BA370 All Chapters Exam 1 SDSU Gaffen
T/F Duke's is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.
False A recession is an external factor with possible negative results, so it is a threat
T/F A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order.
False A straight rebuy is typically used for additional purchases of things that are bought regularly. In this case, a new buy is the most likely choice.
T/F Fabricworld buys fabric from China and sells it to clothing manufacturers in the United States. Fabricworld is a retailer.
False Fabricworld is a reseller. A retailer sells directly to a consumer.
T/F Neighbors Bicycles needed more bicycle seats. It decided to order gel seats in addition to the traditional seats it had always ordered. This is a straight rebuy
False This is a modified rebuy because the buyer changed some specifications. It could also be considered a new buy because Neighbors hadn't ordered gel seats before.
Jason usually buys Nike shoes, so when his friend asked him what shoes he should buy, he said Nike without thinking about it. Jason's response was an evoked set.
False This is a retrieval set because it is the brand that was readily brought forth from memory without considering other brands.
Vladimir decided not to purchase the iPod shuffle because he didn't think it would hold all of his songs. Vladimir was using his assessment of the iPod shuffle's financial risk in making his decision.
False Vladimir is worried about the performance risk, or the failure of the product to perform as he needed.
If the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso-dollar exchange rate almost constant, which of the following would be true?
Mexican products would be more expensive, while U.S.-made products would become comparatively less expensive.
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.
In New England foot-long sandwiches are called "grinders," while in many other parts of the country they are called "subs." This is an example of the impact of
Regional culture
Jami sells construction equipment. Whenever she calls on her building contractor customers, she asks if they are having any problems. In doing so, Jami is addressing which of the following core aspects of marketing?
Satisfying customer needs and wants
Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from 2 to 5 percent over last year's sales at Stores 1 and 2, but fell 2 percent at Store 3. Based on this information, which of the following is the best course of action as to how Marcia should reward (or punish) her store managers?
She should seek more information about why the stores had different results before making a decision.
Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing
a marketing strategy
Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on
a non-compensatory decision rule
When Leanne gave her presentation to the BigDeal buying center team, she focused on answering Beverly's questions, since she is the decision maker. What type of buying center does BigDeal employ?
autocratic
To become a more value-driven organization, SDSU is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. By doing so, SDSU is becoming more value driven through
building relationships with customers
Dawn flies regularly between Atlanta and Los Angeles. She almost always uses Delta Airlines and has lots of Delta Sky Miles credit (Delta's frequent-flyer program). Still, she uses an online fare comparison website each time to see if a competitor has a better price or a more convenient schedule. Dawn uses __________ to decide which airline to fly.
a compensatory decision rule
Jonathan prefers shirts made with 100 percent cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy.
a compensatory decision rule
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the role of __________ in the buying center.
buyer
A local art gallery keeps information on its customers regarding their preferences for certain art. The gallery uses this information to inform the customers when new products arrive from their favorite artists and targets them with special promotions. In this way, the gallery is using _______ to build loyalty among its customers.
customer relationship management
The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. The Wall Street Journal is providing consumers with
evaluative criteria
Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set.
evoked
When Maya decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but she would consider only those brands she could buy at her local Best Buy electronics store. This represents Maya's __________ set.
evoked
CA Technologies, a firm providing software and services to information technology departments, maintains a corporate blog. How can this blog help CA Technologies with B2B marketing?
by building brand awareness among potential customers
Though he has never owned a Jaguar, Jerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Jerry a car, the company would need to change the __________ component of Jerry's attitude.
cognitive
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
Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________ macro strategy to create and deliver value and to develop a sustainable competitive advantage.
customer excellence
Anita has gone to the same hair salon for the past 10 years. She believes that her stylist does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of
customer loyalty
In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process
define the business mission
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
A regional manager at NutriShop is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's
implementation programs, to see if the promotion was handled consistently in the different stores.
Most big box retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to buy things they hadn't planned to buy, or make
impulse purchases
Brad was buying salsa. It seemed like there were dozens of varieties to choose from. He noticed that he could sample a few at a station in the store. He tried four, rejected two, and bought several jars of the two he really liked. He also ended up buying a different—and more expensive—kind of tortilla chip after tasting it. Marketers identify this as a success story of
in-store demonstrations
Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called
determinant attributes
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
Imagine that you are in a convenience store choosing your favorite "comfort" food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's
positioning strategy
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
As purchasing manager for Avalon Electronics, Carrie is required to submit a vendor performance analysis every three months. To meet this requirement, Carrie will most likely
specify and weight performance factors and score the vendors.
Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?
3M Corporation implementing new software to improve communication with its suppliers
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?
A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
Which of the following is an example of greenwashing?
A company donates money to a school reading project so it can advertise itself as environmentally friendly.
Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of
Country culture
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
Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. This is an example of
Customer Relationship Management
When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of
Customer excellence
Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with __________ demand.
Derived
Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces __________ demand.
Derived
Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more than the usual rate for different tasks, reducing the company's gross margin. Greenbelt rarely changes subcontractors, has relatively few complaints from home buyers, and is able to get quick responses from subcontractors when buyers do have problems. Greenbelt is engaged in
Effective supply chain management
The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that
Match its core competencies
Barak is considering buying a hybrid car, but he's not sure that he believes the gas mileage estimates. Barak is concerned about
performance risk
Kathy has naturally curly hair and has often been disappointed with the haircuts she has received. When she moved to a new town, she approached her new office mates and several strangers with curly hair and asked them where they had their hair cut. She chose to spend considerable effort finding a new hair stylist based on the __________ associated with her purchase decision
performance risk
Jeff is going to sell sporting apparel, which he has already purchased from manufacturers, and has signed a deal agreeing to the volume he will sell monthly. He has researched his competition, talked to some customers, and decided on prices he will charge. Jeff has also developed a plan for promoting his business. Based on this description, which element of the marketing mix does Jeff still need to work on?
place
Melanie works for a small computer software company. Her boss is constantly improving the company's products but neglects customers, billing, and promoting the company. Her boss is probably stuck in the __________ era of marketing.
production-oriented
Viewers of the World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast are likely to see ads for clothing and hair care products, due to
differing demographic data for potential and past viewers.
Jennifer's spending decisions are heavily influenced by her family, her peers, and her religious education. These influences on her spending decisions are all ________ influences.
external social environment
ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of its products as environmentally friendly because they were made with all-natural ingredients, even though ABC's plant was one of the worst polluters in town. The new term for this practice is
greenwashing
Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining
how to allocate resources among his four stores
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center?
influencer
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom's engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company's buying center.
influencer
The Northwoods University IT department is planning to buy additional computers for the computer lab. Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh computers instead of Windows PCs. What role does Pedro play in the buying center?
influencer
The president of the Northwoods University student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the __________ in the buying center.
initiator
When Kelly began searching for a new car to replace her old, rusty one, she probably relied on __________ sources of information.
internal and external
Ryan believes he is responsible for his actions, and he will conduct extensive searches before making a purchase. Michael's favorite phrase, when confronted by the need to make a decision, is "Whatever." In marketing terms, Ryan is said to have a(n) __________ and Michael, a(n) __________.
internal locus of control; external locus of control
Abercrombie & Fitch includes a "SHARE" link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy.
market penetration
H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy
market development
Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies.
market development
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
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
Kimberly has just learned that Caribou Coffee is looking for a new source of commercial-grade coffee makers, one of the products she sells. She knows Caribou has been in business for many years, but she has not been able to get any business from them. When developing her marketing strategy, Kimberly will probably assume that this represents a(n) __________ situation for Caribou Coffee, and she will want to find out why Caribou is considering alternatives.
modified rebuy
When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation.
modified rebuy
Normally, BC bottling company attaches plastic labels to its bottles. However, a new regulation requires that the company now use fabric labels. To use this latest innovation, BC bottling company must now source these fabric labels from another company. This is an example of
need recognition
Hinsdale High School has recently decided to sponsor a rugby team. It is in the process of considering where to buy the uniforms. This is a ________ situation.
new buy
Jenny was feeling frustrated. "What's taking them so long to make a decision? It's been weeks since I first met with them, and they all seem interested in the product. I've also jumped through all their paperwork hoops." Jenny is likely selling to a firm in what kind of buying situation?
new buy
Manitoba University is buying a distance learning system. Previously, the school had no distance learning technology. For Manitoba University this represents a(n) __________ situation.
new buy
When Natasha took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade the heating system to something more efficient, and began to research available options. For Natasha and Burlington Furniture, this represented a(n) __________ situation.
new buy
For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that
no single strategy is likely to be sufficient to build a sustainable competitive advantage.
At the main campus of a large university, faculty always refer to one another as "Dr.," wear suits, and guard their academic domains against one another. This leads to frequent name-calling and strenuous debates. Meanwhile, at the various branch campuses, faculty members call one another by their first names, dress casually, and support one another's scholarly efforts. This example illustrates the differences in __________ that can exist within an organization.
organizational culture
While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm's
organizational culture
While on vacation, Martha had her camera stolen. Not wanting to waste vacation time shopping for a new camera, Martha simply purchased another camera just like her old one. For Martha, the __________ was low.
perceived benefit versus perceived cost of search
American visitors to the Indonesian island of Bali are often aghast when they see the sign for the Swastika resort. Americans associate the swastika symbol with Nazi Germany while Indonesians associate the symbol with the four major elements on Earth. The two groups have different
perceptions
Every year before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is most likely concerned with __________ risk.
performance
If a firm adopts a CRM (Customer Relationship Management) business philosophy, it most likely has a(n) _______ orientation with its customers.
relational
When the floor rusted through on her old car, Kelly knew she had a problem. Logically, Kelly's next step in the consumer decision process would be to
search for information about cars
Some websites allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent?
social
Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his "regulars" will encourage them to
spread positive word of mouth.
Paula is about to open a new hardware store. She is making decisions regarding lighting, colors, and layout of merchandise. Paula knows these __________ factors will influence consumers' purchase decisions.
store atmosphere
Phil put down the phone and told Alice, "I just love that customer. I got another big order, and they just keep on coming." Phil is most likely selling to a firm in what kind of buying situation?
straight rebuy
Yvonne uses her customer relationship management (CRM) system to predict when her business customers will need more of her company's packaging materials. When she thinks a customer should be ready to make another order, she contacts them. Yvonne is using CRM to encourage customers to engage in a(n)
straight rebuy
The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) ________ for these companies.
sustainable competitive advantage
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
target market segment
Peter wanted an unbiased source of information to help him decide what brand of appliances to buy for his new condominium. Peter would most likely search for information from
the Consumer Reports website
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and EasyJet have been successful. Consumers obviously consider
the benefit of lower prices to be greater than the cost of reduced services and less convenience
Allen is in the marketing department of a midsized firm that develops and sells communications systems. He is proud of the human resource area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all the following except
the company provides products with a high perceived value
Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize
the lifetime value of customers
Heather has been assessing a number of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine
the product's relative market share
The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the office manager is the primary person who makes deposits, writes checks, and balances the account every month. The office manager is the __________ in the buying center for the bank account.
user
Because they do so much driving while visiting doctors' offices and hospitals, pharmaceutical sales representatives are often given company cars to drive. When a pharmaceutical company like Merck is preparing to purchase new company cars, sales reps' feedback will be sought on car models and features, but the final decision will be made by higher levels of management. What role(s) do the sales reps play in the buying center?
users and influencer
Christie has just started with a travel agency. She is concerned, because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter, who has been with the agency for several years, is having a great deal of success by working closely with the clients, seeking their ideas, and building customized tour packages for each one based on their suggestions. Peter's approach is based on
value co-creation
Serena studies her customer profiles, market research data, complaints, and other information, attempting to better understand what her customers want. Serena most likely operates in the __________ era of marketing.
value-based marketing
Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different options available. He decides which products to offer and what prices to charge based on the way his customers think. Trey operates as if he were in the __________ era.
value-based marketing
The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process.
vendor negotiation
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
When Val sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor
will probably not be an advantage in getting the new order.
Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with what is most likely the next expected development in mobile technology, which is
wireless payments from mobile devices
Which statement about the changing ethnicity in the United States is true?
African American U.S. households are more affluent than previous studies suggested.
Julia is considering a career in marketing. She is concerned about the image of marketers as fast-talking, high-pressure people who care only about making a sale. When reading about the core aspects of marketing, Julia is relieved to see that in marketing:
All parties to an exchange should be satisfied.
Jackie works as a sales rep for a company that produces and sells steel used in building construction. Jackie is in __________ sales.
B2B
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
Marney bought a dress from a retail store. Which type of transaction was Marney participating in?
B2C
Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a trailer for his lawn maintenance business. His purchases were
B2C & B2C
Christy, who was born in 1955, advocated for "casual Friday" at her workplace. Christy is a member of which generational cohort?
Baby Boomer
Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a
Corporate partner
Rachael is visiting colleges before applying to schools. Rachael is likely to be involved in an impulse buying process.
False
T/F When you go to the hospital for an operation, you are the decider in the buying process.
False You are the user. The decider would be the person who chose the supplies for your surgery.
Pam didn't go see the movie Gravity because her friends all said she wouldn't be able to handle it. When she found out how good it was, she blamed her friends. Pam is demonstrating an internal locus of control.
False By letting her friends' opinions control her actions, and then blaming them for her decision, she is demonstrating an external locus of control.
When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke.
False Habitual decision making involves little conscious effort—these are purchases that we make regularly and by habit, without even considering alternatives.
T/F The local school district realized it needed to upgrade the computers in the school libraries. This represents the product specification stage of the B2B buying process.
False In the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need—in this case, upgraded computers for the school libraries.
T/F As the owner of a small business with 60 employees that makes custom floor mats, Paul makes all of the buying decisions. Paul is most likely the user.
False Paul is the influencer, decider, buyer, and gatekeeper, but probably not the user.
T/F An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center.
False The architect will fill the user role; in addition, he or she is probably the initiator. The gatekeeper controls information or access, or both, to decision makers and influencers.
Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers' __________ risk.
Financial
Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on
How different customers perceive the values of her services
As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randy's efforts will likely help him
Identify potential opportunities
A friend of yours comments, "I'm starting my own business. I have a perfect product that no one else can touch, but I have no use for marketing. That's just for the mega-corporations." Which of the following arguments would you not use in talking about marketing?
Marketing isn't essential now, but it will be in a year or two when the product takes off
Whenever Valerie has a new massage therapy customer, she invites the person to be on her e-mail distribution list. In the process, in addition to exchanging her massage therapy service for payment, Valerie is gathering
Information
Brian is struggling with the choice of publishing his new book, How to Cook Polish Barbeque, as an e-book or a paperback. Brian is addressing which core marketing aspect?
Making product decisions
Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. She is trying to determine how to offer the classes students need at the times when students need them. Yesenia is struggling with the marketing function of
Managing the Supply Chain
Charlie is hoping to get a chance to bid on supplying key components to Ned's business. He is eager to move forward, but he must wait until
Ned develops a list of product specifications.
The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?
Nike's athletic shoe business still requires some investment, but is likely to produce excess resources that can be invested in other divisions of the company.
T/F iTunes software is often credited with the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage.
True A sustainable competitive advantage is an advantage over the competition that is not easily copied and thus can be maintained over a long period of time
T/F When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to ramp up production and order more raw materials. This is an example of derived demand.
True Derived demand reflects the link between consumers' demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output.
T/F As Daphne's business grew, she needed to find a new way to manage payroll for her employees, so she researched payroll companies to see which one would best meet her needs. Daphne was involved in a new buy situation.
True In a new buy situation, a customer purchases a good or service for the first time.
When Hakim asked Marta where she wanted to go for lunch, she said Chili's because she went there at least once a week and always liked it. Marta conducted an internal search for information.
True In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences.
Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving.
True None of this requires extended problem solving—in each case he will probably consider only a few alternatives—but a small amount of thought will be needed. This is an example of limited problem solving.
T/F Jeanne, who lives in Boston, refers to Pepsi as "tonic," while Paul, who lives in Chicago, calls it "pop." This is an example of a regional culture difference
True Regional culture affects many aspects of people's lives, including their vocabulary.
T/F SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog.
True The Sansa has low relative market share in a low-growth market, which is the definition of a dog
T/F Lisle Hair Company keeps track of the gender and age of its customers so it can target e-mails to them and be sure to have the right hair products in stock when they visit. This is an example of the use of demographics in marketing.
True Typical demographics include age, gender, income, and race.
T/F Margo likes her morning coffee, and she always stops at Starbucks because it is on her way to work. Margo is being influenced by the place element of the marketing mix.
True Place represents all the activities necessary to get the product to the right customer when that customer wants it. For instance, marketing channel considerations have pushed a growing number of businesses to adopt multiple convenient locations
As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers.
True These customers rarely even consider alternative brands or stores, and so are excellent customers.
Firms typically repurchase office supplies (paper, ink cartridges, pens, etc.) through straight rebuys on their supplier's website. Should an office supplies sales rep stay in close touch with his or her current customers? Why or why not?
Yes; the sales rep might learn about a new opportunity in the need recognition stage.
Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have
a sustainable competitive advantage
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
Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
a sustainable competitive advantage
Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a new car model. Which of the following would you not expect to find in the RFP?
a vendor analysis
Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting to sell to Markham Publishing should
address the concerns of all members of the buying center with particular attention to the decision maker.
Linda, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, Georgia will help her company become more value driven if she
advises the production and purchasing departments to produce or order smaller quantities of products
Jenny, the delivery and sales representative for a beer distributor, is calling on a retailer and sees the shelves are almost empty. An unexpected sporting event held nearby resulted in a huge increase in sales. She calls her company's distribution manager and requests a special delivery for her customer. Jenny is providing the important marketing function of
alerting the logistics department when to ship products
When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from
an external source
When Karen realized her dog had fleas, Karen was faced with
an unsatisfied need
Olga is the sales rep for ATV Communication Systems. She wants to bid on the RFP issued by Manitoba University for distance learning technology. She knows she will need to provide considerable information and demonstrations of her firm's technology because Manitoba University is in a new buy situation and does not have
any experience with the product it wishes to purchase.
Fordham3 Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham3 Hardware should
attempt to facilitate the collective agreement of all members of the buying center.
The local skydiving team is buying new parachutes. The team's coach has invited all team members to make recommendations, after which he will select the successful vendor. The skydiving team's buying center has a(n) __________ organizational culture.
consultative
Zappos online shoe and clothing store has a unique way of dealing with abandoned shopping carts. If a site visitor places items into the shopping cart and then leaves the site without making a purchase, several days later Zappos sends a humorous e-mail saying, "Let us show you what your shopping cart did while you were gone," along with a photo of a cute dog intended to represent the shopping cart. This attention-getting device is designed to improve the site's
conversion ra†e
If McDonald's wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas except
creating an advertising campaign targeting elementary schoolchildren.
Before going on his first business trip to China, Brad asked his Chinese American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders.
cultural
Where Caroline grew up, everyone knew everyone else, no one locked their doors, and a person's word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences.
cultural
While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focusing on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm's
culture
Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy.
diversification
After the previous sales representative in his territory infuriated an important customer, Benjamin visited the customer once a month, never asking for business but hoping to rebuild trust through listening and expressing concern. Finally, after more than two years, the customer gave Benjamin an order. Benjamin was providing the important marketing function of
engaging customers and developing long-term relationships
Thanh has to decide which college to attend. This is the most important, riskiest, and most expensive decision she has ever made. She will be engaged in
extended problem solving
Natalie and her fiancé Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by
family, reference groups, and culture.
Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank. From Frank, Kim learns which professors have left the university or have newly arrived. Frank also helps Kim make appointments to see professors to discuss textbook choices. Frank acts as the __________ in the business department buying center.
gatekeeper
The office policy and procedure states that any purchase requests that are $3,000 and over must be given to Mary Reynolds, who will obtain authorization from the chief financial officer. Mary serves as a(n) __________ in the buying center.
gatekeeper
What is the focus of a firm that develops a relational orientation with its customers?
gathering lifetime profitability from customer relationships
Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to?
green marketing
When Diana went to college, tuition was $650 per semester. Now that same college charges $6,500 per semester. This number reflects a persistent increase in price known as
inflation
Leah is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito. Most of her company's products were available, except for smartphones. When she returned to work, she mentioned this observation to her international sales manager. Leah was providing the important marketing function of
identifying opportunities to expand
Yolanda is the new restaurant manager in a major hotel. When considering changes in the restaurant that will increase value to customers, Yolanda will likely attempt to either provide the same quality at a lower cost or
improve products and services at the same cost
Brenda was planning a small dinner party, and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store she also found a "buy one, get one free" deal, and a gift offered with the purchase of a particular dessert. She altered the menu as a result of the __________ and ended up spending less than she'd planned
in-store promotion
Stuart wanted to impress Janet with the perfect engagement ring. He had been saving money for months, and he noticed his attitudes and perceptions about diamond rings changing as he began paying attention to ads for rings. Marketers call this process
learning
Christopher bought Timberland boots because he felt they were perfect for his outdoor activities. Patrick bought the same kind of boots because he felt they were stylish, especially with the logo clearly visible. The psychological factor driving Patrick's behavior is
lifestyle
After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though due to the huge increase in demand they could charge much more. These firms probably recognize that
lifetime profitability of relationships matters more than profits from a particular transaction
Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will most likely engage in a(n) __________ process.
limited problem-solving
Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his
locus of control
Tomas, a bank employee, doesn't feel that his coworkers accept him. He decides to dress more casually, as they do, hoping to be accepted. Which level of Maslow's Hierarchy of Needs is Tomas trying to work on?
love
Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website—users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent?
place and value delivery
Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine-looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of
positioning
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
Many teenagers, both male and female, have clothes they purchased in the past that they "would not be caught dead in" today. When they occasionally see those clothes hanging in the back of their closet, these teenagers probably feel
post-purchase cognitive dissonance
Jeff opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?
price
In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy.
product development
Mary phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy.
product development
After Hurricane Katrina, many states reevaluated their coastal area building requirements. These new building codes represented __________ that building materials companies used to develop new products.
product specifications
Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's _____________ in an attempt to create value for students and recent graduates.
product value
Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through
promotion
Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling a __________ need.
psychological
When Magda decided to buy a new computer, she considered all the brands she could recall seeing advertised. This represents Magda's __________ set.
retrieval
Near the end of the model year, 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
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
Joanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow's Hierarchy of Needs?
self-actualization
"Black Friday," as the day after Thanksgiving has come to be known in the United States, is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "doorbusters," and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process.
setting high expectations
As owner of a retail franchise food store, Mary Gray purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of
sharing information across the organization
André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk.
social