continue to sell through their existing dealer networks. The car manufacturers considered switching from __________ to __________ marketing.
B2B; B2C - The car manufacturers considered switching from B2B marketing (where they sell cars to dealers, who then sell them to consumers) to B2C marketing (where the car manufacturers sell directly to consumers).
When retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts it is considered __________ marketing.
B2C - B2C (business-to-consumer) marketing is the process by which businesses sell to consumers.
__________ segmentation is the segmentation method most directly related to value creation for consumers.
Benefit - Benefit segmentation seeks to segment customers based on the benefits they seek—in other words, the value they will obtain—from the product.
Benton manages a building supply company. He wants to invite 20 of his most valuable building-contractor customers to a golf outing and party. Benton will likely use the firm's ___________ to identify these customers.
CRM database - CRM databases collect information on customers, which can be used to identify the best customers.
Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?
China - Since 1978, China's leadership, while maintaining communist political ideals, has embraced market-oriented economic development, which has led to startlingly rapid gains.
_______ products are products whose demands are positively related and as such, they rise or fall together.
Complementary - Complementary products are things that are used together and as such, their demands are positively related; in other words, a percentage increase in the quantity demanded for Product A results in a percentage increase in the quantity demanded for Product B.
__________ are combating competitive pressures by offering fresh food and healthy fast food, tailoring assortments to local markets, opening locations closer to where consumers work and shop, and adding new services.
Convenience stores - In response to competitive pressures, convenience stores are taking steps to decrease their dependency on gasoline sales by offering fresh food and healthy fast food, tailoring assortments to local markets, and making their stores even more convenient to shop.
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.
Cross-docking - Cross-docking refers to items that are received prepackaged for individual stores.
__________ attributes are product or service features that are important to buyers and that are used to differentiate among choices.
Determinant - Determinant attributes are product or service features that are important to buyers, and that the buyer perceives to be different between brands.
While waiting in line to make a purchase at Best Buy, Joanie sees signs reminding her to visit the company's website for online specials and to sign up on her smartphone for the Best Buy Loyalty Rewards Program. Others signs remind her that Best Buy will match competitors' prices on any item they sell. This is an example of which 4E framework?
Educate - When potential customers arrive at the websites or stores, the marketer has a golden opportunity to educate them about its value proposition and communicate offered benefits. This is an example of educating the customer.
_________ means allowing employees to make decisions about how service is provided to customers.
Empowerment - Empowerment refers to permitting frontline employees to make decisions about service delivery in order to meet customers' specific needs. In general, empowerment of employees results in better service.
Derek just posted an entry in his blog talking about how happy he is with his new GoPro camera. In the blog he also posted videos that he took with the camera. As a customer of the product, which facet of the 4E framework for social media is Derek most exhibiting?
Engagement - In a sense, the first three Es set the stage for the last one: engaging the customer. With engagement comes action, the potential for a relationship, and possibly even loyalty and commitment. Through social media tools such as blogging and microblogging, customers actively engage with firms and their own social networks.
It is not unusual to see firms offering free product samples in grocery stores to let customers try the product before buying it. Similarly, in today's world of social media, one can read a chapter of a book before buying it, or watch YouTube videos on different ways to use a product. All of these scenarios are aimed at which aspect of the 4E framework?
Experience - Gone are the days when consumers had to purchase a product in order to try it out. Social media offer various ways for consumers to experience a product before purchasing it. For example, YouTube and similar sites can come relatively close to simulating real, rather than virtual, experiences. Pinterest allows consumers to see a product used in various ways, and companies can even post pictures, how-to videos, and even step-by-step instructions for do-it-yourselfers.
__________ research is a type of quantitative research that manipulates variables to help determine cause and effect.
Experimental - Experimental research (an experiment) is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.
_____________ are likely to target low-income consumers who demand national brands, but cannot afford to buy large-sized packages.
Extreme-value retailers - Many extreme-value retailers target low-income consumers, whose shopping behavior differs from that of typical discount store or warehouse club customers. Although these consumers might demand well-known national brands, they often cannot afford to buy large-sized packages. So vendors such as Procter & Gamble often create special, smaller packages for extreme-value retailers, often using reverse innovation approaches.
Which generation's members are also known as Millennials?
Gen Y - Generation Y members are also called Millennials.
The first "latchkey" children belong to which generational cohort?
Generation X - Generation X children grew up in homes in which both parents worked.
Consumers use and process different aspects of advertising or messages. __________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions.
High involvement - High involvement often leads to extended problem solving, with more attention to the task, more information sought, and more evaluation of alternatives. This involves greater attention and deeper processing.
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration?
How likely is it for certain retailers to carry this product? - In choosing retail partners, Natalie must first assess how likely it is for certain retailers to carry the product.
Which of the following social media tools is a type of all-in-one marketing software that can be used to educate customers?
HubSpot - Several social media tools are critical in helping marketers educate their potential customers, such as blogs and blogging tools (e.g., WordPress and Twitter), HubSpot (all-in-one marketing software), YouTube, and Google+, as well as some lesser known options such as Roost or Schedulicity.
__________ is the process by which ideas are transformed into new products and services that will help firms grow.
Innovation - Without innovation, firms would have only two choices: to continue to market current products to current customers, or to take the same products to other markets. New product development opens up greater opportunities.
__________ provides the equipment or systems needed to perform a task in a job setting.
Instrumental support - Service providers require instrumental support—the systems and equipment to deliver the service properly.
__________ is the cost to the customers or the fee the bank charges those customers for borrowing money.
Interest - Interest rates represent the cost of borrowing money.
Assuming that a marketing research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is
Is top management committed to the project and willing to abide by the results of the research? - In addition to ensuring that the research will be useful and reduce uncertainty associated with the project, it is also important to ensure that top management is committed to the project and willing to abide by the results of the research.
__________ is an extreme form of a targeting strategy.
Micromarketing - Micromarketing is an extreme form of targeting that tailors a product or service to suit an individual customer's wants or need; also called one-to-one marketing
Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is the way the data are collected. At what step in the framework for ethical decision making would this issue be identified by the marketing research firm?
Step 1 - There are four steps in the framework for ethical decision making. Step 1 is identifying issues. Step 2 is gathering information and identifying stakeholders. Step 3 is brainstorming alternatives. Step 4 is choosing a course of action.
__________ are subtle forms of promotion that facilitate shopping.
Store credit cards and gift cards - Store credit cards and gift cards will encourage customers to spend in one store as opposed to another.
Which of the following statements reflects the philosophy of the market-oriented era?
The customer is king. - The market-oriented era was when most companies first started thinking in terms of meeting customer needs. It was a buyer's market and the customer was king.
Which of the following represents the best reason a manufacturer of high-end products might consider selling products in a warehouse club?
The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers. - A high-end manufacturer would not want to sell in a warehouse club under normal circumstances, because it is not consistent with the image and service level expected for high-end products. But for overstocks or returns, a warehouse club might be a good place to sell these extra products.
Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be
U.S. Census data. - She could purchase syndicated data, but census data should be able to address Caroline's need for income and age distribution information.
Supercenters are large stores that combine a supermarket with a full-line discount store. _______ dominates this category with the vast majority of supercenters in the United States.
Walmart - Walmart operates almost 3,500 supercenters in the United States, 15 accounting for the vast majority of total supercenter sales—far outpacing its competitors Meijer, SuperTarget (Target), Fred Meyer (Kroger Co.), and Super Kmart Center (Sears Holding).
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?
Will retailers purchase the swimwear if it becomes available? - The most important goal of concept testing is to gauge consumers' interest in purchasing the product, should it become available.
The consumer buying process begins when
a consumer recognizes an unsatisfied need - Need recognition is the first step in the consumer buying process.
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on
a demand curve. - A demand curve shows how many units of a product or service consumers will demand during a specific period of time at different prices..
For which of the following is demand likely to be most sensitive to price increases?
a specific brand of soft drink - A specific brand of soft drink has many substitutes, and so demand is likely to be sensitive to price increases. One exception would be extremely brand-loyal consumers.
The RFP stage of the B2B buying process is not required for
a straight rebuy. - A new buy or a modified rebuy may require an RFP; however, straight rebuys do not require one since they are simple repurchases of previously purchased products.
Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in
a sustainable competitive advantage. - This is a good example of a potential sustainable competitive advantage based on customer service (i.e., a customer excellence strategy). A sustainable competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time.
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of
a tariff. - A tariff is a tax levied on a good imported into a country, which could account for the higher price of foreign cars.
Especially in the fashion industry where styles and trends change rapidly, a quick response system can
align deliveries more closely with actual sales. - A quick response system in the fashion industry allows smaller, more frequent deliveries of clothing that are matched to recent sales. In this way, as trends change, the retailer will not have a store full of older styles, but can instead adapt quickly to changing consumer preferences.
After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluating alternatives.
all parties relevant to the decision - All relevant parties should participate in brainstorming and evaluation.
Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in
alpha testing. - In alpha testing, the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended.
Bertone's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog, and also to sell its products online. Bertone's is adopting
an omnichannel strategy. - An omnichannel strategy is when a company uses multiple sales channels, such as stores, catalogs, and the Internet.
Franco uses a database software system to remind him when his customers should be ready to reorder his industrial cleaning products. With this reminder system, Franco contacts his customers when they are most likely to be "in the buying mode." Franco's system is part of
customer relationship management. - Franco's system is one element of a customer relationship management (CRM) system. Firms that employ CRM systematically collect information about their customers' needs and then use that information to target their best customers with the products, services, and special promotions that appear most important to them.
If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to
build separate marketing programs for different demographic segments. - In this case, data mining could be used to identify common purchasing patterns within demographic segments, and then design marketing programs according to these patterns and what they reveal about customer needs.
Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with
buyer's remorse. - Buyer's remorse, or postpurchase cognitive dissonance, is felt most often for expensive products purchased infrequently and/or associated with high levels of risk.
How does your text describe how social media firms help marketers connect with their customers?
by helping build connections between customers and firms - Social media use various firms that offer services or tools to help consumers and firms build connections. Through these connections, marketers and customers share information of all forms—from their thoughts about products or images, to uploaded pictures, music, and videos.
The basic difference between a good and a service is that a good
can be physically touched. - The basic difference between a good and a service is that a good is a tangible thing that can be touched; a service is intangible.
When Toyota owners began to report problems with sticking accelerator pedals and nonfunctioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and issued a recall. Which of the four steps of the ethical decision-making framework was Toyota performing when it recalled several of its 2007-2010 models?
choose a course of action - When using the ethical decision-making framework, the first step is to identify the issues. The next three steps are to gather information, brainstorm/evaluate alternatives, and finally to choose a course of action. Toyota, in issuing its recall, had chosen a course of action.
What feature unique to Google+ lets people interested in similar topics form their own groups?
communities - The "Communities" feature on Google+ lets people interested in similar topics form their own groups. Unlike Facebook, Google+'s Communities allow brands to join as members—for example, a paddle brand or seller of suntan lotion could easily interact with the members of a group devoted to paddle boarding.
Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities.
compatibility - A diffusion process may be faster or slower, depending on various consumer features, including international cultural differences. The fast pace of business in the United States makes mobile computing devices compatible with U.S. consumers' lifestyles.
One of the categories of products for which brand extension is especially logical is
complementary goods. - When brand extensions are used for complementary products, a synergy exists between the two products that can increase overall sales —for example, chips and dip, or toothbrushes and toothpaste.
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
concentrated - The four targeting strategies are micromarketing, undifferentiated, differentiated, and concentrated.
When companies embrace __________, they appeal not only to their shareholders but also to all of their key stakeholders.
conscious marketing - When companies embrace conscious marketing, they appeal not only to their shareholders but also to all of their key stakeholders.
If the price for a product increases, the demand for the complementary product will
decrease. - Complementary products are things that are used together; if the price of one product increases, the demand for the complementary product will decrease because the total cost of using the two products together has increased.
A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it.
delivery - A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.
A buying center that makes its decisions by majority vote is a(n) __________ buying center.
democratic - A democratic buying center is one where the majority opinion is used to make the purchase decision.
Which of the following are the two components of a global marketing strategy?
determining which target markets to pursue and developing a marketing mix to obtain a competitive advantage Correct - Just like any other marketing strategy, a global marketing strategy includes two components: determining the target markets to pursue and developing a marketing mix that will sustain a competitive advantage over time.
Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to
develop basic strategies for dealing with their behavior. Correct - Sociology and psychology have both contributed many theories to marketing knowledge. Marketers have used these theories to decipher many consumer choices and develop basic strategies for dealing with consumers' behavior.
Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is
consistent with the views of other critics of corporate social responsibility. Correct - Which is the more important corporate objective: making a profit or protecting customers, employees, and the broader needs of society and the environment? This question underlies a primary dilemma that marketers have long faced.
All of the following are included in the five dimensions used by consumers to determine overall service quality except
empathy. - The five dimensions of service quality are reliability, assurance, responsiveness, empathy, and tangibles.
For marketers, media-sharing sites such as YouTube or Flickr are social media tools best used to
encourage customers to engage with the firm and experience its products. - Media-sharing sites (e.g., YouTube and Flickr) are excellent social media tools that provide customers visual experiences of customers or professionals who are using these goods and services, as well as provide customers an opportunity to engage with the firm and others.
During the __________ phase of the strategic marketing planning process, marketers utilize systems to check whether each conscious marketing issue raised in earlier phases was addressed.
control - The firm assesses its performance regarding ethics during the control phase.
One of the potential benefits to a firm of introducing new-to-the-world products or services is
establishment of a completely new market. - These new products can establish a completely new market or radically change both the rules of competition and consumer preferences in a market.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment. - After identifying potential market segments, the next step is to evaluate the attractiveness of each segment.
A demand curve is built on the assumption that
everything but price and demand remains the same. - Demand curves evaluate how changes in price effect demand for the product. They assume that other factors such as advertising expenditures and economic conditions remain constant.
Considering what you know about their target markets and merchandise, which of the following retailers is least likely to have an online presence?
convenience stores - Convenience stores provide a limited variety and assortment of merchandise at a convenient location for consumers. They offer only a limited assortment of merchandise at higher-than-average prices, so do not require an online presence.
An online retailer needs to be able to measure how well its website converts purchase intentions into actual purchases. This is known as the
conversion rate. - The conversion rate is the percentage of purchase intentions that are converted into actual purchases.
For every consumer who purchases a pair of TOMS shoes for $55, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in
corporate social responsibility. - TOMS shoes is engaged in corporate social responsibility by making shoes available to children in need.
Sometimes brand names become synonymous with a product itself. If that happens, the brand
could lose its trademark status. - Companies whose brand names become synonymous with the product—like Kleenex tissues, Clorox bleach, Band-Aid adhesive bandages, and the Google search engine—must be vigilant in protecting their brand names because if they are used so generically, over time, the brand itself can lose its trademark status.
Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can
create a sustainable competitive advantage. - Some of the potential answers here represent unethical (and potentially illegal) behavior. The best answer is far simpler—this type of operational excellence is achieved through efficient operations and excellent supply chain and human resource management.
The fundamental goal of marketers when creating goods, services, or combinations of both is to
create value. - While some of the other answers are things that marketers and their firms have to consider, the fundamental purpose of marketing activities is to create value for consumers.
Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups
creates opportunities to provide value to each group. - The broad range in incomes creates marketing opportunities at both the high and low ends of the market.
To attract and maintain habitual purchasers, marketers spend considerable effort
creating strong brands and store loyalty. - Habitual purchasers are most likely to remain loyal to strong brands, and to respond to efforts to build their loyalty further.
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
credible commitments. - A strategic relationship cannot succeed unless each relationship partner is willing to make a genuine, credible commitment to the relationship. The behavior described in the question does not demonstrate such a commitment.
Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's
culture. - People's beliefs, values, and customs relate to their culture.
The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
culture. - This is the definition of culture. Some of the answer options (such as religion) are aspects of culture, but culture is a broader concept.
Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through
customer excellence. - Superior service is a key facet of a customer excellence strategy.
Current research points to which pricing model for apps as the most effective?
freemium apps - Freemium apps with in-app purchases make up the vast majority of revenue from Apple's App store in 8 of 10 app categories. According to Distimo, a research firm specializing in the mobile app market, 71 percent of apps in Apple's App Store implement a freemium pricing model, and 92 percent of revenues from Apple's App Store and 98 percent from Google's Play App Store come from freemium pricing.
Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves.
frontline employees - Empowerment refers to permitting frontline employees to make decisions about service delivery to meet customers' specific needs. In general, empowerment of employees results in better service.
When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing __________ needs.
functional - Mountain climbers need clothing that will allow them to handle the tough conditions on a Mount Everest climb. Functional needs pertain to the performance of a product or service.
Golden Years Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using _________ segmentation.
geodemographic - This is an example of geodemographic segmentation because it has an element of geographic segmentation (residence in Florida) combined with demographic segmentation (age greater than 65).
Which of the following is least likely to be a source of ideas for new products?
geodemographic segmentation - All of these but geodemographic segmentation are common sources of new product ideas.
Heterogeneity refers to the problem that services tend to vary by time, location, or the person providing the service. The human element is primarily responsible for this variation.
geographic segmentation. - Climate and weather are two factors that create geographic differences and thus opportunities to segment a market by geographic region.
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.
growth - As a few additional competitors moved into the hybrid car market, opening up production capacity for additional buyers, the hybrid market moved into the growth stage.
During the __________ stage of the product life cycle, there are few but an increasing number of competitors.
growth - During the growth stage, competitors have been exposed to the product and can evaluate how it is doing in the market. Based on their observation, several may begin to participate.
Which of the following is a social trend listed in the text?
health and wellness - Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on health and wellness concerns, greener consumers, and privacy concerns.
Innovators are a critical group of new product adopters because they
help the product gain market acceptance. - As the first group to adopt a new product, innovators help the product gain initial market acceptance.
When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.
heterogeneous - Heterogeneity refers to the problem that services tend to vary by time, location, or the person providing the service. The human element is primarily responsible for this variation.
Because of __________, many companies have altered their no-questions-asked return policies to include time limits, restocking fees, and store-credit-only refunds.
high costs - Costs involved in returns have led some retailers to restrict customers' ability to return merchandise.
Within a perceptual map, a(n) _______ represents where a particular market segment's desired product would lie.
ideal point - The ideal point is the point representing the target market's "perfect" product offering.
Traditionally, retailers treated all their customers ________, but today, successful retailers
identically; provide more value to their best customers. - Traditionally, before the advent of CRM programs, most retailers treated all customers the same. Today the most successful retailers concentrate on providing more value to their best customers.
Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Garrett should do is to
identify issues that need to be addressed. - Identifying potential ethical issues is the first step in the ethical decision-making process.
Victor's custom auctioneering service provides online auction selling assistance. Victor plans to conduct marketing research to determine which auction site is best for his customers. His next step is to
identify the type of data he needs. - Once Victor has defined his research objectives—to determine which auction site is best—he will move on to design the research, identifying the type of data he needs and the research method he should use.
Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?
implement marketing mix and resources - Carla is dealing with implementation of the marketing mix—price cuts (price), advertising (promotion), and distribution changes (place).
Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process.
implementation - The implementation phase is where the marketing mix is implemented, and is thus the place where the use of sweatshop labor becomes a public issue.
In a competitive market, perceived value is determined by consumers mostly
in relation to the value of its close competitors. - The perceived value of a brand is the relationship between a product's or service's benefits and its cost. Customers usually determine the offering's value in relation to the value of its close competitors.
When the detailed opinions of a few industry experts or experienced consumers are needed, __________ is(are) often the best qualitative research method.
in-depth interviews - In-depth interviews are a good way to collect detailed opinions from a small number of individuals.
Which of the following provides the information needed to confirm insights and hypotheses and help managers pursue appropriate courses of action?
in-depth interviews - Quantitative research aims to confirm insights and hypotheses and offer decision-making guidance to managers.
Kim wants to maximize sales to the customers who walk into her store. Of the following, Kim will most likely focus on
in-store promotions. - Billboards, outdoor ads, and mass media advertising can be helpful in getting customers into stores. To increase sales once a customer is in the store, in-store promotions are the best choice.
Effective service recovery efforts can lead to all of the following except
increased dependence on technology to prevent future service failures. - Effective service recovery can positively influence purchase intensions, positive word of mouth, and customer satisfaction; however, satisfaction may still be lower than it was before the service failure.
Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in
increased long-term profits. - Viewing customers with a lifetime value perspective rather than on a transaction-by-transaction basis is key to modern customer retention programs. Customer retention programs recognize that it is often worth spending something in the short term to keep a customer in the long term.
The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)
industry. - Marketing can aim to benefit an entire industry or society at large. The dairy industry targets its "Milk Life" and "Body by Milk" campaigns at different target segments, including parents, their children, and athletes. Through this campaign, the allied milk producers have created high levels of awareness about the benefits of drinking milk, including the high levels of protein, potassium, and calcium it provides.
At many universities, education faculty members were among the first to ask for personal computers. These faculty members were __________ in the buying center.
initiators - By requesting computers, the faculty initiated the purchase situation.
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?
innovators, early adopters, early majority, late majority, laggards - The diffusion of innovation curve spreads through the population over a period of time and generally follows a bell-shaped curve made up of innovators, early adopters, early majority, late majority, and laggards.
When marketers state that services are________, they are referring to the fact that services are produced and consumed at the same time.
inseparable - Unlike products, services cannot be produced at one time and consumed later; the two happen at the same time. This is referred to as inseparability.
When marketers say that services are __________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can.
intangible - Intangibility refers to the fact that, unlike products, services cannot be touched, tasted, seen, or possessed.
A typical focus group has ________ members.
2 to 4 - In focus group interviews, a small group of persons (usually 8 to 12) come together for an intensive discussion about a particular topic.
__________ offer an inconsistent assortment of brand-name merchandise at low prices.
Off-price retailers - Off-price retailers offer an inconsistent assortment of brand-name merchandise at significant discounts from the manufacturer's suggested retail price. They typically purchase excess inventory at the end of the season and do not receive special considerations given to traditional retailers.
In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.
POS terminal - The point-of-sale (POS) terminal records the purchase information and electronically sends it to the corporate office.
________ must always be aligned with other elements of a retailer's strategy in order to accurately define the value of the product and a retailer's image.
Price - Price must always be aligned with the other elements of a retailer's strategy: product, promotion, and place. The general price range of a particular store helps define its image and price helps define the value of both the merchandise and the service.
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?
Recent consumer studies have indicated that Chinese consumers prefer American cars. - An opportunity is an external positive event. Potential demand in China could be a positive thing for the company, and since it deals with Chinese consumers it is an external factor. A lower cost structure is a positive internal factor—a strength. The remaining factors are negative, and so cannot be opportunities.
To determine the market potential for its particular product or service, a firm should use
as many metrics as it can obtain. - The market potential for a firm depends on many variables and no one metric can offer a complete picture of the economic environment in a country. As a result, the best approach is to use many measures in an analysis.
The final stage in the business-to-business buying process is to
assess vendor performance. - As the final stage in the business-to-business buying process, vendor analysis evaluates a selected supplier's performance in delivering on the current order, helping the firm decide whether or not to continue to do business with the supplier.
When conducting a survey about choosing vacation destinations, Hillary will need to __________ in order to get reluctant respondents to provide honest information.
assure consumers that their individual responses will be kept confidential - Consumers are more anxious than ever about preserving their fundamental right to privacy. They also demand increasing control over the information that has been collected about them.
Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service?
augmented product - The associated services, also called the augmented product line, include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service.
One of the reasons service failures need to be addressed quickly is to
avoid negative word of mouth from upset customers. - The longer a service problem remains unresolved, the more likely customers will complain to others.
For corporate leaders, their firm's ability to __________ must be of paramount importance.
balance shareholder interests with the needs of society. - For corporate leaders, their firm's ability to balance the needs of various stakeholders—while building and maintaining consumer trust by conducting ethical, transparent, clear transactions that have a positive impact on society and the environment—must be of paramount importance.
In developing marketing strategies, why is price often the most challenging of the four Ps to manage?
because it is the least understood element of the marketing mix -Price is the most challenging of the four Ps to manage, partly because it is often the least understood. In addition, despite the complex considerations when setting prices, pricing is often treated as an afterthought.
The term _______ refers to the enormous amount of information that firms now have access to but cannot handle using conventional data management and data mining software.
big data - To specify the explosion of data that firms have access to but cannot handle using conventional data management and data mining software, the term big data has arisen in the popular media.
After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should
brainstorm for alternatives. - It is too soon to make a choice—at this point, the involved parties should brainstorm and then evaluate alternatives.
As noted in your text, global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and
differences in the way consumers see themselves and in the way they see products and services. - Global segmentation, targeting, and positioning (STP) are more complicated than domestic STP for several reasons. First, firms considering a global expansion have much more difficulty understanding the cultural nuances of other countries. Second, subcultures within each country also must be considered. Third, consumers often view products and their role as consumers differently in different countries.
Which of the following is one of the global entry strategies?
direct investment - Direct investment is one of the global entry strategies.
A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.
distribution center - A distribution center, a facility for the receipt, storage, and redistribution of goods to company stores, may be operated by retailers, manufacturers, or distribution specialists.
Introducing newly developed products or services to a market segment the company is not currently serving is called
diversification. - A diversification strategy introduces a new product or service to a market segment that currently is not served.
Typically, manufacturers and retailers exchange business documents through a(n) _________system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.
electronic data interchange - Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.
After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders.
electronic data interchange system - By eliminating the need for paper transactions, the EDI in the JIT systems reduces lead time. Lead time is the time it takes to receive merchandise from the point when a decision is made to place an order. EDI can reduce lead time by electronically transmitting information between the buyer and seller.
Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Businesspeople tend to be more cautious before embarking on a marketing research study, recognizing that research is often
expensive and time-consuming. - Marketing research can be very expensive and time-consuming, and if the results won't be useful or management does not abide by the findings, it represents a waste of money.
Postpurchase cognitive dissonance is especially likely for products that are
expensive, infrequently purchased, or associated with high levels of risk. Correct - Postpurchase cognitive dissonance is especially likely for products that are expensive, are infrequently purchased, do not work as intended, or are associated with high levels of risk.
When the value of the dollar declines in relation to other currencies, it benefits U.S. marketers who
export goods to other countries. - U.S. firms exporting to other countries can sell their goods at lower relative prices when the value of the U.S. dollar drops, increasing sales opportunities.
When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand
facilitates purchasing. - A brand can facilitate purchasing because the customer can quickly recognize it and decide whether or not to purchase it based on brand associations.
All of the following are reasons for the high failure rate of new products except
failing to introduce lower-priced alternatives. - Why is the failure rate for new products so high? One of the main reasons is the failure to assess the market properly by neglecting to do appropriate product testing, targeting the wrong segment, and/or poor positioning. Firms may also overextend their abilities or competencies by venturing into products or services that are inconsistent with their brand image and/or value proposition.
Some retailers require their suppliers to ship merchandise ___________, thus eliminating the time and expense associated with ticketing and marking.
floor-ready - Floor-ready refers to merchandise that is ready to be placed on the selling floor.
A(n) __________ is a small group of people brought together for an intensive discussion of a topic.
focus group - A focus group is a small group that participates in an intensive discussion of a topic, sharing their views with the moderator and with one another.
Many of the best-known American retailers, like Starbucks and McDonald's, have contractual agreements with another firm or individuals, allowing its businesses to operate overseas. These companies expanded globally using
franchising. - Franchising is a contractual agreement between two companies in which one pays for the right to use the brand and concept developed by the other. Fast-food restaurant chains are one category in which franchising is widely used.
When marketers use a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media—in combination to communicate a value proposition to the customer, it is referred to as
integrated marketing communications. - Integrated marketing communications (IMC) represents the promotion P of the four Ps. It encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media—in combination to provide clarity, consistency, and maximum communicative impact.
Marketers are particularly interested in postpurchase behavior because it
involves actual rather than potential customers. - Unlike prepurchase behavior, postpurchase behavior reflects the characteristics of actual customers. Satisfied customers may be a source of future purchases and/or positive word of mouth.
Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation
is a more expensive method for identifying potential customers. - Psychographic segmentation is by no means unproven, and can be used for many applications unrelated to one-to-one marketing. Psychographic segmentation, though, is generally more expensive than demographic segmentation because demographic information is so much more readily available.
One key feature of the value of a strong brand is that
it can protect the firm from competition. - Over time and with continued use, consumers learn to trust certain brands. They know, for example, that they wouldn't consider switching brands and, in some cases, feel a strong affinity to certain brands.
If a firm promises more than it can deliver,
it creates a communication gap - A communication gap is the difference between promised and actual service.
Firms use a differentiated targeting strategy because
it helps obtain a bigger share of the market. - A differentiated targeting strategy builds a different marketing mix for each of several market segments. This allows the firm to target a larger portion of the market and gain a greater market share.
Marketers with successful brands sometimes hesitate to expand their brands because
it is costly to maintain many product lines, and it might weaken the brand's meaning. - Each product line involves some additional cost, and if too many product lines are associated with the same brand it can weaken the brand's meaning and reputation.
The observation that consumers are generally more sensitive to price increases than to price decreases suggests that
it is easier to lose customers with a price increase than to gain customers with a price decrease. - If consumers are more sensitive to price increases than to price decreases, this suggests that more customers will be lost as price rises than will be gained if it decreases.
When a product is successful in the introductory stage of the product life cycle,
it may start to see profits toward the end of this stage. - A product that is successful in the introductory stage may begin to see profits toward the end of this stage.
Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?
jewelry store - Personal selling would be most important for a jewelry store, since its products can be expensive and since buying precious stones (like diamonds) can be complex for a first-time buyer.
Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a __________ growth strategy.
market penetration - A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on existing customers. Such a growth strategy might be achieved by attracting new consumers to the firm's current target market or encouraging current customers to patronize the firm more often or buy more merchandise on each visit.
Adrienne decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.
market penetration - Adrienne is trying to sell more of her current products to current customers, which is a market penetration strategy.
At one point in the evolution of marketing, the United States entered a buyer's market and the customer became king. Which era is being described?
market-oriented - This question is describing the market-oriented era where customers became king.
Retailers use __________ to communicate with or sell to consumers through wireless handheld devices.
mobile commerce - Retailers use mobile commerce to communicate with or sell to consumers through wireless handheld devices such as cellular phones.
When a business buyer decides to change specifications such as quality or options associated with products purchased in the past, the buyer is engaged in a(n) __________ situation.
modified rebuy - In a modified rebuy, the buyer has purchased a similar product in the past but has decided to change some specifications such as the desired price, quality level, customer service level, options, and so forth.
If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) ______ market.
monopolistic competition - Monopolistic competition occurs when there are many firms competing for customers in a given market but their products are differentiated. Pure competition means that consumers likely regard the products offered by different companies as basic substitutes.
Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are
more formal and structured. - Because of the buying center and organizational requirements, the B2B buying process is more formal and tends to have more structure and rules than the B2C buying process.
A reference price is
the price against which buyers compare the actual selling price. - Reference prices are prices against which buyers compare the actual selling price of the product and that facilitates their evaluation process.
Mira purchased some eyeliner from an Internet-based beauty supply house, and now she often receives online recommendations for other products from the same cosmetics line. These recommendations were probably the result of
the purchases she had made. - The personalized offering created for Mira was probably based on her purchase history.
Which of the following defines a value proposition?
the unique value that a product or service provides to customers - A value proposition defines the unique value the product or service provides its customers, and how it differs from those of competitors.
Shorter lead times allow retailers
to reduce the needed level of inventories. - By eliminating the need for paper transactions, the EDI in the JIT systems reduces lead time. Even better, the shorter lead times further reduce the need for inventory, because the shorter the lead time, the easier it is for the retailer to forecast its demand.
Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country.
underlying values - Hofstede's cultural dimensions attempt to classify underlying cultural values along six dimensions.
Global businesses often find it particularly difficult to understand the ________ of a country's culture.
underlying values - While symbols, ceremonies, and behavior are visible artifacts of a culture, the underlying values (thought processes, beliefs, and assumptions) can be more difficult to observe and understand.
