Marketing Practice Questions

Consumer products are classified in terms of

1) effort consumer spends on decision 2) attributes used in making purchase decision 3) frequency of purchase

four basic business management practices

1. Strategy 2. Execution 3. Culture 4. Structure

New Product Development Process

1. define new product strategy 2) idea generation 3) screening and evaluation 4) business analysis 5) product development 6) Test marketing 7) Commercialization

During the postpurchase behavior stage of the organizational buying process, which of these is most likely to occur?

A supplier's performance is formally evaluated

_________ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

A supply partnership

_________ such as straight rebuys and new buys, affect buying center tendencies in terms of the people involved, the decision time, the buying objectives, etc.

Buy Classes

________ is a grassroots movement started in the 1960s to increase the influence, power, and rights of customers in dealing with institutions.

Consumerism

Stars (BCG Matrix)

Dominant share of market and good prospects for growth but use more cash than they generate to finance growth

Promotion and advertising are aspects of marketing closely monitored by the

Federal Trade Commission

product competitors

Firms that compete in the same product class but market products with different features, benefits, and prices

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices

generic competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

________ may present challenges for salespeople by preventing their marketing efforts from reaching the buying center.

Gatekeepers

5 step process of segmenting

Group potential buyers into segments, group products to be sold into categories, develop a market-product grid and estimate size of markets, select target markets, take marketing actions to reach markets

________ firms in some way reprocess a product or service they buy before selling it again to the next buyer.

Industrial

Walmart's value proposition

Less for the same

Five criteria for selecting a target market

Market size, expected growth, competitive position, cost of reaching the segment, and compatibility with the organization's objectives and resources

________ synergies often come at the expense of product synergies because an individual customer segment will usually need several products, and each of them will have its own production expenses.

Marketing

_________ synergies often come at the expense of product synergies because an individual customer segment will usually need several products, and each of them will have its own production expenses.

Marketing

Target's value proposition

More for less

Rolex value proposition

More for more

________ buyers include all buyers in a nation except ultimate consumers.

Organizational

Share points, which are _________, are used as the common basis of comparison to allocate marketing resources

Percentage points of market share

Service pricing...

Plays a role in balancing consumer demand for services

Benefits to using marketing _________ include justifying expenditures, comparing efficiency with competitors, and increasing accountability

ROI

Independent e-marketplaces are likely to exist in which of these settings?

Sales are time sensitive due to perishable offerings or changing technologies

Dogs (BCG Growth-Share Matrix)

Subordinate share of market and low prospects for growth

Trader Joe's value proposition

The same for less

Which of these is a reason that online buying is so prominent in organizational markets?

This can broaden a firm's potential customer base for many types of products and services

Consumers judge services on the entire sequence of steps that make up the service process. To evaluate the complete service encounter, marketers can use

a customer contact audit

customer contact audit

a flowchart of the points of interaction between consumer and service provider

market-product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

product line

a group of closely related product items

In ________ auction, many sellers compete to provide goods or services for a single buyer.

a reverse

product item

a specific version of a product that can be designated as a distinct offering among an organization's products

One way that marketing mix characteristics differ for organizational buying compared to consumer buying is that for organizational buying

advertising and other promotions are technical in nature

Purchasing and engineering personnel visit suppliers to assess their facilities, capacity, and quality control during which stage in the organizational buying process?

alternative evaluation

Marketers can identify key trends such as the growing popularity of personal shoppers, the increasing emphasis on reuse rather than disposal of products and resources, and the importance of new e-commerce purchasing alternatives by conducting

an environmental scan

The market leader for a low-involvement product must make special efforts to

avoid stockout situations which would result in switching behavior

According to the generic business strategies framework, the two fundamental alternatives a firm can use in seeking a competitive advantage are to differentiate itself from competitors by developing points of difference in its product or marketing or to

become the low-cost producer within the markets in which it competes

Creating a consumer-brand connection is the final step in building

brand equity

If a sustainable fashion designer buys the services of a website designer to be able to offer his clothing for sale online, the website services would be considered a ________ product.

business

In the buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of the contract.

buyers

A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they

can help identify the strategic role that the new product might serve in the firm's portfolio

When new products or new chains steal customers and sales from older, existing ones, it is referred to as

cannibalization

Before PepsiCo stamped freshness dates on its Pepsi cans, few consumers considered cola freshness an issue. After a major advertising campaign accompanying the change, 61 percent of cola drinkers believed freshness dating was an important attribute. This is an example of using which attitude change strategy?

changing the perceived importance of attributes

The ________ law gives the author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise reproduce that work.

copyright

Companies like Disney and Southwest Airlines, which have perfected ________ , integrate their activities to connect with customers at each contact point to move beyond customer relationships to customer loyalty.

customer experience management

Retention rate and margin are variables used to calculate

customer lifetime value

Deletion is an option for a product in the ________stage of its product life cycle.

decline

Colgate-Palmolive secured the endorsements of dentists to make the claim that Colgate Total toothpaste is the number-one recommended toothpaste by most dentists, a tactic that is most effective at

decreasing perceived risk

As consumer demand for new homes increases, lumber, concrete, and steel suppliers may experience an increase in demand for their products, which is an example of ________ demand.

derived

Wix is a company that helps other businesses develop their ecommerce websites. Because Wix relies indirectly on consumers wishing to make purchases online, demand for its website design services is considered ________ demand

derived

The marketing program part of the planning phase of the strategic marketing process includes which of these?

developing the budget

When Samsung introduced its Galaxy Z Fold3 5G, a foldable phone with a high price tag, it used ________ to avoid direct competition with Apple, Google, and others.

differentiation positioning

Laggards are the last to adopt a new product according to which concept?

diffusion of innovation

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services are known as

electronic commerce

A flight attendant that is comforting and reassuring airline passengers during an electrical storm is exhibiting which dimension of service quality?

empathy

An important part of creating a market-product grid is to

estimate the size of the markets

Comparing the results of the marketing program with the goals in the written plans to identify and act on deviations occurs during the

evaluation phase

When Sadie was buying new soccer cleats at the start of the season, she considered comfort, durability, color, and price, which were her

evaluative criteria

Selective ________ occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them.

exposure

Crocs, a clog shoe brand made of plastic resin, was popular in the 2000s, experienced a decline in the 2010s, and resurfaced again as a fashionable item in the early 2020s among a new generation of consumers. This is an example of which type of product?

fashion

total budget competitors

firms that compete for the limited financial resources of the same customers

Under current law, price ________ is illegal while some forms of price discounting are acceptable.

fixing

Children's Benadryl in liquid form comes packaged with a small cup marked with units for correct dispensing. This is an example of which type of benefit that packaging can provide?

functional benefits

Market segmentation involves aggregating prospective buyers into groups that ________ and will respond similarly to a marketing action.

have common needs

Deciders (Buying Center)

have formal or informal power to select and approve final suppliers

Two major types of product positioning are

head-to-head (competing directly with competitors); differentiation (seeking less competitive, smaller market niche)

Influencers (Buying Center)

help define specifications and provide information for evaluating alternatives

Large multistore chain resellers like Target, 7-Eleven convenience stores, and Safeway use a buying committee that differs from the typical buying center in that the former is

highly formalized

Four steps in determining positioning in minds of customers

identify the important attributes for a product or brand class, discover how target customers rate competing products or brands with respect to these attributes, discover where the company's product or brand is on these attributes in the minds of potential customers, reposition the company's product or brand in the minds of potential customers.

The second phase of the strategic marketing process is known as

implementation

Edgar always tries to sit in Bella's section at the grill because he prefers her service to that of other current waitstaff, so he is considering the ________ aspect of services.

inconsistency

To try to moderate the impacts of the ________ aspect of services when consumers attempt to assess and compare them, marketers often try to show the benefits of using the service.

intangibility

Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.

introduction

The marketing objective for a company with a product at the ________ stage of the product life cycle is to create consumer awareness and stimulate trial

introduction

Stages of Product Life Cycle

introduction, growth, maturity, decline

advertising plays a major role in the __________ stage of the product life cycle and _______ plays a major role in the maturity stage

introductory, product differentiation

The Clayton Act can be considered stronger than the Sherman Antitrust Act because

it forbade certain actions that lessen competition, even if no actual harm has yet occurred.

shopping products

items for which the consumer compares several alternatives on criteria such as price, quality, or style

unsought products

items that the consumer does not know about or knows about but does not initially want

convenience products

items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort

For which item would extended problem solving most likely be used?

knee surgery

Opinion leaders are considered to be ________ , so their opinions influence others' choices.

knowledgable about or users of particular products

Cash Cows (BCG Matrix)

low growth, high market share

A regional rollout might occur in which step of the new-product process?

market testing

Your marketing dashboard shows sales performance by SBU, which is an example of a ________

marketing metric

Designing a sales presentation for a new product line is an example of which of these?

marketing tactic

Firms must focus on controlling overall marketing cost through promotional and distribution efficiency during which stage of the product life cycle?

maturity

Worldwide sales of video game consoles have been between 35 and 45 million for each of the last four years, which is similar to the previous four years, with the same top competitors being Nintendo, Xbox, and Sony PlayStation. Gaming consoles would most likely be in the ________ stage of the product life cycle.

maturity

Ways to manage a product through its life cycle

modifying the product, modifying the market, and repositioning the product

Which of these is a psychological influence on the consumer behavior decision process?

motivation

Procter & Gamble's purchase of a multimillion-dollar fiber-optic network from Corning, Inc., for its corporate offices in Cincinnati represents a

new buy

In routine problem solving, the number of external information sources used is typically which of these?

none

There are eight marketing reasons why a new product can fail. One of these is

not satisfying customer needs on critical factors

marketing synergies

opportunity for efficiency in terms of a market segment

When it comes to implementation, management experts warn against

paralysis by analysis

Impression, or evidence, management is most related to which of the seven Ps of services marketing?

physical environment

The __________ phase of the strategic marketing process usually results in __________ that sets the direction for the marketing activities of an organization.

planning, a marketing plan

During which stage of the purchase decision process do consumers determine how satisfied they are with their purchases?

postpurchase behavior

Important variables in the family life cycle are age, marital status, and

presence of children

Secret Clinical Strength is a deodorant that is described as offering the protection of a prescription product with less irritation. Promoting this unique combination of benefits is an example of

product differentiation

Kitchen World has put its offerings in store locations based upon the cooking activity—the way consumers prepare and present various meals. Everything for baking is in one spot, while food preparation utensils are in another, and table settings are in yet another. This strategy uses

product groupings

Though it is less risky than the introduction of other types of new products and may add new customers, a ________ also has the twin dangers of increasing expenses and cannibalizing current products.

product line extension

Four divisional groupings to implement marketing plans

product line groupings, functional groupings (which represent the different departments and business activities), geographical groupings, market-based groupings (use specific customer segments)

The person responsible for managing the marketing efforts for a close-knit family of products or brands is called the

product or brand manager

Useful both internally and outside the organization, a ________ identifies the target market and needs satisfied, the product (service) class or category, and the offering's unique benefits or attributes in a concise manner.

product positioning statement

7 P's of Service Marketing

product, price, place, promotion, people, physical environment, process

The VALS system is a(n) _______ measure of consumers.

psychographic

An Iowa corn farmer operates in which form of competition?

pure competition

In BCG's business portfolio analysis, __________ require large injections of cash just to maintain their market share, much less increase it. Thus managers must choose the right ones to invest in and phase out the rest.

question marks

Potential buyers within a market segment should be

reachable by marketing actions

Services evaluated by comparing expectations with actual experience on these dimensions

reliability, tangibility, responsiveness, assurance, empathy

Annual Marketing Plans typically include

revenue and expense projections

Quaker Oats appeals to customers with an FDA-approved claim that oatmeal, as part of a low-saturated-fat, low-cholesterol diet, may reduce the risk of heart disease. The company is likely repositioning by reacting to a

rising trend

Some buyers remain uncertain about the actual cost of all-electric-powered car ownership, which increases resistance to their adoption. This would be considered a________ barrier.

risk

_______ is the stage of the product design process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

screening and evaluation

Jaden sees an ad for an immersive Van Gogh exhibit coming to a museum in his town. The museum's ad is attempting to appeal to consumers' ________ needs according to the Maslow hierarchy.

self-actualization

On the ________ a fast-food restaurant is about half tangible products (the food) and half intangible services (courtesy, cleanliness, speed, and convenience)

service continuum

In a ________ test market, participants are exposed to products and advertising and then given money and allowed to choose between buying the firm's product or the products of competitor.

simulated

A notable change of values in the United States in recent decades is towards

sustainability

If a firm picks too broad a set of _______ , the extra expense may exceed the increased sales and profits

target market segments

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

Not only do businesses see benefits from the protections of ________ , consumers do as well; they allow consumers to correctly identify the products they want to purchase.

trademarks

Which of these is a commonly used organizational buying criterion?

warranties and claim policies