MKTG 321 Test 1 -- quiz answers

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____

Cash Cow

Volkswagen markets its Routan to large families, its R32 racecar to men, and its Jetta to young singles. What targeting approach is Volkswagen using?

Differentiated

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

Establishment and implementation are usually less expensive.

Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?

Extended

Mark is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Martin is using which type of consumer decision-making process?

Extended decision making

Which of the following statements about how a consumer organizes inputs that reach awareness is most accurate?

Inputs that reach awareness are organized to produce meaning, and this meaning is interpreted in light of what is familiar to the individual.

Which one of the following is most likely to be a product for which both the purchasing decision and the brand decision are strongly influenced by reference groups?

Jeans

Kellogg's is introducing a new bran waffle for toasters. Television commercials will be a key element in communicating the benefits associated with this product. Based on that decision, Kellogg's is expecting consumers to engage in what form of decision making?

Limited decision making

​Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. ​ Which one of the following statements is true?

The negative effects of technology include concerns over privacy and intellectual property protection.

Which of the following industries is most commonly regulated by state regulatory agencies?

Utility companies

Which of the following terms refers to consumers' propensity to buy?

Willingness to spend

Micromarketing is

a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.

Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met.

both the internal and external

The ability to purchase a product is a function of

buying power.

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in

demographics.

Mario and his friend have been talking about their love of Bose headphones and speakers. Mario's friend mentions a consumer report that he read the week before that stated Bose products had higher prices but lower quality than in previous years. Mario thought to himself that perhaps his friend had misread the report, because Bose had always been the best. This perceptual process is known as selective

distortion.

The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

environmental scanning.

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

heterogeneous

The primary advantage of a concentrated targeting strategy is

it allows a firm to specialize to meet specific customer needs.

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of

market opportunity

If a company segments its market on the basis of their reasons for purchasing a particular product, the primary segmentation variable in use is

motives.

Three primary methods of collecting information for environmental scanning are

observation, secondary sources, and marketing research.

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ____ forces.

political

Monique reads through her emails containing advertisements for sweaters from H&M, purses from JC Penney, and tennis shoes from Foot Locker. Later while at the mall, she remembers only the shoe ad, thanks to the recent tear in her own Reeboks. Monique has engaged in selective

retention.

When evaluating market segments, assessment of competitors is important because

sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.

strategic business

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in

strategic performance evaluation

Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.

subcultural

​You are preparing the marketing budget for the next fiscal year and the finance department staff has given you the following guidelines to follow when estimating certain aspects of the budget: You should allocate $250,000 for the total annual office expense for the marketing department. For each marketing campaign that you plan to run, you should allocate $10,000 for supplies expense. For each new product introduction that you plan to execute, you should allocate $5,000 for travel expenses. You should allocate $25,000 for storage expenses for the entire year. With respect to the costs included in the guidelines communicated from finance you can conclude that

travel expenses and supplies expenses are variable costs.

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

undifferentiated

​You are an analyst in the marketing department for a major grocery store chain, and you recently submitted a report to your boss regarding potential market segments the company should consider targeting. Your boss just sent the report back to you with the following questions: What are the strengths and weaknesses of the competitors who are also targeting these markets? Does any firm dominate the market currently? Can we create a compelling marketing mix to effectively compete for business in this market segment? Based on the questions being asked, it appears your boss is using which one of the following segment evaluation approaches?

​Competitive assessment approach

​Experience has shown you that your customers' buying decisions can be significantly impacted by situational influences. You are analyzing past sales activities to better understand how these factors translate into sales impacts. Which of the following statements is true about situational influences on the consumer's buying decision process?

​If the consumer is fatigued this could potentially be a situational influence on her buying decision process.

You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first you want to review the summary points in the SWOT analysis the stockbroker's firm did on the company. The following summary points were listed in the SWOT analysis: 1. Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its users. 2. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new products that are designed to perpetuate its industry leadership.

​that Facebook has a first-mover advantage.

​You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget performance report. You are especially interested in making sure the fixed and variable costs are properly categorized.

​we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs.

You are the senior financial analyst supporting the marketing department in your company, and head of marketing has asked you to come up with one performance metric that can be used to evaluate how effective each marketing campaign is in terms of contribution to the firm's profits. It should be a metric that can be easily used to compare different marketing campaign against each other.

A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the campaign.

Jared Bledsoe hired Green Gardens, a local landscape firm to plant trees and shrubs in his front yard. The landscape is beautiful when the company is done; however, in just a few days many of the plants begin to die. When Jared complained to the manager of Green Gardens, the manager says that Jared must have done something to them that caused the plants to die, such as overwatering them. Green Gardens doesn't have any money-back guarantees. Jared is angry that he can't get a refund or replacement. At this time, Jared's best course of action would be to contact the

Better Business Bureau.

The Center for Responsive Politics publishes data about dollars spent on lobbying efforts by major companies, industries and other entities seeking to influence Congressional legislation and the political process. The table below lists the industries that spent the most money on lobbying activities in 2011 and 2013:

Most of the top industries spent less on lobbying activities in 2013 compared to 2011.

Which of the following statements about the marketing mix is incorrect?

Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.

Which of the following is the biggest drawback to using psychographic variables?

They are difficult to measure.

Stefanie is shopping for groceries at her local supermarket. As she picks up laundry detergent, she sees the display of bathroom cleaners and remembers that she is about to run out of it at home. Stefanie tries to remember the specific brand that she used last time, because she thought that was the best in terms of performance and value. In terms of the consumer buying decision process, Stefanie's remembering that she was almost out of bathroom cleaner is the ____ phase of the buying decision process, where trying to remember what brand she last used was an example of the _____ phase.

problem recognition; internal information search.