MKT CH 5-8

What are the steps of the decision making process?

1) Problem recognition 2) Information search 3) Evaluation of alternatives 4) Product choice 5) Post-purchase evaluation

What are the steps in the Target Marketing process?

1) Segmentation 2) Targeting 3) Positioning

Your firm has decided to tailor its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) psychographic C) usage D) positioning E) social class

A) Geographic

What are the steps, in order, of the target marketing process? A) segmentation, positioning, and targeting B) segmentation, targeting, and positioning C) targeting, segmentation, and positioning D) targeting, positioning, and segmentation E) positioning, segmentation, and targeting

B) Segmentation, targeting, and positioning

Through its CRM program, an online clothing company records information about each time a customer makes a purchase or clicks on a link through an email or an online advertisement. These interactions are examples of ________. A) customizations B) touchpoints C) analytics D) optimizations E) impressions

B) Touchpoints

A company that uses a(n) ________ targeting strategy is appealing to a broad spectrum of people. A) fragmented B) undifferentiated C) concentrated D) differentiated E) customized

B) Undifferentiated

Which of the following would be the best source for information about the size and number of companies operating in a particular industry in the United States? A) PRIZM B) AIO C) VALS™ D) NAICS E) ISP

D) NAICS

What is the difference between structured and unstructured data?

Unstructured data contains nonnumeric information. Structured data is numeric.

What is joint demand?

the demand for two or more items used together in a final product

What does busniess to business (B2B) markets include?

-Manufacturers -Wholesalers -Retailers -Hospitals, universities, governments

What are three components of attitude?

1) Affect (feeling) 2) Cognition (knowing) 3) Behavior (doing)

What are the steps for one to one marketing?

1. Identify customers and get to know them in as much detail as possible 2. Differentiate customers by their needs and value to the company 3. Interact with customers; find ways to improve cost efficiency and the effectiveness of the interaction 4. Customize some aspects of the products you offer each customer

What are the phases in new product development?

1. idea generation 2. screening 3. concept testing 4. business analysis 5. product development 6. test marketing 7. commercialization

What is the 80/20 rule?

80% of your business comes from 20% of your customers

What is brand personality?

A distinctive image that captures a brand's character and benefits

what is a microculture?

A group of individuals who identify based on a common activity or art form

What is a dynamically continuous innovation?

A pronounced modification to an existing product.

The dentist's office calling to remind you of your scheduled appointment for the next day is an example of ________. A) CRM B) customer equity C) undifferentiated targeting D) share of customer E) repositioning

A) CRM

The owner of a pet grooming salon wants to calculate customer equity. Which of the following would be a step the owner of this pet grooming salon should complete? A) Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer. B) Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays. C) Ask the customer if she is planning on getting any new pets. D) Investigate how many other pet grooming salons are within five miles to determine the likelihood of this pet owner returning to this salon. E) Determine the age of the pet to estimate how much longer this customer may need the services of the salon.

A) Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer.

Many marketing experts recommend ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer. A) customer relationship management B) psychographic segmentation C) transactional management D) B2B marketing E) C2C marketing

A) Customer relationship management

The supermarket sells boxes of pink diapers and blue diapers. This is an example of segmenting by ________. A) gender B) age C) ethnicity D) social class E) geocoding

A) Gender

A soup company found its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and the Southwest. As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than is produced in its other plants. The company is using ________ segmentation. A) geographic B) life cycle C) psychographic D) lifestyle E) usage

A) Geographic

Companies can customize online advertising by ________ so that people who log on in different places will see ad banners for local businesses. A) geotargeting B) geodemography C) geodiversity D) psychographics E) profiling

A) Geotargeting

Which of the following is NOT an example of a demographic segmentation variable? A) lifestyle B) income C) ethnic group D) gender E) age

A) Lifestyle

The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime. A) lifetime value of a customer B) priority of a customer C) segmentation of a customer D) share of a customer E) equity of a customer

A) Lifetime value of a customer

Which of the following best explains why marketers do not consider social class segments as strictly as they once did? A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework. B) Due to the Great Recession, members of the upper class have become members of the middle class, and members of the middle class have become members of the lower class. C) Data related to social class are more complicated and difficult to obtain and analyze than they once were. D) Social class in the United States is more related to education and family history than to wealth. E) Members of the upper and middle classes are unlikely to be attracted to any products marketed toward members of the lower classes.

A) Many consumers buy according to the social class image they wish to portray rather than according to where they actually fall in the social class framework

When the size and purchasing power of a target segment can be determined, the segment is ________. A) measurable B) accessible C) substantial D) differentiable E) profitable

A) Measurable

Age, gender, place of residence, and income are all examples of ________. A) segmentation variables B) positioning strategies C) market fragment strategies D) psychographics E) targeting strategies

A) Segmentation variables

To determine the best price for a first edition copy of a Stephen King novel with a dust jacket in mint condition, Jason would most likely use a ________ to provide him with pricing information from all the bookstores that currently have the requested book in stock. A) shopbot B) behavioral targeter C) search engine optimizer D) sponsored search ad E) search engine marketer

A) Shopbot

________ are Web applications that can help online shoppers find what they are looking for at the lowest available price. A) Shopbots B) Heuristics C) Search engine optimizers D) Search engine marketers E) Behavioral targeters

A) Shopbots

Mass marketers such as Walmart often ignore market segment differences and target the whole market with one offer. What is this approach to targeting? A) undifferentiated targeting B) differentiated targeting C) target marketing D) concentrated targeting E) mass customization

A) Undifferentiated targeting

Loyalty programs such as Marriott Rewards and American Airlines Advantage are examples of segmentation by ________. A) usage rate B) occasion C) geodemography D) psychographics E) geotargeting

A) Usage rate

What is the long tail concept?

An approach based on the idea that firms can make money by selling small amounts of items that only a few people want, provided they sell enough different items. Like Amazon

The 80/20 rule is most directly related to ________ segmentation. A) demographic B) behavioral C) geodemographic D) socioeconomic E) psychographic

B) Behavioral

Which of the following statements about CRM programs is true? A) The success of a CRM program relies on its use of mass communication channels. B) CRM programs include information gathered from each customer touchpoint. C) Internet technology is a barrier to the successful implementation of CRM programs. D) To succeed, all companies should engage in CRM every time they interact with a customer. E) Only consumer marketers can benefit from the use of CRM programs.

B) CRM programs include information gathered from each customer touchpoint.

Robert has taken up bicycle riding as a hobby and as a way to maintain his physical stamina. He understands he will need to make sure he gets adequate water when he is bike riding, so he wants to buy a hydration system. Having gathered a great deal of information, he has decided to compare three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of his purchase decision. A) problem recognition B) evaluation of alternatives C) product choice D) postpurchase evaluation E) information choice

B) Evaluation of alternatives

Business-to-business marketers who look at the size of firms in terms of total sales or number of employees are using ________ to segment their market. A) organizational psychographics B) organizational demographics C) organizational culture D) behavior variables E) usage variables

B) Organizational demographics

________ occurs whenever a consumer sees a significant difference between his current state of affairs and some desired or ideal state. A) Perceived risk B) Problem recognition C) Problem solving D) Learning E) Lifestyle change

B) Problem recognition

Which of the following is the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics? A) acculturation B) segmentation C) market fragmentation D) targeting E) positioning

B) Segmentation

What is a popular term to describe the exponential growth of structured and unstructured data?

Big data

According to the 80/20 rule, which of the following is true? A) 80 percent of a product's customers account for 20 percent of the product's marketing expenditures. B) 20 percent of a product's customers account for 80 percent of the product's marketing expenditures. C) 80 percent of a product's sales come from 20 percent of the product's purchasers. D) 80 percent of a product's marketing cost should be equal to 20 percent of the firm's total marketing budget. E) 80 percent of a product's market should be consumers who are 20 or older.

C) 80 percent of a product's sales come from 20 percent of the product's purchasers

Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to notice certain disadvantages of his new car as he learned more about other cars. Pat was experiencing ________. A) perceived risk B) multitasking C) cognitive dissonance D) sensory marketing E) consumerism

C) Cognitive dissonance

In one-to-one marketing, what is the next step after a marketer has identified customers and knows them in as much detail as possible? A) interact with the customers and find ways to improve cost efficiency B) make efficiency of interactions with customers the priority C) differentiate among these customers in terms of both their needs and their value to the company D) customize some aspects of the products or services offered to each customer E) implement a mass customization program

C) Differentiate among these customers in terms of both their needs and their value to the company

African Americans, Hispanic Americans, and Asian Americans are all examples of ________ segments. A) life cycle B) psychographic C) ethnic group D) social class E) geocoding

C) Ethnic group

A consumer who is armed with information and is narrowing down his choices by comparing the pros and cons of each remaining option is in the ________ step of the consumer decision-making process. A) problem recognition B) information search C) evaluation of alternatives D) product choice E) postpurchase evaluation

C) Evaluation of alternatives

Because family needs and expenditures change over time, marketers may segment consumers by ________. A) age B) generation C) family life cycle stage D) social class E) psychographics

C) Family life cycle stage

Consumer behavior is best described as a(n) ________ process. A) impersonal B) subliminal C) ongoing D) affective E) cognitive

C) Ongoing

The invitation to go skiing for the weekend forced Donna to look at her current wardrobe. She decided she needed a much warmer coat. Donna was in which stage of the purchase decision? A) product evaluation B) situational analysis C) problem recognition D) problem screening E) information search

C) Problem recognition

Companies that successfully practice customer relationship management measure success by ________. A) share of market and market growth rate B) business potential and industry potential C) share of customer and lifetime value of the customer D) PRIZM and VALS™ E) cost of customer and duration of relationship with customer

C) Share of customer and lifetime value of the customer

Any direct interface between customers and a company-whether it is online, in-person, or over the phone-is called a(n) ________. A) share of customer B) customer target C) touchpoint D) customization E) analytic

C) Touchpoint

Baby boomers ________. A) were born between 1965 and 1978 B) are currently in their 30s and 40s C) are important to marketers because of the size and wealth of the segment D) are 75 or older E) are the parents of Generation X, not Generation Y

C) are important to marketers because of the size and wealth of the segment

What are data brokers?

Companies that collect and sell personal information about customers including name, income, medication, religion, and ethnicity.

What are intranets?

Computer networks designed to communicate with people within an organization. They are used to improve two-way internal communication and contain tools that allow for direct feedback. They are a tool for communicating with internal publics

What represents the shared values, beliefs, customs, and tastes produced or practiced by a group of people?

Culture

The process that individuals or groups go through to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires is known as ________. A) the consumer decision-making process B) the family life cycle C) cognitive dissonance D) consumer behavior E) extended problem solving

D) Consumer behavior

To determine ________, firms compare the investments they make in acquiring and retaining customers to the financial return on those investments. A) segmentation B) share of customer C) brand personality D) customer equity E) positioning

D) Customer Equity

________ is the financial value of a customer throughout the lifetime of the customer relationship. A) Share of customer B) The customer perceptual map C) CRM D) Customer equity E) The 80/20 rule

D) Customer equity

A retailer that wants to target prospective grooms between the ages of 21 and 40 who are within six months of their marriage is using ________ segmentation to define its target market. A) lifestyle B) behavioral C) socioeconomic D) demographic E) ethnicity

D) Demographic

In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market. A) lifestyle B) behavioral C) socioeconomic D) demographic E) psychographic

D) Demographic

When many men in the baby boomer segment started getting gray hair, they were reluctant to use hair dyes made for women even though they were just as eager as women to fight the aging process. To address this reluctance, hair care product manufacturers introduced hair dying systems for men to use on their head and their facial hair. The hair care product manufacturers used ________ segmentation to define their target markets. A) lifestyle B) behavioral C) socioeconomic D) demographic E) psychographic

D) Demographic

A building supply company has many high-volume customers and many low-volume customers. A CRM system would be LEAST likely to help management decide to use which of the following methods for communicating with low-volume customers? A) Every November send each customer a new calendar that has the phone number of the building supply company printed on the cover. B) Once or twice a year, mail a new product catalog to each customer. C) Every few months, have a customer service representative from the building supply company call each customer. D) Have a sales representative make a personal one-on-one appointment with every low-volume customer at least twice a month. E) Give each low-volume customer the company Web address to check building supply products sold by the company.

D) Have a sales representative make a personal one-on-one appointment with every low-volume at least twice a month

Consumers often rely on decision guidelines, or mental rules of thumb, when weighing the merits of competing brands. These rules are referred to as ________. A) evaluative criteria B) attitudes C) affects D) heuristics E) cognitions

D) Heuristics

________ are the largest minority group in the United States. A) African Americans B) Asian Americans C) Pacific Islanders D) Hispanics E) American Indians

D) Hispanics

A company's first step in customer relationship management should be to ________. A) rank its customers in terms of sales volume B) identify customers that cost the company money C) identify types of transactions and determine which will be abandoned D) identify customers and get to know them in as much detail as possible E) determine which aspect of the product will be customized to meet the individual needs of its customers

D) Intensify customers and get to know them in as much detail as possible

The Asian American segment of the population ________. A) is the largest ethnic group market segment B) does not yet receive significant attention from marketers C) has shrunk in the last 10 years D) is the fastest growing minority group in the United States E) is too geographically dispersed to form a meaningful market segment

D) Is the fastest growing minority group in the United States

Which of the following statements about the steps in the target marketing process is true? A) The first step in the target marketing process is setting marketing objectives. B) There are four steps in the target marketing process. C) The second step in the target marketing process is the identification of all segmentation variables. D) The final step in the target marketing process is positioning. E) The target marketing process is not related to positioning.

D) The final step in the target marketing process is positioning

What are segmentation variables?

Demographic: characteristics that marketers commonly use including age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion and social class. Geographic variables: climate, terrain, city size, population density, and urban/rural areas also influence customer product needs. Psychographic variables: personality characteristics, motives and lifestyles Behavioristic variables: firms can divide a market according to some feature of consumer behavior toward a product, commonly involving some aspect of product use.

What is VALS used for?

Determining psychographics

What's the difference between durable and nondurable goods?

Durable goods last over a period of months, years or decades. Nondurable are short term

A consumer who is considering purchasing a house would probably use ________. A) habitual decision making B) stimulus generalization C) operant decision making D) limited problem solving E) extended problem solving

E) Extended problem solving

When Tom wanted to buy a new gas grill, he searched for grills on the Internet. He was able to gather information on grills and learn what features were available. Tom used the Internet during the ________ stage of his purchase decision. A) product choice B) evaluation of alternatives C) problem recognition D) problem screening E) information search

E) Information search

People's diverse interests and backgrounds divide them into numerous groups with distinct needs and wants, a condition most accurately described as ________. A) market aggregation B) market positioning C) economic aggregation D) differentiation E) market fragmentation

E) Market fragmentation

Some people want healthy cereal that will help them lose weight or possibly prevent certain kinds of cancer. Some want presweetened cereal. Some want fruits and nuts in their cereal. Some people want whole wheat cereal while others want rice cereal. There are some who like hot cereal and others who like to eat their cereal right out of the box. The diversity of consumers for cereal is an example of ________. A) market aggregation B) market similitude C) economic aggregation D) disintermediation E) market fragmentation

E) Market fragmentation

Which of the following is the most accurate generalization of Millennials? A) Many people in this segment seem determined to have stable families after growing up as latchkey children. B) Members of this generation are currently responsible for the majority of new start-up businesses in the United States. C) Members of this generation were born in the years immediately following the end of World War II. D) Members of this generation have more leisure time than members of other generations do. E) Members of this generation are more difficult to reach through television advertising than members of older generations are.

E) Members of this generation are more difficult to reach through television advertising than members of older generations are

When a consumer is determining her overall feelings or attitudes about a product after purchasing it, she is involved in the ________ step of the consumer decision-making process. A) problem recognition B) information search C) evaluation of alternatives D) product choice E) postpurchase evaluation

E) Postpurchase evaluation

Harley-Davidson's user profile includes both thrill-seeking and affinity for a countercultural image. In addition to demographics, Harley-Davidson uses ________ segmentation to target markets. A) value analysis B) social class C) geodemographic D) socioeconomic E) psychographic

E) Psychographic

Magazines targeted to people who love in-line skating, people who enjoy cooking, or people who prefer living more simply use ________ segmentation variables. A) demographic B) ethnographic C) geodemographic D) socioeconomic E) psychographic

E) Psychographic

Which of the following best defines demographics? A) statistics that can be used to segment populations on the basis of what people do with a product B) statistics that can be used to segment populations on the basis of when people use a product C) qualitative data that can be used to explain why seemingly homogeneous consumer groups do not share core characteristics D) statistics that can be used to segment populations on the basis of shared attitudes, opinions, and interests E) statistics that measure observable aspects of a population

E) Statistics that measure observable aspects of a population

CRM firms focus on increasing their share of ________, not share of market. A) profit B) audience C) segment D) usage E) customers

E. Customers

What are the three necessary factors for perception?

Exposure: Registering a stimulus Attention: Mental processing Interpretation: Assigning meaning

What are mature consumers?

Focus on lifestyle factors, such as mobility

What is geocoding?

Geographically customized web advertising that feeds local ads to users

What are unsought products?

Goods and services for which a consumer has little awareness or interest until a need arises

What are defining traits of Gen X?

Has entrepreneurial reputation, views homes as an expression of individuality

What are defining traits of baby boomers?

Key segment due to their size and earnings, willing to invest money, time, and energy to maintain youthful image

_________ occurs when diverse interest and backgrounds of individuals create greater diversity in needs and wants

Market fragmentation

What is mass customization?

Modifying a product to meet the needs and tastes of an individual consumer

What is time poverty?

More of a perception that reality - seems due to so many choices

What is the family life cycle?

Normal or typical developmental phases in family life. Critical stages are those involving life transitions: birth, marriage, leaving home, and death.

What is a set of unique psychological characteristics that consistently influence the way a person responds to situations in the environment?

Personality

What does PRIZM do?

Provides detailed segment profiles by zip code based on geodemography and lifestyle

_______________ groups people according to psychological and behavioral similarities

Psychographics

______________ establishes a new position in response to market changes

Repositioning

What are heuristics?

Rule of thumb used by individuals to arrive at a good decision with less mental effort

What are usage occasions?

Seasonal or party items or items for a specific occassion

____________ is the process of dividing a larger market into smaller pieces based on meaningful, shared characteristics

Segmentation

What is convergence?

THe coming together of two or more technologies to create a new system

What are selected groups from targeting?

Target markers

What is relative advantage?

The degree to which a consumer perceives a new product as offering superior benefits

What is trialability?

The ease of sampling a new product and its benefits

What is lifetime value of a customer?

The lifetime value of a customer incorporates the revenues and intangible benefits from the customer over the life of the relationship with a firm, minus the amount the company must spend to acquire and serve the customer.

What is the share of customer?

The percentage of a given customer's purchases of a category over time

What is positioning?

The process by which marketers seek to influence how a particular product is being perceived in the minds of the customers relative to competing offers

What is geodemography?

The study of the spatial variations among human populations

What are extranets?

They allow for authorized suppliers, customers, and other outsiders to access the firm's intranet

What are convenience products?

Typically nondurable goods or services bought with minimal effort

What is targeting?

When marketers evaluate each potential segment and decide upon which groups of custoemrs they will invest marketing resources

What is a subculture?

a group of people within a culture that distinguish themselves from the primary culture to which they belong

What are marketing analytics?

a group of technologies and processes that enable marketers to collect, measure, analyze, and assess the effectiveness of marketing efforts

What is a buying center?

all the individuals and units that play a role in the purchase decision-making process

What is inelastic demand?

an increase or decrease in price will not significantly affect demand for the product

What refers to the process by which analysts sift through Big Data to identify unique patterns of behavior?

data mining

What is customer equity?

the expected profitability from a firms customers over some period of time. Includes investments to acquire and maintain the customer

What is fluctuating demand?

when small changes in consumer demand create large changes in business demand