MKTG MGMT Midterm Exam

The functional value of a product to a customer is BEST understood by understanding the product's___.

benefits

Planters used previously collected data from earlier studies and conducted surveys, in person interviews and focus groups to help inform their positioning strategy for power tools. Which of the following did they use? A. primary data only B. secondary data only C. both primary and secondary data D. neither primary nor secondary data E. collaborator research methods

both primary and secondary data

In Dove's Real Beauty rebranding, the company used a variety of marketing communications vehicles---billboards, TV ads, YouTube videos, print ads, and son on, to promote its message. At the same time, consumers also weighed in via blogs and parody videos, newspaper columnists wrote about the campaign, and TV talk shows devoted entire programs to the subject. This is an illustration of a brand's value claims and position being: A. media-driven B. tested C. manipulated D. faithful E. co-created

co-created

Norwegian Cruise Lines controls the availability of prices by offering deals to specific groups of buyers based on all of the following EXCEPT:

competition

Emotional Purchases

driven by HEART, subjective liking for one objection driven by heart & ego

Cognitive Purchases

driven by MIND, information based processing driven by facts, costs, & conditions

Experience Properties

evaluated only after use (ex. comfort of jeans)

In 2023, having wifi at Starbucks is an example of a(n):

expected product

After seeing increased competition, and in an effort to increase sales and profitability, Wonder Bread wants to extend its product mix breadth. The firm should consider all of the following EXCEPT:

tapping into scarce resources that could benefit the overall product mix

Tactics for Optimizers vs. Satisficers

-"large differences among products" -advertise for superiority -highlight ramifications of bad choice -high price that suggests quality -"products are all the same" -easy to find -large shelf space -affordable price

External Data Sources

-U.S Bureau of Labor Statistics -Census Bureau -U.S Department of Commerce -trade orgs, academic papers, etc.

What value?

-a straightforward description of the unique value claim, the thing for which the brand is known for *economic value: monetary savings *functional value: features or utility *experimental value: psychological/emotional values *social value: belonging

Internal Data Sources

-accounting records -sales calls records -customer data

Types of Quantitative Surveys

-closed ended questions: limit range of possible responses -dichotomous questions: require choice between two responses -MC questions -rating scale: low to high continuum

High-Involvement Purchases

-decision makers are fully engaged -tend to be effortful -time frame relatively long -ramifications are significant

Tactics of High-Involvement

-easy return policies or guarantees (removes/reduces risk) -encourage "shopping around" (evaluate features and price)

Why and how?

-evidence that provides consumers with reasons to believe the claims *logical arguments *scientific data

Staking out a Unique Selling Position

-focus on a single, most important, powerful claim that distinguishes the product from the competition USP: a type of value claim that offers a specific, unique, and superior reason to purchase a product.

Factors of High-Involvement Purchases

-large financial outlay -risk making bad choice -uncertainty

Factors of Low-Involvement Purchases

-low price -routine/automatic -homogenous alternatives

Tactics of Low-Involvement

-make product readily available (place within store, high distribution) -differentiate product (rational, add emotional element)

Tactics for Compensatory vs. Non-Compensatory

-more important to score well in the aggregate (good overall) -promote the total package -need to do well in the 1 or 2 attributes the customer cares about the most -encourage to ignore others

Managing Post-Purchase Phase

-proper purchase after care -generous return policies and warranty periods -anticipate and prompt the next purchase -encourage purchase of other products

Low-Involvement Purchases

-require far less effort -happen quickly -far lower risk

The cost of owning a product, including the initial purchase price of the product and its setup cost, operational cost, maintenance cost, and disposal cost over its entire useful life is known as___. Check all that apply.

1) life cycle cost 2) total cost of ownership

Three C's Model

1. Consumer Analysis -relevant -resonant -realistic 2. Competitive Analysis -distinctive -defensible -durable 3. Company Analysis -feasible -favorable -faithful

Competitive Analysis

1. Distinctive: unique & shared attributes 2. Defensible: patents and trademarks, being the "1st" or original, most authentic version 3. Durable: brand continuity critical to maintain strength & favorability, in constant state of evolution

Types of Primary Data

1. Experimental 2. Non-Experimental

Company Analysis

1. Feasible: can we actually deliver it? 2. Favorable: which allows us to capture more value? 3. Faithful: are messaging and behaviors aligned?

Types of Qualitative Research

1. In-Depth Interviews 2. Focus Groups 3. Direct Observation

Types of Secondary Data

1. Internal 2. External

Marketer must understand these to develop successful selling strategies

1. Pre-Purchase 2. Purchase 3. Post-Purchase

What Determines the Nature of Purchases?

1. Product Type (purpose) 2. Context (in which the product will be used) 3. Individual Differences 1. Utilitarian & Hedonic (pleasure seeking) 2. Developed vs. Undeveloped countries 3. Some are more affected by facts & figures, other by emotions & feelings

Customer Analysis

1. Relevant: address fundamental needs or jobs consumers need product to accomplish 2. Resonant: provide them with narrative that feels personally meaningful 3. Realism: don't overstate or exaggerate, offer specific evidence to support claim

Nature of Attributes

1. Search Properties 2. Experience Properties 3. Credence Properties

Frameworks for How Consumers Make Decisions

1. cognitive vs. emotional 2. high-involvement vs. low involvement 3. optimizing vs. satisficing 4. compensatory vs. non-compensatory

Four Elements of a Positioning Statement

1. for whom, when, and where? 2. what value? 3. why and how? 4. relative to whom?

Marketing Research Process

1. formulate the problem or question 2. determine the sources of information and design a research process 3. choose the most appropriate data collection method 4. collect the data 5. analyze and interpret the data

Caveats Using Secondary Data

1. inaccuracy 2. insufficiency 3. lack of relevance 4. lack of availability

Consumer Decision Making Process

1. need recognition 2. information search 3. evaluation of alternatives 4. purchase 5. post purchase behavior

Compensatory vs. Non-Compensatory

Compensatory: consider ALL attributes of importance, making trade-offs between them (bad attributes can be offset by good ones) Non-Compensatory: consider some attributes, ignoring trade-offs between them (set thresholds & product won't be purchased if thresholds aren't met)

It is essential to have search page links at or very near the top on search engine results pages. If a manufacturer of USB drives plans a search marketing campaign, which of the following best describes what it must do to obtain optimal placement on search engine result pages?

Create search ads that are relevant to consumers, create quality landing pages, and bid high enough for the keyword on which it bids

Types of Experimental vs. Non Experimental Data

Experimental: laboratory & field Non-Experimental: qualitative & quantitative

Limited vs. Many Choices

Limited: easy to consider all alternatives Too Many Choices: difficult, time consuming to make decision

Position vs. Positioning Statement

Position: cold hearted statement of how you are perceived in the minds of your prospects Positioning Statement: an expression of how you wish to be perceived

Kia Motors sold a variety of cars across 5 product lines: SUVs/crossovers, sedans, hatchbacks, minivans, and hybrids/electrics. Kia offered 8 sedan models including Rio, Forte, Optima, and so on. Kia's 8 sedan models represent the ___ of its sedans

Product Line Depth

Kia Motors sold a variety of cars across 5 product lines: SUVs/crossovers, sedans, hatchbacks, minivans, and hybrids/electrics. Kia offered 8 sedan models including Rio, Forte, Optima, and so on. Kia's 5 product lines represent its ___

Product Mix Breadth

Internal, secondary data can come from the following sources EXCEPT: A. data on market developments collected from employees B. U.S Department of Commerce C. company accounting records D. sales call records E. past marketing research conducted by company

U.S Department of Commerce

Optimizing vs. Satisficing

What is the GOAL of the purchase? Optimizing: wants to purchase the best alternative Satisficing: settles for an alternative that is "good enough" Factors: length and intensity of produce usage, benefit of additional search relative to the cost

Position

a brand's position in relation to it's competitors in the mental map that represents the range of offerings

You work for a major retailer and have been asked to develop a study to evaluate the organization of the retailer's physical stores and how consumers shop in those stores. Which of the following would be most appropriate for this task? A. a survey mailed to known store customers B. a direct observation study C. focus groups of store customers D. in-depth interviews E. conjoint analysis

a direct observation study

Which of the following best describes empathetic design? A. research that uses empathy with consumers when conducting depth interviews B. research that uses focus groups composed of people from different cultures to gain deep consumer insights C. quantitative technique that explores what the respondent's friends and family members think D. research that requires respondents to "think out loud" so the researcher can understand the respondent's reaction in more depth E. a research approach that uses observations of consumers as they conduct routine activities looking for "pain points" and frustrations

a research approach that uses observations of consumers as they conduct routine activities looking for "pain points" and frustrations

Saucony is considering adding a new item to its Hurricane line of running shoes to increase its product line depth. All options would be acceptable EXCEPT:

adding a new private-label product

Which would NOT be included in selling toothpaste to those who believe all are similar? A. give toothpaste affordable price B. make the product stand out C. make the product easy to find D. advertise heavily

advertise heavily

Value-based claims that make a brands positioning resonate with its target market are: a. supportable by the economic benefit provided by the brand b. expressed via the cost savings afforded by the brand compared to higher-priced alternatives c. reflected in the brand's premium price d. aligned with the target market's worldview, ideologies, and beliefs

aligned with the target market's worldview, ideologies, and beliefs

Relative to Whom?

an explicit description of the competitive set *classify as similar to others or distinguish and differentiate as completely different

For whom, when, and where?

an explicit description of the target segment that help consumers identify which brands address their needs and which don't *person *situation *location

A major advantage of field experiments is: A. provide greater internal & external validity B. assess what people do instead of what they say they'll do C. less costly & easier to run D. easier to interpret E. researcher can control all variables

assess what people do instead of what they say they'll do

All of the following are typical marketing research techniques utilized in the new-product development process EXCEPT:

awareness and usage

Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." What type of keywords is the firm buying?

branded keywords

Search Properties

can examine and evaluate before purchase (ex. leg room in cars)

Credence Properties

cannot be fully examined even after purchase & ordinary use (ex. health benefits of vitamins)

Keurig originally launched the single-cup brewing system exclusively for offices in 1998. However, 5 years later, it extended the line to home-use systems, which were smaller and less expensive than the office version. In doing so, Keurig increased consumer demand for home-use based coffee makers overall. In 2017, Keurig's sales exceeded $4B, and it's home-use machines accounted for 30% of all single-cup coffee makers sold in the U.S. Keurig's addition of its single-serve coffee maker for home-use is most closely connected to which product line consideration?

category size impact

Harley-Davidson motorcycle owners, who pay a premium price for their motorbikes have formed the Harley Owners Group (HOGs), whose members take motorcycle rides and road trips together. These owners are derive satisfaction by being able to express their individuality and nonconformity through the Harley bikes that they own. Based on these factors, these owners are deriving which types of value from the Harley-Davidson brand? A. functional and social value B. economic and experiential value C. experiential and social value D. functional and economic value E. functional and experiential value

experiential and social value

Let's say that a firm conducts research by manipulating the environment in some way for a group of consumers or research participants and then examines the differences in outcomes between the group for which the environment was manipulated and the group for which the environment was not manipulated. What type of research has it conducted? A. external secondary research B. qualitative data research C. quantitative data research D. experimental research E. conjoint analysis.

experimental research

Laboratory Setting

experiments conducted in a controlled setting

External Validity

extent to which casual relationships measured in an experiment can be generalized

Internal Validity

extent to which competing explanations for the experimental results observed can be ruled out

When conducting a five C's analysis and developing the context, which factor should NOT be included in the analysis? A. legal context B. technology C. firm capabilities D. culture

firm capabilities

You work for a firm that produces different types of flavored salty snacks for many different target markets. One part of your job is to explore regularly what flavors your potential customers may like. Taste preferences constantly change, and you may not always be aware of all the flavors people crave. With this objective in mind, which research would you most likely conduct on a regular basis? A. survey research B. field experiments C. in-depth interviews D. focus groups E. laboratory experiments

focus groups

For claims about the product, positioning statements should: A. cite all of the benefits that the brand offers B. focus only on the points of differentiation between this brand and others C. avoid any reference to points of similarity with competitor brands D. focus on the single, most important value claim

focus on the single, most important value claim

Founded in 1889 in Dearborn, Michigan, Carhartt originally made work clothing for manual laborers. More than 120 years later, Carhartt is still known for selling full cut, wind resistant, snag proof, heavy duty work jackets, which are popular with construction workers, miners, farmers, hunters and outdoorsmen. Carhartt's emphasis on the features and corresponding benefits of its products is best associated with which type of customer value?

functional value

When shopping for a smartphone, a consumer first compares prices to see which offers the lowest price. After also inspecting the product features of the various phones, however, she decides that the lowest-priced brand is not her choice. Instead, she selects the brand with the best features. This outcome is the result of the chosen brand's unique value claim that is known as: A. economic value B. functional value C. experimental value D. social value

functional value

Collecting external secondary data, marketers should assess all of the following EXCEPT: A. accuracy B. how data was analyzed C. global impact D. research methodology E. when data was collected

global impact

Whole Foods differentiates its grocery stores from traditional stores by offering organic, natural, and locally sourced products. At the same time, its products are, on average, 25% higher in price than those of regular (nonorganic) supermarkets. What type of positioning is Whole Foods using? A. natural positioning B. premium or upscale positioning C. vertical positioning D. horizontal positioning E. reverse positioning

horizontal positioning

John Deere & Co. is deciding whether to use a feature-based claim or a benefit-based claim for its new JD 750 tractor's positioning. Which of the following is a benefit-based claim? A. the only 102-horsepower tractor in the market B. the first hydrostatic transmission C. a fully automatic dual-path hydrostatic drive D. drive tracks' design means they are capable of being driven independently of each other E. improved maneuverability and flexibility

improved maneuverability

Which of the following approaches is NOT an avenue for changing the position of Arm & Hammer Baking Soda in the minds of the consumers in order to extend the product life cycle and increase sales? A. enlarging the target market B. adding new distribution outlets for the production C. identifying new usage situations D. increasing trade promotion E. identifying jobs other than baking

increasing trade promotion

Which of the following is NOT one of the frameworks used to understand how consumers make decisions? A. high vs. low involvement B. compensatory vs. non-compensatory C. optimizing vs. satisficing D. cognitive vs. emotional

optimizing vs. satisficing

A consumer's incentive to purchase is equal to ____.

perceived value (PV) - price

Ads that rely on cognitive appeals when selling a functional automobile use all of the following EXCEPT: A. instructions for vehicle performance B. favorable price quote C. claims about superior performance D. personality

personality

When competing against other energy drinks, 5-Hour Energy is thinking through how to get its brand to occupy a clear, distinctive, and desirable place in its target customers' minds. What problem is it trying to solve? A. promotion B. targeting C. segmentation D. positioning E. competition

positioning

All of the following are inputs to any value-pricing decision EXCEPT:

product price

Patrick tries to better understand a potential target market for his new pain medication product. The proposed research design includes randomly surveying consumers likely to take the medication (those over 65 who have arthritis pain). The questions are "Are you older than 65," and "Do you experience arthritis pain?" These are ___ questions.

qualifying

Which of the following is a purchase using cognitive factors compared to emotional ones? A. real estate loan B. rolex watch C. sports car D. honeymoon

real estate loan

The phase 3 post-purchase process for a high-involvement shopper is best described as: A. evaluating self as astounded or disappointed B. reevaluating the purchase only moderately unless switching brands C. reevaluating the purchase little or not at all D. reevaluating the purchase to a significant extent and likely to have buyer's remorse

reevaluating purchase to significant extent and likely to have buyer's remorse

IKEA's positioning includes the elimination of sales assistance on the floor, no delivery or assembly of products, and offering only a limited variety of models. Yet IKEA furniture stores also offer low prices, supervised play centers for children while parents shop, and low-priced but quality dining in their restaurants. This is an example of: A. streamlined positioning B. vertical positioning C. forward positioning D. horizontal positioning E. reverse positioning

reverse positioning

Which best describes the purchase of a washing machine? A. experience good w/ utilitarian purpose B. search good w/ hedonic purpose C. experience good w/ hedonic purpose D. search good w/ utilitarian purpose

search good w/ utilitarian purpose

A focus group is a good example of which of the following data collected method? A. primary, non-experimental B. secondary, internal C. primary, experimental D. primary, paid E. secondary, external

secondary, external

You have been tasked with developing an SEM (search engine marketing) campaign. As part of your plans, you should consider doing all of the following EXCEPT:

setting the click-through rate

Field Setting

tests conducted in an actual environment, such as a marketplace

Brand Positioning

the art of staking out a particular position for a brand in the consumers mind by creating powerful, resonant, and unique messages to help a firm stand out

Which of the following is NOT a characteristic of in-depth interviews? A. the interviewer uses a predetermined set of questions B. interviews may last an hour or more C. such interviews require interviewer skills that keep the discussion on topic without unduly constraining the respondent D. the interviewer uses probing follow-up questions E. the objective is for the interviewer to engage the respondent in a conversation

the interviewer uses a predetermined set of questions

A competitive analysis of Starbucks entering a new market includes all of the following EXCEPT: A. the number of new coffee drinkers in the United States every year B. the positioning of Burger King selling coffee drinks C. McDonald's new store format in Saudi Arabia D. espresso drinks being offered by Dunkin' Donuts

the number of new coffee drinkers in the United States every year

Which of the following is NOT a consideration for the depth of a product line?

the trialability of the product line

Which of the following is NOT true of low-involvement purchases? A. they are routine B. they are in mid-price range C. they require little effort D. they are quick transactions

they are in mid-price range

All of the following factors drive compensatory vs. non-compensatory decision making EXCEPT: A. total price of items B. importance of various attributes C. resource availability D. size of the choice set

total price of items

Evaluation of Alternatives

total set, awareness set, consideration set, choice set, decision

Samsung is positioning its newest model TV as having the sharpest picture and the most realistic colors, as well as having the thinnest screen monitor. This is an example of: A. triangular positioning B. vertical positioning C. breakaway positioning D. horizontal positioning E. reverse positioning

vertical positioning (all tv's have picture, color, and monitor)

Acme Paper company manufactures and sells mid-priced, disposable tableware, including paper plates, paper bowls, and paper to-go boxes. Acme has decided to add a new series of value-priced tableware appropriate for bulk purchases. Acme is extending its product line using a __________.

vertical, downscale line stretch

Hypothetically, a positioning statement for Amazon might be, "For consumers who want to purchase a wide range of products online with quick delivery, Amazon provides a one-stop online shopping site. Amazon sets itself apart from other online retailers with its customer obsession, passion for innovating, and commitment to operational excellence." Which component do the phrases represent? A. for whom, for when, and for where? B. what value? C. why and how? D. relative to whom?

what value?