BA 370 Test 2

Denny always liked REI outerwear, so when he was shopping for a winter coat, he ordered one from REI without thinking too much about it. This demonstrates how ______ facilitate purchases.

Brands

Which BRIC country's economic growth in the 21st century can largely be attributed to the expansion of its literate population and the impositions of social programs that have allowed more than half of its 201 million citizens to enter the middle class?

Brazil

A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) ________ tool.

CRM (customer relationship management)

Which of the following statements is true with regard to growth in global markets?

Changes in technology, especially communications, have been a driving force for growth in global markets for decades.

Which country has embraced market-oriented economic development in spite of maintaining communist political ideals?

China

A decrease in a company's product depth will always hurt its marketing efforts.

False

All products and services are intangible.

False

Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country.

False

Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products.

False

Global distribution networks that involve wholesalers, exporters, importers, and different transportation systems generally lower costs and prices for products.

False

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension.

False (brand extension)

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters.

False (early adopters are the second group, innovators come first)

Of the various methods for segmenting, or breaking down, the market, demographic segmentation is the one that delves into how consumers actually describe themselves.

False (psychographic not demographic)

The Value and Lifestyle Survey (VALS) conducted by Strategic Business Insights (SBI) is a widely used tool for geographic segmentation.

False (psychographic segmentation)

Renatta was employee of the month at Sonic Subs, primarily because she provided excellent customer service by serving food quickly. This relates to the reliability service dimension.

False (relates to responsiveness)

In entertainment licensing, the major risk to licensees is that the brand will become overexposed.

False (risk is dilution)

A complex product that is best described in writing will be difficult to explain to consumers who are unable to read. For this reason, a segment in which many consumers could not read would be considered unattractive because the consumers would not be responsive.

False (the problem is reachability)

A publishing company plans to outsource its production-related tasks to a BRIC country. They are assessing opportunities and are attracted to this country due to its population of young, well-educated, technically-skilled workers who are fluent in English.

India

When Kraft's Philadelphia cream cheese changed its packaging from round to oval to ensure front-facing displays that can't spin and to fit more into the same shelf space, this was a subtle way in which the firm ________ its product.

Individualized

Rafael and Luisa live in the United States. Rafael recently asked for Luisa's cell phone number, but Luisa said she didn't own a cell phone. Luisa would probably be considered a(n) ________ in the diffusion of innovation process.

Laggard

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product?

Line extension

One of the key characteristics of brainstorming sessions is

No idea is immediatley accepted or rejected

________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings.

Positioning

Which of the BRIC nations is most literate?

Russia

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

Satisfying the changing needs of new and current customers

The diffusion of innovation theory focuses on

The rate at which consumers are likely to adopt a new product or service.

What is the problem associated with service quality standards such as "be nice" or "do what the customers want"?

They are not specific

Which of the following is true of profits in the maturity stage of the product life cycle?

They are peak or are declining

As a promotion technique, samples are often used for new products when ________ will influence the diffusion of the product.

Trialability

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

True

Distributive fairness pertains to a customer's perception of the benefits received compared to the costs of the inconvenience or loss.

True

Effective packaging and labels send consumers the signal "Buy me!"

True

For products like sugar or pepper, marketers should probably use an undifferentiated targeting strategy.

True

In the service context, empowerment means allowing employees to make decisions about how service is provided to customers.

True

New product development adds value to a firm's products and services through innovation.

True

Perceptual maps include positions of current brands as well as ideal points where a consumer segment would want a product to be.

True

Rafi wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country.

True

The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country.

True

The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.

True

To determine if a new product is commercially viable, a firm can conduct premarket testing.

True

When consumers see their friends using an innovation, it often persuades them to try it too.

True

Which of the following best describes the direct investment global entry strategy?

With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country.

The level of economic development, as well as differences in product and technical standards, helps determine the need for and level of product

adaptation

By providing good customer service, firms ________ their products.

add value

Freida is using a test model of her firm's new inline skates to see if they work according to the design specifications. She is involved in

alpha testing

Which of the following is included in the five dimensions used by consumers to determine overall service quality?

assurance

The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.

benefit

For a company like Pepsi-Cola, ________ occurs when it sells more product than the competition.

brand dilution

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in

brand extension

Efforts to change a brand's focus to target new markets or change the image of a brand are called

brand repositioning

British Airways Visa, created cooperatively by British Airways and Visa, is an example of

cobranding (two or more brands together)

China has three main languages, and many more dialects. This presents a particular challenge to developing a global ________ strategy.

communication

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

One of the categories of products for which brand extension is especially logical is

complementary good (chips and dip)

A company that sells only herbal iced tea should use a(n) ________ targeting strategy.

concentrated

When Curt's Catering first opened, the owner decided to target only events at resorts in its geographic region. Curt's Catering was using a(n) ________ targeting strategy.

concentrated

Marketers sometimes use Hofstede's cultural dimensions to design marketing campaigns

consistent with underlying cultural values in a country.

By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by

creating diversification and reducing risk

In services marketing, the saying "where the rubber meets the road" refers to whether or not a(n) ________ gap exists.

delivery

Beer marketers know that high-school-educated, working-class males from the ages of 25 to 40 make an attractive market for their products. This is a ________ segment of the beer market.

demographic

Which of the following would be part of the launch of a new product?

determining the market budget for the first year of the product

When Nigeria's economy suffered because of a drastic fall in oil prices, the government encouraged people to buy more local products by

developing a social media campaign

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.

Claire's Classy Accessories has 59 stores in the United States and wants to expand globally. Claire's wants to achieve the highest possible returns and is not concerned about pursuing a high-risk strategy as long as it maintains complete control over its stores. The best global entry strategy for Sydney's is most likely

direct investment

Kanton Publishing Company learned that when selling overseas, local fulfillment can be more cost-effective, and it also can decrease delivery time and improve customer service. This is an example of a global ________ strategy.

distribution

Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's

equity

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and

establishing an early market share lead

According to purchasing power parity theory, if ________ is(are) in equilibrium, products will cost the same in each country.

exchange rates

Martine wants to sell her products in Europe, since they are doing well in the United States. She does not have a lot of capital and is risk-averse, so she most likely would choose to begin with

exporting her products

A product label is just a required sticker on a package.

false

Among the various international trade agreements, the USMCA represents the highest level of integration across individual nations.

false

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of psychographic segmentation.

false

Of the five strategies for entering new markets, direct investment creates the

greatest potential risk

During the ________ stage of the product life cycle, sales rise, profits rise rapidly, and there are an increasing number of competitors.

growth

Which of the following refers to variability in a service's quality?

heterogeneity

In a competitive market, perceived value is determined by consumers mostly

in relation to the value of its close competitors.

Consumers might not realize that Philadelphia cream cheese and Jell-O products are made by the same company—Kraft. Philadelphia cream cheese and Jell-O are known as

individual brands

Jose was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old that we can't get parts." Jose's company lacks the ________ workers need to be able to do a good job.

instrumental support

Because services are ________, it is often difficult for marketers to convey the benefits to consumers.

intangible

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

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ diffusion of innovation group.

late majority

Rinaldo sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ________, who can provide ideas for new and improved products.

lead users

Alain is a sales representative for an established awnings manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Alain can market his current products only to his current customers or

market the same products to similar customers

Adidas Group owns Reebok and Rockport—both of which offer different types of shoes. Having a variety of brands allows Adidas to use a differentiated targeting strategy to

obtain a bigger share of the shoe market

Which of the following is a key component of a value proposition?

offering name or brand

For new product marketers, early adopters are important because they tend to be

opinion leaders

In the product development process, what takes place between concept testing and market testing?

performing product development

When marketers state that services are ________, they are referring to the fact that services cannot be stored for use in the future.

perishable

Whenever Liam calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local businessperson and has been in business over 20 years. Liam is ________ his business relative to his competition.

positioning

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

premarket testing

Suppose that CVS (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents and packaging to a national brand, but at a lower cost. What kind of brand would CVS be introducing?

private-label brand

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

product development

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct

product lines

The complete set of all products offered by a firm is called its

product mix

Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to

profitability

The growth phase of the product life cycle is always dynamic. Which of the following occurs in this phase?

profits increase as economies of scale are attained

After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to

provide emotional support to the server

Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.

psychographic; demographic

The Big Mac Index is a novel measure of

purchasing power parity

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

relative advantage

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.

responsive

The building blocks of service quality are reliability, assurance, tangibles, empathy, and

responsiveness

Private-label brands are developed and marketed by a(n)

retailer

Brands that are owned by ________ are called private-label brands.

retailers

Geodemographic segmentation can be particularly useful for ________, because customers typically patronize stores close to their neighborhood.

retailers

Which of the following would be used in calculating the profitability of a segment?

segment size

When Winifred planned her trip to Cambodia, she spent months evaluating packages, airfares, and hotel accommodations. Winifred's trip is an example of a(n) ________ product.

shopping (comparing)

The Big Mac Index

suggests that exchange rates should adjust to equalize the cost of a basket of goods and services all over the world.

Danielle was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Danielle to select an alternative venue?

tangibles

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.

tangibles

The most important consideration when a firm chooses a global product strategy should be

the needs of the target market

Fiona is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will specifically help her in this analysis?

the number of children needing day care in the immediate area

Which of the following sis a main component of a value proposition?

the target market

Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on

the value proposition

Domino's growth plan has focused on Mexico partially because

there is a growing penetration of Internet technologies.

What do the BRIC countries have in common?

they are experiencing significant levels of economic growth

When corporate headquarters announced new service quality standards for pizza franchise owners, Donald knew he would have trouble gaining employees' support because

they were not involved in setting the goals

In the Circles for a Successful Value Proposition framework, the portion of the customer needs/wants circle that doesn't overlap with anything else represents

unmet customer needs/wants

Capital One Bank uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Capital One is using a(n) ________ program to improve service quality and service offerings.

voice-of-customer

While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine

what their customer need

Today, many developed countries are experiencing ________ population growth.

zero or negative