Marketing 340 Midterm

At the end of a brainstorming session, participants are often asked to

Vote on the best ideas.

A service is any intangible offering that involves a deed, performance, or effort that

Cannot by physically possessed

After a firm has carefully considered all relevant alternatives to address an ethically difficult situation, the next step would be to _____ to bring about the best solution.

Choose a course of action The objective of the last step of the ethical decision-making framework, choosing a course of action, is to weigh the various alternatives and choose a course of action that generates the best solution for stakeholders using ethical practices.

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of...

Co-branding

The consumer buying process begins when

A consumer recognizes an unsatisfied need.

Globalization refers to the processes by which goods, services, capital, people, information, and ideas

Flow across national borders. Goods, services, capital, people, information, and ideas can all flow across national boundaries due to globalization.

Changes in tariffs and quotas are

Government actions that reduce competition from international firms. Tariffs and quotas are among the levers governments can activate to protect domestic firms from foreign competition.

The term trade deficit refers to

Higher levels of imports than exports. A trade deficit refers to a situation where a country imports more goods (in terms of dollar value) than it exports.

A __________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

Knowledge

One of the benefits of value-driven marketing is that attention to customer needs and wants will likely result in...

Long-term relationships. Value-driven marketing is likely to lead to loyal customers through the relationships that are formed.

What is the core aspect of marketing

Making product, place, promotion, and price decisions Marketers don't generally try to sell to everyone, and they don't necessarily strive to have the lowest price. Instead, they select customers they can successfully serve and design a marketing mix (product, place, promotion, and price) to meet those needs.

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

Tangibles The "tangibles" building block of service quality refers to the appearance of physical facilities, equipment, personnel, and communication materials.

A competitive advantage based on location is often sustainable because

it is not easily duplicated. If you have a wide variety of locations in prime areas, that's difficult (and often expensive) for a competitor to duplicate.

When Karen realized her dog had fleas, Karen was faced with

An unsatisfied need. Need recognition is the first step in the consumer buying process.

Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now in his seventies, he still has a "hands on" management style. His employees have learned that there isn't much point in making purchase recommendations for new equipment, because Bob is going to choose whatever he thinks is best regardless of their views. Robertico has a(n) __________ buying center culture.

Autocratic An autocratic buying center may have multiple participants, but one person makes the decision alone.

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness.

Brand extension If Jake gives the toothbrush the same brand name as his existing toothpaste, this is a brand extension, adding a new product line (toothbrushes) to his existing brand.

When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the

Buyer A straight rebuy occurs when the company is buying more of a product it has bought in the past. For this reason, only the buyer (who handles the paperwork) usually needs to be involved.

During which phase of the strategic marketing planning process are managers evaluated on their actions from a conscious marketing perspective?

Control During the control phase of the strategic marketing planning process, managers must be evaluated on their actions from a conscious marketing perspective.

What is a macroenviornment factor

Culture Corporate partners, competition, and company are all part of the immediate environment.

Customer retention programs are based on what concept?

Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis. Taking a lifetime value view of customer relationships demonstrates that profits through the entire relationship matter more than short-term profitability.

Marketers can take advantage of the variable nature of services by...

Customizing services to meet customers' needs exactly. Marketers can use the variable nature of services to their advantage. A micromarketing segmentation strategy can customize a service to meet customers' needs exactly.

Sales of electric components manufactured by Rick's company depend on sales of new cars. Rick's company faces __________ demand.

Derived Derived demand refers to the link between consumers' demand for a company's output and the company's purchase of necessary inputs. The car manufacturer's demand for electric components is derived from the demand for its cars.

What are product features that are important to buyers, and that buyers perceive to be different between brands?

Determinant attributes.

What term best describes the four Ps?

Marketing Mix The marketing mix—or the four Ps—consists of product, price, place, and promotion.

Private-label brands are developed and managed by

Retailers

Company sales invoices, census data, and trade association statistics are examples of

Secondary data

Consultative buying centers use one person to make a decision but solicit input from others before doing so.

True

In value-based marketing, the promotion element of the four Ps communicates the ________ to customers through a variety of media.

Value proposition The value proposition is the value of the firm's offering, as explained to the target market. Promotion is responsible for communicating this value proposition via a variety of media.

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.

Marketing involves...

Conducting exchanges, creating value, satisfying customer needs and wants, efforts by individuals and organizations. Production scheduling is the responsibility of manufacturing so not part of marketing

If a firm takes voluntary actions to address the ethical, social, and environmental impacts of its business operations, it is involved in

Corporate social responsibility.

With regard to the ethical decision-making metric, which of the following questions best represents the transparency test?

Could I give a clear explanation for the action I'm contemplating that would satisfy a fair moral judge?

Sometimes brand names become synonymous with a product itself. If that happens, the brand

Could lose its trademark status. Companies whose brand names become synonymous with the product—like Kleenex tissues

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time.

Inseparable Unlike products, services cannot be produced at one time and consumed later; the two happen at the same time. This is referred to as inseparability.

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

Intangibles

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 An internal locus of control refers to a situation where an individual feels that he or she has control over the outcome, which is Ryan's situation. Michael's response of "Whatever" suggests that he has an external locus of control, feeling that he has no control over the outcome and that therefore it doesn't matter what he does.

The difference between a firm's immediate marketing environment and its macroenvironment is that the macroenvironment...

Is external

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

Laggard Cell phones are almost fully diffused through U.S. consumer markets. Anyone who does not have at least a basic cell phone at this point would probably be considered a laggard, a member of the last group of adopters of new products.

H&R is a small, local heating and air conditioning business. The local 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 This is a market development strategy because the military is a new type of customer, but H&R's current offerings would be used.

Data about how, when, why, where, and what people buy refers to...

Marketing analytics Modern marketers rely on sophisticated data analytics to define and refine their approaches to their customers and their markets. Companies collect massive amounts of data about how, when, why, where, and what people buy, and then analyze those data to inform their choices.

An advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm

Meet inventory needs. Some of the other options address ways that technology can help firms communicate with consumers; however, the question asks about members of the supply chain using technology; inventory management is an example of how the supply chain can benefit from technology.

A(n) __________ situation in B2B marketing is similar to limited problem solving in the B2C process.

Modified rebuy Limited problem solving in the B2C process has elements in common with a modified rebuy situation in the B2B process. Both involve a limited search for information and evaluation of alternatives—not to the same degree as a new buy (or extended problem solving), but also not the straightforward, simple process of a straight rebuy (or habitual decision making).

Paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of marketing research primarily to

Monitor his competitors. Since Paul's service is informing him of quotes from managers of others in his industry, he is monitoring his competition.

The creation of CVS Health's mobile apps in connection with its onsite MinuteClinics is a response to a _________ trend that surrounds health and wellness concerns.

Social Health and wellness concerns have spurred a number of mobile apps, many of which help customers get or stay in shape by tracking exercise, calorie intake, and sleep cycles. CVS Health's apps help its consumers stay well.

In established businesses, a large proportion of B2B purchases fall into the __________ category.

Straight rebuy A straight rebuy occurs when the company is buying more of a product it has bought in the past. Businesses typically repurchase many products they have purchased in the past—supplies, raw materials, and parts, for example.

Some banks offer 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; however 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.

When referring to "exchange," marketers are focusing on

The trading of things of value. In terms of marketing, an exchange refers to each of the parties involved giving something and getting something in return.

Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes...

The value of their time and energy. Price is everything the buyer gives up—money, time, and/or energy—in exchange for the product.

Many product-dominant firms use quality service

To maintain a sustainable competitive advantage. Customer service can add value to almost any product or service offered to consumers.

Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products.

Trialability Trialability refers to a consumer's ability to try a new product before buying it. By making returns easy, consumers are able to try the shoes with the confidence that they can return them if they do not fit.

When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?

Unsought product An unsought product or service is a product consumers either do not normally think of buying or do not know about.

Not only does GIS technology help Starbucks determine the ideal locations for new stores, but it also can enable the company to decide...

Which kinds of stores to open. For example, many of the 1,500 planned new stores will feature drive-through windows; others will be smaller stores, strategically placed to provide the greatest customer convenience.

Which of the following is true with regard to mobile advertising?

Within just a couple of years, mobile advertising will be a bigger market than digital advertising. The signs of the growth of mobile advertising, at the expense of other digital forms such as desktops and laptops, have long been evident. But the speed with which this shift is occurring seemingly is taking many marketers by surprise, because it is virtually unprecedented.

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 noncompensatory decision rule. This is a noncompensatory decision rule because no trade-off is possible. No matter how inexpensive or powerful a computer may be, if it weighs more than five pounds, Jordana will not buy it.

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish

A sustainable competitive advantage. The patent protects the company's product from imitation, thus creating a competitive advantage that is sustainable through the life of the patent.

In the case of Band-Aid adhesive bandages, the brand name has

Become synonymous with the product itself. Brand names that become synonymous with the product must protect against the use of the brand name in a generic fashion, or they may lose their trademark on the name.

Alex decides to make a donation to the Autism Research Institute. Which component of Alex's attitude toward autism research does this represent?

Behavioral component An attitude consists of three components: cognitive, affective, and behavioral. In this case, Alex is demonstrating an attitude through his behavior by donating to the organization.

Marco tried a new fruit-flavored beverage and thought it was awful. He was especially disappointed because he had liked the dried fruit snacks marketed under the same brand name. Now he wasn't sure he even wanted to buy the snacks he had liked before. This highlights a problem in branding known as

Brand dilution. Weakening of the core brand due to extensive or inappropriate extensions.

A(n) __________ is a need or want strong enough to cause a person to seek satisfaction.

Motive

Effective promotion enhances a product or service's

Perceived value. Effective promotion communicates value by attempting to ensure that customers understand the value being offered.

Which element of the marketing mix is most relevant to the activity "delivering value"?

Place The marketing mix activities are promotion (communicating value), product (creating value), price (capturing value), and place (delivering value).

Many inventors struggle with the question, "I made it; now how do I get rid of it?" They have made the error of considering marketing as

An afterthought. Marketing should be considered at every step of the conception, design, and manufacturing of a new product, and not treated as an afterthought once the product exists.

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category.

Early adopter Not the very first buyers of a new product (those are the innovators) but who still buy very early in the product's life, are important to the diffusion of the products because they are often opinion leaders.

Formal performance evaluations of the vendor and the products sold generally occur in the B2C buying process.

False Formal performance evaluations of the vendor and the products sold generally do not occur in B2C buying situations as they do in the B2B setting.

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening.

Perishable Perishability refers to the fact that services cannot be produced in advance and stored until they are needed.

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 Jeff needs to decide if he will have a physical store (and if so, where), a website, and so on.

Which of the following details is(are) included in the order specification stage of the B2B buying process?

Prices and delivery dates In the order specification stage, the buyer places an order that includes a detailed description of the goods, prices, delivery dates, and in some cases, penalties for noncompliance.

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 Apple was creating a new product for its existing customers, which is a product development strategy.

Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life.

Purchase behaviors Consumers in a generational cohort—a group of people of the same generation—have similar purchase behaviors because they have shared experiences and are in the same stage of life.

Best example of an opportunity?

Recent consumer studies have indicated that Chinese consumers prefer American cars. An opportunity is an external positive event. Potential demand in China could be a positive thing for the company, and since it deals with Chinese consumers it is an external factor.

Marketing executives at Diet Pepsi want to analyze the number of Diet Coke customers who switch to its product when Diet Pepsi is offered at a deep discount. What data would likely show this information?

Secondary panel data Panel data are information collected from a group of consumers, organized into panels, over time. Data collected from panelists often include their records of what they have purchased (i.e., secondary data) as well as their responses to survey questions that the client gives to the panel firm to ask the panelists (i.e., primary data).