Marketing Chapter 2 test

If Canon Camera Company follows a high-price, high-margin strategy, what will competitors most likely do?

They will want to compete by undercutting Canon's price

Which of the following transportation modes is the backbone of the United States economy?

Trucks

Developing a stronger position within several segments creates more total sales than undifferentiated marketing across all segments.

True

Imaginative distribution systems can be used to gain a competitive advantage.

True

Secondary data consists of information ________.

that already exists somewhere and was collected for another purpose

_______________ is the most important consumer buying organization in society: the roles and influences of different members have been researched extensively.

Family

The real value of a company's marketing research and information system lies in the _______.

Generalize from the results

______________ are people within a reference group who exert influence others because of special skills, knowledge, personality, popularity, or other characteristics.

Opinion Leaders

Markeing LOGISTICS involves which of the following types of distribution?

Outbound, inbound, and reverse

The relationship between the consumer's expectations and the product's _______ determines whether the buyer is satisfied or dissatisfied with a purchase.

Perceived performance

Which type of product might require a more direct marketing channel to avoid delays to too much handling?

Perishable products

Jolene Enterprises mass-produces an all-purpose floor cleaner, mass-distributes it, and mass-promotes it. This firm uses _________ marketing.

Undifferentiated

Mass marketers, such as Target and Smith's Market Place Stores, often ignore market segment differences and target the WHOLE MARKET with one offer. What is their approach to segmenting?

Undifferentiated marketing

____________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.

Upstream from

Because business purchases are usually more complex than consumer purchases, business buyers tend to __________.

Use a more formalized buying process

_____________ use BUYERS' PERCEPTIONS of what a products is worth, not the seller's cost, as the key to pricing.

Value-based pricing

Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created ________ conflict.

Vertical

You have decided to use only CLOSE-ENDED questions on your survey. Which of the following questions would NOT be found on your survey?

What do you like about your teacher?

As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as _________ marketing?

Micro marketing

Marketing researchers usually draw conclusions about large groups of consumers by studying a small ________ of the total consumer population.

Sample

What is the LEAST urgent of the five levels of Maslow's Hierarchy of Needs?

Self-actualization

______ is the process by which people select, organize, and interpret information to form a meaning picture in their mind of the world around them.

Self-actualization

Facebook.com and Twitter.com is examples of ________.

Social Networks

An advantage of channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.

Specialized role

Which of the following is an example of a MANUFACTURER-SPONSORED RETAILER FRANCHISE system?

Starbucks operating within Target stores

The most routine activity a business buyers issues a purchase order for is a ___________.

Straight rebuy

A QUANTITY DISCOUNT is a price reduction to buyers who purchase __________.

Superior merchandise

When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________.

Target Marketing

What is the first step in the marketing research process?

defining the problem and research objectives

Which product(s) will most likely be intensively distributed?

Coca-Cola

Marketers must weigh carefully the costs of additional information against the _______ resulting from it.

Benefits

In general, a company should enter only segments in which it can ________ and _________.

Offer superior value, gain advantages over competitors

The stages where consumers learn about new products for the first time through their first purchase and rebuying of the product is called the __________.

Adoption Process

Although more price-conscious than other segments, _________ consumer tend to be strongly motivated by quality and selection. Brands are important. They enjoy shopping and are more fashion conscious that other ethic groups.

African-American

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using _____________ its main carrier.

Air

Demographic variables are frequently used in market segmentation because they ___________.

Are easy to measure

________, the most affluent U.S. demographic subculture, now have more than $450 billion in annual spending power.

Asian Americans

_______ are groups to which an individual wishes to belong, as when a teenage basketball player hopes to play someday for the Utah Jazz in the NBA.

Aspirational Groups

In choosing a transportation mode for a product, manufacturers must balance the considerations of speed, dependability, cost, and _______ to their customers.

Availability

The marketer wants to understand how the stimuli like product, price, place, and promotion are changed into responses inside the consumer's _________, which has two parts: the buyer's characteristics that influence how he or she perceives and reacts to the stimuli and the buyer's decision process itself.

Black Box

Marketers call the decision-making unit of a buying organization the _________.

Business Buyer

The majority of goods and services is American are sold to _____________.

Businesses

When a manufacturer offers a _________, customers buy products from manufacturers' dealers withing a specified time period and the MANUFACTURER SENDS THE CUSTOMER A CHECK.

Cash rebate

Consumer PERCEPTIONS of the product's value set the _________ for prices.

Ceiling

________ PRICING involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.

Cost-based

_______ is the most basic cause of the person's wants and behaviors

Culture

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is following _______.

Customer

In marketing research, the _______ phase is generally the most expensive and the most subject to error.

Data collection

Which of the following is the most logical reason for Procter & Gamble offering products that compete with one another on the same supermarket shelves?

Different people want different mixes of benefits from the products the buy.

When an effective marketing program can be designed for attracting and serving a chosen market segment, the segment is best described as _______________.

Differentiable

Neal's Juice Company has just created the "perfect" ad. It communicates the full mix of benefits upon the gran is differentiated and positioned. This FULL POSITIONING OF THE BRAND is called _________.

Differentiated Marketing

__________ involves charging a CONSTANT LOW PRICE with few or no temporary price discounts.

Everyday low pricing (EDLP)

Sometimes a producer chooses only one dealer in a territory to distribute its products or services. Generally, these dealers are given a right to __________ distribution.

Exclusive

In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

False

When shipping large amounts of bulk products such as forest products, coal, sand, or rock over large distances, a company should choose large trucks because of their low cost per ton shipped.

False

Focus group interviewing has become one of the major marketing research tools for getting insight into consumer thoughts and feelings. However, if the sample size is small, it may be difficult to ________.

Generalize from the results.

Consumers usually PERCEIVE HIGHER-PRICED PRODUCTS as ___________.

Having a higher quality

Which of the following should be the first step in designing a marketing channel?

Identifying what consumers want from the channel

Ford Motor Company emphasizes "Quality first-Ford tough" in its truck products. The company has developed a differentiation strategy based on _________.

Image

A conventional distribution channel consists of one or more ____________ producers, wholesalers, and retailers.

Independent

Neal's Gourmet Chocolates sells their products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) _________.

Indirect marketing channel

The consumer market is made up of which of the following?

Individuals who acquire goods or services for personal consumption.

If demand hardly changes with a small change in price, we say the demand is ___________.

Inelastic

When managers use small convenience samples such as asking customers what they think or inviting a small group out to lunch to get reactions, they are using _____.

Informal surveys.

Jeannine wants to buy a new coat. During the _________ stage of her purchase process she asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range.

Information Search

Wrigley's Chewing gum is stocked in many outlets in the same market or community, in fact, it is placed in as many outlets as possible. This is an example of ____________ distribution.

Intensive

Most producers today sell their goods to ____________.

Intermediaries

Your assistant wants to use secondary data exclusively for the current research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them?

It is generally more expensive to obtain than primary data.

It is most typical for producers who use CAPTIVE-PRODUCT PRICING to set the price of the main product _________ and set _________ on the supplies necessary to use the product.

Low; high markups

Which of the following is an example of horizontal channel conflict?

Managers of two separate Holiday Inns disagreeing over what constitutes poor service

What are the four steps, in order, to designing a customer-driven marketing strategy?

Market segmentation, targeting, differentiation, and positioning

When Pepsi came out with Pepsi Blue and PRICED IT AT HALF PRICE to attract buyers, Pepsi was using ________.

Market-penetration pricing

A company or store gains a(n) __________ by differentiating its products and delivering more value.

Positioning advantage

____________ is the amount of money charge for a product or service

Price

A firm is using ________ when it charges a HIGH, PREMIUM PRICE for a new product with the intention of reducing the price in the future.

Price skimming

The first step of the business buying process is ___________.

Problem Identification

What type of pricing is being used when a company TEMPORARILY PRICES its product BELOW THE SUGGESTED RETAIL PRICE or even below cost to create buying excitement and urgency?

Promotional pricing

With the use of _______ or "smart tag" technology, a company is able to know exactly where a product is located withing the supply chain.

RFID

____________ price are the price that a BUYER CARRIES IN HIS OR HER MIND and refers to when looking at a given product.

Reference

People change the goods and services they buy over time because of the two changing factors of _______________.

age and life-cycle stage