Marketing Exam 2 (Ch. 8,9,11,12,13)

Suppose that Coca-Cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). What type of segmentation does this represent?

Behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?

Benefit

What can be determined by looking at brand awareness, perceived value, brand associations, and brand loyalty?

Brand equity

Which branding strategy is popularly used with characters created in books and other media?

Brand licensing

Which of the following is a way by which risk can be diversified?

By creating a broader portfolio of products through innovation

In any given country, who is usually responsible for regulating currency exchange?

A designated agency, such as the central bank

Which type of firm is most likely to engage in a licensing approach to R&D?

A firm with a low budget and a need to get a product to market quickly

Some products, such as appliances, stay in the maturity stage for a long time and are unlikely to decline unless what occurs?

A superior solution replaces them.

Which of the following is an example of a brand extension?

Acme chips and Acme dips

When Ben & Jerry's Ice Cream tests all of its new flavors on its own employees at its corporate headquarters in Vermont, it is engaging in what kind of testing?

Alpha testing

For which of the following companies would demographic segmentation be the LEAST useful?

An athletic shoe manufacturer (Nike has very large consumer interest for sport and comfort)

Which of the following health products is the LEAST complex?

An over-the-counter pain reliever such as Tylenol or Advil

Why is service quality so important?

Because without it, companies won't have any customers

Some markets demand a higher frequency of new product releases than others. In which of the following markets do sales come from new products? (Choose every correct answer.)

Movies Books Video games

Some analysts have attributed the success and quick diffusion of the Apple iPod in part to the white earbuds. At the time, earbuds were not seen as often, and most headphones were black, not white. As knowledge of the iPod spread, the white earbuds could be seen even if the iPod itself was out of sight. This is an example of which of the factors that affect speed of diffusion?

Observability

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation?

Occasion

BLANK or breakthrough products are brand new products that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Pioneer

When can brand extensions increase overall sales for a firm?

When the original brand and the extension are complementary products (Frito-Lay chips and dip)

The use of the same brand name within the same product line is called a(n) Blank______.

line extension

A product mix typically consists of product Blank______ or groups of associated items.

lines

Whenever a product has a Blank______ level of complexity, it will consequently be Blank______ to try.

low; easy

Southwest Airlines promotes its Rapid Rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of Blank______ segmentation.

loyalty, behavioral

The majority of the brands marketed in the United States are Blank______ brands.

manufacturer

During the BLANK stage of the product life cycle, industry sales reach the peak, so firms try to rejuvenate their products by adding new features or repositioning them.

maturity

During the Blank______ stage firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them.

maturity

In the BLANK stage of the product life cycle, a firm may want to start looking for new market segments in order to find new opportunities.

maturity

Not every product follows the same life cycle curve; many products stay in the BLANK stage for a very long time, often for years, due to strategies like adding new features to established products.

maturity

Exporting happens when a firm produces a product in its domestic plants and then Blank______.

sells it in a foreign country

Depending on the country, joint ventures sometimes require ______ when entering a foreign market.

shared ownership

In a joint venture, a company Blank______.

shares the financial burden with a local partner in a foreign market

Which two of the following are franchises? (Choose every correct answer.)

-A Holiday Inn motel -A McDonald's restaurant

Which products commonly use brand licensing? (Choose every correct answer.)

-Video games -Apparel -Toys -Movies

Which targeting strategy is likely to be most costly for a firm?

Differentiated

True or False: New products must be targeted toward end consumers.

False

Hightower Industries wants to be a pioneering firm in the robotics and artificial intelligence industry. Which strategy is the company most likely to pursue?

Invest heavily in research and development

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

It is better than its substitutes.

______ are consumers who like to avoid changes and rely on traditional products until they are no longer available

Laggards

BLANK is when a company hires an outside firm to help accomplish a task.

Outsourcing

Payment forms associated with brand licensing

Payments based on the value of licensed merchandise sales Up-front, lump-sum licensing fees

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?

Perceptual map

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?

Test marketing

When firms develop a marketing mix as part of their global marketing strategy, what is their primary goal?

To sustain a competitive advantage over time

True or False: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.

True

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries?

Video games

The diffusion of innovation curve refers to the rate in which consumers Blank______ a given product or service.

adopt

Early BLANK are the category of consumers who begin to use a product or service immediately following innovators. (Remember to type only one word in the blank.)

adopters

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative BLANK within the diffusion process.

advantage

For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this example serves as a reminder to consider the Blank______ of your product and its intended target market.

compatibility

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with Blank______ products.

competing

"Pork. The Other White Meat." is an advertising campaign that promoted pork as a white-meat alternative to chicken or turkey. This is a positioning strategy that focuses on Blank______.

competition

Reaching rural populations using long supply chains in which goods pass through many hands adds to the products' Blank______.

costs

Sometimes, firms have difficulty moving through the brainstorming process themselves. When this occurs, they can hire outside firms such as IDEO, which help to create an environment that is conducive to Blank______.

creativity

On a perceptual map, marketers can represent the size of both BLANK and potential markets by using different sized ovals that correspond to the market size.

current or existing

The theory that helps marketers understand the product or service adoption rates of consumers is called Blank______.

diffusion of innovation

Along the diffusion of innovation curve, Blank______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting.

early adopters

The BLANK BLANK of users representing approximately 34 percent of the population on the diffusion of innovation curve is crucial because few new products and services can be profitable until this large group buys them. (Enter one word in each blank.)

early majority

A country with a trade surplus Blank______.

exports more goods than it imports

Apple sells the majority of products under its Apple name brand. This is known as a(n) Blank______ brand.

family

When a firm sells all its products under one Blank______ such as Pepperidge Farm, the individual brands benefit from the overall brand awareness associated with it.

family brand

In terms of their place on the diffusion of innovation curve, innovators are the Blank______ category of consumers.

first

A trading bloc comprises countries that Blank______.

have signed a particular trade agreement

After product development, firms conduct premarket tests, which help determine Blank______.

how many customers will try and then continue to use it

Although there are numerous stages in the product development process, every firm starts to develop new products through Blank______ and then finishes with an evaluation of Blank______.

idea generation; results

BLANK generation refers to the first stage in the process by which firms develop a new product.

idea/concept

Transportation, distribution channels, communications, and commerce are the four key elements of a country's Blank______.

infrastructure

During the BLANK stage of the product life cycle, the product category first launches and innovators start buying products.

introduction

Products go through a number of stages in the product life cycle. The stage where a product begins the product life cycle is known as the stage.

introduction

When the BLANK majority of consumers enters the market, the market reaches its full market potential.

late

In the Blank______ user approach to customer input for developing new products, a company studies how innovative product users modify existing products for their needs.

lead

Exporting is an entry strategy that requires the Blank______ financial risk and allows a(n) Blank______ return to the firm.

least; limited

When entering their first foreign markets, firms typically take a(n) Blank______ approach.

less risky

Licensing is a trade-off in that it can save a firm from the high costs of in-house R&D, but instead the firm is counting on a solution (product) that already exists but has not been Blank______.

marketed

Firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language because Blank______.

marketers want to avoid potential embarrassment that language confusion can cause

Because each segmentation method has its unique advantages and disadvantages, most firms often employ Blank______ methods.

multiple

Manufacturer brands such as Nike and Coca-Cola are also known as Blank______ brands.

national

The marketing strategy a firm chooses when entering a new foreign market depends on the Blank______ of the target consumers.

needs

The cross-cultural value dimension that defines how willing society is to accept social inequality as natural is ______.

power distance

Value is a popular positioning method and is the most important consideration for consumers when they make a purchase decision based on:

price and quality.

A(n) BLANK is the first physical form or service description of a new product, still in rough form, that has the same properties as the product.

prototype

Daniel joins a kayaking club. He purchases the necessary equipment, searches online for kayaking videos, and researches local rivers and lakes. He begins to see banner ads for companies that sell kayaking and other outdoor gear. This is an example of ______ segmentation based on his lifestyle.

psychographic

A product's exterior wrapper or exterior carton that contains additional product information is known as the Blank______ package.

secondary

After evaluating each market segment's attractiveness, the next step in the STP process is Blank______.

selecting a target market

Which of the following are key elements of a value proposition statement? (Choose every correct answer.)

-Product name/brand -Unique differences/benefits - Target market

Which of the following are current population trends that affect marketing strategy? (Choose every correct answer.)

-Rapid population growth in less developed countries -Stagnant or declining population in developed countries

What options does a firm have if customers express little need or desire for the firm's value proposition? (Choose every correct answer.)

-Removing unappealing benefits from the product -Educating customers about the benefits of its product or service

What are the two basic types of brand ownership strategies?

-Retailer/store brands -Manufacturer brands

Laggards make up roughly Blank______ of the market.

16%

Issue 1: The employees don't seem to have enough information to make informed decisions when responding to customer complaints. They usually have to get the manager involved or it results in a negative situation. What gap would this be considered?

Design and Standards Gap

What are four gaps that hotels should consider when putting on their customer hat to evaluate service quality?

Design and Standards Gap Knowledge Gap Communication Gap Delivery Gap

Match the terms related to brand ownership (on the left) with their definitions (on the right).

Manufacturer's Brand - Also known as national brands, have famous manufacturers such as: Coca-Cola and Nike Retailer/Store Brand - Also known as private-label brands, sold exclusively by the retailer

Which of the following factors will most significantly influence the price of a product on the global marketplace?

The local pricing structures of individual markets

When consumers experience brand loyalty, which feeling do they associate with the brand?

Trust

Marketers sometimes take into account that as people age, their needs change. This is an example of Blank______ segmentation.

demographic

Grouping a market by country, region (northeast, southeast), or areas within a region is known as BLANK segmentation.

geographic

After a firm identifies its positioning within a market, it must decide how to Blank______ its marketing strategies using the marketing mix.

implement

A trade deficit means that a country Blank______.

imports more goods than it exports

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to:

improve business relationships.

A firm's product line depth is the number of Blank______ within a product line, as opposed to the number of product lines a firm has.

items

Ellie's Deli offers good sandwiches and fast service to its lunchtime customers from a nearby university. It also delivers the same sandwiches packaged with side dishes as part of its catering services. This is an example of Blank______ segmentation.

occasion

The overriding desires that drive how a person lives his or her life are ______.

self-values

True or false: To do business in less developed nations, firms often adjust products or prices to make their offerings more affordable.

true

The assumptions shared by a group of people regarding the world and the people in it are an example of the Blank______ of a culture.

underlying values

Which of the following are roles played by packaging?

-Adjusting product sizes for different markets -Differentiating a product from competitors -Promoting product features or changes

What are factors that are currently NEGATIVELY affecting the Russian economy? (Choose every correct answer.)

-An aging population and low birthrate that are leading to a shrinking population -International sanctions on Russia in response to its interference in foreign democratic elections -Widespread corruption that creates ethical dilemmas for foreign companies that might otherwise want to operate in the country

When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.)

-Benefits -Lifestyles

What might a concept include along with a brief written description of the product? (Choose every correct answer.)

-Customer needs it satisfies -Visual images

Which of the following is a firm with products in mature markets likely to do to seek new market segments?

-Entering new geographic markets -Reducing prices on older versions of a product

Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.)

-Establish strategy or objectives -Evaluating segment attractiveness -Selecting target market

How does a brainstorming session operate? (Choose every correct answer.)

-Participants vote on the best ideas. -No idea can be approved immediately. -Group cooperation is encouraged.

Which of the following factors help to increase a brand's equity?

-Perceived value -Customer loyalty -Brand awareness

Which of the following industries are most likely to participate in a research consortium? (Choose every correct answer.)

-Pharmaceuticals -High-tech

True or False: Targeting the wrong segment and poor positioning are contributing factors to the high rate of failure for new products.

True

A contractual arrangement between firms where one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee is called Blank______

brand licensing

The strategy in which marketers change a brand's focus to target new markets, or realign the brand with changing market preferences, is known as Blank______.

brand repositioning

The practice of marketing two or more brands together on the same package or promotion is known as Blank______.

co-branding

Trialability and BLANK refer to how complicated a product is and how easy or hard it is to try.

complexity

As industry sales increase, profits in the growth stage will Blank______ because of the economies of scale associated with manufacturing and marketing costs.

rise

Emerging new trends or changes in consumer tastes can fragment Blank______ markets, which would open new market opportunities.

saturated

Firms position their products based on methods such as Blank______.

the value proposition, salient attributes, symbols, and competition

If a firm positions its product too closely to the competition, it risks Blank______.

trademark infringement lawsuits

Brands are typically legally protected through Blank______.

trademarks and copyrights

Which of the following are some details used to evaluate the general economic environment? (Choose every correct answer.)

-The GDP -The trade deficit or surplus

Which government agency is responsible for enforcing product labeling laws in the United States for consumer products?

Food and Drug Administration

What does a brand need in order to be somewhat protected from competition from other firms and price competition? (Choose every correct answer.)

-An established track record in the market -A loyal customer base

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.)

-To satisfy the changing needs of consumers -To keep customers from getting bored with existing products

Which of the following questions might a marketer ask to determine consumers' perceptions and evaluations of a product in relation to a competitor's product? (Choose every correct answer.)

-What products do you consider satisfying alternatives? -What might make you choose one brand over another? -How do you use our product?

A mobile phone manufacturer decides to eliminate its flip phone product line to focus on the more popular touchscreen products. What is this an example of?

Decreasing breadth

Why is defining the gaps your first priority?

Defining the gaps will allow the hotel to ensure it is delivering optimal service to it's customers

True or False: Marketers evaluate the attractiveness of a segment by considering whether the segment is powerful, vocal, visible, and influential.

False (they evaluate it on if its identifiable, substantial, reachable, responsive, and profitable)

What is a key characteristic of the maturity stage?

Firms defending market share

Which of the following traits are associated with the decline stage of the product life cycle? (Choose every correct answer.)

Product rejuvenation efforts have failed. The product exits the market.

A BLANK is something that a customer values and that can be bought or sold voluntarily.

Product, good, service

What are key characteristics of the introduction stage? (Choose every correct answer.)

Profits are low Start-up costs are high

In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its Blank______, whereas a follower firm will be more likely to Blank______ for ideas.

R&D department; scan the market

True or False: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.

True

If a company's products are too closely related, sales of one brand may BLANK , or take away sales from the other brand, with no net sales, profit, or market share increase.

cannibalize

Firms make adjustments in prices to meet the needs of a country. Such shifts are Blank______.

common for low-priced consumer goods

Because they include information such as ingredients, nutrition, and the product benefits to a consumer, labels can be considered Blank______ tools.

communication

By selecting only senior women golfers as its target and focusing all of its efforts on making products that fit these women's needs, a firm is using a(n) BLANK targeting marketing strategy.

concentrated

During intense competition, a firm needs Blank______ to defend its market share from competition.

constant innovation

Firms reward loyal customers through Blank______ programs.

customer relationship management

When a product goes into the BLANK stage of the product life cycle, the product eventually exits the market.

decline

Age, gender, and income are all examples of Blank______ segmentation variables.

demographic

In the timeline for a firm's global expansion, a firm conducts an internal assessment of its capabilities when Blank______.

it has concluded its assessment analysis of the most viable markets

New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely that the market will become Blank______.

saturated

What does a trade deficit signal to economic analysts?

Strong competition from foreign producers

Which of the following are components of the actual product? (Choose every correct answer.)

-Brand name -Features/design

Which of the following processes could be considered an acceptable method for generating ideas? (Choose every correct answer.)

-Communicating with a firm's R&D department -Brainstorming within the firm -Researching competitors' products and services -Conducting consumer research

A strong brand protects firms from which of the following? (Choose every correct answer.)

-New products offering similar features or benefits -An existing competitor lowering prices

Which traits are true of ALL products? (Choose every correct answer.)

-Offered through a marketing exchange -Something that a customer values

When assessing the attractiveness of a segment, marketing managers need to calculate the Blank______ of each segment, both current and future.

profitability

Hofstede's cultural dimensions concept explains that cultures differ on which of the following dimensions? (Choose every correct answer.)

-Power distance -Masculinity -Individualism

What are the three interrelated factors firms use to measure the success of a new product?

-Satisfaction of firm's financial requirements -The extent of customer acceptance -Satisfaction of technical requirements such as performance

Which of the following are the three potential global product strategies? (Choose every correct answer.)

-Selling the same product or service in both the home and host country -Selling a product in the host country with minor adaptations from what is sold in the home country -Selling a completely new product in the host country

Consumer packaged goods companies sell products across many different product lines. These companies have significant Blank______ in their product mixes.

breadth

What is the term used when a company's products are so closely related that sales of one brand take away sales from the other brand?

cannibalization

Ford Motor Company owns Ford, Lincoln, Mercury, and Volvo automotive brands, each with vehicles appealing to market segments with different needs and lifestyle choices. Ford uses this variety of brands to pursue a(n) Blank______ targeting strategy.

differentiated

When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) Blank______ targeting strategy because there is little need to formulate different strategies for different groups.

undifferentiated

Even if a firm has developed a product that addresses the needs of a specific, substantial market segment, its efforts will fail if the segment is Blank______.

unreachable

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.)

-How valuable the product is to the consumer -How different the product is from other offerings in the market

Burger King launched the "Whopper Bar," serving beer as well as burgers in a test market in Miami. Which of the following would have been elements of a good plan for this test market? (Choose every correct answer.)

-Offering the complete menu planned for the full launch -Running the TV ads planned for the full launch

In the context of how firms develop new products, what is the next step if a firm has positive results from market testing?

Product launch

True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.

True

The Blank______ communicates the customer benefits to be received from a product or service—in other words, why a customer should purchase the product.

value proposition

A resort advertisement that contains images of groups of people having fun on the beach or lounging by the pool appeals to which component of psychographics?

Self-concept

What are the four aspects analysts examine to evaluate brand equity?

Perceived value Brand loyalty Brand associations Brand awareness

What is the most common method of introducing a product or service outside of the home country?

Selling the same product or service in the home country and host country

What must occur for the perceived value of a cheaper product to be high?

Consumers must believe the quality of the cheaper product is about the same as that of a premium product.

If the makers of a luxury good with high consumer acceptance extend their brand name to a line of less expensive products such as clothing featuring the brand logo, what is the most likely result?

The brand acceptance will carry over to the new product.

Sometimes, firms find it difficult to use demographics in their segmentation strategies. This is because in some cases demographics Blank______.

predict consumer wants and needs poorly

A(n) test is when a company shows potential customers a product or service before they actually bring it to market.

premarket

Marketing managers can choose between three possible global Blank______, which range from selling the same product to introducing an entirely new product.

product strategies

BLANK is the process by which ideas are transformed into new products and services that will help firms grow.

Innovation

Which of the following is NOT a market segmentation approach? (Benefit Behavioral Demographic Geographic)

Product

General Mills manufactures a wide variety of brands of breakfast cereals because it targets many consumer markets. Although it is likely to be more costly for the firm, a(n) Blank______ marketing strategy would help lower the company's overall level of risk.

differentiated

It is important to find a hotel that has a five-star rating to base the training off of. What aspect of service quality would this be considered?

The objective measure of goodness

A BLANK is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

People prefer that the BLANK package on their products is convenient in terms of storage, use, and consumption.

primary

Another name for a store brand is a(n) Blank______ brand

private-label

Loyal customers buy a substantial amount from the firm. These loyal customers are the most Blank______ in the long term to the firm.

profitable

For most products, the label is used for Blank______.

promotion and branding

While some segmentation methods rely on external descriptions and factors to break down the market, Blank______ segmentation relies on consumers' descriptions of themselves.

psychographic

All of the following are potential negative aspects of tariffs and quotas for a foreign firm entering the host market EXCEPT Blank______.

reduction of domestic competition

A brand, such as T-Mobile, can build awareness through Blank______ exposure to the brand's logo, symbols, and slogans.

repeated

Goods and services that serve the same needs and wants on a global scale often Blank______.

require little or no adaptation in form or message

Customers in the segment must react similarly and positively to the firm's offering. This quality is known as Blank______ which is an important element of successful segmentation.

responsiveness

BLANK engineering refers to taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents (if any exist).

reverse

Direct investment is the Blank______ type of global entry strategy.

riskiest

The Blank______ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).

segmentation

Which of the following factors are contributing to the growth of India's economy? (Choose every correct answer.)

-A young, well-educated population -A highly skilled workforce

Which of the following are advantages to firms of owning their own brands? (Choose every correct answer.)

-Ability to create brand equity -Choice of market segments and positioning -Control over marketing strategy

How have joint venture regulations changed in India, encouraging more foreign investment?

Foreign retailers are now allowed to own more than 50 percent of joint ventures.

Which of the following are factors that have contributed to Brazil's economic growth in the 21st century? (Choose every correct answer.)

-An increase in the literate population -Social programs that have expanded the middle class

While pioneers capture an early and commanding market share, imitators often enter the market and gain which advantages? (Choose every correct answer.)

-Capitalizing on the pioneer brand's weaknesses -Offering better products at lower prices -Focusing marketing efforts on demand for their brand

Firms risk a significant amount of money when repositioning their products. Which of the following are expenses associated with repositioning? (Choose every correct answer.)

-Changing packaging -Changing brand image through promotion

When products reach the growth stage of the product life cycle, firms typically attempt to reach new customers by adjusting which product aspects? (Choose every correct answer.)

-Colors -Styles -Features

Which of the following are potential impacts to the company when a new product launch is a failure? (Choose every correct answer.)

-Company may fail -Negative financial impacts -Product may not recover from failure

Which of the following statements are true concerning micromarketing? (Choose every correct answer.)

-It is considered an extreme form of segmentation. -It is also known as one-to-one marketing. -It involves customizing a product or service.

Why do many firms choose the direct investment strategy when entering foreign markets? (Choose every correct answer.)

-It offers complete control over operations. -Potential profits are not shared with other firms.

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.)

-Its mission and objectives -Its current situation

What are some advantages experienced by pioneer firms over later entrants? (Choose every correct answer.)

-More readily recognizable to consumers -Establish an early market share lead -More likely to command a greater market share over a longer period

How has technology influenced beta testing in recent years? (Choose every correct answer.)

-Ordinary people have the opportunity to be beta testers. -The process is more highly automated than in the past. -Participant reactions can be tracked through a webcam.

Which of the following traits are associated with the innovators consumer group? (Choose every correct answer.)

-Risk takers -Highly knowledgeable (about the product/service)

Labels must comply with laws and regulations and must include which of the following? (Choose every correct answer.)

-Safety precautions -Ingredients contained in the product

Firms position products based on which of the following? (Choose every correct answer.)

-Salient attributes -Symbols -Value

Firms solicit customer input through which methods? (Choose every correct answer.)

-Surveys -Informal discussions -Focus groups

Without innovation, what options would be available to firms? (Choose every correct answer.)

-Take current products to new markets -Continue to market current products to current customers

Which of the following have a direct impact on pricing in the global marketplace? (Choose every correct answer.)

-Tariffs and antidumping laws -National rules governing the competitive marketplace

Early adopters, although not as fast as innovators, are quick to purchase a new product or service. Which of the following characteristics are typically associated with early adopters? (Choose every correct answer.)

-Tend to be opinion leaders of particular product categories -Are less risk seeking than innovators

When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos brand (under which it sells taco chips). What advantages did this strategy provide Frito-Lay? (Choose every correct answer.)

-The Tostitos brand already had brand associations that helped to sell salsa. -Frito-Lay could introduce the product to the market more quickly. -Frito-Lay could spend less on developing consumer brand awareness.

Which of the following statements about the Russian economy are true? (Choose every correct answer.)

-The country's prospects as a consumer market are overall promising. -A growing well-educated middle-class has a strong demand for products. -The economy has repeatedly risen and fallen since the fall of the Soviet Union.

What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.)

-The opportunity to augment existing products or services -The opportunity to create new products or services

What can marketers learn from the diffusion of innovation theory? (Choose every correct answer.)

-The rate at which consumers are likely to adopt a new product or service -Which markets are likely to be most receptive to new products or services

Which if the following are traits of breakthrough products? (Choose every correct answer.)

-They can change the rules of competition. -They are referred to as pioneers. -They can alter consumer preferences.

How do brands improve consumers' shopping experience? (Choose every correct answer.)

-They make it easier to decide which products to buy. -They help shoppers distinguish between similar products. -They indicate a certain level of quality.

Direct investment requires a firm to maintain Blank______ ownership of its facilities, offices, and plants in a foreign country.

100 percent

The early majority represents approximately Blank______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the product or service will typically fail.

34%

While late to the party, the late majority category of consumers is still significant, making up roughly Blank______ of the total consumer market.

34%

Product development entails a variety of processes and considerations to determine which aspects of a product or service?

Form and features

Which of the following is an example of product line extension?

Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke.

Issue 3: The advertisements for the Evergreen Hotel focus on "spectacular views from every room." The problem is that this isn't always the case. There are ten rooms out of 340 that don't have a mountain view. It seems small, but the ten guests that get these rooms account for a large percentage of the negative reviews posted online. What gap would this be considered?

Communications Gap

Why was compensation important, in this case (Ch.13 Chase/Hotel)

Compensation is an investment in loyalty

Why are successful brands unable to realize enduring success in meeting consumer demands?

Competitors will encroach on the firm's value proposition by copying important product or service attributes.

What are the steps taken by firms that have products in the decline stage of the product life cycle? (Choose every correct answer.)

Completely exit market Target a niche segment

What are products that household buyers use for their own use called?

Consumer products

What makes the search for shopping goods different from the search for specialty goods?

Consumers are willing to consider alternative brands and features with shopping goods.

For concept testing a new fitness tracking device, a firm would present a concept statement to which group?

Consumers who jog or go to the gym

Which situation constitutes a competitor's value proposition?

Customer needs are met by the competitor but not by the focal firm.

Typically, who determines the product's or service's value in relationship to that of its close competitors?

Customers

Issue 4: Many of the reviews you found online from the past two months have been guests posting photos of bad housekeeping practices: dirty drinking glasses by the sink, the carpet not being swept during their stay, etc. Many reviews reflected having to ask housekeeping multiple times for items, such as extra towels and coffee for the room, and some requests never getting fulfilled. What gap would this be considered?

Delivery Gap

What is the first step marketers take in deriving a perceptual map?

Determining consumers' perceptions of the product in relation to competitors' products

Which of the following is NOT a targeting strategy?

Diffused

of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. (Enter one word in each blank.)

Diffusion

The risks associated with brand licensing include which of the following?

Diluting brand equity

Joanna is interested in new electronics products, but she prefers to wait a few weeks to buy them until technology bloggers post their initial opinions. Joanna probably belongs to which of the adopter groups?

Early adopters

What is a major benefit of selling the exact same product or service in both the home and host countries?

Establishing strong brand recognition

Which of the following is the measure of how much one currency is worth in relation to another?

Exchange rate

Which method of global expansion poses the least amount of risk?

Exporting goods to other countries

True or False: Prototypes are never crafted individually.

False

Sequential steps are involved in a new product launch. Drag and drop the steps against the corresponding task.

Firm confirms its target market - First Step Firm decides how the product will be positioned - Second Step Firm finalizes the remaining marketing mix variables for the new product - Third Step

In addition to consumers, innovators may also come from which group?

Firms

Which of the following statements about firms' expectations regarding the success of internal research and development efforts is true?

Firms expect that a few highly successful products will cover the costs of the entire R&D effort.

What happens during an industry shakeout in the growth stage of the product life cycle?

Firms that have not established a strong hold in the market decide to exit.

Which of the following is the best example of a convenience product/service?

Gasoline, bread, sugar

What is a major economic factor that a firm conducting an economic analysis of a country market must take into account?

General economic environment

What is the process that causes an increased flow of goods, services, capital, people, information, and ideas across national borders?

Globalization

Which term refers to a strategy in which firms sell a standardized product around the world but develop different promotional campaigns for different countries?

Glocalization

Which of the following metrics measures a country's economic output?

Gross domestic product (GDP)

Identify one of the disadvantages of being the first mover.

Having to establish the market all alone

Listening to customer input helps firms with which tasks?

Idea generation and product development

When creating a perceptual map, what should a firm do after it understands how customers view its brand relative to competitors'?

Identify competitors' positions

According to the diffusion of innovation curve, when would marketers expect to see the highest frequency of purchases for a given product or service?

In the middle of the curve (Diffusion of Innovation Curve)

Which of the following is defined as the basic facilities, services, and installations needed for a community or society to function?

Infrastructure

BLANK are those buyers who want to be the first on the block to have a new product or service.

Innovators

For the first few releases of new iPhone models, lines formed outside Apple stores, sometimes days in advance. The people in these lines hoped to be the first to obtain the latest phone. Most of the people in this line probably belonged to which of the adopter groups for new technology?

Innovators

What influence has the Internet had on the recruitment of beta testers?

It is easier to recruit testers than before.

What will happen to a firm if it continues to produce the same products in a saturated market?

It will eventually decline.

Some brands become so predominant in a particular product market that they become synonymous with the product itself over time. Which of the following brands is an example of this situation?

Kleenex

Issue 2: The hotel currently doesn't collect feedback. If customers do an online search of the Evergreen Hotel right now, they will likely see some negative reviews people have posted that don't go directly to the hotel email. There are no positive reviews to be found. Customers with average or positive experiences aren't taking the time to create an online review. What gap would this be considered?

Knowledge Gap

______ are innovative consumers who modify existing products according to their own ideas to suit their specific needs.

Lead users

BLANK is an agreement through which one firm buys the rights to use the technology or ideas of another research-intensive firm.

Licensing

Which of the following is a negative consequence that can occur as a result of a brand becoming synonymous with an entire category of products (such as Kleenex or Band-Aid)?

Loss of trademark status

______ is the process of creating a clear, distinctive, and desirable understanding of the product in the consumer's mind relative to competing products.

Market positioning

Product development or product design entails a process of balancing which types of considerations? (Choose every correct answer.)

Marketing Engineering Manufacturing

Which aspect of the STP process involves adjusting the marketing mix to give consumers a clear picture of what a product does in comparison to competing products?

Positioning

A luxury car company that markets its products to consumers who have a strong need to project an image of power and success uses which method of market segmentation?

Psychographic

The Big Mac Index, which uses exchange rates to compare the cost of a Big Mac hamburger in U.S. dollars in countries around the world, is a method of evaluating which economic metric?

Purchasing power parity (PPP)

Which of the following refers to the minimum or maximum quantity of a good that may be imported during a specified time period?

Quota

A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following?

Research consortium

In which of the following locations are product costs likely to be highest?

Rural areas in less developed countries

What are the key characteristics of the growth stage of the product life cycle? (Choose every correct answer.)

Sales rise Competitors increase

The maker of a line of protein shakes knows that its target market places a high value on the use of natural products, so the company's positioning strategy focuses on its use of organic, locally sourced ingredients. Which positioning method is the company using?

Salient attributes

______ is the image people ideally have of themselves.

Self-concept

Chase's interaction with the customer would be considered what?

Service recovery

What is the first step toward improving staff training?

Set up training scenarios

products/services are typically consumer durables, such as a dryer or a refrigerator. Buyers spend a fair amount of effort and time to make the comparisons before purchasing and usually do not know which one or which brand they will buy in advance of the process. (Remember to type only one word per blank.)

Shopping

As a consumer, being an innovator in a given product category can mean engaging in a number of behaviors. Which behavior would best illustrate an innovator?

Sleeping outside Best Buy for the latest game console

Match the type of good (specialty or shopping) with the appropriate description.

Specialty Good - Consumer spends lots of time and effort involved in searching, may compare alternatives and options, and consumer has a good idea of the brand he or she will buy in advance Shopping Good - Compares alternatives and consumer spends moderate amounts of time and effort deciding among products, features, and brands

Which of the following is a market entry strategy in which independent companies form a partnership to collaborate in the foreign market but do NOT invest in each other?

Strategic alliance

Which of the following describes the core customer value of a product?

The basic benefits consumers are seeking

Which of the following refers to the basic problem-solving benefits that consumers seek in a product?

The core customer value

What is the most likely result of a co-branding effort between two brands that have completely different customers?

The entire effort will fail for both brands.

Through the effective use of concept testing, firms may be able to avoid which issue?

The high costs of unnecessary product development

Which of the following is a possible advantage for a firm that chooses to use brainstorming for its new products as opposed to other idea generation methods?

The ideas that receive the most votes go to the next stage.

How does brand licensing work?

The licensee pays a royalty to the licensor in exchange for being able to use the licensor's brand.

Manufacturer brands such as Kraft and Nike are owned and managed by whom?

The manufacturer

______ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.

The product life cycle

What does the size of a numbered circle on a perceptual map indicate?

The size of the target market

Why are psychographic market segments considered "self-selecting" groups?

They are grouped together based on factors that they choose rather than those they cannot control.

Which of the following statements about metrics is true?

They provide marketers with a good picture of the economic health of a country despite different stages of economic development.

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments?

To help understand the profile of each segment

True or False: Both firms AND consumers can be innovators.

True

True or False: Brands are sold either under a common/family name or as an individual brand.

True

True or False: During test marketing, a firm will introduce all the elements of the marketing mix to determine demand for the entire market.

True

True or False: Trademarks and copyrights are legal ways to protect brands from being used by others.

True

What is one of the two levels on which cultures exist?

Underlying values, such as beliefs and thoughts

How do marketers begin the process of developing or changing a product?

Using the core customer value to determine customer interests

Based on the Circles for a Successful Value Proposition framework, when should a firm reengineer its product to stop providing certain benefits?

When customers express little need or desire for the benefits in question

When should a firm attempt to match its competitor's value proposition?

When increasingly more customers demand the competing product's benefits.

Co-branding can enhance consumer perceptions of product quality by linking Blank______.

a brand to an existing well-known quality brand

A franchise is a contractual agreement between Blank______.

a firm or individual and another firm or individual

The level of economic development, as well as differences in product and technical standards, help determine the need for and level of product Blank______ in a global product strategy.

adaptation

Elements in a global communication strategy usually need to be Blank______ to the local market to be effective.

adapted

Gross domestic product is defined as the total market value of Blank______ produced by a country in a year.

all goods and services

Using in-house BLANK testing, the company attempts to determine whether the product prototype will perform according to its design and whether it satisfies the need for which it was intended, by performing tests in the R&D department.

alpha

Firms need to continue to innovate because customer needs Blank______.

are constantly changing

The mental link customers make between a brand and its key product attributes is known as brand Blank______.

association

One consumer research exercise asks consumers to say the first things that occur to them when they hear a brand name. For example, for the brand "Coca-Cola," someone might respond, "Red and white cans, sweet, carbonated." These are examples of brand Blank______

associations

The third step of the market segmentation process is to evaluate segment BLANK, which is based on such criteria as its profitability, responsiveness, and reachability.

attractiveness

Marketers can assess the level of brand Blank______ by measuring the extent to which consumers in a market are familiar with a brand, know what it stands for, and have an opinion about it.

awareness

Strong brand acceptance for Reese's peanut butter candies among consumers would probably Blank______ Reese's Peanut Butter when competing with Jif and Skippy.

be transferred to

Products that generate enough revenue to cover the losses from other unsuccessful introductions are known as Blank______.

blockbusters

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by a product or service is BLANK equity.

brand

When a brand extension adversely affects consumer perceptions about the core brand, it is known as Blank______.

brand dilution

Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to Blank______.

build brand awareness

A newly formed coffee company should not have much trouble finding coffee drinkers in America to purchase a new type of coffee maker. However, a company selling gear for the game of cricket might have a difficult time being successful in the United States. They would probably be more successful in India or Australia. The degree to which one's product is consistent with the needs and habits of target consumers is known as Blank______.

compatibility

Brand extensions for Blank______ products, such as the Barbie car sold to be used with a Barbie doll, can increase sales.

complementary

The number of products within a product line is a firm's product line Blank______.

depth

Psychographics is a segmentation method that delves into how consumers actually Blank______ themselves.

describe

Global marketing strategies includes two elements: identification of the target markets and Blank______.

developing a competitive marketing mix

Branding provides a way for a firm to Blank______ its product offerings from those of its competitors.

differentiate

Firms using a(n) BLANK targeting strategy direct their efforts to several market segments with distinct brands and product offerings for each segment.

differentiated

The process by which the use of an innovation, whether it be a product or service, is spread throughout a market group over time and over various categories of adopters, is known as Blank______.

diffusion of innovation

Retailers may devise a creative solution for getting their product to hard-to-reach consumers. The development of this type of solution is part of the firm's Blank____

distribution strategy

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk Blank______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

The most common method of evaluating the economic health of a country is to use metrics that measure the country's Blank______.

economic output

During concept testing it is important to present a brief written description to ______ to obtain their reactions to the idea(s) presented.

engineers within the firms

A joint venture is formed when a firm Blank______ a new market and Blank______ its resources with those of a local firm to form a new, shared company.

enters; pools

Apple created an entirely new brand that started with the iPod and evolved into different product categories (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the Blank______, which made the firm easily recognizable to consumers, helping it to gain an early market share lead.

first mover

Franchising is a contractual agreement between a firm or individual, the franchisor, and another firm or individual, known as the Blank______.

franchisee

Segmentation that uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood is called Blank______ segmentation.

geodemographic

McDonald's promotes coffee in cold, rainy Seattle and seasonal seafood meals, including lobster and crab, in select markets like New England. This is an example of Blank______ segmentation.

geographic

A strategic alliance is a type of Blank______ firms use to expand into the foreign market.

global entry strategy

In the twenty-first century, goods, services, capital, people, information, and ideas often flow across international borders in a process known as BLANK. (Remember to type only one word in the blank.)

globalization

When a firm decides to standardize its products globally but use different promotional campaigns, this strategy is referred to as ______. (Please read the question carefully!)

glocalization

During the Blank______ stage of the product life cycle, firms attempt to reach new consumers by studying their preferences and producing many different product variations.

growth

In the BLANK stage of the product life cycle, the product gains acceptance, demand and sales increase, and there are more competitors.

growth

Usually, during the BLANK stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.

growth

A point where a market segment's desired product would be located on a perceptual map is called a(n) BLANK point. (Remember to type only one word per blank.)

ideal

Global distribution networks form complex value chains that ultimately Blank______ the final selling price of a product.

increase

Estee Lauder has a brand portfolio with more than 25 brands in over 150 companies. Having a variety of brands allows Estee Lauder to Blank______.

increase the market for its products

Firms add items to their product lines to address changing consumer preferences. For example, an ice cream company might add low-fat offerings to its existing ice cream flavors. This is an example of Blank______.

increasing depth

Purchasing a coffee from a coffee shop, for example, is a Blank______ purchase decision than purchasing a cell phone from a large retail store.

less complex

In a Blank______ agreement companies buy the rights to use technologies from another company.

licensing

The product Blank______ is the complete set of all products and services offered by a firm.

mix

Gross national income consists of GDP plus Blank______, without including any payments made to those who do not live in the country but who contribute to the domestic economy.

net income earned from investments abroad

When a product such as a "nick-free" razor blade is launched, it may diffuse more slowly than a product like the Apple iPad, which is easily seen and whose benefits or uses are easily communicated to others. This comparison exemplifies a difference in Blank______ one of the product characteristics that affect the speed of diffusion.

observability

In a franchising agreement, the franchisor Blank______.

owns the overarching firm

The element of a product that is used both to physically protect and to market the item is the Blank______.

packaging

Firms measure the success of a new product by its technical Blank______, customer acceptance and its satisfaction of the firm's financial requirements.

performance

A well-known symbol can be used as a Blank______ tool, distinguishing the brand from its competition.

positioning

Geico Insurance uses characters like the gecko and humorous associations with Blank______ emotions to reinforce the brand.

positive

In order to accurately evaluate the new product launch, marketers must undertake a critical Blank______ review to determine whether the product and its launch were a success or failure.

postlaunch

The components of a country market assessment include all of the following EXCEPT Blank______.

pricing and product decisions

Jack and his wife were in need of a new a mattress. They compared mattresses at a few local stores, learning about different brands, before making a purchase. In Jack's case, a mattress is most likely a(n) Blank______ product.

shopping

Direct investment exposes a firm to Blank______ risk.

significant

Individuals in different segments should have Blank______ within the segment and Blank______ across the segments.

similarities; differences

Recognizing that many people attend sporting events to meet their need for camaraderie and belonging, a minor-league baseball team promotes its season ticket packages by highlighting the sense of community among season ticket holders. In this case, the team is using psychographic segmentation based on Blank______.

slef-values

Debbie is considering having Botox treatments and knows it is a very serious process. On the advice of three of her friends who have each visited Dr. Parsons several times in the past two years for Botox treatments, Debbie makes an appointment with Parsons. She considers the selection to be a(n) Blank______ good/service.

specialty

In the future, marketers might become less interested in the countries with the highest purchasing power today because of Blank______ growth and saturated markets.

stagnated

On the basis of the research gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the firm confirms its BLANK market and decides how the product will be positioned.

target

A(n) Blank______ is a tax levied on a good imported into a country.

tariff

A tariff is a Blank______ imposed on a product imported into a country.

tax

The four key elements of a country's infrastructure are Blank______.

transportation, distribution channels, communications, and commerce

True or false: A global marketing mix is more complicated than a domestic marketing mix.

true

Brand-loyal consumers provide an important source of Blank______ for firms.

value

When a product is first launched during the introduction stage, sales are usually Blank______ and there are Blank______ competitors.

very low; essentially no

Licensing is an effective way for a brand to improve its Blank______.

visibility

While new products can become huge success stories, they have a high failure rate. In many cases imitators capitalize on the Blank______ of pioneers and subsequently gain advantage in the market.

weaknesses

The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know Blank______.

which stage the product is in