MKTG 101 Exam 1 study
Ethnographic Research
A form of observational research that involves sending trained observers to watch and interact with consumers in their natural environments.
Attitude
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
Which type of market-coverage strategy involves targeting several market segments and designing separate offers for each? A. Differentiated marketing B. Concentrated marketing C. Undifferentiated marketing D. Niche marketing E. Micromarketing
A. Differentiated marketing
Key variables to Market Segmentation
Geographic Demographic Psychographic Behavioral
Needs
State(s) of felt deprivation including physical, social, & individual needs.
Survey research
ask people questions about their knowledge, attitudes, preferences, and buying behavior
Cultural shifts
create opportunities (or threats) for new products or may otherwise influence consumer behavior.
Cognitive dissonance (post-purchase dissonance)
A buyer's doubts shortly after a purchase about whether it was the right decision.
Social Needs
Belongings affection and being recognized by others.
Marketing information system (MIS)
Consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
Market Segmentation
Dividing a market into smaller groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Internal databases
Electronic collections of consumer and market information obtained from data sources within the company network.
Descriptive Research
Generating information to better describe marketing problems, situations, or markets
Business buyer behavior
Refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.
Causal Research
Testing hypotheses about cause and effect relationships.
Wants
The form that a human need takes, as shaped by culture and individual personality.
Big Data
refers to the huge and complex data sets generated by todays sophisticated information generation, collection, and analysis technique.
Which of the following statements about big data is correct? A. One result of big data is that marketing managers are often overloaded and overwhelmed with information. B. Big data actually refers to very small data sets. C. Analyzing big data is a very easy task. D. Big data is only used by big companies. E. Analyzing big data always leads to useful customer insights.
A. One result of big data is that marketing managers are often overloaded and overwhelmed with information.
Which type of marketing intermediary help the company stock and move goods from their points of origin to their destinations? A. Physical distribution firms B. Marketing services agencies C. Financial intermediaries D. Suppliers E. Resellers
A. Physical distribution firms
________ segments are large or profitable enough to serve. A. Substantial B. Actionable C. Accessible D. Measurable E. Differentiable
A. Substantial
Firms that manufacture seasonal products target their consumers primarily through ________ segmentation. A. occasion B. psychographic C. income D. demographic E. age and life-cycle
A. occasion
Munoz Specialty Foods groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its market? A. Benefits sought B. Geographic C. Behavioral D. Demographic E. Personality
B. Geographic
Which of the following would be good advice for someone conducting marketing research in a foreign country? A. Globalization has slowed down, so international research is no longer necessary. B. Reaching respondents in other parts of the world is more difficult than it is in the United States. C. Language translation will be easy. D. You can easily find good secondary data in most foreign markets. E. Consumers in foreign markets generally enjoy participating in marketing research.
B. Reaching respondents in other parts of the world is more difficult than it is in the United States.
Which of the following BEST describes the purpose of customer insights? A. To advertise new products to customer bases B. To create more value for customers C. To instruct other company departments in customer service D. To represent the company to its customers E. To develop new markets of customers for the company
B. To create more value for customers
________ markets consist of individuals and households that buy goods and services for personal consumption. A. Reseller B. Business C. Consumer D. International E. Government
C. Consumer
Which type of research seeks to define and characterize things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product? A. Secondary research B. Primary research C. Descriptive research D. Exploratory research E. Causal research
C. Descriptive research
When a company engages in ________marketing it ignores market segment differences and targets the whole market with one offer. A. niche B. differentiated C. mass D. segmented E. concentrated
C. mass
PRIZM
Classifies U.S. households and organizes them into 66 clusters or segments within 14 different social groups.
Amazon is now promising same-day pick-up of goods as well as local secure pick-up points. What point of differentiation is this? A. People differentiation B. Image differentiation C. Channel differentiation D. Product differentiation E. Services differentiation
E. Services differentiation
Chicago's Best Pizzeria has been operating on the north side of Chicago for more than 30 years. Its target market includes young urban professionals who want new-style organic pizzas with exotic ingredients. However, in recent years, the population in the pizzeria's neighborhood has been shifting, and now fewer young urban professionals live there. The population has grown older and wants traditional pizza, not pizza with exotic ingredients. Which of the following identifies the pizzeria's BEST response to this situation? A. Be proactive and convince customers that "exotic is better." B. Cut the prices on its pizza. C. Sell a different food product, such as hamburgers or sushi. D. Run an ad campaign on the health benefits of pizza. E. Target a new market with a different product.
E. Target a new market with a different product.
Subculture
Groups of people with shared value systems based on common life experiences and situations
Individual Needs
Knowledge, Self expression
Sample
A segment of the population selected for marketing research to represent the population as a whole
What is the first step of the marketing research process? A. Defining the research problem B. Interpreting and reporting the findings C. Developing the research plan D. Implementing the research plan E. Comparing research findings to other studies
A. Defining the research problem
Through its mobile Whopper Detour promotion, Burger King offered discounted Whoppers to people close to a competing McDonald's restaurant. This is an example of which of the following? A. Hyperlocal social marketing B. User status segmentation C. Occasion marketing D. Demographic segmentation E. Gender-neutral marketing
A. Hyperlocal social marketing
Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as __________. A. market segmenting B. mass marketing C. market targeting D. differentiation E. positioning
A. market segmenting
To exercise social responsibility, many companies are linking themselves to what type of marketing? A. Cause-related B. Technological C. Intermediaries D. Generational E. Environmental
A. Cause-related
Americans are a mobile people, with about 9 percent of all U.S. residents moving each year. Which population trend does this describe? A. Increases in populations in New York and Connecticut B. A shift from rural to metropolitan areas C. A shift from the Sunbelt states to the Snowbelt states D. An exodus from the suburbs E. Decreases in populations in Oregon and Alabama
B. A shift from rural to metropolitan areas
User status, usage rate, and loyalty status are examples of which type of segmentation variable? A. Psychographic segmentation B. Behavioral segmentation C. Demographic segmentation D. Geographic segmentation E. Economic segmentation
B. Behavioral segmentation
________ involves sending trained observers to watch and interact with consumers in their "natural environments." A. Social targeting B. Ethnographic research C. Behavioral targeting D. Telephone interviewing E. A focus group
B. Ethnographic research
Macroenvironment
Broader societal forces that affect the actors in the microenvironment.
Exploratory research
Gathering preliminary information that will help define the problem and suggest hypotheses.
Experimental research
Select matched groups of subjects, give them different treatments, and check for differences in group responses while controlling related factors
Competitive marketing intelligence
Systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Marketing research
Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Observational Research
The gathering of primary data by observing relevant people, actions, and situations.
Culture
the most basic cause of a person's wants and behavior.
Confidence level
the probability that your sample accurately reflects the attitudes of your population
Margin of error
the range that your population's responses may deviate from your sample's
Value proposition
the set of benefits or values a company promises to deliver to consumers to satisfy their needs.
An international company has appointed a CPO to ensure the privacy and confidentiality of the consumer data it collects. Which of the following is the CPO MOST likely to do as a function of his or her job? A. Inform customers of the company's privacy policy B. Use customer data in such a way to convince customers to buy products C. Scour consumer financial information D. Compile an exhaustive resource of customer data E. Track the clicks of customers on websites
A. Inform customers of the company's privacy policy
Using online consumer tracking data and analytics to target advertisements and marketing offers to specific consumers is known as ________. A. behavioral targeting B. neuromarketing C. segmentation D. social targeting E. sampling
A. behavioral targeting
Microenvironment
Actors close to the company that affect its ability to serve its customers.
Tina's Tunes is a music store that has been selling CDs for 20 years. Throughout the last six years, sales have continuously declined and profits have almost completely disappeared. The owner of Tina's Tunes believes resurgence is likely to happen soon and wants to continue business as usual. What is likely to happen to Tina's Tunes? A. Tina's Tunes will experience a rebound as the fear of the Great Recession declines. B. Tina's Tunes is likely to fail because it is ignoring the technological environment. C. Tina's Tunes is likely to fail because it is ignoring the natural environment. D. Tina's Tunes is likely to prosper as mistrust in the digital age increases. E. Tina's Tunes is likely to fail because it is ignoring the current political environment.
B. Tina's Tunes is likely to fail because it is ignoring the technological environment.
Which of the following identifies a change in the technological environment that could affect the success of a business? A. A company develops a customer support program that customers rate twice as responsive as the previous program. B. A company packages its product to be twice the size of its predecessor. C. A company develops a new battery that costs twice as much as its predecessor. D. A company develops a new battery that lasts twice as long as its predecessor. E. A company develops a new warranty that lasts as long as its predecessor.
D. A company develops a new battery that lasts twice as long as its predecessor.
Which is a current trend in the cultural environment? A. An increasing trust in institutions B. A turn away from spiritualism and meaningful values C. A lessening appreciation for nature D. A rise in technology-enabled communication E. A decreasing patriotism
D. A rise in technology-enabled communication
A wedding services company changes its marketing strategy to reflect the fact that more LGBTQ (lesbian/gay/bisexual/transgender/queer) marriages are taking place. The company is offering a broader range of ceremonies that cater to this market. Which of the following environments must this wedding company analyze? A. Natural B. Economic C. Technological D. Cultural E. Political
D. Cultural
The demographic, economic, natural, technological, political, and cultural forces that affect a company's ability to serve its customers make up which of the following? A. Marketing environment B. Technological environment C. Microenvironment D. Macroenvironment E. Cultural environment
D. Macroenvironment
Which of the following statements about online research is correct? A. It is more expensive to conduct online research than to do a mail, phone, or personal interview. B. Experiments cannot be conducted online. C. Online research is only feasible for large companies. D. Online surveys generally have higher response rates than those conducted by mail or phone. E. Focus groups are rarely conducted online.
D. Online surveys generally have higher response rates than those conducted by mail or phone
Wonders such as smartphones, driverless cars, and antibiotics can be attributed to which marketing environment? A. Natural B. Social C. Political D. Technological E. Cultural
D. Technological
Primary data ________. A. already exist somewhere B. must be evaluated as to accuracy, currency, and impartiality C. have been collected for another purpose D. consist of information collected for the specific purpose at hand E. is usually the first type of data researchers start gathering
D. consist of information collected for the specific purpose at hand
The type of segmentation that forms segments of consumers who have similar needs and buying behaviors even though they are located in different countries is known as _________. Question content area bottom Part 1 A. behavioral segmentation B. geographic segmentation C. lifestyle segmentation D. intermarket segmentation E. demographic segmentation
D. intermarket segmentation
Which of the following is NOT a primary goal of competitive marketing intelligence? A. Providing early warnings of threats B. Providing early warnings of opportunities C. Assessing and tracking competitors' actions D. Improving strategic decision making E. Creating an understanding of the business-to-business environment
E. Creating an understanding of the business-to-business environment
Primary data
Information collected for the specific purpose at hand
Experimental Research
Tries to explain cause and effect relationships
Market targeting
When evaluating marketing segments and choosing a target market, marketers should consider
Secondary data
Information that already exists somewhere which has been collected for another purpose
Perception
Interpretation based on prior knowledge
Customer satisfaction
Is determined based on the product's perceived performance relative to a buyer's expectations.
A market
Is the set of actual and potential buyers of a product or service.
Marketing mix tools
Product Price Place (Distribution) Promotion
A power tool company wants to give its customers access to internal, nonpublic information about how best to use its product in creative ways. What should the company create to provide customers with this information? A. A company intranet B. A company website C. A company extranet D. A data warehouse E. A company data mine
C. A company extranet
Proactive businesses often take aggressive actions to affect consumers and the forces in their marketing environments. Which of the following does NOT depict a proactive company? A. A dairy creating new flavors of organic yogurt in response to a trend toward healthy eating B. A small family winery offering a broader selection of red wines in response to a growing preference for red wines C. A local restaurant refusing to counter false allegations of salmonella D. A jewelry company taking advantage of the new trend of charm bracelets E. A utility company hiring lobbyists to influence legislation regarding climate change
C. A local restaurant refusing to counter false allegations of salmonella
Which type of sample involves dividing the population into mutually exclusive groups (such as blocks), and then drawing a sample of the groups to interview? A. Stratified random sample B. Convenience sample C. Cluster (area) sample D. Simple random sample E. Quota sample
C. Cluster (area) sample
Which of the following terms does NOT mean tailoring products and marketing programs to the needs and preferences of individual customers? A. Niche marketing B. Mass customization C. Markets-of-one marketing D. Individual marketing E. One-to-one marketing
A. Niche marketing
Beverly's Burgers came under fire recently when allegations were made that its veggie burgers were actually made with beef. To counter the claims, the restaurant called in a company to test not only its veggie burgers, but also the rest of its vegetarian options to prove they lacked meat. The results were displayed publicly on the restaurant's Facebook page. What BEST describes Beverly's Burgers' response to the allegations? A. Proactive B. Steadfast C. Reactive D. Determinative E. Passive
A. Proactive
How does the microenvironment of a company differ from its macroenvironment? A. The microenvironment deals with the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. B. The microenvironment deals with the big problems, whereas the macroenvironment deals with trivial problems. C. The microenvironment uses more financial resources than the macroenvironment. D. The microenvironment is company-based, whereas the macroenvironment is customer-based. E. The microenvironment affects a larger portion of the company than the macroenvironment.
A. The microenvironment deals with the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
The real value of marketing information rests in the _________. A. customer insights it provides B. support of a company's marketing research C. marketing intelligence it uncovers D. amount of big data it analyzes E. social media data it uses
A. customer insights it provides
A company's marketing information system (MIS) is valuable because it ________. A. enables a company to use customer insights to improve relationships with customers B. increases the likelihood that a customer will buy a product C. maintains the company's internal database of customers D. allows a company to outperform its competitors in the marketplace E. ensures that the company will have good customer service
A. enables a company to use customer insights to improve relationships with customers
The third purpose of government regulation is to __________. A. protect the interests of society against unrestrained business practices B. protect consumers from unfair international trade C. punish companies for unlawful behavior D. regulate and constrain companies E. protect companies from each other
A. protect the interests of society against unrestrained business practices
Juanita owns a small hot-air balloon company in Albuquerque, New Mexico. She recently started a Facebook page for her company, and many of her customers are asking for store-sponsored hot-air balloon trips. They believe Juanita's expertise would make her the perfect guide. Juanita decides to host quarterly hot-air balloon trips and experiences a huge increase in sales and customer satisfaction. Which of the following is the BEST conclusion that can be drawn from Juanita's situation? A. Customer insights can be gained only through costly market research. B. Customer insights can provide valuable information to a small businesses. C. Most small businesses have no way of easily accessing customer insights. D. Customer insights are not dependable. E. Customer insights are emotional and often irrelevant to a small business.
B. Customer insights can provide valuable information to a small businesses.
Of the following, which BEST reflects how the American population has changed over time? A. It has become wealthier, more cultured, and more frivolous in its spending habits. B. It has become more diverse, better educated, and more mobile. C. It has become more skeptical about marketing schemes. D. It has become more likely to develop brand loyalty. E. It has become closer knit and more family-oriented.
B. It has become more diverse, better educated, and more mobile.
Which statement regarding cultural values is true? A. The media pushes core values onto the community. B. Marketers have little chance of changing core values. C. Marketers have no chance of changing secondary values. D. Core beliefs and values are more open to change than secondary values. E. Secondary beliefs and values are less open to change than core beliefs.
B. Marketers have little chance of changing core values.
_________ consists of the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. A. Big data B. Marketing analytics C. CRM D. Touch points E. Marketing information
B. Marketing analytics
Which value proposition offers not only higher quality, but also confers prestige upon the buyer? A. The same for less B. More for more C. More for the same D. More for less E. Less for much less
B. More for more
At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method called? A. Behavioral B. Psychographic C. Benefit D. Usage rate E. User status
B. Psychographic
The ________ environment consists of institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors. A. political B. cultural C. economic D. demographic E. technological
B. cultural
The first generation to come of age in a world filled with computers, mobile phones, and online social media, ________ embrace(s) technology as a way of life. A. Generation Alpha B. millennials C. Generation Z D. Generation X E. baby boomers
B. millennials
If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________. A. affordable B. preemptive C. profitable D. distinctive E. superior
B. preemptive
Which types of companies would most benefit from conducting marketing research? A. Only large multinational firms like Disney and IBM B. Only medium-sized companies that are about half the size of Disney and IBM C. Both large multinational firms like Disney and IBM and small local firms D. Only small local firms, like Beatrice's Bistro E. Neither large multinational firms like Disney and IBM nor small local firms
C. Both large multinational firms like Disney and IBM and small local firms
Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products? A. Females B. Wealthy consumers C. Children D. Single households E. Baby boomers
C. Children
Which of the following describes the process of evaluating each market segment's attractiveness and selecting one or more segments to serve? A. Positioning B. Differentiation C. Market targeting D. Market segmentation E. Mass marketing
C. Market targeting
Which of the following would make a segment less attractive to enter? A. Buyers with weak bargaining power B. Suppliers with weak bargaining power C. New entrants finding it easy to enter the segment D. A lack of aggressive competitors E. Very few substitute products
C. New entrants finding it easy to enter the segment
Which statement is true? A. Today's marketers need more information, not better information. B. Big data presents marketers with big opportunities and minimal challenges. C. The real value of marketing information lies in how it is used. D. Big data presents marketers with minimal opportunities and significant challenges. E. A lack of information is impeding marketers' opportunities.
C. The real value of marketing information lies in how it is used.
Which is an advantage associated with internal databases? A. No sophisticated equipment is required to manage the information they collect. B. The information they contain is in the proper form for making marketing decisions. C. They can be accessed more quickly and cheaply than other information sources. D. Only rudimentary techniques are needed to mine the information for insights. E. Little effort is required to keep such databases current.
C. They can be accessed more quickly and cheaply than other information sources.
Which of the following correctly describes customer purchases, sales force contacts, service and support calls, web and social media site visits, satisfaction surveys, credit and payment interactions, and market research studies? A. Satisfaction surveys B. Service calls C. Touch points D. Sales calls E. Purchases
C. Touch points
Kidcomp, an American computer-manufacturing firm, targets children younger than age 10 by providing free games and applications. The firm's marketing approach is reflective of ________ segmentation. A. income B. geographic C. age and life-cycle D. gender E. lifestyle
C. age and life-cycle
Heeltoe, a boutique that caters to the footwear needs of women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on ________ variables. A. behavioral B. universal C. demographic D. geographic E. psychographic
C. demographic
Customer perceived value
Customer's evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.
Which of the following is the primary reason firms use competitive marketing intelligence? A. To assess and respond to a competitor's social media strategies B. To make early decisions regarding pricing strategies of competitors C. To understand more about a competitor's new product development efforts D. To gain early insights into competitor moves and strategies, and to prepare quick responses E. To gain an understanding of a competitor's channels of distribution
D. To gain early insights into competitor moves and strategies, and to prepare quick responses
Nguyen's Sporting Goods is having difficulty obtaining the credit it needs to expand. What should the company do in order to improve its financial situation? A. Devise a marketing plan with a marketing service agency B. Find a new physical distribution firm C. Analyze the finances of one of its competitors D. Work out a plan with its financial intermediaries E. Reexamine its relationship with its resellers
D. Work out a plan with its financial intermediaries
The type of segment characteristic in which the size, purchasing power, and profiles of the segments can be quantified is known as __________. A. substantial B. actionable C. differentiable D. measurable E. accessible
D. measurable
A manufacturer of half-ton pickup trucks creates a positioning map for the U.S. half-ton pickup market. The position of each circle on the map indicates the brand's perceived positioning on two dimensions: price and orientation (economy versus performance). The size of each circle indicates the brand's relative market share. This is an example of a __________. A. competitive map B. target segment map C. psychographic map D. perceptual positioning map E. competitively positioned map
D. perceptual positioning map
H2Coast, an automobile manufacturer, produces fuel-efficient hybrid vehicles that are targeted toward high-end exotic-vehicle collectors with ample leisure time. H2Coast most likely segments the consumer market based on ________ variables. 1 A. behavioral B. universal C. demographic D. psychographic E. geographic
D. psychographic
Calvin's Cupcakes is attempting to gather information about its customers in order to improve its customer service. Which of the following is the BEST path for this company to start to develop an efficient MIS? A. Distribute necessary information to the marketing team B. Conduct surveys or focus groups to gather information C. Determine how to use the information gathered by market research D. Analyze the information gathered in market research E. Assess the information needs of the company
E. Assess the information needs of the company
Which is now the largest generation alive in the United States? A. Generation Alpha B. Baby boomers C. Millennials D. Generation X E. Generation Z
E. Generation Z
The role of a company's marketing intermediaries is to do which of the following? A. Purchase the company's product B. Manage the company's human resources efforts C. Provide the resources needed by the company to produce goods and services D. Determine which products a company should market E. Help the company find, promote, sell, and distribute products
E. Help the company find, promote, sell, and distribute products
According to the text, which is currently the most dramatic force shaping our world? A. Natural environment B. Economic environment C. Demographic environment D. Political environment E. Technological environment
E. Technological environment
Which environment shows trends including shortages of certain raw materials, higher pollution levels, and more government intervention? A. The sociocultural environment B. The technological environment C. The economic environment D. The political environment E. The natural environment
E. The natural environment
You and seven other people relay your feelings and thoughts about a potential new product to a trained moderator. In exchange, you receive a payment. You are participating in a(n) ________. A. experiment B. individual interview C. immersion group D. ethnographic study E. focus group
E. focus group
When luxury audio brand Bose positions its products on the innovative, high-quality listening experiences it gives users this exemplifies ________ differentiation. A. services B. channel C. people D. product E. image
E. image
Environmental sustainability means ________. A. doing good deeds to atone for the strain that a business puts on the natural environment B. using fewer natural resources than one's competitors C. sacrificing business success to protect natural resources D. precisely following federal and state environmental regulations E. meeting present needs without compromising the ability of future generations to meet their needs
E. meeting present needs without compromising the ability of future generations to meet their needs
The marketing manager at Only Organic Delicatessen targets customers who are focused on organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of organic, low-fat, locally raised produce and foods. Only Organic's approach is best referred to as ________ segmentation. A. benefit B. user status C. age and life-cycle D. geographic E. psychographic
E. psychographic
In 2015 Target eliminated its "pink" and "blue" aisles, and it now sells lines such as a collection of back-to-school clothing, accessories, backpacks, and bedding that appeals to both boys and girls. This is an example of which type of marketing? A. Age and life-cycle B. Lifestyle C. Hyperlocal D. Income E. Gender-neutral
E. Gender-neutral