C712 Unit 3 Quiz

Backward integration

process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials

Components of physical distribution

1 Customer Service 2 Transportation 3 Inventory Control 4 Protective Packaging and Materials handling 5 Order Processing 6 Warehousing

A skilled marketer understands the client's ____________ and realizes that many companies purchase from several vendors, so this pattern is taken into account when the marketer formulates a marketing proposal. -interpersonal influences -systems integrations -organizational factors -environmental factors

?????

Candace has been using the same shampoo brand for decades. When she finally dyes her hair, however, her hairdresser informs her that she will need to find a new shampoo that can help maintain her new color, prevent breakage, and condition her hair. Before going to the beauty supply store, Candace calls a few friends for recommendations and conducts web-based research on shampoos that address her specific needs. What can one infer about purchase decisions? -Every consumer approaches purchase decisions the same way. -Buying shampoo can be a high-involvement purchase decision. -Purchase decisions are always based on personal factors and preferences. -The same purchase decision requires the same level of involvement every time. -Product cost is the only factor that determines whether a consumer will engage in a low- or high-involvement purchase decision.

Buying shampoo can be a high-involvement purchase decision

Seventeen-year-old Mai Ly has moved to the United States from Vietnam with her parents because her father's job transferred him to a different branch of his company. They have decided to buy their groceries from a local supermarket that caters to Asian cuisine due to their _________ influences. Mai Ly has recently passed her driver's license exam and has said that she would like to have her own car so that she doesn't have to share one with her parents. Her parents have agreed to purchase a car for her as long as she pays for her own gas and insurance. This decision is an example of a ________ influence. -family; cultural -social; family -cultural; family -cultural; social -social; cultural

Cultural/social

Market segmenting by demographics, also called socioeconomic segmentation, is the most common method of defining consumer groups. Select the best definition for market segmentation by demographics from the choices below. -defining consumer groups based on variables including income and residence in an urban area -defining consumer groups based on variables including brand loyalty, income, and gender -defining consumer groups based on variables including income and residence in a suburban area -defining consumer groups based on variables including income, age, ethnicity, and occupation

Defining consumer groups based on variables including income, age, ethnicity, and occupation

Clairol offers a line of hair color called "Nice n Easy" which allows women to touch-up their hair and easily cover their gray hairs conveniently and easily at home. Based on research, Clairol knows that women aged 30 and above are most likely to need some type of color product to hide their gray hair and maintain a youthful appearance. What type of segmentation does Clairol use by targeting women over 30? -demographic -geographic -psychographic -benefit

Demographic

The company, Eco Nuts was featured on Shark Tank and has become one of the show's success stories due to the growing acceptance of their product as an alternative to traditional laundry detergent. The company typically targets women, aged 40 to 65 who have total annual household income above $60,000 and are concerned about sustainability. What step in the market segmentation process has Eco Nuts utilized with this description? -develop a relevant profile for each segment -forecast market potential -forecast probable market share -select specific market segments

Develop a relevant profile for each segment

Master Cookie Bakers sells customized cookies to restaurants and standardized cookies to individual buyers. The firm is using: -Undifferentiated marketing, since it only sells cookies -Differentiated marketing, since it sells different products to different markets -Concentrated marketing, since it concentrates only on restaurants and individuals -Micromarketing, since cookies are small -Niche marketing, since cookie buyers are a single niche among buyers of baked goods

Differentiated marketing, since it sells different products to different markets

Selective distribution

Distribution of a product through a limited number of channels

Exclusive distribution

Distribution of a product through a single wholesaler or retailer in a specific geographic region

Intensive distribution

Distribution of a product through all available channels

Marketers applying a positioning strategy want to: -make their product look as much like the market leader as possible. -emphasize a product's unique advantages and differentiate it from competitors' options. -identify the different product attributes desired by different market segments. -target only the loyal users of the product.

Emphasize a product's unique advantages and differentiate it from competitors' options

While cultural and family influences significantly affect consumer behavior, the influence of reference groups on consumer behavior tends to be minimal, especially for children. True False

False

The division of the total market into smaller, homogenous groups is called _____. customer aggregation market capitalization market segmentation brand segmentation

Market Segmentation

Vertical Marketing System

Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as _____. -positioning -social referencing -value engineering -optimizing

Positioning

Forward integration

Process through which a firm attempts to control downstream distribution

Sustainability has become an important value among individuals in the United States and some believe that man-made factors such as the increased use of diesel and gasoline in cars has led to global warming. Those worried about global warming and seeking ways to reduce their carbon footprint and have invested in products such as solar panels for their homes and electric or hybrid vehicles. What type of segmentation would be most appropriate for Toyota to utilize in marketing its Prius - a hybrid vehicle? -psychographic -demographic -geographic -benefit

Psychographic

Which of the following segmentation approaches is most likely to help marketers quantify aspects of consumers' personalities and lifestyles to create goods and services for a target market? Psychographic segmentation Demographic segmentation Geographic segmentation Product-based segmentation

Psychographic segmentation

Helene made sure that her company car was equipped with OnStar in case she ever has car trouble or gets lost while traveling between appointments. Which level of Maslow's hierarchy of needs is Helene addressing? Social Needs Safety Needs Esteem Needs Self Actualization Needs

Safety Needs

Penelope is using data collected and published by a trade association in her marketing research study. The data used by Penelope can be regarded as _________? -Secondary data -primary data -experimental data -raw data

Secondary data

Which of the following statements reflects Carla's interpersonal determinants concerning her purchase of an Apple computer? -She believes you get what you pay for when purchasing products. -She perceives that Apple offers the best customer service though her family and friends do not share this opinion. -She makes purchases to satisfy the expectations of her family members who insist on buying Apple products. -She identifies with the brand and periodically purchases new Apple products.

She makes purchases to satisfy the expectations of her family members who insist on buying Apple products

Market segmentation is a tool for marketers to use, but its effectiveness depends on four basic requirements. Three of the requirements for effective market segmentation are as follows: (1) the segment must have measurable purchasing power and size; (2) marketers must be able to promote and serve the market; (3) the identified segment must be large enough to bring in a profit. Select the fourth requirement for effective market segmentation from the choices below. -The marketer must abide by ethical standards. -The identified segment must include an equal number of men and women. -The marketer must be proficient in the use of modern technology. -The identified segment must reflect the company's mission statement. -The identified segments must match the company's marketing capabilities.

The identified segments must match the company's marketing capabilities

Corporate Marketing System

VMS in which a single owner operates the entire marketing channel

Administered marketing system

VMS that achieves channel coordination when a dominant channel member exercises its power

Contractual marketing system

VMS that coordinates channel activities through formal agreements among participants

An advertisement that creates warm feelings of goodwill toward the advertiser and his products is altering the _____ component of attitude. -tangible -behavioral -traditional -affective

affective

Edward is looking to purchase a new laptop because he is not satisfied with the features of his old one. He gathers information from his coworkers about the new models available in the market with the desired features and lists down all the available options. The next step in Edward's decision-making process is to: -continue looking for more options available in the market. -identify the problem he is facing with his current computer. -purchase the product from a trusted dealer recommended by his family. -compare the prices and features of all the available brands in his list.

compare the prices and features of all the available brands in his list

An organization's purchasing decisions can be influenced by such ______________ as a tornado destroying a factory that produces supplies necessary for the organization's operations. -environmental factors -interpersonal influences -organizational factors -merchandisers and category advisors

environmental factors

First time drivers who are trying to decide which car to buy and how to select an insurance company, and newlyweds looking to buy their first home, both undergo the same problem solving processes with respect to their level of involvement in their buying decisions. Which of the following best describes this common buying process? -impulse buying behavior -reasoned purchasing behavior -extended problem solving -routinized response behavior -limited problem solving

extended problem solving

Kate believes the reason the sales of one of her company's products has fallen is due to a price increase. She states sales from the previous year to the same customers as evidence of declining sales. Kate is: -developing a research design. -formulating a hypothesis. -identifying a symptom. -conducting exploratory research.

formulating a hypothesis

North Face is a well known brand affiliated with active lifestyles such as backpacking, snow skiing, and camping. The company's products are available in a wide number of retail outlets as well as their company-owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market location. For example, stores in Northern California stock technical products suitable for customers who are avid backpackers, hikers and rock climbers while retailers in the Midwest states offer a greater selection of apparel. What type of segmentation is reflected by stores carrying the North Face brand? -geographic -age related - ethnic related -product related

geographic

Title Nine is a specialty retailer targeting active women with a proprietary mix of apparel designed for active lifestyles and sports. The company began as a direct marketer - using only catalogs and its website to generate sales. However, over the years, Title Nine has opened retail outlets across the country. The company identifies strategic opportunities for new stores based upon the sales generated by current customers in the potential market area. For example, if Title Nine has a significant number of purchasers in the Boston area, they will further analyze the market and select a location for a retail outlet. What type of segmentation strategy is Title Nine utilizing when selecting a market for a new store location? -geographic -demographic -lifestyle -benefit

geographic

Starbucks recently faced criticism for changing the way consumers could earn free food and beverage in its loyalty program. Originally, consumers could earn 1 star for each purchase - regardless of dollar value spent. However, the new program ties the star benefit to the dollar amount spent by a customer - rewarding those who spend more with more points. The Star program is frequently utilized by Starbucks to entice its members to return to the outlet. The company utilizes e-mail and in-app promotions to maintain an loyal following. What type of segmentation is Starbucks utilizing with its Star rewards program? -product-related -demographic -geographic -psychographic

product-related

The organizational buying process has more steps than the consumer buying process, which can be attributed to: -shorter durations of customer relationships formed in business markets. -less standardized products sold in consumer markets. -lack of interpersonal and environmental influences on consumer buying decisions. -relatively complex buying process with greater number of decision makers in business markets.

relatively complex buying process with greater number of decision makers in business markets.

The organizational buying process differs from the consumer purchase process as the organizational buying process: -involves few decision makers in making purchase decisions. -is informal and less professional. -requires a longer time frame because of complexity of the decisions. -generally involves purchase of highly standardized products.

requires a longer time frame because of complexity of the decisions.

Carlos is at the grocery store to pick-up a few items for dinner. While he's in the store, he remembers that he's just run out of laundry detergent. He walks to the aisle where the laundry detergent is and picks up the brand he always buys - Tide liquid. What type of purchasing decision did Carlos make when selecting the Tide detergent? -routinized response behavior -limited problem solving -extended problem solving -family purchase behavior

routinized response behavior

When firms identify the factors that affect consumers' purchase decisions and develop strategies and tactics to appeal to specific types or groups of customers, they are practicing market _________. -segmentation -differentiation -complexity -uniformity

segmentation

The consumer buying decision process involves _______ steps. The first step is ____________, and the last step is _____________. -five; evaluation of alternatives; postpurchase evaluation -five; information search; purchase -six; problem recognition; purchase -six; problem recognition; postpurchase evaluation -six; evaluation of alternatives; purchase

six; problem recognition; postpurchase evaluation