Midterm Exam

29. ________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product. A) Behavioral B) Psychographic C) Age and life cycle D) Gender E) Geographic

A) Behavioral

4. ________ are industrial products. A) Major appliances B) Laundry detergents C) Life insurance policies D) Office supplies E) Legal services

D) Office supplies

10. 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

26. A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept. A) personal characteristics B) stereotypes C) perceptions D) attitudes E) psychographics

A) personal characteristics

12. Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________. A) promotional pricing B) seasonal pricing C) by-product pricing D) product bundle pricing E) time-based pricing

A) promotional pricing

38. By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented B) variable C) flexible D) cost-plus E) reference

A) segmented

11. 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

31. 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

46. ________ 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

9. ________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions. A) Idea B) Place C) Organization D) Social E) Interactive

B) Place

8. ________ are the major marketing factors in the sale of most manufactured materials and parts. A) Branding and advertising B) Price and service C) Sales promotion and advertising D) Branding and packaging E) Public relations and brand management

B) Price and service

35. 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.

18. Which of the following is the first step in the marketing research process? A) developing a marketing information system B) defining the problem and objectives of the study C) developing the research plan D) implementing the research plan E) interpreting and reporting the findings

B) defining the problem and objectives of the study

17. Which of the following involves introducing less-expensive versions of established, brand name products? A) markup pricing B) good-value pricing C) time-based pricing D) cost-based pricing E) target profit pricing

B) good-value pricing

1. 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

23. Companies with higher costs ________. A) can drive out competitors through their pricing strategy B) intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins C) can set lower prices that result in increased sales though with lower margins D) specialize in selling products without value-added features E) are more financially successful

B) intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins

32. Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal? A) market-skimming pricing B) market-penetration pricing C) market-segmentation pricing D) cost-plus pricing E) captive-product pricing

B) market-penetration pricing

47. An attractive product idea must be developed into a ________. A) concept alternative B) product concept C) brand personality D) brand placement E) product strategy

B) product concept

28. People tend to interpret new information in a way that will support what they already believe. This is called ________. A) selective retention B) selective distortion C) cognitive dissonance D) selective attention E) cognitive bias

B) selective distortion

21. Family is one of the ________ factors that influence consumer behavior. A) regional B) social C) personal D) psychological E) business

B) social

40. Segmented pricing is only effective when ________. A) the segments show similar degrees of demand B) the cost of segmenting does not exceed the revenue obtained from the price difference C) the segmented prices do not reflect real differences in customers' perceived value D) the customers of different socio-economic classes are treated according to their rank E) companies make their services and products accessible exclusively to wealthy patrons

B) the cost of segmenting does not exceed the revenue obtained from the price difference

27. ________ is a person's pattern of living as expressed in his/her psychographics, and it includes the individual's activities, interests, and opinions. A) Personality B) Culture C) Lifestyle D) Motive E) Social class

C) Lifestyle

39. ________ 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

2. ________ refers to the amount of money charged for a product or service. A) Value B) Cost C) Price D) Wage E) Salary

C) Price

7. ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Capital items E) Convenience products

C) Specialty products

36. A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________. A) business feasibility plan B) marketing strategy development C) business analysis D) product acceptance E) business proposal

C) business analysis

6. What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs E) break-even volume

C) customer perceptions of the product's value

16. Information in a company's database can come from many sources. An advantage of harnessing such information is to ________. A) eliminate employee turnover B) achieve a high degree of employee empowerment C) gain competitive advantage D) gain access to mass markets E) eliminate resource dependency

C) gain competitive advantage

45. New product development starts with ________. A) concept development B) idea screening C) idea generation D) concept testing E) test marketing

C) idea generation

37. Which of the following factors influencing the business buying process do marketers typically find most difficult to assess? A) economic B) technological C) interpersonal D) organizational E) environmental

C) interpersonal

22. Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) ________. A) surrogate consumer B) lagging adopter C) opinion leader D) brand personality E) social networker

C) opinion leader

43. A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________. A) benefit segmentation B) segmentation by loyalty status C) segmentation by usage rate D) psychographic segmentation E) occasion segmentation

C) segmentation by usage rate

3. When an effective program can be designed for attracting and serving a particular segment, the segment is best described as ________. A) accessible B) measurable C) competitive D) actionable E) differentiable

D) actionable

15. An MIS is used to ________. A) generate product interest B) develop marketing plans C) identify demographic trends D) assess information needs E) test hypotheses about cause-and-effect relationships

D) assess information needs

24. A market-skimming pricing strategy should NOT be used for a new product when ________. A) the product's quality and image support its higher price B) enough buyers want the products at that price C) competitors are unable to enter the market D) competitors can undercut prices easily E) producing a smaller number of goods is feasible

D) competitors can undercut prices easily

25. The demand for Alpha Stampings' products is ultimately based on the demand for new automobiles in the consumer market. This is an example of ________ demand. A) negative B) latent C) primary D) derived E) composite

D) derived

13. What is usually the first step in cost-based pricing? A) testing the product concept with potential customers B) determining the marketing mix strategy C) setting a price that covers costs plus a target profit D) designing a good product E) adding up the costs of making the product

D) designing a good product

44. 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

33. In a ________ situation, the "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account and the "out" suppliers may see the present situation as an opportunity to make a better offer and gain new business. A) straight rebuy B) new task C) reverse auction D) modified rebuy E) solutions selling

D) modified rebuy

30. 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

19. 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

5. A company getting ready to launch a new product must make several decisions. The company must first decide on ________. A) whether to launch the product in a single location B) whether to launch the product in a region C) whether to launch the product into full national distribution D) when to introduce the product E) when to develop a planned market rollout

D) when to introduce the product

41. ________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics. A) Benefit B) Occasion C) Geographic D) Demographic E) Psychographic

E) Psychographic

34. A(n) ________ controls the flow of information to others in the buying center. A) user B) influencer C) buyer D) decider E) gatekeeper

E) gatekeeper

20. Many companies use ethnically specific themes in their mainstream marketing strategy because marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________. A) total market strategy B) buzz marketing C) social networking D) word-of-mouth marketing E) life-style marketing

E) life-style marketing

42. Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices? A) by-product pricing B) product bundle pricing C) optional product pricing D) captive product pricing E) product line pricing

E) product line pricing

14. Which of the following is an external source for ideas? A) project managers B) engineers C) salespeople D) manufacturing staff E) suppliers

E) suppliers