MARKETING TEST 2 SMARTBOOK

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

Globalization

The early majority represents approximately ___________ 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. A. 34% B. 12.5% C. 50% D. 2.5%

34%

While late to the party, the late majority category of consumers is still significant, making up roughly ____________ of the total consumer market. A. 13% B. 16% C. 50% D. 34%

34%

One of the most effective methods to assess how well a firm is delivering adequate service to consumers is to employ the _____________ Model to evaluate their service provision. A. Service Gaps B. Knowledge C. Intangibility D. Service Recovery

Service Gaps

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

True

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

True

A country's infrastructure includes all of the following EXCEPT Blank______. A. water and power lines B. a culture that accepts innovation C. schools and post offices D. transportation systems

a culture that accepts innovation

One of Taco Bell's most successful new products has been its "Doritos Locos Tacos," tacos with shells in the flavors of Doritos taco chip varieties. This is an example of _____________. A. co-branding B. brand repositioning C. brand dilution D. generic branding

co-branding

When adopting strategies for entering a new market, many firms follow a(n) approach that morphs and becomes _________ over time. A. less risky B. more risky C. less profitable D. more costly

more risky

Because each segmentation method has its unique advantages and disadvantages, most firms often employ ___________ methods. A. simple B. basic C. multiple D. individual

multiple

In the context of how firms develop new products, what is the next step if a firm has positive results from market testing? A. Product launch B. Product designing C. Evaluation of results D. Licensing

product launch

Loyal customers buy a substantial amount from the firm. These loyal customers are the most __________ in the long term to the firm. A. successful B. profitable C. heavy users D. similar to each other

profitable

For most products, the label is used for ______________. A. promotion and branding B. packaging and manufacturing information C. branding and packaging D. promotion and licensing

promotion and branding

The overriding desires that drive how a person lives his or her life are __________. A. mile markers B. lifestyles C. self-values D. self-perceptions

self-values

Exporting happens when a firm produces a product in its domestic plants and then _________. A. sells it in its own country B. sells it in a foreign country C. buys it from a foreign country D. reprocesses it in a foreign country

sells it in a foreign country

Customer _________________ refers to human or mechanical activities undertaken by firms to help satisfy their customers' needs and wants.

service

A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the ____________ mind. A. competitor's B. consumer's C. brand marketer's D. retailer's

consumer's

Which of the following is the measure of how much one currency is worth in relation to another? A. Trade agreement B. Exchange rate C. Joint venture D. Import quota

exchange rate

In terms of their place on the diffusion of innovation curve, innovators are the ___________ category of consumers. A. first B. majority C. third D. second

first

An exchange rate quantifies how much a currency __________. A. is worth in relation to another B. can buy C. costs to make D. is lost in the exchange process

is worth in relation to another

In light of the high costs associated with finding new customers who feel that a brand can meet their relevant needs and are willing to exclude competitors, today's companies are using _________ segmentation and investing in initiatives to retain their most profitable customers. A. loyalty B. occasion C. benefit D. usage

loyalty

What will happen to a firm if it continues to produce the same products in a saturated market? A. Its revenues will stay the same. B. It will experience rapid growth. C. Its revenues will grow slowly. D. It will eventually decline.

It will eventually decline.

Direct investment requires a firm to maintain __________ ownership of its facilities, offices, and plants in a foreign country. A. between 0 percent and 50 percent B. 50 percent C. 100 percent D. franchise

100 percent

Laggards make up roughly ___________ of the market. A. 10% B. 20% C. 16% D. 5%

16%

Which two of the following are franchises? (Choose every correct answer.) A. A local clothing store B. A Snickers candy bar C. A McDonald's restaurant D. A Holiday Inn motel

A McDonald's restaurant A Holiday Inn motel

Which of the following products or services is considered perishable in the sense that it cannot be stockpiled? A. A dental exam B. A pair of shoes C. A box of candles D. A package of gum

A dental exam

What does a brand need in order to be somewhat protected from competition from other firms and price competition? (Choose every correct answer.) A. A loyal customer base B. A hard plastic package C. An established track record in the market D. A celebrity endorsement

A loyal customer base An established track record in the market

Which of the following is an example of geographic segmentation? A. A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts. B. A diaper company sends direct mailers to individuals or couples that have recently had children. C. A solar panel installation company targets its web advertisements to individuals who have expressed an interest in environmental friendliness. D. A razor blade manufacturer sends samples of its products to 14-year-old males.

A ski and snowboard equipment manufacturer markets its goods in states that have snowy mountains and ski resorts.

Product development or product design entails a process of balancing which types of considerations? (Choose every correct answer.) A. Marketing B. Engineering C. Manufacturing D. Distribution

A. Marketing B. Engineering C. Manufacturing

Which of the following is an example of a brand extension? A. Acme chips and Acme dips B. Acme sleds and Timberland boots C. Acme barbecue potato chips and Acme salt and vinegar potato chips D. Acme cars and generic pencils

Acme chips and Acme dips

What are factors that are currently NEGATIVELY affecting the Russian economy? (Choose every correct answer.) A. An aging population and low birthrate that are leading to a shrinking population B. International sanctions on Russia in response to its interference in foreign democratic elections C. A growing middle class that exhibits a strong preference for Russian-made goods and rejects products from Western countries D. Widespread corruption that creates ethical dilemmas for foreign companies that might otherwise want to operate in the country

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

A strong brand protects firms from which of the following? (Choose every correct answer.) A. Changes in industry trends B. An overall drop in consumer demand C. An existing competitor lowering prices D. New products offering similar features or benefits

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

Which of the following is NOT one of the categories of consumer products that buyers use for their personal use? A. Convenience products B. Associated products C. Specialty products D. Shopping products

Associated products

How does developing descriptions of each market segment help firms? (Choose every correct answer.) A. By revealing similarities across market segments B. By identifying differences across market segments C. By identifying similarities within market segments D. By determining the most attractive market segments

By identifying differences across market segments By identifying similarities within market segments

Which of the following situations best illustrates how a firm can offer employees emotional support and stand behind the employees' actions? A. At a picture framing store, employees are told to ignore unruly, dissatisfied customers and wait on other buyers first. B. At a dry cleaning store, employees are told not to charge unhappy customers but to enter their name on a "black list" of clients. C. At a copy center, part-time employees are encouraged to turn over any unhappy customer to the supervisor immediately. D. At the return desk at a large home repair store, employees are taught not to accept any item that is no longer in an unopened package.

At a copy center, part-time employees are encouraged to turn over any unhappy customer to the supervisor immediately.

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? A. Benefit B. Loyalty C. Occasion D. Behavioral E. Demographic

Behavioral

Which of the following factors help to increase a brand's equity? (Choose every correct answer.) A. Brand awareness B. Perceived value C. Competition level D. Lower prices from competitors E. Customer loyalty

Brand awareness Perceived value Customer loyalty

What can be determined by looking at brand awareness, perceived value, brand associations, and brand loyalty? A. A brand's major competitors B. Brand age C. Brand equity D. A brand's debt level

Brand equity

What are the four aspects analysts examine to evaluate brand equity? (Choose every correct answer.) A. Brand loyalty B. Brand age C. Brand awareness D. Perceived competition E. Perceived value F. Brand associations

Brand loyalty Brand awareness Perceived value Brand association

Which of the following is a way by which risk can be diversified? A. By creating a broader portfolio of products through innovation B. By avoiding projects that are risky C. By manufacturing only those products in which a firm has a competitive advantage D. By taking up new ventures that predict high returns

By creating a broader portfolio of products through innovation

Which of the following processes could be considered an acceptable method for generating ideas? (Choose every correct answer.) A. Communicating with a firm's R&D department B. Researching competitors' products and services C. Conducting consumer research D. Brainstorming within the firm E. Arguing with other firms and institutions

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

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with __________ products. A. conceptual B. competing C. previous D. compatible

Competing

What are products that household buyers use for their own use called? A. Loyalty products B. Consumer products C. Ritual products D. Business products

Consumer products

What might a concept include along with a brief written description of the product? (Choose every correct answer.) A. Customer needs it satisfies B. Ideas generated C. Visual images D. The final product

Customer needs it satisfies Visual images

Typically, who determines the product's or service's value in relationship to that of its close competitors? A. Customers B. Retailers C. Marketers D. Suppliers E. Manufacturers

Customers

When marketers seek to evaluate market attractiveness, what must they do first? A. Develop a positioning strategy B. Develop a perceptual map C. Secure a marketing communications license D. Determine whether the segment is worth pursuing

Determine whether the segment is worth pursuing

After a new product is launched, what is the next step of the product development process? A. Developing the advertising campaign B. Pricing the product C. Evaluation of results D. Concept testing

Evaluation of results

After a new product is launched, what is the next step of the product development process? A. Pricing the product B. Developing the advertising campaign C. Concept testing D. Evaluation of results

Evaluation of results

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

False

What is a key characteristic of the maturity stage? A. High prices B. Firms defending market share C. Few competitors D. Adoption of the product by early majority

Firms defending market share

Why is global segmentation, targeting, and positioning (STP) more complicated than domestic STP? (Choose every correct answer.) A. Most countries do not have a distinct consumer culture. B. There is typically only one subculture in foreign markets. C. Foreign consumers view products and their roles as consumers differently. D. Firms struggle to understand the cultural nuances of other countries.

Firms struggle to understand the cultural nuances of other countries. Foreign consumers view products and their roles as consumers differently.

Product development entails a variety of processes and considerations to determine which aspects of a product or service? A. Marketing strategy B. Form and features C. Customers and distributors D. Sales potential

Form and features

Brand awareness is MOST likely to influence purchasing decisions for which type of product? A. Goods purchased infrequently B. Goods purchased frequently or habitually C. Goods that the consumer spends a lot of time researching D. Goods never purchased before by the consumer

Goods purchased frequently or habitually

Which of the following is most likely to lead to high levels of customer loyalty? A. High customer satisfaction ratings B. Intangible compensation for service failures C. High levels of customer dissonance D. Low prices

High customer satisfaction ratings

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.) A. The size of the producing firm's R&D budget B. The average age of the target market C. How different the product is from other offerings in the market D. How valuable the product is to the consumer

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

A business that experiences service delivery gaps can use which of the following methods to improve the quality of its service? (Choose every correct answer.) A. Empower employees to work in the customer's best interest B. Provide incentives and support for service providers C. Implement self-service technologies D. Ask each customer what level of service he or she expects when he or she enters the businessImplement self-service technologiesB) Provide incentives and support for service providersC) Empower employees to work in the customer's best interest

Implement self-service technologies Provide incentives and support for service providers Empower employees to work in the customer's best interest

Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Check all that apply.) A. Higher levels of customer satisfaction than prior to the service failure B. Improved word of mouth C. Lower service costs D. Increased purchase intention

Increased purchase intention Improved word of mouth

Which of the following is defined as the basic facilities, services, and installations needed for a community or society to function? A. GDP B. Infrastructure C. Global trade D. Technological capabilities

Infrastructure

Which of the following are characteristics that make marketing services different from product marketing? (Choose every correct answer.) A. Heterogeneity B. Perishability C. Profitability D. Intangibility

Intangibility Heterogeneity Perishability

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product? A. It is the most popular item on the market. B. It is new and innovative. C. It is better than its substitutes. D. It is less expensive than competitors.

It is better than its substitutes.

____________ are consumers who like to avoid changes and rely on traditional products until they are no longer available. A. Traditionalists B. Crawlers C. Laggards D. Lollygaggers

Laggards

Branding enables a firm to do which of the following? (Choose every correct answer.) A. Make consumers aware of available products B. Reintroduce old products at a higher cost C. Differentiate its product offerings D. Eliminate advertising spending

Make consumers aware of available products Differentiate its product offerings

Mary went to the local supermarket, where she shopped regularly, to purchase her groceries for the week. Which of the following was a delivery gap that resulted in a service failure by the grocery store? A. Mary did not find a parking spot that was as close as she wanted to the store. B. It took Mary a little longer to find what she needed since they recently remodeled the store. C. Mary had trouble finding the coffee aisle because the signs were unclear. D. Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register.

Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register.

When a firm enters into a joint venture agreement with a local firm, the two investors will then share which of the following? (Choose every correct answer.) A. Ownership of the firm B. Control of business operations C. Voting shares in each company's other divisions D. Any profit gained

Ownership of the firm Control of business operations Any profit gained

What are the common forms of royalty payments in brand licensing? (Choose every correct answer.) A. Payments based on the value of licensed merchandise sales B. Payments based on the stock price of the company selling the licensed merchandise C. Technical support fees to implement the licensed product D. Up-front, lump-sum licensing fees

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? A. VALS framework B. Product graph C. Ideal position D. Perceptual map

Perceptual map

Examples of communication media that firms use to create brand awareness include which of the following? (Choose every correct answer.) A. Licensed brands B. Publicity C. Low prices D. Advertising

Publicity Advertising

Lilly went to the Yummy Fork for lunch, and when her food arrived, it was not what she ordered. She later posted a negative comment about the Yummy Fork on a blog. Which one of the five service dimensions was used by Lilly to determine she did not like the service by the Yummy Fork? A. Empathy B. Assurance C. Reliability D. Tangibles

Reliability

Lilly went to the Yummy Fork for lunch, and when her food arrived, it was not what she ordered. She later posted a negative comment about the Yummy Fork on a blog. Which one of the five service dimensions was used by Lilly to determine she did not like the service by the Yummy Fork? A. Empathy B. Tangibles C. Reliability D. Assurance

Reliability

What are the two basic types of brand ownership strategies? A. Product brands B. Retailer/store brands C. Manufacturer brands D. Price brands

Retailer/store brands Manufacturer brands

What analytical method does a firm typically employ to assess the target market and its own competencies? A. Profit and loss analysis B. Target market buying power analysis C. SWOT analysis D. Ratio analysis

SWOT analysis

What are the key characteristics of the growth stage of the product life cycle? (Choose every correct answer.) A. Sales stabilize B. Sales rise C. Competitors increase D. Typical consumers are innovators

Sales rise Competitors increase

Firms position products based on which of the following? (Choose every correct answer.) A. Salient attributes B. Demographics C. Symbols D. Value E. Psychographics

Salient attributes Symbols Value

Which of the following steps are part of the segmentation, targeting, and positioning process? (Choose every correct answer.) A. Selecting target market B. Develop the marketing plan C. Establish strategy or objectives D. Increasing benefits E. Evaluating segment attractiveness

Selecting target market establish strategy or objectives Evaluating segment attractiveness

_________ is the image people ideally have of themselves. A. Self-selection B. Self-concept C. Lifestyle D. Self-value

Self-concept

One of the most effective methods to assess how well a firm is delivering adequate service to consumers is to employ the _______________ Model to evaluate their service provision. A. Knowledge B. Service Gaps C. Intangibility D. Service Recovery

Service Gaps

Which of the following criteria are necessary to assess a country's market? Sociocultural analysis Climatological analysis Infrastructural analysis Economic analysis

Sociocultural analysis infrastructural analysis economic analysis

Which traits are true of ALL products? (Choose every correct answer.) A. Something that a customer values B. Offered through a marketing exchange C. Delivered directly to the consumer D. Bought through an online distributor

Something that a customer values Offered through a marketing exchange

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? A. Exporting B. Licensing C. Franchising D. Strategic alliance E. Direct investment

Strategic alliance

Without innovation, what options would be available to firms? (Choose every correct answer.) A. Take current products to new markets B. Continue to market current products to current customers C. Develop new products for new markets D. Develop new products for current markets

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

Which statements about dealing with service failures are true? (Choose every correct answer.) A. Teamwork between the company and customers usually gives the best result. B. The proper approach can create a somewhat positive outcome from a negative experience. C. The company should have a preapproved set of resolutions ready to apply. D. Customers are happiest if the company listens to their complaints and then tells them what to do. E. The company should find a way to involve customers in the actual resolution process.

Teamwork between the company and customers usually gives the best result. The proper approach can create a somewhat positive outcome from a negative experience. The company should find a way to involve customers in the actual resolution process.

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior? A. Simulated shopping B. Test marketing C. Focus grouping D. Brainstorming

Test marketing

Which of the following are some details used to evaluate the general economic environment? A. The trade deficit or surplus B. Transportation C. Uncertainty avoidance D. The GDP

The GDP The trade deficit or surplus

Which of the following would most likely cause the delivery gap to negatively impact service quality? A. The company encourages an upward flow of information from customers. B. The company doesn't understand what the customer wants. C. The company fails to accurately forecast supply and demand. D. The company uses too many ads in its advertising campaign.

The company doesn't understand what the customer wants.

Which of the following is an example of occasion segmentation for a chocolate maker? A. The company offers some of its chocolates in heart-shaped boxes for Valentine's Day. B. The company prices its chocolates differently in different geographic areas. C. The company sells white, milk, and dark chocolate to serve different taste preferences. D. The company sells both regular and sugar-free chocolate.

The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.

Which of the following usually leads to the best outcome for a service failure? A. A company works to find its own solution. B. Customers find their own solution. C. A third party finds a solution and imposes it on the company and customers. D. The company works with the customers to find a solution.

The company works with the customers to find a solution.

Which of the following usually leads to the best outcome for a service failure? A. The company works with the customers to find a solution. B. A third party finds a solution and imposes it on the company and customers. C. Customers find their own solution. D. A company works to find its own solution.

The company works with the customers to find a solution.

Which of the following statements about the Russian economy are true? (Choose every correct answer.) A. A growing well-educated middle-class has a strong demand for products. B. The economy has repeatedly risen and fallen since the fall of the Soviet Union. C. A reliance on oil revenue has made the Russian economy robust and unlikely to fail. D. The country's prospects as a consumer market are overall promising.

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

How does brand licensing work? A. The licensee pays a royalty to the licensor in exchange for being able to use the licensor's brand. B. Two or more brands are marketed together on the same package or promotion and split the profits. C. The licensor pays a royalty to the licensee to encourage them to use the licensor's brand. D. One division of the company shares revenues with another division in exchange for using the brand name in another product lin

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

Which of the following are examples of self-values? (Choose every correct answer.) A. he need for self-indulgence B. The need for a sense of belonging C. The need for self-respect D. The need for self-fulfillment

The need for a sense of belonging The need for self-respect The need for self-fulfillment

What marketing opportunities does a firm have when customer needs are unmet? (Choose every correct answer.) A. The opportunity to augment existing products or services B. The opportunity to change customer needs C. The opportunity to identify new market segments D. The opportunity to create new products or services

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

___________ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace. A. The product life cycle B. Alpha and beta testing C. Diffusion of innovation D. The product development process

The product life cycle

What are some common problems caused by the use of technology in a service setting? A. Customers do not understand how to use the technology. B. The technology is less efficient than a human. C. The technology does not perform adequately. D. Customers dislike replacing humans with machines.

The technology does not perform adequately. Customers dislike replacing humans with machines. Customers do not understand how to use the technology.

What problem might occur if a grocery store decides to install self-checkout devices? A. The technology will be less accurate in counting money than human employees. B. The technology will be more expensive in the long run than paying human employees C. The technology will lead to customers purchasing fewer items. D. The technology will be too challenging for some customers.

The technology will be too challenging for some customers.

Which of the following is NOT a method to reduce delivery gaps? A. Empower employees B. Threaten to terminate employees C. Provide support and incentives D. Use technology to minimize errors

Threaten to terminate employees

After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments? A. To help understand the profile of each segment B. To eliminate less desirable consumers from the customer base C. To articulate the vision of the marketing strategy clearly D. To validate preconceived notions of each market segment

To help understand the profile of each segment

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.) A. To lower production costs B. To keep customers from getting bored with existing products C. To satisfy the changing needs of consumers D. To attract talented employees to the firm

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

What is one of the two levels on which cultures exist? A. Business, or firms that sell goods and services B. Geographical features, including topography and terrain C. Underlying values, such as beliefs and thoughts D. Infrastructure, such as buildings and transportation

Underlying values, such as beliefs and thoughts

In the context of the Service Gaps Model, which of the following should the management do to bridge the knowledge gap? A. Empower service providers B. Promise realistic services C. Train employees to meet and exceed standards D. Use marketing metrics such as service quality and the zone of tolerance

Use marketing metrics such as service quality and the zone of tolerance

Which of the following are included in the ideas for sustainable packaging? (Check all that apply.) A. Using returnable packaging B. Using 3D printing C. Adding recycled materials to packaging D. Adding more layers of plastic

Using returnable packaging Using 3D printing Adding recycled materials to packaging

How do marketers begin the process of developing or changing a product? A. Creating associated services B. Advertising features they hope to be able to include in the product C. Using the core customer value to determine customer interests D.Making the actual physical product

Using the core customer value to determine customer interests

Which of the following characteristics is NOT one that distinguishes services from products? A. Heterogeneity B. Perishability C. Intangibility D. Inseparability E. Volatility

Volatility

Which situation represents an important marketing opportunity for creating new products or altering existing products? A. When customers have little need or desire for the firm's offerings B. When customer needs are not completely met C. When customers are satisfied with only the firm's offerings D. When customers' needs are met by the firm and its competitors

When customer needs are not completely met

What does a postlaunch review help determine? (Choose every correct answer.) A. Whether changes to the marketing mix are needed B. Whether additional resources are needed C. Whether the launch was a success or failure D. Whether competitors should be eliminated E. Whether new management should be hired

Whether changes to the marketing mix are needed Whether additional resources are needed Whether the launch was a success or failure

A franchise is a contractual agreement between ____________. A. a firm or individual and another firm or individual B. a firm or governmental agency and a governmental agency C. a firm and infrastructure D. a firm and an outside country

a firm or individual and another firm or individual

Customer service is best represented by which of the following statements? Customer service ___________. A. defines the task of marketing an intangible or primarily intangible item B. mandates that all customer needs must be met C. adds to marketing efforts by helping to meet the customers' needs and wants D. ensures that customers become lifelong customers

adds to marketing efforts by helping to meet the customers' needs and wants

Early _________________ 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

New products and services that consumers accept quickly will have a high __________ rate early in their product life cycles, which will accelerate the diffusion process across the various stages. A. diffusion B. success C. adoption D. cycle

adoption

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 _______________ within the diffusion process.

advantage

Firms need to continue to innovate because customer needs _______________. A. tend to stay constant over time B. are constantly changing C. can be disregarded once a product is established in the market D. are insignificant compared to the need to always use the newest technologies

are constantly changing

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

attractiveness

If a brand has a high degree of brand ___________________, it means that most consumers are familiar with the brand and what it stands for even if they do not use the brand.

awareness

Marketers can assess the level of brand ___________ 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. A. awareness B. loyalty C. value D. equity

awareness

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 ___________ segmentation. A. occasion B. multiple C. behavioral D. psychographic

behavioral

When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of _______________ segmentation.

behavioral

______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty. A. Behavioral B. Lifestyle C. Benefit D. Substantial

behavioral

What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service? A. Behavioral B. Geodemographic C. Psychographic D. Benefit

benefit

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 _________________ equity.

brand

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 ____________. A. brand extension B. co-branding C. brand licensing D. brand repositioning

brand repositioning

Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to __________. A. be competitive in commodity markets B. overwhelm consumers perception C. be able to develop the brand personality over time D. build brand awareness

build brand awareness

The practice of marketing two or more brands together on the same package or promotion is known as _____________. A. brand dilution B. brand extension C. co-branding D. brand licensing

co-branding

Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's __________ strategies. A. communication B. supply chain C. relationship D. sales

communication

If the Americana Hotel has successfully closed the standards gap, the knowledge gap, and the delivery gap in providing customers with service, it is still necessary for the hotel to close the ____________________ gap.

communication

Ryanair advertised the lowest rates in Europe with fares of $12 between Paris and Munich. However, when Bill arrived at the airport, he had to pay $28 in taxes, $25 for one small carry-on bag, $6 for a non-alcoholic beverage, and $2.50 to use the restroom on the plane. Between Ryanair and the customer there is a _______________ gap. A. communication B. delivery C. standards D. knowledge

communication

An effective method to assess customer service expectations is to analyze customer __________________ behavior in which management is told by buyers what dissatisfies them. A. exit B. complaint C. buying D. loyalty

complaint

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) _______________ targeting marketing strategy.

concentrated

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

concept

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

concepts

______ is the shared meanings, beliefs, morals, values, and customs of a group of people. A. Infrastructure B. Trade C. Culture D. Branding

culture

Age, gender, and income are all examples of ___________ segmentation variables. A. psychographic B. benefit C. demographic D. geographic

demographic

Marketers sometimes take into account that as people age, their needs change. This is an example of ___________ segmentation. A. benefit B. geographic C. demographic D. psychographic

demographic

When Kellogg's introduced Special K, the marketing communications about the product were meant to primarily appeal to women. This is an example of _________ segmentation. A. geodemographic B. psychographic C. demographic D. lifestyle

demographic

__________ segmentation variables include age, income, and gender.

demographic

Psychographics is a segmentation method that delves into how consumers actually _________ themselves. A. spend money on B. relate to C. position D. describe

describe

Global marketing strategies includes two elements: identification of the target markets and ___________. A. evaluating all of the global economic environment B. eliminating competition C. financing the global expansion D. developing a competitive marketing mix

developing a competitive marketing mix

Branding provides a way for a firm to __________ its product offerings from those of its competitors. A. commoditize B. differentiate C. license D. monetize

differentiate

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

differentiated

If a handbag manufacturer offers three different purses (a budget-conscious version, a slightly higher-end version, and a luxury version) to three different target markets, which targeting strategy is it using? A. Micromarketing B. Concentrated C. Undifferentiated D. Differentiated

differentiated

_________________ 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 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 ___________. A. the product life cycle B. diffusion of innovation C. viral marketing D. distribution of product inventory

diffusion of innovation

It is important to ensure that segments are distinct from one another because too much overlap between segments means that Blank______. A. distinct marketing strategies are not necessary to meet segment members' needs B. there is always a need to have many diverse market segments targeted C. the target market segment is definitely too small D. the target market segment is probably too large

distinct marketing strategies are not necessary to meet segment members' needs

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk _______________ strategy is that if some products in one category are competing poorly, others in another category could be doing very well. A. assimilation B. transfer C. seeking D. diversification

diversification

Along the diffusion of innovation curve, ___________ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting. A. innovators B. early adopters C. early majority D. first movers E. pioneers

early adopters

Along the diffusion of innovation curve, ___________ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting. A. pioneers B. early adopters C. innovators D. early majority E. first movers

early adopters

The _____________ _____________ 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

Janet had to deal with a very difficult customer who wanted to be given complimentary services such as free flights and upgrades on future flights when he very vocally complained in the airport about delays and lost luggage. He screamed at Janet and was very offensive. Her supervisor made Janet feel a little better about the unsettling experience by offering __________________ support and commending her on how she handled the difficult passenger. A. instrumental B. financial C. emotional D. physical

emotional

An airline employee is able to make a decision at the moment of assigning a passenger a seat at the gate when it is obvious the flier is in a wheel chair. The firm has __________ the employee by allowing him to move the passenger to first-class seating. A. incentivized B. rewarded C. empowered D. supported

empowered

When a firm such as Ruth's Chris Steak House tells servers to "use your best judgment" in serving a customer who is not satisfied with his or her $40 steak, it is allowing the server to make decisions at the point of delivery. This is called__________________.

empowerment

A joint venture is formed when a firm ___________ a new market and __________ its resources with those of a local firm to form a new, shared company. A. exits; pools B. exits; exports C. enters; imports D. enters; pools

enters; pools

Brands are assets that a firm can build and harness over time to increase its __________. A. consumer trust B. marketing expenditures C. equity D. liabilities

equity

Brands are assets that a firm can build and harness over time to increase its _____________. A. marketing expenditures B. liabilities C. equity D. consumer trust

equity

The value of a brand can be calculated and compared to other brands in the form of brand __________. A. profitability B. assets C. equity D. loyalty

equity

The use of an existing brand name in a different product line is called brand _____________. A. extension B. lengthening C. placement D. dilution

extension

A restaurant is facing a problem in service delivery on a night when there are twice as many customers dining as usual. An integral part of recovery of the service dilemma is to provide both distributive and procedural _____________________ in resolving the delays in getting all customers served.

fairness

True or False: Service providers that have high customer satisfaction ratings this year are unlikely to achieve the same level of satisfaction next year.

false

Kellogg's sells a variety of products under its Kellogg's name brand then identifies groups of products with a secondary name such as Raisin Bran or Froot Loops, each in several sizes and versions. In the given scenario, Kellogg's is a(n) ___________ brand. A. private-label B. individual C. family D. corporate

family

When a firm sells all its products under one ____________ such as Pepperidge Farm, the individual brands benefit from the overall brand awareness associated with it. A. individual brand B. premium brand C. exclusive co-brand D. family brand

family brand

When a hotel has a service delivery problem such as a broken air conditioning system on a very hot weekend, one critical element of service recovery is to ____________. A. offer the most frequent customers an equivalent number of nights free on a future stay B. offer the customers who complain the most an equivalent number of nights free on a future stay C. ask each customer who complains what they feel would be equitable D. find a solution that seems fair to all customers

find a solution that seems fair to all customers

What is a major economic factor that a firm conducting an economic analysis of a country market must take into account? A. Existence of trade agreements B. Level of education C. The number of market segments D. General economic environment

general economic environment

Foster Designs sells different types of clothing for men and women. To ensure the retail store locations contain the appropriate assortment of clothing for the typical customer living in the area, the firm should use ___________ segmentation. A. behavioral B. psychographic C. demographic D. benefit E. geodemographic

geodemographic

Segmentation that uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers who may patronize stores close to their neighborhood is called ____________ segmentation. A. geodemographic B. regional C. benefit D. behavioral

geodemographic

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

geographic

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 ___________ segmentation. A. psychographic B. geographic C. benefit D. demographic

geographic

Which of the following are marketing segmentation approaches? (Choose every correct answer.) A. Collaborative B. Geographic C. Benefit D. User E. Psychographic

geographic benefit psychographic

Market differences across regions, states, or neighborhoods create opportunities for _________. A. concentrated segmentation B. geographic segmentation C. psychographic segmentation D. geodemographic segmentation

geographic segmentation

A strategic alliance is a type of __________ firms use to expand into the foreign market. A. global licensing strategy B. global entry strategy C. foreign direct investment D. global exporting strategy

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 ________________.

globalization

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

growth

Market positioning involves a process of defining the marketing mix variables so that the target customers ________________. A. have a clear, distinctive understanding of the product B. are persuaded to seek additional product information C. know the price of the product D. know the ideal point of all products in the market

have a clear, distinctive understanding of the product

Jane has realized that she does not enjoy taking a taxi to work because there is substantial __________ in the delivery of the service depending on who is driving her cab that day. A. perishability B. intangibility C. price differential D. heterogeneity

heterogeneity

The primary reason there is greater heterogeneity in services than in products is because ______________. A. human inputs generate differences B. of the increasing use of technology in delivering services C. of unknown outcomes on the buyer's part D. cost inequities generate differences

human inputs generate differences

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

idea

Although there are numerous stages in the product development process, every firm starts to develop new products through ____________ and then finishes with an evaluation of ___________. A. product deliberation; alternatives B. idea degradation; failures C. idea generation; results D. produce manifestation; alternatives

idea generation; results

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: A. increase market share. B. eliminate competition. C. identify new target markets. D. improve business relationships.

improve business relationships

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

innovation

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

innovators

One difference between products and services is demonstrated by a hair salon, where the stylist delivers the service at the same time the customer receives it. This is called _____________. A. intangibility B. heterogeneity C. inseparability D. perishability

inseparability

One of the basic ways in which services differ from products is that production and consumption are ____________ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction. A. perishable B. intangible C. inseparable D. infinite

inseparable

Services are _________________, which means that they cannot be touched, tasted, or seen.

intangible

The most fundamental difference between services and goods is that services are ______________. A. homogeneous B. cheaper C. incentives D. intangible

intangible

When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.) A. Its mission and objectives B. Its past performance C. Its target market D. Its current situation

its mission and objectives Its current situation

The marketing manager needs to communicate with customers and employees on an ongoing basis in order to understand buyers' expectations and to reduce the ___________ gap. A. communications B. knowledge C. standards D. delivery

knowledge

The component of the product package that provides the information consumers need to make their purchase decisions and for proper consumption of the product is known as the __________. A. label B. message C. built in package D. primary package

label

During the decline stage of the product life cycle, __________ who have not yet tried the product or service will be entering the market for the first time. A. early adopters B. laggards C. innovators D. marketers

laggards

Those consumers who enter the market for the first time during the decline stage are known as ___________. A. laggards B. late majority C. late adopters D. innovators

laggards

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

late

Exporting is an entry strategy that requires the _________ financial risk and allows a(n) _________ return to the firm. A. least; limited B. least; unlimited C. most; limited D. most; unlimited

least; limited

When entering their first foreign markets, firms typically take a(n) __________ approach. A. all-or-nothing B. less risky C. very risky D. no-risk

less risky

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product ______________ cycle.

life

The component of segmentation that is determined by how we live our lives to achieve goals is called __________. A. self-worth B. lifestyle C. self-image D. value

lifestyle

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

lifestyle benefits

One of the problems in using customer complaint behavior to assess buyers' service expectations is that ______________. A. it is extremely time consuming and is essentially dated by the time it is processed B. managers often are more concerned with resolving the complaint than analyzing the essence of the problem C. managers usually do not respond to customer complaints so there is no record of the information D. it is very costly to collect and process given the value of the information

managers often are more concerned with resolving the complaint than analyzing the essence of the problem

The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called _________. A. target marketing B. market segmentation C. customer marketing D. market positioning

market segmentation

During the _________ stage of the product life cycle, the market for the product usually becomes saturated. A. maturity B. indeterminate C. introduction D. growth

maturity

The ______________ stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability. (Remember to type only one word in the blank.)

maturity

For the marketing manager to be able to deliver consistent quality service, it is imperative to set _______________. A. high prices to impart high quality B. measurable goals that are based on customer expectations C. high employee-to-customer ratios D. general goals based on employee feedback

measurable goals that are based on customer expectations

The complete set of all products and product lines offered by a firm is called its product assortment, or product ___________________

mix

The product __________ is the complete set of all products and services offered by a firm. A. width B. mix C. line D. brand E. category

mix

A clothing company that offers a special line of maternity clothing for women to wear specifically during pregnancy engages in which form of segmentation? A. Occasion B. Geographic C. Loyalty D. Psychographic

occasion

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 ___________ segmentation. A. demographic B. loyalty C. occasion D. reachable

occasion

_____________ segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.

occasion

From the customer's perspective, the relationship between a product's or service's benefits and costs is called ______________. A. brand equity B. perceived value C. brand awareness D. perceived brand

perceived value

Service providers cannot inventory or stockpile things like haircuts during slow times to "sell" later when the facility is busy. This characteristic of services is called ___________. A. infinity B. perishability C. intangibility D. inseparability

perishability

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

pricing and product decisions

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

product

Which of the following is NOT a market segmentation approach? A. Geographic B. Benefit C. Product D. Behavioral E. Demographic

product

Despite having to deal with difficult guests, the service provider can be motivated to provide "service with a smile" when the firm ____________. A. provides support and incentives to motivate quality service B. does not deal with unruly customers and removes them from the service list C. establishes a policy for the firm that the customer is NOT always right D. provides frequent training programs for employees

provides support and incentives to motivate quality service

While some segmentation methods rely on external descriptions and factors to break down the market, __________ segmentation relies on consumers' descriptions of themselves. A. demographic B. geographic C. geo-demographic D. benefit E. psychographic

psychographic

Brand repositioning is also known as _____________. A. co-branding B. brand licensing C. rebranding D. brand dilution

rebranding

Poor service delivery can be converted into a positive interaction through service __________ an effort that resolves the problem fairly and shows the buyer that the firm is listening to the complaint. A. recovery B. recognition C. repetition D. repositioning

recovery

A brand, such as T-Mobile, can build awareness through __________ exposure to the brand's logo, symbols, and slogans. A. concentrated B. expensive C. repeated D. limited

repeated

One of the most important factors for adequate service recovery is for the provider to _____________. A. respond to the customer and resolve the problem quickly B. guarantee that all problems will eventually be resolved in the order in which they occur C. find a solution that costs the company the least amount of money possible D. allow the customer to solve the problem on his or her own

respond to the customer and resolve the problem quickly

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 ____________. A. integrated B. vacant C. saturated D. profitable

saturated

The ________ 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). A. demographic B. shareholder C. segmentation D. accounting

segmentation

After evaluating each market segment's attractiveness, the next step in the STP process is _________. A. negotiating with retailers B. beginning production C. contacting consumers D. selecting a target market

selecting a target market

After evaluating each market segment's attractiveness, the next step in the STP process is _________. A. negotiating with retailers B. contacting consumers C. selecting a target market D. beginning production

selecting a target market

Another term for self-concept is _________. A. self-reflection B. self-image C. self-selection D. self-awareness

self-image

The overriding desires that drive how a person lives his or her life are ______. A. self-values B. self-perceptions C. mile markers D. lifestyles

self-values

Direct investment exposes a firm to ___________ risk. significant minimal shared very little

significant

Individuals in different segments should have _________ within the segment and _________ across the segments. A. similarities; familiarity B. differences; similarities C. similarities; differences D. targets; positioning

similarities; differences

A firm using a concentrated segmentation strategy selects a(n) ____________ target market and focuses all its energies on providing a product to fit that market's needs. A. large B. individualized C. diverse D. single

single

When firms decide to develop new products, it is typically a long process that is broken into _________ stages. A. one B. four C. six D. two

six

McDonald's has a policy that, in addition to ketchup, mustard, and onions, all burgers must have two pickles. This contributes to efforts to reduce the ______________ gap and provide measurable service quality based on expectations. A. standards B. knowledge C. communication D. delivery

standards

What are key characteristics of the introduction stage? (Choose every correct answer.) A. Profits are low B. Start-up costs are high C. Price competition is fierce D. Sales are high E. Buyers are abundant

start-up costs are high profits are low

_______________ packaging is better for he environment than traditional packaging.

sustainable

When Burger King introduced the new Whopper Bar to a limited geographic area prior to a national launch, it was engaging in __________. A. test marketing B. prototype testing C. a premarket test D. concept testing

test marketing

A customer with a complaint about the way in which a washing machine repair was made will become increasingly more annoyed with the service provider __________. A. as the perceived fairness of the process increases B. the longer the service provider listens to his or her complaint C. as the compensation becomes more tangible D. the longer it takes to get an answer from the firm

the longer it takes to get an answer from the firm

Firms position their products based on methods such as __________. A. product, price, place, and promotion B. the value proposition, salient attributes, symbols, and competition C. demographics, geodemographics, psychographics, and benefits D. undifferentiated positioning, concentrated positioning, differentiated positioning, and micropositioning

the value proposition, salient attributes, symbols, and competition

When firms develop a marketing mix as part of their global marketing strategy, what is their primary goal? A. To eliminate waste in the supply chain B. To sustain a competitive advantage over time C. To improve customer relations regardless of cost D. To trigger a short-term surge in sales

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

True or False: Delivery gaps always result in a service failure.

true

True or False: Firms must be able to identify who is within their markets to be able to design products or services to meet customer needs.

true

True or False: If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.

true

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

true

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

When a firm sells products that meet the needs of many kinds of customers, it will most likely use a(n) ___________ targeting strategy because there is little need to formulate different strategies for different groups. A. concentrated B. one-to-one C. differentiated D. undifferentiated

undifferentiated

When everyone is considered a potential user of its product, a firm should use a(n) ___________ targeting strategy. A. specialized B. concentrated C. undifferentiated D. micro-marketing

undifferentiated

When a product is first launched during the introduction stage, sales are usually _________ and there are __________ competitors. A. very low; essentially no B. unprofitable; several C. profitable; no D. high; numerous

very low; essentially no

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries? A. Oil and gas B. Writing utensils C. Household appliances D. Video games

video games

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.) A. Video games B. Over-the-counter medicines C. Gardening equipment D. Books E. Movies

video games books movies

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 ____________. A. if the cost of the product is accurate B. if more prototypes would be beneficial C. which stage the product is in D. which group of consumers like the product

which stage the product is in