Marketing Midterm

4) Marketing mix planning begins with ________. A) building an offering that brings value to target customers B) finding a suitable promotion strategy for the product C) setting a reasonable price for the product D) selecting the right channel for distribution of the product E) calculating the total costs involved in manufacturing the product

A) building an offering that brings value to target customers

1) Individuals and households that buy or acquire goods and services for personal consumption make up the ________. A) consumer market B) market offering C) market mix D) subculture E) social class

A) consumer market

13) ________ calls for dividing the market into regions, states, counties, cities, or even neighborhoods. A) Benefit segmentation B) Geographic segmentation C) Demographic segmentation D) Psychographic segmentation E) Occasion segmentation

B) Geographic segmentation

10) Business demand that ultimately comes from the demand for consumer goods is known as ________ demand. A) derived B) negative C) primary D) consumer E) elastic

A) derived

6) The business marketer normally deals with ________ than the consumer marketer does. A) far fewer but far larger buyers B) far more but far smaller buyers C) negligible customer complaints D) far less fluctuations in demands E) far more elastic demand

A) far fewer but far larger buyers

14) Many companies todayare localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.A) geographic segmentation B) product diversification C) branding D) psychographic segmentation E) demographic segmentation

A) geographic segmentation

5) Which of the following is a common reason for new product failure? A) incorrect estimation of the market size B) low product development costs C) ineffective social marketing campaigns D) low selling prices of products E) patent ownership exclusively held by the company

A) incorrect estimation of the market size

2) Acquisition refers to ________. A) the buying of a whole company, a patent, or a license to produce someone else's product B) an agreement between two or more commercial companies to produce a common product C) a partnership between two companies to produce a product in different countries by sharing risks D) investments made in a country's businesses by foreign citizens, often in the form of stocks E) the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies

A) the buying of a whole company, a patent, or a license to produce someone else's product

8) In business markets with inelastic demand ________. A) the total demand for products is not much affected by short-term price changes B) buyers are highly sensitive to price changes C) derived demand is absent D) a business purchase usually involves fewer decision participants E) a business purchase usually does not involve a professional purchasing effort

A) the total demand for products is not much affected by short-term price changes

1) With the recent explosion of information technologies, ________.A) most marketing managers are overloaded with data and often overwhelmed by it B) most marketing managers are concerned solely about the duplication of content C) companies have ceased to feel the need for marketing information systems D) companies have ceased to maintain internal databases E) it has become more difficult and expensive to obtain primary data

A, most marketing managers are overloaded with data and often overwhelmed by it

4) ________ involves actually distinguishing the firm's market offering to create superior customer value. A) Mass customization B) Differentiation C) Market segmentation D) Diversifying E) Targeting

B) Differentiation

2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Liabilities B) Services C) Brands D) Consumer products E) Specialty products

B) Services

) Which of the following is true with regard to services? A) Services refer to purely tangible products. B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale. C) Services can be stored for later use. D) Services can be easily separated from their providers. E) Services are tangible product offerings whose quality can be easily measured.

B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.

9) Which of the following is a goods-and-services combination? A) a bicycle B) a milk shake at an ice cream store C) chocolate chips D) a train ride E) a music lesson

B) a milk shake at an ice cream store

3) Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________. A) new product development B) acquisition C) joint venture D) licensing contract E) divestment

B) acquisition

1) The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as ________. A) situational analysis B) business buying process C) business diversification D) business process automation E) lateral expansion

B) business buying process

5) According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"? A) technological stimuli B) buyer's decision process C) buyer's spending habits D) social stimuli E) promotion stimuli

B) buyer's decision process

2) Business buyer behavior refers to the ________.A) buying behavior of consumers who buy goods and services for personal consumption B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others C) buying behavior of consumers who rely on small retailers for the regular supply of provisions D) decision process by which business buyers determine which products and services their organizations need to purchase E) strong affinity of businesses for value-for-money deals

B) buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

3) Which of the following is one of the other stimuli present in a buyer's environment apart from marketing stimuli? A) product stimuli B) cultural stimuli C) price stimuli D) place stimuli E) promotion stimuli

B) cultural stimuli

7) The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies? A) developments in technology B) decreased manufacturing costs C) competition D) changing tastes of consumers E) aging of products

B) decreased manufacturing costs

4) The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies. A) large reports B) huge and complex data sets C) information requests D) social media contacts E) e-mail messages

B) huge and complex data sets

4) Product improvements, product modifications, and original products can all be classified as ________. A) blueprints B) new products C) prototypes D) product extensions E) test products

B) new products

6) Marketing stimuli consist of the four Ps. Which of the following is NOT one of these? A) product B) packaging C) price D) promotion E) place

B) packaging

2) Marketing stimuli include which of the following? A) economic stimuli B) price stimuli C) technological stimuli D) social stimuli E) cultural stimuli

B) price stimuli

3) Which of the following is NOT part of the business market? A) Kruger Group sells interior security systems to resorts. B) A country club buys safety equipment for its swimming pool. C) Maria Theresa shops for her family's groceries at the local Whole Food store. D) A firm buys laptops from Dell for company salespeople to use when traveling. E) Airmark sells a vinyl printing press to a manufacturer of plastic storage containers.

C) Maria Theresa shops for her family's groceries at the local Whole Food store.

3) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.A) Mass customization B) Market targeting C) Market segmentation D) Differentiation E) Positioning

C) Market segmentation

2) ________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter. A) Positioning B) Mass customization C) Market targeting D) Market segmentation E) Differentiation

C) Market targeting

4) Business markets are similar to consumer markets in that ________.A) the nature of the buying unit is the same for both B) the decision processes involved in both the markets are same C) both involve people who assume buying roles and make purchase decisions to satisfy needs D) both share the same market structure E) the types of decisions are fairly consistent in both the markets

C) both involve people who assume buying roles and make purchase decisions to satisfy needs

10) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?" A) an actual product B) an augmented product C) core customer value D) co-branding E) exchange value

C) core customer value

8) An MIS user should most likely be able to ________. A) implement new technologyB) increase order requests C) develop customer insights D) analyze employee turnover E) establish short-term objectives

C) develop customer insights

12) Which of the following is NOT one of the major variables used in segmenting consumer markets?A) demographic B) behavioral C) ethical D) geographic E) psychographic

C) ethical

5) Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service? A) breakfast cereal B) rental car C) free concert D) shoes E) haircut

C) free concert

3) Which of the following exemplifies a service?A) candy B) laptop C) hair salon D) car E) laundry detergent

C) hair salon

7) The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand. A) latent B) negative C) inelastic D) derived E) composite

C) inelastic

1) Which ofthe following is a significant challenge presented by the product life cycle?A) increased expenses B) increased competition C) new product development D) evaluation of results E) recognizing the stages as a product goes through them

C) new product development

4) Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is ________. A) what consumers buy B) how and how much they buy C) why they buy D) when they buy E) where they buy

C) why they buy

1) Why do some consumers resent marketing research?

Customers usually can't tell you what and why

6) A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure? A) The products were priced too high. B) The products were advertised incorrectly. C) Competitors fought back harder than expected. D) Product research was too extensive. E) The product development costs were high.

D) Product research was too extensive

1) Which of the following is true with regard to products?A) The quality of products is far more difficult to measure than that of services. B) Products do not include experiences, organizations, persons, places, and ideas. C) Products are not meant for sale in the market. D) Products include services, events, persons, places, organizations, ideas, or a mixture of these. E) Products refer to only those activities that are essentially intangible.

D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.

1) Companies know they cannot appeal to all buyers in the marketplace, or at least not in the same way. Reasons for this include all of the following EXCEPT ________. A) buyers are too numerous B) companies vary widely in their abilities to serve different market segments C) buyers are varied in their needs and buying practices D) companies need more information to offer the right products to the right customers E) buyers are widely scattered

D) companies need more information to offer the right products to the right customers

5) When marketers at Fair & Leigh Inc. selected the Millennials, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ________. A) occasion segmenting B) local marketing C) market diversification D) market targeting E) product positioning

D) market targeting

5) Differences between business markets and consumer markets include all of the following EXCEPT ________. A) nature of the buying unit B) market structure and demand C) number of buyers D) people who make purchase decisions to satisfy needs E) types of decisions and the decision process

D) people who make purchase decisions to satisfy needs

7) In the model of buyer behavior, which of the following is NOT a major type of force or event in the buyer's environment? A) economic B) technological C) social D) political E) cultural

D) political

2) The real value of marketing information lies in how it is used ________. A) in determining selling prices for productsB) in analyzing budgets C) in creating advertising campaigns D) in the customer insights that it provides E) in introducing a new product to the marketplace

D, in the customer insights that it provides

10) What is differentiation?

Differentiation refers to differentiating the market offering to create superior customer value.

15) ________ segmentation divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.A) Geographic B) Benefit C) Occasion D) Psychographic E) Demographic

E) Demographic

6) ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.A) Mass customization B) Targeting C) Segmentation D) Differentiation E) Positioning

E) Positioning

7) Which of the following is an example of a pure tangible good? A) a laptop with a comprehensive warranty for three years B) an online shoe retailer that provides free home delivery. C) an agency that offers free legal advice D) a credit card E) a bag of potato chips

E) a bag of potato chips

8) Which of the following product offerings is intangible? A) a package of laundry detergent B) an ink cartridge for a printer C) a wool jacket D) a gold ring E) a taxi ride

E) a taxi ride

5) Challenges of managing big data include ________. A) determining what information to request B) investing in appropriate technology C) hiring enough software engineers D) properly routing the information after gathering it E) accessing and sifting through so much data

E) accessing and sifting through so much data

9) A university enrolled 200 graduate students in the Fall of 2015. However, the enrollment rate was only slightly affected following a 12-percent hike in tuition the following fall. This illustrates ________ demand. A) derived B) negative C) highly elastic D) composite E) inelastic

E) inelastic

8) Buyer responses are influenced by marketing stimuli. The responses to the stimuli include all of the following EXCEPT ________. A) brand engagement B) buying attitudes C) purchasing behavior D) buying preferences E) the "why" regarding the responses

E) the "why" regarding the responses

10) TRUE OR FALSE: Adapting marketing strategies is not a challenge faced in the product life cycle.

FALSE

10) True or False: Consumers can easily explain what influences their purchases.

FALSE

10) True or False: With the recent explosion of information technologies, companies are finding it difficult to generate marketing information in great quantities.

FALSE

12)True or False: With current technology systems, marketers find it simple to access and sift through the data that is gathered.

FALSE

45) TRUE OR FALSE: Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

FALSE

46) TRUE OR FALSE: Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

FALSE

48) TRUE OR FALSE: Specialty products are consumer products and services that customers evaluate on suitability, quality, price, and style, by gathering information and making comparisons.

FALSE

7) TRUE OR FALSE: Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

FALSE

80) True or False: Subcultures consist only of religious groups.

FALSE

81) True or False: Asian-American consumers are the least brand conscious of all ethnic groups.

FALSE

82) True or False: Social class is based on shared value systems and common life experiences and situations.

FALSE

83) True or False: In the United States, the lines between social classes are not fixed and rigid, but people can only drop to a lower social class and not move up into a higher one.

FALSE

9) TRUE OR FALSE: With technology advances making it simple to contact many customers at once, companies have moved toward mass marketing over target marketing.

FALSE

What are the major characteristics of government markets?

Government markets offer large opportunities for companies. Although they also buy on a negotiated contract basis, government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder. The process is highly structured and famous for "red tape." In addition to the bid amount, noneconomic criteria also play a role in government buying. Government buyers often favor firms from depressed business areas, small business firms, minority-owned firms, and business firms that avoid race, gender, or age discrimination.

4) What is product position? What functions do perceptual positioning maps serve?

Product position is the way the product is defined by consumers on important attributes. Positioning maps show consumer perceptions of marketer's brands versus competing products on important buying dimensions.

11)True or False: The real value of marketing research lies in the customer insights that it provides.

TRUE

13) True or False: A management information system assesses information needs, develops needed information, and helps decision makers use the information.

TRUE

44) TRUE OR FALSE: A service refers to an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.

TRUE

47) TRUE OR FALSE: The augmented product is the actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance.

TRUE

8) TRUE OR FALSE: A firm can obtain new products through acquisition or new product development efforts.

TRUE

8) TRUE OR FALSE: The customer-driven marketing strategy involves four steps: market segmentation, market targeting, positioning, and differentiation.

TRUE

84) True or False: Online social networks represent an important avenue to create buzz for marketers.

TRUE

9) TRUE OR FALSE: Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

TRUE

9) True or False: The starting point of understanding how consumers respond to various marketing efforts is called the stimulus-response model of buyer behavior.

TRUE

2) Identify product characteristics that influence the rate of adoption. Explain how each characteristic affects the rate of adoption.

The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Relative Advantage. The relative advantage refers to the degree to which an innovation appears superior to existing products. Complexity. The degree to which an innovation is difficult to understand or to use is also one of the product characteristics that influence the adoption rate. Divisibility. Divisability refers to the degree to which an innovation may be tried on a limited basis. Communicability. Even if all other product characteristics that influence the adoption rate are favourable, communicability can still slow down adoption significantly.

7) An MIS is used to ________.

assess information needs

3) Brad works with a reputable retailer and leads a team that collects market information from a wide variety of sources rangingfrom marketing research studies to monitoring online conversations where consumers discuss Brad's firm or its products. Brad's team uses this information to arrive at a better understanding of consumers' behavior and their buying motives. This, in turn, allows Brad's firm to successfully generate more value for consumers. Brad leads the ________ team.

customer insights

6) A(n) ________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

marketing information system

9) The market researchers at HoneyCamp Foods gather daily sales data and sort it by product line and region. With the help of sophisticated tools and techniques, they develop the data needed by marketing managers to evaluate the market share of the company's different products and also to gain valuable market insights. This mix of people and procedures at HoneyCamp Foods that generate actionable marketing insights represents a(n) ________.

marketing information system