Ethics Exam 2

Consumers sometimes experience feelings of uncertainty after a major purchase. This postpurchase anxiety results from an imbalance among the person's knowledge, beliefs, or attitudes. For example, you may have had these feelings when you first went away to college. Was this the best school for me? Is this where I belong? This postpurchase anxiety is known as:

cognitive dissonance.

Describe the four categories of business markets

commercial, reseller, government, and institutional

Summarize the six alternative strategies for entering global markets

exporting, franchising and foreign licensing, subcontracting, international divisions, acquisitions, and joint ventures.

Cultural differences are particularly important for:

firms marketing internationally

A successful German fitness center would like to expand to other areas of Europe such as France and Spain. The company has strong brand recognition in Germany and would like this to translate to new markets. The fitness center's best option for a market entry strategy is:

franchising

The goal of the European Union, a multinational economic community, is to:

remove all barriers to free trade among its members, and standardization of currencies and regulations.

The determination of whether pencils are consumer products or business products is based on:

the purpose for which the pencils are purchased.

Psychographic segmentation divides a population into groups based on:

their attitudes, values, and lifestyles.

Outline the five roles within the buying center.

users, influencers, gatekeepers, buyers, and deciders.

Contrast psychographic segmentation with other segmentation variables

Psychographic segmentation is defined as differentiating population groups according to values and lifestyle factors which are common to the group.

Kendra is the office manager for a large legal firm and performs a variety of functions for the office. She manages purchases of copying machines and printers and is responsible for placing orders for supplies such as toner cartridges and paper. In general, Kendra is solely responsible for making decisions about the brand of paper and toner used in printers and copying machines. What is her role as part of the buying center?

Buyer

Given a goal for social media marketing, determine the most effective method of measurement

A SMM campaign is effective only if it achieves progress toward specific goals. Marketers must be able to match a given goal to the most relevant measurement tool or metric.

Summarize the three major ways marketers segment business markets

Business marketers service a wide variety of customers, so marketers must identify the different market segments they serve. The overall process of segmenting business markets divides markets based on organizational characteristics and product applications. The three major ways to segment business markets are by demographics, customer type, and end-use application

The North American Free Trade Agreement (NAFTA) is a trade accord that removes trade barriers among:

Canada, Mexico, and the United States.

Cliff is a volunteer at the Marysville Playhouse, and he's taken on the task of promoting their plays through social media. Over the last six months, the number of MP's Facebook followers has increased from 42 to 186, but no one ever comments on Cliff's posts. What does this mean for Cliff?

Cliff's increasing activity level shows he's doing a good job of promoting the brand, but his social media content needs to be more engaging.

Describe the two primary market classifications.

Consumer products are bought by ultimate consumers for personal use. Business products are purchased for use either directly or indirectly in the production of other goods and services for resale

Outline the six steps in the consumer decision process.

Consumers complete a step-by-step process in making purchase decisions. The process begins with problem or opportunity recognition and ends with a post-purchase evaluation. Marketing strategies and tactics are often designed to steer consumers through the decision process in the direction of a specific product and attempt to influence decisions at every stage of the process.

Explain three ways consumers rely on social media to make buying decisions

Consumers rely on social media to discover new goods and services, research and share information, and make purchase decisions.

_____ involves creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action.

Content marketing

Market segmentation plays a very important role in developing a marketing strategy. Select the best definition of market segmentation from the choices below.

Dividing the total available market into smaller, similar groups

_____ is a contractual agreement that grants marketers in other countries the right to distribute a firm's merchandise or to use its trademark, patent, or process in a specified geographic area

Foreign licensing

Describe the global business landscape in terms of U.S. imports, U.S. exports, and major industries.

Global marketing expands a company's market, allows firms to grow, and makes them less dependent on their own country's economy for success.

Paul is the quality-control specialist for a furniture manufacturer. His job is to develop specifications for every potential purchase of wood and fabric. Within the buying center, Paul plays the role of a(n):

Influencer

Honda, a Japanese firm, builds a factory in Alabama to make minivans to be marketed in the United States. Which of the following strategies of entering into a foreign market is best represented by this example?

International direct investment

Distinguish between high-involvement and low-involvement purchase decisions.

Involvement indicates the degree of interest an individual may have with a product or purchase decision, and the time and level of problem solving they'll apply to the purchase process.

A Reddit user commented that a tea kettle sold at JCPenney looked like a silhouette of Hitler. When the message went viral all across social media, JCPenney responded immediately with individual messages affirming that the design similarity was totally unintentional. This represents an example of an organization using social media to achieve which goal?

Manage a crisis

Given an example of a company's goals for expanding globally, determine the most appropriate market entry strategy.

Marketers must consider factors such as risk propensity, local demand for the product, degree of control, and knowledge of the foreign market when considering which market entry strategy is most appropriate.

Identify the types of goals marketers use for social media campaigns.

Marketers set goals at the outset of a SMM campaign to make sure it pays off in terms of what the organization needs to achieve: sales, brand awareness, crisis resolution, or other metrics.

Distinguish between the three basic strategies for reaching target markets

Marketers spend a lot of time and effort developing strategies that best match their firm's product offerings to the needs of particular target markets. An appropriate match is vital to the firm's marketing success. Marketers have identified three basic strategies to effectively reach target markets: undifferentiated marketing, differentiated marketing, and concentrated marketing

Describe the various methods for measuring the effectiveness of social media marketing.

Marketers typically measure social media marketing in terms of activity, engagement, and/or conversion. The key is to measure progress toward achieving the campaigns' goals.

Which of the following does NOT help marketers trace, measure, and interpret data related to social media marketing initiatives?

Measures of comprehension

Behavioral segmentation focuses on the demonstrated behavior of consumers. Looking at what consumers actually do, rather than their characteristics, brings us much closer to the actual purchase. Which of the following is NOT one of the approaches to behavioral segmentation?

Media habits

Explain how marketers build value propositions utilizing positioning strategies

Once firms have selected a target market, marketers must then decide how best to position the product. The concept of positioning seeks to put a product in a certain position, or place, in the minds of prospective buyers.

Elizabeth had her car all packed and was ready to head home for semester break. However, when she tried to start her car the battery was dead. She remembered that the last few times she tried to start her car it seemed like the battery was weak. Now, it was clear she would have to get a new battery. Elizabeth is in what stage of the consumer decision process?

Problem or opportunity recognition

It is well known that Facebook collects, retains, and analyzes tremendous amounts of data about its users. Which of the following poses the biggest concern for this social media platform?

Respect for privacy

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. OnStar is a service which can connect the car occupants with a personal service attendant to provide assistance. Which level of Maslow's hierarchy of needs is Helene addressing?

Safety needs

Compare the major characteristics of the business market to the consumer market

Several characteristics distinguish the business market (B2B) from the consumer market (B2C), including products, size and number of buyers, promotion, distribution, geographic market concentration, buyer-seller relationships, and purchase decision process

Summarize three ethical principles for social media marketers.

Social media marketers face three key ethical considerations: privacy, honesty, and accountability.

Which of the following is a low-involvement product?

Stationery

The Oreo Cookie social media campaign has been described as clever, heartwarming, and humorous. Which important objective did this campaign achieve?

Strengthen the brand

Lawrence is creating his profile on LinkedIn and hopes the content will attract potential employers to consider him for a career opportunity. He is trying to leverage his background, skills, and education to gain a position in a marketing research consulting firm. He knows that employers are seeking candidates who are proficient in SPSS, Excel, and Google Analytics, and have excellent writing and verbal communication skills. He uses these capabilities throughout his profile since he understands the importance of search engine optimization. Which quality of social media marketing campaign development is Lawrence using as he creates content for his LinkedIn profile?

Targeted keywords

_____ are the taxes levied on imported goods.

Tariffs

Differentiate between WTO, NAFTA, and EU in terms of basic functions and member countries.

The World Trade Organization oversees GATT agreements, mediates disputes, and tries to reduce trade barriers throughout the world. The European Union is a customs union whose goal is to remove all barriers to free trade among its members. The North American Free Trade Agreement removes trade restrictions among Canada, Mexico, and the United States.

Given a consumer purchase scenario, identify the primary influences affecting the consumer decision process.

The ability to identify various influences on consumer behavior helps marketers assemble marketing mixes most likely to reach their target customers.

Which of the following is true of a buying center in an organization?

The buying center includes everyone involved in any aspect of the buying process.

Which of the following is the largest segment of the business market?

The commercial market, which includes anyone who acquires products to support production of other goods and services

Given a target market profile, classify each variable according to its base of segmentation.

The four primary segmentation bases are geographic, demographic, psychographic, and behavioral. All four bases can be utilized in combination to create a more complete customer profile and enable marketers to effectively communicate their value proposition

Which of the following is a basic requirement for effective market segmentation?

The market segment must present measurable purchasing power and size.

List the seven steps in the organizational buying process

The organizational buying process follows a sequence of activities. Although not every buying situation requires every one of these steps, marketers to business customers must familiarize themselves with the entire process in order to be most effective.

Describe the growth and use of social media

The proliferation of social media—now used by over 70% of adults—has made it an important relationship-building tool. Marketers use it to create buzz, facilitate customer engagement, and enable fans to promote their goods and services.

A basic distinction in types of markets is between markets that purchase the item for their own personal use and those that purchase the item for use either directly or indirectly in the production or distribution of other goods or services for resale. For example, when Logan stopped at the gas station to fill up his car before heading home for the weekend, the gas was for his personal use. However, when Brandon filled up his car with gas before a night of working as an Uber driver the gas was actually used to provide a service for sale. In this case, gas was:

a consumer product for Logan and a business product for Brandon.

The fluctuation in exchange rates results in:

a nation's currency becoming more or less valuable compared with those of other nations.

Proctor & Gamble sells Head and Shoulders shampoo and conditioner in Brazil. The company uses similar advertising and scents in Brazil as they do in the United States. This would be an example of:

a straight extension strategy.

The first stage in the seven-stage model of an organizational buying process involves

anticipating a problem, need, or opportunity and a general solution.

An individual's reference group is most likely to influence his or her purchase decision while buying a(n) _____.

automobile

For many years, General Motors manufactured two versions of the same basic vehicle: the Humvee, used by the U.S. military, and the Hummer, available to the public. Because of this product, GM was part of both the ___ and ___ B2B markets.

commercial; government

Ivonne is excited about going to her first sorority formal next month. However, she is concerned that she does not have anything appropriate to wear. Since realizing that she needs to get a new dress, Ivonne has started paying attention to advertisements, visiting retail stores, and browsing the Web for a dress for the formal. Ivonne is engaged in:

consumer behavior.

Jason's Foods is a manufacturer of organic food products. The company is planning to market its products through social media sites and has developed effective strategies for the marketing campaign. The marketing team plans to use messages that focus on the health benefits of organic foods in order to generate greater awareness about its products and engage its target audience in the conversation. In doing so, the marketing team of Jason's Foods would be engaging in _____.

content marketing

A company looking to expand internationally with little risk would choose:

exporting

Don, the office manager at Harbor Animal Clinic, started using social media to promote the clinic's veterinary services about a year ago. The analytic tools on his website show an increasing amount of new traffic coming from social media. He's also able to connect his website traffic and inquiries to a 3-percent rise in new patients. Don is pleased with his social media ___ measurements.

conversion

A person's values, beliefs, preferences, and tastes are often handed down from one generation to the next. These factors may change over time, but an individual's basic core values do not. These factors are important environmental determinants of consumer behavior. These items are commonly referred to as:

culture

Describe the five social factors that influence consumer behavior.

culture, social class, reference groups, opinion leaders, and family

The identity of the _____ is the most difficult role for salespeople to pinpoint.

decider

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

Abel Building Solutions, a steel manufacturing company that supplies steel to various construction companies, segments its customers based on the number of employees in the company and the sales revenue generated by it. This strategy is used by Abel to develop specific marketing plans for their customers. Abel is segmenting its customers on the basis of:

demographic characteristics.

Summarize the five major factors that influence the global marketing environment.

economic, social-cultural, technological, political-legal, and competitive environments.

Marketers applying a positioning strategy want to:

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

A manufacturer who produces glass for microwave oven doors, shower enclosures, and patio tabletops is likely to segment his business customers on the basis of:

end-use application.

Describe the three major factors that influence purchase decisions in the business market.

environmental factors, organizational factors, and interpersonal factors

Tabitha is interested in purchasing new head phones and has set a budget of up to $350. She's narrowed her choice to Bose, Beats by Dr. Dre and Exeo Psyko. These three brands are known as her _____ set:

evoked

At the Union, New Jersey, headquarters of Bed, Bath, and Beyond (BB&B), Tiana receives product information from manufacturers about sheets, towels, and other similar products. After reviewing the literature to determine which products meet BB&B's general requirements, she forwards only the pertinent information on to her boss. Tiana is a ______ at BB&B.

gatekeeper

Summarize the five most commonly used demographic variables

gender, age, ethnic group, family lifecycle stage and householdtype, and income

Outline the seven guidelines for creating effective social media content.

has a strong brand focus; prioritizes the audience over the organization; uses targeted keywords; presents relevant information; creates shareworthy text and images; invites the audience to generate content; and offers incentives to participate.

An undifferentiated marketing strategy:

is efficient from a production point of view.

Lakshmi and Sukumar are shopping at their nearest Best Buy to purchase a new TV. They had previously planned to replace their 5-year-old TV with a new model of the same brand but were surprised by the array of brands and selection the store offers, each having a special feature. They decide to take their time and look at every type of TV available at this Best Buy location.. Lakshmi and Sukumar are exhibiting _____ decision-making style.

limited

The division of the total market into smaller, homogenous groups is called _____.

market segmentation

Describe four types of geographic segmentation.

market size, market density, climate, and region.

Describe the five psychological factors that influence consumer behavior.

needs and motives, perceptions, attitudes, learned responses, and self-concept.

Describe the four situational factors that influence consumer behavior

physical surroundings, social surroundings, buyer intent, and a buyer's mood and condition.

British Petroleum (BP) distributes petrol (or gasoline) to many countries around the world. BP changes the petrol formula in order to meet each country's regulations. This is an example of:

product adaptation.

Summarize the three components necessary for effective market segmentation.

segment should be significant in size and purchasing power, profitable, and consistent with the firm's marketing capabilities.

Describe the three forms of behavioral segmentation

segmentation by benefits sought, usage rates, and brand loyalty.

Identify the three types of influences that affect the consumer decision process.

social factors, psychological factors, and situational factors.

Badoo is a global, multilingual, social media platform that provides an opportunity for its members to meet new people in their locality, share daily activities, and post opinions on different topics. Badoo is a type of _____.

social networking site

Contrast the three major types of social media platforms.

social networking sites, social bookmarking sites, and blogging sites.

Describe the five alternative marketing mix strategies used in global marketing

straight extension, promotion adaptation, product adaptation, dual adaptation, and product invention