Midterm Study Marketing

Which one of the following statements about marketing information technology is true?

Marketing information systems typically include databases.

Which of the following states what is to be accomplished through marketing strategies?

Marketing objectives

Which of the following is true about marketing research?

Marketing research can help develop marketing mixes that match customer needs.

Boeing is one of the world's largest aerospace and defense companies, and it spent $17 million lobbying to pass legislation to protect its interest or to retaliate against its competitors. This best represents which of the following environmental forces?

Political

Target's tagline "Expect More, Pay Less" emphasizes which marketing mix variable?

Pricing

Problem recognition occurs when a consumer

Problem recognition occurs when a consumer

Which of the following is NOT a component of a marketing plan?

Product specifications

Which of the following can help sustain interest in a product that has been around for a long time?

Promotion

Which of the following is the best example of strategic philanthropy for Office Depot, the large office supply chain?

Providing low-income families with school supplies and computer training

After doing considerable shopping, Pax has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Pax?

Purchase

Price discrimination is prohibited by the ____ Act.

Robinson-Patman

Georgia has been a loyal customer of Apple for years. She likes to own the latest products and looks forward to announcements about product releases. She owns an Apple phone, iPad, and MacBook and hopes to purchase the new model phone when it's released in the fall. Georgia was talking to one of her friends about Apple and was surprised to learn that Apple was involved in some workforce-related issues at an overseas plant. Her friend was telling her that Apple paid very low wages and people were required to work long hours. Tierra reasoned that this issue must be related to a third-party manufacturer since Apple would never treat their employees this way. She dismisses the incidence and explained to her friend that it must have been an honest mistake. What type of process is Georgia utilizing with regard to the information about Apple?

Selective distortion

Selective exposure refers to

Selective exposure refers to

Which of the following statements is false?

Social responsibility and marketing ethics are the same thing and can be used interchangeably.

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?

The Better Business Bureau

The three most widely recognized types of consumer decision making are

The three most widely recognized types of consumer decision making are

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

routinized response behavior.

Peet's Coffee will spend $500,000 marketing its newest latte drink. It expects to sell 1 million of these lattes over the next year. These 1 million lattes are a _____________ for Peet's Coffee.

sales forecast

Age, rate of product use, location, and gender are all examples of common

segmentation variables.

Less randomness and more difficulty in obtaining a sample size are disadvantages of

social media.

Ford Motor has frequently extolled its efforts to reduce greenhouse gas emissions from its manufacturing and its products as well as the increased fuel efficiency of its vehicles. This is an example of

sustainability marketing.

Consumerism is

the efforts of independent individuals, groups, and organizations to protect the rights of consumers.

Relying on executive judgment for forecasting may be adequate when

the executive has considerable experience and product demand is relatively stable.

A firm has conducted market research and found that customer satisfaction with its product is quite high. Nonetheless, repurchase behavior is very low. The research design evidently has a problem with

validity.

The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients labeling on food products: Labels must be placed on the product in a location most likely to be seen by the consumer. Labels must include quantity of and type of ingredients included in the food product. Labels must be printed in a specific font size ​ Regarding these requirements, which one of the following statements is correct?

​ This is an example of marketing ethics as determined by a government regulator.

​Although the monopoly is one of the four major market structures that theoretically exists in a free market capitalist system, the reality is there are very few true monopolies in the economy. This is the result of many federal laws and regulations that have been passed to limit the creation and power of monopolies. Which one of the following federal laws was passed to prevent the creation of monopolies in the economy?

​Sherman Act of 1890

​Which of the following statements is incorrect?

​Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.

​The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also

​achieve the organization's goals.

For the Christmas season, a major toy retailer decided to donate to Angel Tree, an organization that provides gifts to the families of those who are incarcerated. The retailer claimed that it would donate 10 percent of the proceeds of all toys sold in the month of December to the Angel Tree organization. This is an example of ________________.

​cause-related marketing

​Marketing is the process of

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

​The way to deal with ethical issues is proactively

​during the strategic planning process.

​The marketing environment is best described as being

​dynamic and changing.

​When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

​market opportunity.

​Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

​strengths; opportunities

Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.

"What should we do with our waste?"; "How can we produce products without waste?"

Garrison receives $50,000 in income. He paid $10,000 in taxes, $7,500 in rent and utilities, $5,000 on food, $2,000 in clothing, and $1,000 on a new couch. Based on these calculations, Garrison's discretionary income is

$25,500.

Your company is accepting proposals from a variety of consulting firms to assist in determining how the rapid changes in technology will impact your firm's future operations and profitability. ​ Which one of the following consulting firm proposals should you accept?

Accept Firm D's proposal to complete a technology assessment.

An opinion leader is likely to be most effective under all of the following conditions except when the

An opinion leader is likely to be most effective under all of the following conditions except when the

ACME was not the first to bring a selfie stick to market, but it is now introducing a selfie stick that can also be used as a cane, an umbrella, and a knife for self-defense. Which of the following is ACME benefiting from as a late mover?

Being able to improve on the product design and marketing strategy

Which of the following is the division of a market according to end results that consumers want from the product?

Benefit segmentation

US Foods, a food services and facilities management company, distributes food to restaurants, health-care facilities, hotels, and schools, among other businesses. What type of targeting strategy would it most likely adopt?

Differentiated

____ is (are) most likely to improve ethical behavior in a marketing organization.

Eliminating unethical individuals and improving the organization's ethical standards

What do environmentalists set as an objective for profitability?

Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.

Which of the following products would probably require extended decision making before a purchase?

Expensive products

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

Federal Trade Commission (FTC)

Which of the following is the least uncontrollable factor in developing a marketing mix?

Government regulations

For which of the following products would a consumer most likelyuse limited decision making?

Hair dryer

Matias has just finished collecting data about the texting habits of students during their lunch hour. He used both online surveys to ask the students about their texting behavior, as well as observational techniques in the cafeteria. What is the next step in the marketing research process for Matias to begin?

Interpreting research findings

Which of the following statements about implementing an ethics and legal compliance program is false?

It rarely needs to be revised.

Which of the following is true about the development of a marketing plan?

It should be unique to the organization for which it was created.

Which of the following is the least flexible survey method?

Mail surveys

Which of the following uses tools and methods—including software to track, store, and analyze data—to measure and interpret the effectiveness of a firm's marketing activities?

Marketing analytics

Alex works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Alex likely used which sales forecasting technique?

Time series analysis

You are watching an episode of a new game show that tests contestants' knowledge by giving them phrases they must respond to with a question. The following marketing-related phrase comes up in the bonus round of the game: "It's an informed guess or assumption about a problem or set of circumstances. It is based on all the insight and knowledge available about the problem or circumstances from research studies and other sources." What should the contestant's response be?

What is a hypothesis?

In marketing research, a sample is best described as

a limited number of units chosen to represent the characteristics of a total population.

After determining that consumers had concerns about certain ingredients that may cause health issues, Patrizzi's Pizza began offering a gluten-free pizza product. The creation of this new product was the result of

a market opportunity.

Alex has a good-paying job. However, even though he has not received any official confirmation, Alex suspects that his job might be cut in the near future. Rumors in the grapevine hint that the company is going to go through massive lay-offs due to declining revenues. As a result, Alex has decided to forgo buying a house until he has a better idea of his job status. He has a lot of savings, but Alex knows he might need them if he becomes unemployed. In this case, Alex lacks

a willingness to buy.

Thomas has been a marketing manager at Albertson's for several years. Recently Albertson's adopted a new type of software that is able to collect information from a variety of sources and look for unique trends that would not normally be observable using other marketing research methods. The information revealed the surprising insight that a certain age group of people buys more organic food than others. Thomas was surprised at this revelation because he had thought just the opposite. This new system allowed Thomas to make use of _________ and interpret it to yield unique insights he could use in future marketing campaigns.

big data

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

buildup

Road King Cycles Inc. is a manufacturer of bicycles and sells its bikes to retail outlets that serve the consumer market. Road King bicycles are priced at $900 and over and are typically sold to consumers who are recreational riders or those aspiring to compete in amateur cycling or triathlon events. Road King has enjoyed a steady stream of revenue from its line of road bicycles which are more traditional, multispeed bicycles for those who enjoy long rides on city or rural roads. Sales of road bikes are relatively stable and Road King does little to market the bikes to consumers because it has a dominant share of the market. However, hybrid bikes represent a growing segment as younger consumers prefer the upright riding position of the bikes and they can be utilized for either road or mountain biking. Road King is introducing a hybrid line of bikes and supporting it with extensive advertising in specialty magazines as well as social media marketing. Road King believes the category of hybrid bikes is growing but its market position is not as strong as other manufacturers, such as Cannondale. Using the Boston Consulting Group's Growth Share Matrix, road bicycles would be categorized as ___

cash cows; question marks

The unethical practice of shipping surplus inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter, is called

channel stuffing.

Nakia wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Nakia most likely feels her consumer right to ____ has been violated.

choose

The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to

create a responsible approach to developing long-term relationships with customers and society.

Primary data are best described as the

data that are observed, recorded, or collected directly from subjects.

Segmentation variables for consumer markets are usually grouped into four categories:

demographic, geographic, psychographic, and behavioristic.

Consumer confidence is at a low during periods of

depression.

Julia plans to buy a new swimsuit for her spring break cruise. She has not seen this year's styles and thus will do some comparison shopping before making a purchase decision. Julia is engaging in

limited decision making.

Mondelez marketers want to know why sales of its new ruby chocolate product is soaring in one country but not in another. After extensive research, Mondelez marketers believe the answer lies in demographic and cultural differences among the populations. They conduct in-depth research that asks consumers in each country about their ages, occupations, eating habits, as well as how often they purchase its chocolate bars. They use statistical analysis and predictive tools to come up with strong conclusions. Although Mondelez researchers are fairly certain about their research, they realize that it is still limited in providing evidence to definitively link demographic and cultural differences to being the cause of why sales differ so significantly among the two countries. Mondelez has most likely conducted _________________ research.

descriptive

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is

developing market segment profiles.

The strategic planning process begins with

development of an organizational mission statement.

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

differentiated

Consumerism is a

diverse group of individuals and organizations attempting to protect the rights of consumers.

Luke and Hayley are searching for a health club to join. This purchase will likely be affected by ____ involvement.

enduring

Daniel is a football enthusiast. He watches all the big games, collects football memorabilia, and knows everything there is to know about football history. His best friend Charles is not a football fan. However, he does enjoy watching the Super Bowl every year because of all the excitement. He even finds that he gets really into the game. Usually the Super Bowl is the only football game Charles watches, but he still looks forward to it every year. Daniel has a(n) ____________ involvement with football, whereas Charles has more of a(n) _____________involvement.

enduring; situational

If Progresso were to offer single-serving packages of soup, it would be using segmentation based on

family life cycle.

A market orientation is an organization-wide effort that includes all of the following activities except

focusing just on the marketing department.

Rockabye Baby is a boutique that sells luxury baby items. It is located in Los Angeles. The owner has been highly successful over the years and has decided to open another store in San Diego. However, sales at this store have been low. The owner asked a marketing consultant for advice about what went wrong. The consultant says the location is not ideal for the market. The owner located his store in a high-income area, but most of the people in the area are singles or retired couples. Instead, the owner should have used ____________ to identify an area of the city with higher-income neighborhoods characterized by couples who want only the best for their newborn babies.

geodemographic segmentation

Never Again MSD is a group that works to change attitudes and laws about gun control. Never Again MSD primarily markets

ideas

A person's buying power is a function of

income, wealth, and credit.

Harrison and Harriet's family is trying to decide where to go for vacation this year. Harriet wants to go to Universal Park & Resort because she's the only one in her class who has not been. Harrison wants to go to Alaska so that he can see bears and orcas. Although their parents listen to their desires, they ultimately choose a less expensive destination. In this case, Harrison and Harriet are performing the family role of

influencer

The Consumer Financial Protection Bureau settled a claim with the Bank of America for deceiving customers and unfairly billing them for services such as credit monitoring and identity theft protection. Bank of America agreed to provide refunds to 2.9 million people and pay $45 million in fines for their illegal credit card practices. Their deceptive practices dated to 2000 where they had billed customers for products such as "Privacy Guard" or "Privacy Assist" without first obtaining authorization for the products. The $45 million in fines includes $25 million as a civil penalty that will be paid to the Office of the Comptroller of the Currency and $20 million to the Consumer Financial Protection Bureau. The Bureau also claims that Bank of America deceived about 1.4 million customers into making about $268 million in payments by, among other things, improperly telling them the first 30 days of coverage were free or the benefits were greater than existed. Refer to Scenario 3.3. If the Consumer Financial Protection Bureau decides to contact the Federal Trade Commission (FTC) to investigate Bank of America and its practices regarding deceptive billing practices, and if the FTC believes that

issue a cease-and-desist order.

GEM Corporation saw an opportunity in the electric car industry. The company had studied major electric car brands such as the Toyota Prius and the Nissan Leaf. It believed it could avoid many of the challenges these companies had encountered with a new technology that would reduce costs. GEM also knew from watching competitors that it would have to work hard to convince skeptics that the electric car was a viable and dependable method to get around. By avoiding these mistakes and using its technology, GEM quickly gained market share once it began launching its vehicles. What type of advantage did GEM have?

late mover advantage

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

lifestyle

Sarah is an interior decorator who frequents antique shops and estate sales to find items for her clients' homes and offices. She has developed a keen eye for antique rugs in particular. Currently, she is assessing a small Persian rug for a client's hallway. For Sarah, a small antique rug will likely have a _______ because she does not need to engage in extended decision making for a product she has purchased before.

lower level of involvement

Although it may seem logical to target higher-income consumers, many marketers choose to target lower-income segments because

lower-income consumers represent a much larger population globally.

Family life cycle is most typically based on

marital status and age of children.

Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________.

marketing concept

Stay and Play Hotel is a full-service pet salon and boarding kennel. Stay and Play has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Stay and Play has several unexpected services, such as a 600-square-foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Stay and Play has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Stay and Play is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. ​ The cost for an overnight stay at Stay and Play averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Stay and Play' competitors don't offer the day care service, and require a two-day minimum for overnight stays. ​ Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previous

marketing concept.

Okoye Gurira is breaking down and classifying costs of her small business to determine which are associated with specific marketing efforts and then comparing these costs with results. Okoye is engaging in

marketing cost analysis.

A marketing objective should be expressed in clear, simple terms; be _____________; specify a time frame for completion; and ensure the marketing objective is _____________ with both business-unit and corporate strategies.

measurable; consistent

Under the terms of the trade agreement CAFTA-DR, the state-run telephone system in Costa Rica was opened up for competition. Now four major companies dominate the telecommunications industry for mobile phones and Internet. The telecommunications industry in Costa Rica went from being a(n) ___________ to a(n) _______________.

monopoly; oligopoly

An attitude is

one's evaluation, feelings, and behavioral tendencies toward an object or idea.

Juliette Draper is a marketing consultant for Third Eye Research Inc., and often recommends ______ focus groups, which are more convenient for participants and enable a company to gather data from large and geographically diverse groups in a less intensive manner than traditional focus-group interviews.

online

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

open-ended

Because most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure its ____ reflects the organization's values, beliefs, and norms.

organizational or corporate culture

WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996 and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gases from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically-modified soybeans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans.

philanthropic activities.

All the elements, individuals, or units of interest to researchers for a specific study are called the

population.

Procompetitive laws are those designed to

preserve competition

Marketers that attempt to influence and change the various environmental forces have a(n) ____ response to these forces.

proactive

A New York-based brand and customer loyalty and engagement research consulting firm called Brand Keys conducts research annually to identify the top 100 brands with the highest levels of customer loyalty. Amazon, Google, Apple, and Netflix lead the pack and demonstrate that consumers are enjoying long-term engagement with these companies. The top companies' ability to generate high levels of customer loyalty demonstrates these firms are engaging in ________ marketing.

relationship marketing