Marketing Final Review (Exams 1-3)

According to the text, a market is defined as

a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

​IKEA, a Swedish retailer of contemporary furniture, operates several stores in various Scandinavian countries, as well as in the United States and Canada. Which of the following describes IKEA's level of commitment to international marketing?

​Direct ownership

A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines?

​Product, price, distribution, and promotion variables

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

​Promotion

During which stage of the business cycle is unemployment low and total income relatively high?

​Prosperity

Price discrimination is prohibited by the ____ Act

​Robinson-Patman

Which of the following statements about social responsibility is correct?

​Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

​a target market

The definition of marketing implies that ____ should receive benefits from exchange relationships.

​both customers and businesses

​A competitive advantage exists when a

​firm matches a core competency to opportunities it has discovered in the marketplace.

​An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about textbook shopping. This item would be an example of a(n) ____ question.

​open-ended

As digital communication technologies have advanced, it is possible for marketers to

​reach markets that were previously inaccessible.

The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a

​straight rebuy

More than half of the research of technology created is paid for by

​the federal government

A disadvantage of the concentrated targeting strategy is that​

​the firm's financial condition is tied to a single and specialized marketing mix.

A market opportunity results from

​the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

When Fiat offers to let qualified buyers test drive the Fiat Doblo Van, the dealer is trying to stimulate which stage of the product adoption process?

Trial

What is the primary distinction between a line extension and a product modification?

With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.

​If a marketing researcher is interested in observing group interaction during an informal, unstructured, and open-ended data collection process, he or she should use

a focus-group interview

In reporting marketing research findings, the researcher should

provide explanations in language that those who use the report to make decisions can understand

According to the marketing concept, an organization should try to

provide products that satisfy customers' needs and allow the organization to achieve its goals.

​Changes Salon is part of the hair and personal care service industry. In what type of competitive environment is Changes Salon most likely operating?

pure competition.

When the city of Chicago buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered​

​a government purchase

People's needs to grow, develop, and achieve their full potential are referred to by Maslow as ____ needs

self-actualization

Baskin Robbins is conducting research on possible new ice cream flavors and products. It is selecting at random 100 males and 100 females in order to collect data. This is an example of ____ sampling

stratified

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

strengths

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into

​social classes

​Stuart's little brother Kyle joined the boy scouts recently. Stuart notices that in addition to wearing the boy scout uniform, Kyle has been better about keeping his everyday clothes neat and clean, has been searching online for camping gear, and has become interested in "green" products. Stuart believes that the boy scouts are now a reference group for Kyle because he

has taken on many of the values, attitudes, or behaviors of group members.

​Due to consumer concerns over privacy, the ____ is considering regulations that would limit the amount of consumer information that marketers can gather online.

​Federal Trade Commission

The ability to obtain digital information is referred to as

​accessibility

​The types of prices that appear most often in ads are ___; while the types of prices that occur least often in ads are ____ prices.

​bargain; premium

Crest toothpaste is available in several different versions, such as Crest Whitening, Crest Tartar Control, Crest Whitening with mouthwash, and Crest Total Effects. Given these different variations of the product, it appears that the marketers of Crest are segmenting the market by using ____ segmentation.

​benefit

​If a brand is extended too many times, one major risk is that it can lead to _____.

​brand dilution

Healthy Choice is a ____ manufactured by ConAgra Foods, which is a ____.

​brand name; trade name

Barnes and Noble sells online through its website, while also selling through physical store locations. This type of retailing is referred to as

​brick-and-clicks

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.​

​business analysis

A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)

​component part.

​When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his ____ set.

​consideration

If Hyundai, a Korean automobile manufacturing firm, started selling its cars at unfairly low prices to Germany, Hyundai would be engaging in

​dumping

The United States' prohibition against importing cigars from Cuba is an example of a(n)

​embargo

​When ____ branding is used, each of a firm's products is branded with at least part of the same name.

​family

​If Tasmania levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Tasmania, its businesses and citizens would be paying a(n)

​import tariff

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ____ demand

​inelastic

A genuinely new product-like the iPhone once was-offers​

​innovative benefits to consumers.

Facilities, factories, and production lines with very large equipment are all classified as

​installations.

​If the terms of a business exchange are 2/10 net 30, this means that the transaction

​involves a cash discount if paid within ten days.

The test-marketing stage

​is a sample launching of the entire marketing mix.

​Marketers often provide consumers with free samples, sometimes coupled with coupons, to help them gain experience with their products and facilitate consumer

​learning

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

​line extensions

If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.​

​phase-out

Riley prefers to buy Pantene Shampoo for Colored Hair, however, if that is not in stock, she will buy L'Oreal or Garnier Fructis. Riley's level of brand loyalty can be described as ___.

​preference

​Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ____ markets

​producer

​Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

​product use

The most important function of packaging is

​protecting the product and maintaining its functionality.

​Marketers generally view ____ as the minimum price a product can be sold for.

costs

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.

institutional

Jack has just joined a law firm as its purchasing agent for all supplies, equipment, and service contracts. In his previous position at another company, Jack could make decisions for any purchase up to $1 million; however, at the new law firm, he can only make decisions for purchases less than $500,000. Recently, Jack has been working with a sales representative from a computer software firm about a contract for new program to process the firm's billing statements. Jack signs the contract, even though it is for $950,000. In this case, Jack ___ part of the market for the software because _____.

is not; he does not have the authority to purchase

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

licensing

​Dropping an unprofitable product immediately is the best strategy when

losses are too great to prolong the product's life.

The major characteristic of a private brand is that

manufacturers are not identified on the product.

The process of putting marketing strategies into action is called

marketing implementation

CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the

marketing plan

A study that is valid and reliable

measures what it is supposed to measure and produces almost identical results in repeated trials.

An organization's business goals should be derived from its

mission statement.

Cameras, counting machines, and scanners are used most often in

observation

​According to your text, ____ are small technology-based firms operating in international markets almost immediately after their establishment and realizing as much as 70 percent of their sales outside the domestic home market.

"born globals"

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

1,167

​____ are web-based journals in which writers can editorialize and interact with other Internet users.

Blogs

Which of the following issues is an ethical issue in marketing research?

Confidentiality issues in marketing research

​____ involves the use of digital networks to provide linkages between information providers and users.

Connectivity

​____ refers to customers' ability to regulate the information they view and the rate and sequence of their exposure to that information.

Control

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using?

Demographic

Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.

Disposable income; discretionary income

Of all the federal regulatory units, the ____ most heavily influences marketing activities

Federal Trade Commission (FTC)

​____ that are either accepted or rejected become the primary conclusions of a marketing research study.

Hypotheses

What type of competitive structure exists when a firm produces a product that has no close substitutes?

Monopoly

The agreement between the United States, Canada, and Mexico that merges these three countries into one marketplace is called

NAFTA

​Which of the following is most likely to have an inelastic demand curve?

Nonelective surgery

U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales representatives. This company is operating as if it were in which of the following orientations?

Sales

​A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury will most likelyuse which buying method?

Sampling

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?​

Screening

​Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

Shopping

What is the major difference between social responsibility and marketing ethics?

Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Trade

​According to the text, marketing ethics refers to principles and standards that define

acceptable conduct in marketing

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be

an unsought good

The three major types of reference groups are:

aspirational, disassociative, and membership

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

attempt to make large payments or bribes to influence policy decisions of foreign governments

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on​

behavioristic variables

Products are classified as being business or consumer products according to the

buyer's intended use of the product.

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as

cause-related marketing

The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to

choose, and the right to be informed

When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called

closure

After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing

cognitive dissonance

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process.​

concept testing

Milton Bradley/Parker Brothers are producers of many board games, such as Monopoly, Battleship, Yahtzed, and Clue. The company has posted online cash rewards for consumer reviews of their games. In doing so, Milton Bradley/Parker Brothers is striving to utilize

consumer-generated marketing.

Compared with the SIC system, the North American Industry Classification System (NAICS) will

contain the most up-to-date information for the NAFTA partners.

Marketing is the process of

creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through

customer services

Cover Girl believes that sales of one of its lipstick lines have fallen due to the introduction of a new color palette. However, in order to best determine the impact of the color palette, Cover Girl should conduct _____ before proceeding with this tentative hypothesis.

exploratory research.

The extent of Raytheon's participation in global business is selling the batteries it manufactures to companies in Spain. In this case, Raytheon is a(n)

exporter

​A(n) ____ is a collection of information arranged for easy access and retrieval.

database

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be ____ since it depends on the demand for new cars.

derived

Jack knows his business has a problem because of an increasing number of consumer complaints received recently. He has decided how to make this problem a precise, researchable statement and should next move on to

designing the research project

The depth of a product mix is measured by the average number of

different products offered in each product line.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.​

differentiated

The purpose of market segmentation is to​

divide a total market to enable a marketer to develop a more precise marketing mix.

​The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand

equity

​Suppose that marketers at Sun Products are trying to determine whether the use of free samples of Snuggle fabric softener was the reason for a sales increase in a particular store. The type of research conducted to answer this question is

experimental

Tony & Guy is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, Tony & Guy receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. Tony & Guy is engaging in

franchising

All of the following are marketer-dominated sources of information except

friends

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)

functional modification.

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

gain market share.

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.

generic

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

globalization

Aggressive pricing is typical during the ____ stage of the product life cycle.

growth

The real value of marketing research to the organization can best be measured by

improvements in the ability to make decisions.

​If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

inelastic.

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase.

modified rebuy

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.

multivariable

St. Jude's Hospital decides to redo its kitchen with new flooring, cabinets, counters, and appliances. The hospital compiles a description of the project and then asks sellers to submit bids. After determining the most attractive bids, the hospital will then work with two or three companies to determine who will get the contract. This is an example of using ____ for a purchase decision.

negotiation

​Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at Kmart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called

patronage motives

Patricia Robertson is running for Congress from the Sixth District in her state. She is interested in knowing the intended choices of the voters. All the registered voters in her district would constitute the study's

population

​If a company provides price differentials that harm competition by giving one or more buyers a competitive advantage, it is committing

price discrimination.

​Data that are observed or collected directly from respondents are called

primary data

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

quantity demanded goes down.

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit the number of automobiles that could be brought in from other countries, Germany would be using a(n)

quota

While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces.

reactive

​Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort

Carla is a prosecuting attorney for the city of Cleveland. She is also vice president for the local parent/teacher organization and a coach for her daughter's soccer team. The actions and activities associated with each of these positions constitute Carla's

role

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as​

roll-out.

​While shopping at a local grocery store, Taylor sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as

routinized response behavior.

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the

sales forecast

​When working as a summer intern for a local retail store, Jan Halverson was sent to the library to look up data on population forecasts for the city of San Antonio. The population information she found would be considered

secondary data

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables.

segmentation

Premium-priced products are usually marketed through

selective or exclusive distribution.

The three basic forms that a product can take are

services, ideas, and goods

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

stars

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft

strategic business

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart

sustainable competitive

The group of people within a business who are involved in making business buying decisions is referred to as

the buying center

One trend that has caused consumer-generated information to gain importance is

the increase of consumers using digital media to publicize their own product reviews.

​Generally, customers are most likely to rely on the price-quality association when

they cannot judge the quality of the product for themselves

When the needs of individual consumers in a target market for a specific product are similar and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy

undifferentiated

​When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

undifferentiated

Which of the following characteristics distinguish online media from traditional marketing?

​Addressability, interactivity, accessibility, connectivity, and control

What is a primary difference between business and consumer buyers?

​Business buyers generally make larger orders than consumer buyers

​The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

​Cash cow

____ refers to the idea that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

​Cultural relativism