Chapter 9-13

Omar is responsible for marketing and marketing research for a midsized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind? We can try, but if it's wrong it's not my fault." "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need." "I'd rather not use any data at all than use secondary data." "This is a matter of principle. I quit." "You should never use any information from the Internet in marketing research."

"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need."

Which of the following is true about quantitative research? It is always conducted using primary data collection. It revises the research objective based on data mining. It confirms insights and hypotheses generated via qualitative research. It offers conclusions that are always correct. It includes focus group interviews.

It confirms insights and hypotheses generated via qualitative research.

All of the following statements regarding secondary packaging are true except It can provide information to consumers not found on the primary packaging. It is important to the retailer in terms of convenience in handling. It can be an important positioning tool to convey the brand image. It can allow for cost efficiencies due to larger order and shipment sizes. It is of little value to the average consumer.

It is of little value to the average consumer.

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. Reverse innovation Reverse engineering Selective dissection Redistribution Creative destruction

Reverse engineering

All of the following are guidelines for developing a marketing research questionnaire except The layout should be professional and easy to follow. Questions should address only one issue at a time. Questions should be sequenced appropriately. Questions should use vocabulary respondents are familiar with. Sensitive questions should be asked first.

Sensitive questions should be asked first.

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be door-to-door surveys. focus group interviews. syndicated data. sales invoices at public libraries. U.S. Census data.

U.S. Census data.

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask? How long will it take to bring the software to market? Will respondents purchase the software if it becomes available? Who will determine the price to be charged? Where should the product be sold? Which computer trade show will be used to introduce the product?

Will respondents purchase the software if it becomes available?

Some credit cards provide free liability insurance, funded by the bank issuing the card when a customer pays for a rental car using the card. This extra insurance is an example of product style. the actual product. an associated service. the product position. the core value.

an associated service.

Brands can be owned by manufacturers only. any firm in the supply chain. retailers only. wholesalers and retailers only. private-label generic retailers only.

any firm in the supply chain

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to develop a budget. begin to collect data. summarize their preliminary conclusions to present to managers. begin recommending changes to the new product line. analyze the data.

begin to collect data

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation. R&D licensing technology consumer research geodemographic analysis brainstorming

brainstorming

Pioneer or breakthrough products will likely result in late maturity buying. can change consumer preferences. incorporate reverse engineering outputs. require the use of concept testing services. must be geographically centered.

can change consumer preferences.

In a focus group, researchers usually videotape or audiotape the session in order to evaluate the potential for in-depth interviews. catch any patterns of verbal or nonverbal responses. post the videos on the corporate website. avoid asking repetitive questions. create survey instruments to send to the participants.

catch any patterns of verbal or nonverbal responses.

One of the categories of products for which brand extension is especially logical is generic goods. generic services. commodities. complementary goods. licensed brands.

complementary goods.

The Service Gaps Model is designed to highlight those areas where service providers provide the best possible service. manufacturers are cutting corners on product quality. customers believe they are getting less or poorer service than they should. service providers know more than their customers. delivered service exceeds expected service.

customers believe they are getting less or poorer service than they should

Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that were available? biometrics neuromarketing data mining data warehousing panel data

data mining

Supermarkets collect information about individual customers through their use of loyalty cards, and then analyze the data to look for patterns in purchases. This is an example of data mining. data recovery. data entry. data analysis. data modeling.

data mining

During the ___________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumers or they completely exit the market. introduction leveling maturity growth decline

decline

To meet or exceed customers' expectations, marketers must know where customers live. know how often consumers buy their products. determine what those expectations are. recognize that expectations are tangible. empower customers to meet their own expectations.

determine what those expectations are.

When travelers are bumped from overbooked flights, they are frequently offered vouchers good for future travel. The dollar value of the voucher is the airline's estimate of perishable value. distributive fairness. empowerment. procedural justice. the size of the knowledge gap.

distributive fairness

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. innovator laggard late majority early majority early adopter

early majority

All of the following are potential benefits of brand extension except allowing the perception of a brand with a quality image to be carried over to the new product. lowering marketing costs. boosting sales of the core brand. spending less on creating brand awareness and associations. eliminating competition.

eliminating competition.

Using technology and __________ are two ways a delivery gap can be reduced in size. empowering employees variability analysis voice-of-customer analysis zone of tolerance analysis public relations

empowering employees

__________ research is a type of quantitative research that manipulates variables to help determine cause and effect. Descriptive Syndicated Manipulative Focus group Experimental

experimental

Digital billboards embedded with ________ software can identify passersby and then display ads targeted to them, based on their age, gender, and attention level. social media neuromarketing facial recognition Internet tracking data mining

facial recognition

What type of interview contains a small group of participants and a trained moderator that guides the conversation? panel syndicated observational focus group sentiment

focus group

Along the service-product continuum, which of the following would be considered the most product dominant? grocery store auto repair shop doctor's office cell phone service provider restaurant

grocery store

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. introduction leveling maturity growth decline

growth

Procter & Gamble is a huge national brand manufacturer. By owning its brands like Tide and Crest, P&G can monopolize store brands. has greater opportunity to dictate retail pricing. has greater control over its marketing strategy. can increase brand dilution. can eliminate any local competition.

has greater control over its marketing strategy.

The decision to delete a product is never taken lightly because, generally, manufacturers

have made substantial investments in product development and manufacturing.

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.

heterogeneous

Zan wants to collect considerable information about the current opinions of his ten most important customers. Zan will probably use the __________ research method.

in-depth interview

__________ is the process by which ideas are transformed into new products and services that will help firms grow. Beta testing Concept testing Innovation Reverse engineering Competition

innovation

Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) __________ in the diffusion of innovation curve. innovator laggard late majority adopter early majority adopter early adopters

innovator

Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of instrumental support. employee incentives. emotional support. line extensions. the delivery gap.

instrumental support.

Because customers have different needs and expectations, the key to distributive fairness in service recovery is to listen to the customer. contact a supervisor quickly. estimate the damage. provide a fair solution. resolve the problem quickly.

listen to the customer.

For marketers, one of the benefits of having achieved brand loyalty is recognition through industry awards. lower marketing costs associated with reaching loyal customers. increased price sensitivity among loyal customers. greater concern about competitors' actions. few worries about copyright infringement.

lower marketing costs associated with reaching loyal customers.

All of the following groups are included in the diffusion of innovation curve except innovators. non-adopters. late majority. early majority. early adopters.

non-adopter

in the product development process, what takes place between concept testing and market testing? securing financial backing conducting marketing research brainstorming determining potential ROI performing product development

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. intangible inseparable heterogeneous durable perishable

perishable

The diffusion of innovation theory is useful to marketers in helping them adjust to the performance life cycle. avoid the cost of concept testing. predict which types of customers will buy their product immediately and later. predict how long it will take for a new product to gain market acceptance. determine a target market.

predict which types of customers will buy their product immediately and later.

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. pretesting product launch posttesting product development evaluation of results

product launch

A __________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

A university that has separate graduate and undergraduate admission offices recognizes that these are distinct brand associations. product lines. product mixes. brands. augmented services.

product lines.

All of the following are considered part of the "actual product" level of the product offer except product warranty. features. design. quality. brand name.

product warranty.

Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to ban abusive customers from their restaurants. reward service providers based solely on the speed of service. provide emotional support and concern for their employees. review the delivery support system. make sure services delivery expectations are consistent and coherent throughout the organization.

provide emotional support and concern for their employees

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. specialty convenience unsought shopping sought

shopping

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy. specialty shopping convenience ritual impulse

shopping

Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good. shopping; specialty convenience; shopping convenience; specialty specialty; convenience unique; universal

specialty; convenience

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists. seniority knowledge standards delivery communication

standards

Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee? standards gap knowledge gap performance gap communication gap recovery gap

standards gap

To define the zone of tolerance, firms ask a series of questions about each service quality dimension that relate to all of the following except the desired and expected level of service for each dimension, from low to high. customers' perceptions of how well the focal service performs, from low to high customers' perceptions of how well a competitive service performs, from low to high. the importance of each quality service dimension. the desired and expected level of service for each dimension, from high to low.

the desired and expected level of service for each dimension, from high to low.

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates the product launch. the company's evalutation of results. premarket demonstrations. alpha testing. beta testing.

the product launch

During the research design step of the marketing research process, researchers identify the type of data needed and the statistical software to be used. the dates when data will be collected. the forum in which the data will be presented. the identities of research participants in the project. the type of research necessary to collect the data.

the type of research necessary to collect the data.

From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about secondary data retrieval systems. exploitation by foreign marketers. their ability to get credit cards. their fundamental right to privacy. the unstructured nature of marketing research

their fundamental right to privacy

Political consultants have been using marketing research for decades to help their candidates understand who makes up the voting public and how to reach them. what ethical lapses they can get away with. which consumers spend the most money. how large their campaign signs should be. how to buy the votes they need.

who makes up the voting public and how to reach them

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask? What retailers should be used to sell the swimwear? Will retailers purchase the swimwear if it becomes available? What wholesale price should be charged? What promotional plan will work best? In which season should we introduce the product?

Will retailers purchase the swimwear if it becomes available?

One of the reasons service failures need to be addressed quickly is to minimize the zone of tolerance. increase empowerment zones. avoid negative word of mouth from upset customers. avoid a situational ethics conflict. keep management from finding out what happened.

avoid negative word of mouth from upset customers.

All of the following are included in the main criteria used for determining how "good" a brand is, or how much equity it has except

brand conceptualization

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in corporate branding. brand extension. brand licensing. brand association. perceived value branding.

brand extension

When Amanda shops for lipstick, she always buys Really Red by Cover Girl. This is an example of brand loyalty. brand awareness. brand association. brand equity. perceived value.

brand loyalty

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to understand psychographic motivations. create marketing mixes based on consumer self-values. build separate marketing programs for different demographic segments. determine which syndicated data warehouse services to purchase. find out which competitors its customers purchase from.

build separate marketing programs for different demographic segments

The __________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less. knowledge communication delivery standards empowerment

communication

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. core customer value associated services augmented products product support quality level

core customer value

Marketing research includes all of the following except collecting data. creating data. recording data. interpreting data. analyzing data.

creating data

Imagine that you are the marketing manager of a hotel chain that wants to implement a customer reward and loyalty program. You research the firm Sabre Hospitality Solutions, which offers its services to global and boutique hotel chains to develop and execute these types of programs. Sabre Hospitality Solutions is a company that focuses on customer relationship management. building brand awareness. building brand associations. increasing perceived value. increasing brand equity.

customer relationship management.

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of? empathy tangibles responsiveness assurance reliability

empathy

One of the potential benefits to a firm of introducing new-to-the-world products or services is cost savings. late majority marketing. establishment of a completely new market. the ability to avoid paying pioneers for new product development. the ability to capitalize on existing consumer preferences.

establishment of a completely new market

All of the following are stages in the product life cycle except introduction. growth. evaluation. maturity. decline.

evaluation.

When the detailed opinions of a few industry experts or experienced consumers are needed, __________ is(are) often the best qualitative research method. observation surveys social media studies in-depth interviews secondary data mining studies

in-depth interviews

After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except its satisfaction of technical requirements. its satisfaction of performance. customer acceptance. its satisfaction of the firm's financial requirements. its satisfaction of the firm's manufacturing requirements.

its satisfaction of the firm's manufacturing requirements.

A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. seniority knowledge standards delivery communication

knowledge

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. innovator laggard late majority early majority early adopter

late majority

In the United States, most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle. growth pioneer introduction decline maturity

maturity

Where on a product's packaging would one most likely find nutrient content and country of origin? inside the secondary package inside the primary package on the company website on the label on the store shelf display

on the label

Data collection begins only after completing the research design process. after determining whether there are any objections. whenever the researcher wants to. after creating the presentation format. after analyzing the data.

only after completing the research design process

A restaurant chain is working on improving the quality of its food and service. To track its progress it recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years. What kind of data is the restaurant chain collecting?

panel data

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market. blockbuster early adopter pioneer market tester concept tester

pioneer

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is e-books. refrigerators. the VCR. smartphones. None of these; no product can stay in the maturity phase and survive for very long.

refrigerators.

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their relative advantage. compatibility. observability. complexity. trialability.

relative advantage

When choosing where to eat lunch, Veronica's major service criterion is speed: being seated promptly and served her meal quickly. For Veronica, __________ is the most important of the five service quality dimensions. assurance reliability tangibles responsiveness empathy

responsiveness

Private-label brands are developed and managed by manufacturers. wholesalers. supply chain specialists. manufacturer's representatives. retailers.

retailers.

When Betty decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest. This group is called a sample. focus group. target market. demographic. potential customer.

sample.

McDonald's introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether or not consumer perceptions are improving. This would be an example of quantitative research. an online focus group. sentiment mining. neuromarketing. an experiment.

sentiment mining

When the delivery of a service fails to meet customers' expectations, a __________ gap exists. service knowledge standards production procedural

service

What is neuromarketing? the analysis of consumer comments on social media in order to understand consumers' thoughts and opinions the use of psychological principles to design marketing research studies the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies the use of neural networks to perform data mining and develop marketing insights the use of in-depth interviews to map detailed networks of information storage in the brain

the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies

Services marketing managers have learned that more employees will support a quality-oriented process if they are involved in setting the goals. perishable services are replaced with tangible services. they are required to diverge from existing standards. customers are responsible for setting service quality standards. the process involves both part-time and full-time employees.

they are involved in setting the goals

Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses to new products and services. Bank of America is using a(n) __________ program to improve service quality and service offerings. quality gap analysis empowerment zone of tolerance standards analysis voice-of-customer

voice-of-customer

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere. voice-of-customer quotient empowerment standard tangibles gap zone of tolerance quality gap

zone of tolerance