MKTG 409, Test 2 Study Guide

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menuitems such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countriesto offer the customer passing by a preliminary view of their product. Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?​

APECAPEC

Which of the following statements about the consumer buying decision process is true?

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

Walgreen's has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website.

interactive

The unification of Europe through the European Union (EU)

permits virtually free trade among the member nations of the EU.

Collin Roberts of Roberts Construction is planning to buy a piece of used earth-moving equipment. He would most likely base his purchase decision on ____ of the alternative machines.

inspections

A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.

trading company

The producers of C & H Cane Sugar sell the product in five-pound bags, one-pound bags, and one-pound boxes. When developing its advertising strategy, C & H will most likely use a(n) ____ approach in defining a target market.

undifferentiated

A ____ is a type of software that creates an interface that enables users to add or edit the content of some types of websites.

wiki

In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of?

​Business market

Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety of suppliers in the U.S. and abroad. The volume of your raw materials purchases is a function of the customer demand for your firm's motorcycles. Which of the following best describes the type of demand your firm has for these raw materials?

​Derived demand

Which of the following statements regarding social class is true?

A social class is an open aggregate of people with similar social ranking.

Which of the following is not true of NAFTA?

Business licensing requirements have been increased.

Many marketers claim that ____ will become the world's largest market.

China

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

Description

Which of the following products would probably require extended decision making before a purchase?

Expensive products

KFC has restaurants in Mexico where Inactives make up the majority of the online population. To match their marketing efforts with the characteristics of the population, KFC should

Focus more on traditional promotions rather than social networking.

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Market segment profiles

Walmart is currently expanding its stores into Canada and Mexico. This expansion is being facilitated by the

North American Free Trade Agreement

____ includes any attempt to intentionally conduct dishonest activities online.

Online fraud

When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia?

Problem recognition

Katy Ramirez is a marketer for a company that produces in-ground swimming pools. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

Regression analysis

Jessie is out with a group of friends this evening for dinner at a local restaurant and then a movie. While the service at the restaurant was slow, and the food just ok, Jessie still had a great time and left with a positive opinion of the restaurant experience. Jessie's experience was likely influenced by ____.

Social surroundings

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 8GB of memory. As Albertson's management evaluates this purchase, it finds that 8GB is inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?

Specification development

Telluride Ski Resort in Telluride, Colorado is a world-class ski destination. Taylor is a newly-hired manager of digital media and electronic marketing for Telluride. Taylor remembers reading about a new trend in video marketing, using _________ to engage and create a community of customers.

amateur filmmakers

One of the fastest-growing areas in mobile technology is the creation of ____ that help consumers to access more information about businesses

applications (apps)

Problem recognition occurs when a consumer

becomes aware that there is a difference between a desired state and an actual condition.

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of

behavior.

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a ____ approach to estimating sales potential.

breakdown

One trend that has caused consumer-generated information to gain importance is

consumers' tendencies to trust other consumers over corporations.

If The Limited Company relies on hiring a foreign textile manufacturer to produce a designated amount of clothing for its Express, Limited, and other stores, it is using

contract manufacturing.

Coca-Cola entices consumers to their website through contests and games, but they cannot force people to visit their website due to the ____ characteristic of online media.

control

The Southern Common Market (MERCOSUR) includes

countries in South America.

The primary psychological influences on consumer behavior are:

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

Interior Designs Inc. sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom's and Saks Fifth Avenue. Interior Designs Inc. is most likely using a(n) ____ targeting strategy.

differentiated

Precision Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATV's. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states. Precision Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Company executives are considering expansion of its distribution to markets in the Midwest. Refer to Scenario 8.2. When Precision Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be ____, part of the buying center.

influencers

Marketers often provide consumers with free samples, sometimes coupled with coupons, to help them gain experience with their products and facilitate consumer

learning.

Sony launched an online campaign that prompted people to visit the Sony website. In order to evaluate the success of the campaign, Sony should

monitor the website to see if web traffic increased after the launch of the campaign

In considering the viability of potential international markets for Pepsi products, PepsiCo is advised to take into account ____, which provides insight into market potential.

per capita gross domestic product

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least basic to survival. These needs, in order from most to least basic to survival are

physiological, safety, social, and esteem, self-actualization.

Inelastic demand in business markets refers to a situation where

price increases or decreases will not significantly change demand for a given product.

Motorola buys silicone which is used in its chip-making process. Motorola produces microchips for use within a wide variety of products for other firms, such as Ford, GM and Samsung. Motorola is a buyer in a(n) ____ market.

producer

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

resale, use in daily operations, and direct use in producing other products.

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

sales forecast.

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of

sales per square foot of selling area.

The third stage in the business buying decision process is to

search for products and suppliers.

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

select specific target markets.

Sam's Club has developed a website that allows employees to create a profile and connect with co-workers for the purpose of getting acquainted and building a work related network. This is an example of a

social network.

Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ____ to work together on a worldwide basis.

strategic alliance

Both the Toyota Sienna and the Nissan Quest were very popular choices for family vans. Toyota noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Nissan Quest, she noticed that the Nissan cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Toyota Sienna, that also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Toyota ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Toyota van, he replied that it had too low of gas mileage at only 16 mpg. Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Toyota. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Toyota and the Nissan. Refer to Scenario 7.2. Toyota's production of commercials that featured Hispanic actors and the Spanish language is an example of marketing to

subcultures.

Your marketing team is having a brainstorming session to finalize your target marketing strategy. To make sure all team members are on the same page, you make the following statement to keep the discussions focused:

​Homogeneous; Undifferentiated