MKT 304 Midterm

The ________ race and ethnicity market segment is about 12 percent of the U.S. population and is not growing rapidly.

African-American

Internal forces such as ________ affect consumer choices.

Age and attitude

________ segmentation divides customers into groups according to similarities in benefits sought or product usage patterns.

Behavioral

Johnson & Marshall, a growing producer of organic tea, creates a group to make purchase decisions that is made up of people from the purchasing department, senior management with financial knowledge, and engineers with design expertise. This group best represents a(n) ________.

Buying Center

A company wants to create an association between two stimuli: marketing information and attitude. The company is relying on ________.

Classical Conditioning

Which of the following statements best defines cultural values?

Cultural values are principles shared by a society that assert positive ideals.

The relationship between consumer demand for products and demand for B2B products is known as ________ demand.

Derived

________ information sources include independent groups, personal associations, marketer-created information, and experiences.

External

Cateleya was born in 2001. She is a member of ________.

Generation Z

Which contemporary theory of motivation believes that satisfying hygiene factors does not create a loyal employee or customer?

Herzberg's two-factor theory

At about 17 percent of the U.S. population, ________ remain the largest minority group.

Hispanics/Latinos

Which of the following questions about market segmentation relates to creation and execution of different marketing strategies to the different submarkets identified?

Is the segment clearly differentiated on one or more important dimensions when communicating the value of the product?

Which of the following statements is TRUE of income segmentation?

It is usually analyzed in incremental ranges.

________ is any change in the content or organization of long-term memory or behavior.

Learning

________ communication is the means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language.

Nonverbal

________ segmentation recognizes that there may be a number of consistent needs and wants demonstrated by consumers based on what type of job they have.

Occupational

Which of the following is a psychological attribute that affects consumer choices?

Perception

When Bob was asked to describe Sherry, he didn't describe her based on her age or education; rather, he talked about her easy-going manner, which reflected her ________.

Personality

________ are the stages of the consumer decision-making process in order.

Problem recognition, search for information, evaluation of alternatives, product choice decision, post-purchase evaluation

A marketing manager using VALS is interested in ________ segmentation.

Psychographic

Bella is exposed to around 2,500 messages daily. Since she cannot process, let alone retain, all those messages, she focuses on what is relevant and eliminates what is not. What psychological tool does she employ?

Selective Awareness

Which of the following is one of the basic principles behind segmentation?

Subgroups will be smaller and more homogeneous than the overall market.

A ________ chain is the synchronized movement of goods through the channel.

Supply

Which of the following statements is TRUE of the baby boomers generational group?

The baby boomers think that they don't age.

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

User

While screening and evaluating ideas, a go-to-market mistake happens when ________.

a company fails to stop a bad product idea from moving into product development

Small changes in consumer demand can lead to considerable shifts in business product demand and are referred to as the ________.

acceleration effect

The marketing manager of Toddles Baby Food is redesigning the package for her product. She is trying to select a color that is visually appealing and is distinctive so that her brand is easy to identify. In the context of effective packaging, the marketing manager of Toddles is focusing on ________.

aesthetics

A(n) ________ is defined by the American Marketing Association as "a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers."

brand

José has been to Farm Fresh Ice Cream Shops several times. Being a loyal customer, he has developed certain emotional and psychological connections with the brand. For instance, he links the brand with higher levels of customer service. Which dimension of brand equity does this example illustrate?

brand association

When Maria purchases laundry detergent, she is able to easily recall and process information about Tide, but not the other brands. Which benefit of brand equity for customers does this exemplify?

brand associations

Which of the following is an overall evaluation of a product and usually assesses the product's probability of success?

business case analysis

During the decline phase of the product life cycle, ________.

channel members cease to support the product

Procter & Gamble wanted Crest Vivid White Toothpaste to stand out from competitor brand toothpastes on store shelves, so it created a stand-up package and used a graphics-heavy box. In the context of objectives of packaging, the company focuses on ________.

communication

internal sources of generating product ideas include ________.

company salespeople

Market testing of a new product can take a long time, and this can result in ________.

competitors being able to develop marketing strategies to counter a product launch

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of ________.

confused positioning

Robitussin redesigned its packaging to provide specific product use information to help buyers make a purchase decision and to inform them about proper product usage. The package lists four key pieces of information: the product's formulation, its possible side effects, the symptoms it treats, and the recommended age for usage. This is an example of meeting the ________ requirements of labeling.

consumer

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________ goods.

convenience

When a company tries to make the product or service significantly easier to obtain than the competition, it is trying to achieve ________ leadership as a source of differentiation.

convenience

When customers see the logo of McDougal's restaurant, they think of food served quickly in a clean, family-friendly environment. Which customer brand role does this exemplify?

conveying information about a product

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________ product.

core

Electronic data interchange (EDI) allows ________.

customer computers to communicate directly with supplier computers

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

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

External sources of generating product ideas include ________.

customers

An important issue for consumers is conformance, which is the product's ability to ________.

deliver on features and performance characteristics promised in marketing communications

The primary function of marketing and the entire organization, in a broader context, is to ________.

deliver value to the customer

In the context of criteria used to prioritize product ideas, time to market refers to the time taken to ________.

develop and get the product to market

More than any other product discriminator, style offers the advantage to a company of being ________.

difficult for competition to copy

Segmenting markets means that a company is ________.

dividing the market into meaningful smaller markets based upon common characteristics

When a company can show that its product's projected lifetime is high under certain operating conditions, it is using ________ as a product discriminator.

durability

In the context of product testing, beta testing is designed to ________.

encourage customers to evaluate and provide feedback on a prototype

The ________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

enhanced

Primary target markets differ from secondary and tertiary target markets by the ________.

expected level of ROI derived from the market

Marketing managers need to pay attention to culture because ________.

failing to understand culture has a significant negative effect on product acceptance

Graduating from college, getting married, and having a child all transform an individual's buying habits and are referred to as the ________.

family life cycle

Warranties that make broad promises about product performance and customer satisfaction are known as ________ warranties.

general

The first step in the new-product development process is to ________.

generate new-product ideas

A marketing manager using the database called PRIZM is interested in ________ segmentation.

geodemographic

The region, the density of the population, and the size of the population are various approaches to use in ________.

geographic segmentation

When a company solicits RFPs from suppliers with an open vendor search, the goal is to ________.

get several proposals to help with negotiations

The primary difference between selling to the profit-oriented market and the nonprofit market is that nonprofits ________.

have a limited number of resources compared to their for-profit counterparts

New-to-the-world products are products that ________.

have not been available before their introduction to the market

Demographic segmentation is best described as using characteristics of ________ to segment the market.

human populations

Michael believes that the only motorcycle anyone should ever buy is a Harley-Davidson. Whenever he sees the Harley Davidson logo on a product, he knows that product is a leader in the market. What source of differentiation has Harley Davidson achieved?

image

Mark is trying to sell a metal-bending machine to a manufacturing firm. He decides to talk to people inside the firm who have expertise in metal bending—who can then provide this information to the buying center. The people he is targeting are known as ________.

influencers

Which group of adopters include prime candidates for beta testing and represent a good source of feedback late in the product development process or early in the product launch phase?

innovators

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.

intangible characteristics

The product life cycle (PLC) defines the life of a product in four basic stages, which include ________.

introduction, growth, maturity, and decline

An individual moves through stages before adopting a product. During the awareness stage, consumers ________.

know of the product, but have insufficient information to move forward through the adoption process

In 1914, the federal government, through the Federal Trade Commission, first ruled misleading or blatantly phony labels were illegal and represented unfair competition. This demonstrates a ________ requirement of labeling.

legal

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as ________.

licensing

In analyzing the attractiveness of market segments, which of the following is NOT one of the most important variables?

location of the segment

In the ________ phase of the product life cycle (PLC), sales continue to increase but at a decreasing rate.

maturity

The introduction phase of the product life cycle for an industry is usually characterized by ________.

no profits

A request for proposal (RFP) is the process ________.

of putting product specifications into a document for distribution

Because Sony has so many different product offerings in various types of electronics, management has found that it is helpful to use brands to keep track of products in each type. Thus, it has different brand names for its televisions, DVD players, and portable music players. Which company brand role does this example illustrate?

offering an effective and efficient methodology for categorizing products

Frito-Lay is using ________ when offering free in-store samples of Doritos for the express purpose of getting people to try the product, enjoy the product, and finally purchase a bag of Doritos.

operant conditioning

NovoTech Inc. is a manufacturer of PCs, and most of its revenue is generated by selling PCs to consumers. However, the company is struggling to extend the brand into other lucrative product lines such as tablets and smartphones. In this scenario, NovoTech is suffering from the error of ________.

overpositioning

Hiroaki bought a bicycle from a well-known brand without even considering the other equally good, unbranded bicycles. This shows the advantage that branded products have over unbranded ones in terms of ________.

perceived quality

Paedro's Pasta has developed a strong brand name in the dry pasta marketplace based on its texture and taste. Through its strong brand, Paedro's Pasta was able to introduce a successful line of sauces under the same brand name. Which of the following dimensions of brand equity does this example illustrate?

perceived quality

Since Maytag's appliances have earned a reputation as being reliable and durable, John decided to buy a new Maytag washing machine, and was willing to buy it despite the fact that it was more expensive than other brands. Which dimension of brand equity does this example illustrate?

perceived quality

When a company only hires employees who are competent, reliable, courteous, credible, responsive, and able to communicate clearly, it achieves ________ leadership as a source of differentiation.

personnel

In the context of product classifications, tangibility refers to the ________.

physical aspects of a product

Among the five groups of adopters, laggards are people who ________.

put off purchasing until there is no other option

Social class has declined as a method of segmentation as a result of ________.

readily available credit flattening the classes

Any influence on the product and supplier choice is an organizational factor. The primary organizational factor is ________.

risk tolerance

During the maturity phase of the product life cycle, ________.

sales grow, but at a rate lower than the growth stage

An individual moves through stages before adopting a product. During the interest stage, consumers ________.

seek out added information about a product for further evaluation

Millie prefers to stay at the Omni Hotel rather than the Embassy Suites because she knows the Omni provides high-end bedding, luxurious robes and toiletry products for every customer. What differentiation factor is affecting Millie's decision?

service

When shopping with her friend, Kristina chooses the same products that her friend likes and buys. This is an example of ________ affecting the actual choice decision.

social circumstances

________ goods are unique purchases made based on a defining characteristic for the consumer, which might be a real or perceived product feature, such as Apple iPhone's easy user interface.

specialty

Concentrated target marketing is often used by ________.

start-up firms to enter a market as a focus player

The failure of Apple Newton, the first PDA, highlights the fact that _______

the best product technically is not always the most successful product

Product followers who purchase older generation models with lower prices and fewer features are called ________.

the late majority

At one time, specialized companies catered to markets segmented by race. Today ________.

the segments have become targets of mainstream businesses that offer specialized products

Deciders are an important group for the salesperson to identify because ________.

they make the ultimate purchase decision

HerboCare, a company that sells herbal soaps, has failed to increase its sales, as consumers could not understand how soaps made by HerboCare were different or better than other herbal soaps available in the market. In this scenario, HerboCare is suffering from the positioning error of ________.

underpositioning

Companies sometimes pick a one-market strategy. This marketing approach is called ________.

undifferentiated target marketing

Advertisements with messages like "Orange juice—It's not just for breakfast anymore!" or "Soup can be a delicious way to start a cold winter's day" are using ________ segmentation.

usage patterns