MKT-120 Ch. 5-
Austin is an account manager for the music production company, Live Nation, and has always been an avid musician and music enthusiast. Austin is responsible for working with one of their major clients, State Farm Insurance, who is a major sponsor of various music festivals such as the Coachella Valley Music & Art Festival, Bonnaroo, Lollapalooza, and Bumbershoot. In his free time, Austin plays guitar in a band and enjoys performing at open mic nights or the occasional gig. His job and his hobbies mesh so well that he doesn't even feel like work is "work"-it's more recreation to Austin since he enjoys the music industry so much. Austin's passion for music and his view of himself as music influences his purchasing choices of products and brands. Austin's ________ influences his purchasing decisions as he seeks to purchase items that reflect or enhance his persona.
self-concept
Marketers must consider the different nationalities represented within the Hispanic and Asian-American subcultures because of the unique culture, history, and buying patterns of each ethnic group.
true
Business purchasing agents may indirectly contribute to the satisfaction of their own personal needs by helping their firms achieve organizational objectives.
true
High involvement products tend to be those that are expensive and visible to others.
true
In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period.
true
Perception is a process in which an individual selects, organizes, and interprets information received through the sense organs.
true
The increase in government purchases has resulted partly from the increase in the number of services provided by the government.
true
The term market density refers to the number of potential customers per unit of land area, such as per square mile.
true
The three major categories of influences on the consumer buying decision process are:
situational influences, social influences, and psychological influences.
Prodigy Placement is a private elementary school located in the center of Manhattan. Students at the school are considered in the top 1% of their age group in terms of IQ scores and aptitude. Parents who want to send their children to the school must get on a waiting list as soon as the child is 12 months old and must make a deposit of $5,000 to the school in order to hold the child's "application" until they reach the age of 5 years. Emma's parents put her on the waiting list at the age of 1 year and paid the deposit; however, when Emma became five years old, she did not want to attend the school even though she tested above the requirement. Her parents made the decision to enroll her for the upcoming school year. In this case, Emma ___ part of the market for Prodigy Placement, and her parents ____ part of the market
was not; were; because Emma lacked the desire.
Evaluative criteria for brands within the consideration set are both
objective and subjective.
A Pillsbury mill in Utah buys grain from growers in the western region. The purchasing agent for Pillsbury willmost likelyuse which buying method?
Sampling
DeShon has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeShon looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeShon looks at the correlation between the sales trend data and the various combination of demographic data. DeShon is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.
Time series analysis; regression analysis
Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ____ about Secret.
attitude
When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called
closure
A marketer can use regression analysis techniques to predict the sales of new products.
false
The types of surveys used to forecast sales are customer, executive, and competitor surveys.
false
A consumer belongs to only one subculture.
false
Customer forecasting surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers.
false
Income is the key factor in determining a person's social class.
false
It is customary for contracts for raw materials and components to be negotiated semiannually.
false
Situational influences would likely not affect a high school senior searching for a college or university to attend.
false
Ride Snowboard Company was founded in 1992 and now based in Seattle, Washington. The company estimates that snowboard enthusiasts typically spend about $600 annually on gear even though they only get on the slopes about 50 days a year. However, Ride products are available in markets where the typically customer can average 30 days on the slopes using their equipment so Ride ensures that they have store outlets near ski resorts such as Colorado, Vermont, and Utah. What type of segmentation variable does Ride utilize when selecting locations for its retail outlets?
geographic
Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.
heterogeneous
Use the following to answer the questions. GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 5.2. Currently, GE uses several sales forecasting methods. One method is to sell the different locomotive engines to buyers in different countries, and then measuring the purchasing response in each. In this case, GE Transportation is using the _____ method to forecast future sales.
market test
Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?
modified rebuy
Buyers' actions are affected by one or more internal energizing forces geared toward satisfying needs, which are called
motives
An accountant who purchases software for maintaining clients' books is an example of a buyer in a(n) ____ market.
producer
If your firm uses a ______________ targeting strategy, you can expect to need __________ production processes to support the strategy.
Differentiated; More
Intuition and expediency are primary characteristics of which of the following sales forecasting methods?
Executive judgment
The target market selection process involves _______ steps. The first step is ____________, and the last step is _____________.
Five; Identify the targeting strategy; Select the target market
Management at Readyfresh Dry Cleaners is concerned that it maintains a high level of service for its business accounts. How should the firm monitor the level of service these customers receive?
Formally survey customers.
You are manager of a clothing manufacturing firm that has operations in different countries. Your Indonesian manufacturing facility is dedicated solely to producing elementary school uniforms for the U.S. market. Most of your product output is sold to a larger school uniform company in the U.S. called School Uniforms, Inc. School Uniforms, Inc. has major contracts with school districts like the Los Angeles Unified School District. In this scenario, the Los Angeles Unified School District is part of which of the following business markets?
Institutional market
Within the information search step of the consumer buying decision process, what two primary aspects exist?
Internal search and external search
Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ____ approach to measure sales potential.
NOT buildup
Use the following to answer the questions. Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. Refer to Scenario 6.1. The type of decision making that Kate is using to select an auto repair shop would be
NOT extended decision making.
Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?
Routinized response behavior
The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except:
The variables should be based solely on demographic characteristics.
Routinized response behavior is what a consumer does when
buying frequently purchased, low-cost items that need little effort.
The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the
company sales potential.
Several conditions must exist for market segmentation to be successful. These conditions include all of the following except
customers' needs for the product must be homogeneous.
Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents.
differentiated
Justin is purchasing his third car in the past five years. He has been a car enthusiast ever since he was a young boy. Justin likes to spend his free time looking at car magazines, going to car shows, and watching NASCAR. Justin's interest in cars is referred to as
enduring involvement.
The primary advantage of a concentrated targeting strategy is
it allows a firm to specialize to meet specific customer needs.
Cole's smart phone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Cole is most likely to use _____ for this purchase.
limited decision making behavior.
The Eagle Pawn Company is a regional business that owns seven pawn stores in the Houston area. The owners of Eagle Pawn have recently purchased a new software system designed to better track their inventory. Now that they have had the system for a couple of months, they have decided to upgrade to a newer version. The original purchase is an example of a(an) ________, while the current purchase will be a(an) _____.
new task; modified rebuy
An attitude is
one's evaluation, feelings, and behavioral tendencies toward an object or idea.
Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least basic to survival. These needs, in order from most to least basic to survival are
physiological, safety, social, and esteem, self-actualization.
The three purposes for which individuals or groups can use products in order for it to be considered a business market are
resale, use in daily operations, and direct use in producing other products.
Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's
sales forecast.