MKTG 370 Exam 2

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True of False: A company's product mix consists of its various product lines.

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True or False: A product mix breadth is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

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True or False: Automobile manufacturers design for very tall, likely segment is not substantial.

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True or False: Brand dilution occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

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True or False: Coca-Cola launched Coke Zero to attract new customers in a segment it might not get with Diet Coke.

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True or False: Companies strive to meet customer satisfaction because customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation.

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True or False: Marketing research has three roles: persuasive, reminder, and informative.

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True or False: Nike sells shoes, clothing, and athletic gear. These represent the depth of Nike's products

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True or False: One advantage of primary data collection is that it can be collected to fit the research needs.

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True or False: One benefit of marketing research is reducing the uncertainty under which managers make decisions.

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True or False: Private-label brands are developed and managed by manufacturers.

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True or False: Procter & Gamble markets different brands of laundry detergent, such as Tide, Era, Gain, and Dreft, each targeting a different market segment. This is an example of concentrated targeting.

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True or False: Qualitative research offers a means to confirm ideas formulated through quantitative research.

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True or False: The more familiar customers are with a brand, the easier their decision-making process will be.

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True or False: Tom wants to buy a new car that will be dependable and stylish. Tom wants to satisfy both functional and psychological needs.

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True or False: Warren doesn't know what questions to ask or who to talk to. He should begin with quanitative research.

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True or False: When a marketer adjusts the marketing mix to give customers a clear, distinctive understanding of what the product does, the marketer is engaging in psychographic segmentation.

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True or False: When making an important purchase, consumers often consult friends and family. This is an example of an external information search?

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True or False: When making important purchases consumers consult friends/family. This is external info search.

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True or false: A major advantage of primary data collection is that it can be tailored to fit the pertinent research needs.

individual brands

Two of the many products owned by Proctor and Gamble include Old Spice health and wellness products and Iams pet nutrition products. This would be an example of which branding: a. Family brands b. Corporate brands c. Traditional brands d. Individual brands e. Umbrella brands

perceptual map

Used to illustrate the position of a firm's products or brands in consumers' minds. a. perceptual map b. loyalty timeline c. PRIZM analysis d. mass marketing analysis

observation

What form of research might Mattell use to determine which toys 4-year olds play with? a. observation b. focus group c. experiment d. panel

it helps obtain a bigger share of the market

What is one explanation of why firms use a differentiated targeting strategy? a. It is better than focusing on individual or small groups of potential customers. b. It is easier than mass marketing. c. Banks are more willing to extend credit to companies with this strategic approach. d. It helps obtain a bigger share of the market. e. Most market segments are too small to be profitable

the firm's offering overlaps with customer needs/wants but not with competitors' offerings

What is the best situation in the Circles for a Successful Value Proposition framework? a. The firm's offering overlaps with customer needs/wants but not with competitors' offerings b. The firm's offering overlaps with competitors' benefits but not with customer needs/wants. c. Customer needs/wants overlap with both the firm's benefits and competitors' benefits. d. The firm's benefits overlap with both customer needs/wants and competitors' benefits. e. None of the three circles overlaps.

undifferentiated targeting

When Henry Ford made the Model T, he said that consumers "can have their car in any color they want, as long as it's black." This was a case of: a. Repositioning b. Reengineering c. One-to-one marketing d. Undifferentiated targeting e. Niche marketing

unsought product

When a salesperson calls you to sell a cemetery plot, this is MOST LIKELY what type of product? a. shopping product b. convenience product c. unsought product d. line extension

unable to articulate their experiences

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences. a. Unable to articulate their experiences b. Highly educated c. Unwilling to participate in research d. Interviewed too frequently e. Confused by questionnaires

core customer values

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. a. Augmented products b. Core customer values c. Associated services d. Quality level e. Product support

it takes more time to collect than secondary data and it is more costly

A major disadvantage of primary data collection is a. It cannot be tailored to meet specific research needs b. It is too general to meet researcher's and manager's needs c. It takes more time to collect than secondary data and it is more costly d. It does not offer behavioral insights that can be obtained from secondary data e. It can be accessed only through syndicated databases or unstructured data mines.

to have the product available at many outlets

A marketing strategy for a product considered to be a "convenience good" would be: a. To have the product available at many outlets b. Fewer retail outlets than other types of products c. Prices higher than other types of products d. Products with little competition (limited substitutions) e. A limited budget for promotion

focus groups

A regional airport manager conducted research to get a better understanding for the types of concessionaires to include in the planned terminal remodeling. She conducted two sets of group interviews, one with ten leisure flyers and another with ten business flyers. In each group, participants discussed what types of food, retail, and other services they wanted in the new terminal. These discussions are examples of: a. Extended interviews b. Focus groups c. Observation d. Ethnographic research e. Secondary research

perceptual map

A(n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little Crackers healthy and tasty in comparison to other brands. a. Predictive model b. Perceptual map c. Product position d. Trend analysis e. Internal marketing audit

experimental

A(n) ______ research is characterized by the researcher altering one or more variables--such as price or package design--while observing the effects of those alterations on another variable (usually sales).

motive

A(n) ____________________ is a need or want strong enough to cause a person to seek satisfaction.

they can be quickly accessed at a relatively low cost

Advantages of using secondary data include: a. historical data that can be used to predict future trends b. they have been collected for the purpose researchers are using it for c. their high cost can be justified by the results d. they can be quickly accessed at a relatively low cost

a compensatory decision rule

Aidan prefers shirts made with 100 percent cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Aidan uses __________ to decide which shirts to buy. a. A noncompensatory decision rule b. Temporal factors c. Social factors d. A compensatory decision rule e. Habitual decision making

cutoff

Angie is shopping for a new dishwasher. She has set a maximum of $650 as the highest price she will pay, so she doesn't even bother considering dishwashers that cost more than that. Angie is narrowing the number of available choices by using a: a. Cost margin b. Product attribute c. Cutoff d. Boundary e. Knockoff

national

Another name for a manufacturer's brand is a(n) ______________ brand. a. national b. extended c. private-label d. systematic

one-to-one marketing

Another name for micromarketing is: a. neuromarketing b. qualitative marketing c. one-to-one marketing d. ethnographic marketing

Allows the firm to spend less on creating brand awareness and associations

Brand extension is a popular marketing strategy because it a. Separates out the cost of brand extension from brand intention b. Guarantees success for a new product c. Allows the firm to spend less on creating brand awareness and associations d. Avoids the problem of brand dilution e. Allows the firm to discontinue complementary products

retailers

Brands that are owned by __________ are called private-label brands. a. retailers b. wholesalers c. supply chain specialists d. manufacturers

evoked set

Chase loves to eat pizza, but there are many options to choose from where Chase is visiting. He narrowed down his favorite brands that meet the criteria that he looks for in pizza. Now he will only consider these brands of pizza when ordering. This group of brands is called Chase's: a. Involvement set b. Evaluative set c. Limited set d. Evoked set e. Extensive set

cannibalization

Clorox saw sales of its bleach products suffer when it introduced laundry detergents with bleach as an added ingredient. This is an example of: a. Demarketing b. Cannibalization c. Undifferentiation d. Repositioning e. Perceptual confusion

reachable

College students can be a less __________ market segment because students' media habits are quite diverse and firms might have to use a wide variety of media to attract this segment. a. Identifiable b. Perceptive c. Quantifiable d. Substantial e. Reachable

micromarketing

Companies use the Internet to allow consumers to design customized products. This is a form of: a. concentrated targeting b. micromarketing c. psychographic segmentation d. undifferentiated targeting

secondary data

Company sales invoices, census data, and trade association statistics are examples of: a. Primary data b. Qualitative data c. Data mines d. Secondary data e. Tertiary data

internal locus of control; external locus of control

David conducts extensive searches before making a purchase because he believes he is responsible for his actions. Nate has a "whatever happens, will happen" attitude when confronted by the need to make a decision. In marketing terms, David is said to have a(n) ________ and Nate, a(n) _______. a. Formal search; informal search b. Focused send of information; unfocused sense of information c. Internal locus of control; external locus of control d. Component lifestyle; anxious lifestyle e. Increased search anxiety; decreased search anxiety

functional and psychological

Key to marketing that appeals to the firm's target market is to meet the correct balance of _______________. a. postpurchase and repurchase b. functional and psychological c. functional and social d. safety and situational

ethnographic

Kimberly-Clark has outfitted consumers with mini video cameras mounted to visors to watch consumers doing chores and shopping. Using this research approach, known as _____ research, Kimberly-Clark learned that mothers had trouble using Huggies Baby Wash to bathe their infants. The problem was that the women liked to keep one hand on their infant at all times while the Baby Wash bottle required two hands to open dispenser. a. Ethnographic b. Dichotomous c. Experiment d. Survey e. Open-ended

primary

Levi Strauss recently introduced its new Totally Slimming jeans. The idea for the jeans came from a group session conducted last August in which a group of moms made it clear they were tired of low-rise styles. Instead, they wanted jeans that were comfortable while covering up problem areas and that showed off their figures. Levi's use this _______ data as the basis for designing this new line of jeans. a. Primary b. Secondary c. Dichotomous d. Convenience e. Ethnographic

psychographic; demographic

Marketers found ___________ segmentation more useful for predicting consumer behavior than __________ segmentation. a. psychographic; demographic b. demographic; benefit c. demographic; psychographic d. demographic; behavioral

evoked

Marketers particularly want their brands and products to be in consumers' ________________ sets. a. behavioral b. retrieval c. deterministic d. evoked

diagnostic

Phillip Morris USA, the manufacturer of the Marlboro Ultra Smooth cigarette targeted to people who want to smoke a potentially safer cigarette, has asked for marketing research to explain the reasons for the recent failure of the new cigarette. This type of research is described as: a. Descriptive b. Predictive c. Diagnostic d. Normative e. Historical

multisegment

Piper Corporation makes aircrafts. It produces several different planes for three categories of customer: Professional, Personal, and Trainer. What type of targeting strategy is Piper using? a. Demand positioning b. Concentrated c. Undifferentiated d. Multisegment e. Market differentiation

expensive, infrequently purchased, do not work as intended, or associated with high levels of risk

Postpurchase cognitive dissonance is especially likely for products that are: a. personally valuable, antique, or foreign-made b. cheap, poorly made, and make of plastic c. simple, easily copied, and new d. expensive, infrequently purchased, do not work as intended, or associated with high levels of risk

enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

The purpose of market segmentation is to: a. Reduce the market down to size the firm can handle b. Divide the market into equal size and profit regions for sales territories c. Group a large number of markets together, enabling a company to serve them simultaneously d. Develop a generalized definition of the market as a whole e. Enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

brand equity

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is called ________________ ___________________

cognitive

Though he has never owned a Lexus, Larry thinks they are poorly made and have many mechanical problems. For Lexus to sell Larry a car, the company would need to change the ________ component of Jerry's attitude. a. Functional b. Affective c. Physiological d. Cognitive e. Social

true

True or False: Donald is analyzing and interpreting data. In the process, he converts data into information.

functional versus psychological need

Which of the following is NOT an element of the factors affecting consumers' search processes? a. actual risk b. functional risk c. locus of control d. functional versus psychological need

Tostitos Multigrain Scoops and Tostitos Chunky Salsa

Which of the following is the best example of a family brand? a. Lifesavers Soda, Coca-Cola, and Diet Coke b. KFC/Taco Bell fast foods c. Kellogg's Special K and Famous Amos Chocolate Chip Cookies d. Tostitos Multigrain Scoops and Tostitos Chunky Salsa e. Cadillac, GMC, Chevrolet

pieces of data that have been collected prior to research

Which of the following statements BEST describes secondary data? a. always meets researchers needs b. pieces of data that have been collected prior to research

"birds of a feather flock together"

Which of the following statements best describes the reason marketers find geodemographic segmentation so effective? a. "a bird in the hand is worth two in the bush." b. "every action has an opposite and equal reaction." c. "a rifle is more exact than a shotgun." d. "don't put all of your eggs in one basket." e. "birds of a feather flock together."

experimental research

Which of the following types of research would be considered quantitative research? a. focus group research b. observational research c. social media monitoring d. experimental research

shopping

You search a long time considering alternatives. This backpack represents what type of product? a. shopping b. routine c. unsought d. convenience

database marketing

___________ __________ is the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns.

extend problem solving

Betsy recently decided to purchase a motorcycle. Since she is not familiar with the different brands and features and this is a major purchase, Betsy will probably use which of the types of consumer involvement: a. Low-involvement problem solving b. Impulse buying c. Extended problem solving d. Limited problem solving e. Dedicated cognitive behavior

any firm in the supply chain

Brand can be owned by a. Any firm in the supply chain b. Wholesalers and retailers only c. Manufacturers only d. Retailers only e. Private-label generic retailers only

safety needs

Dennis Haysbert stars in Allstate ads reminding consumers that they could be in a car crash or another event requiring insurance. Hence the slogan "You're in Good Hands with Allstate." These ads focus on which of Maslow's needs? a. Esteem needs b. Economic needs c. Safety needs d. Physiological needs e. Social needs

product line; product mix

During a recent shopping trip, Laura noticed that the retailer offered a variety of products, including food, clothing, cosmetics, appliances, tires and more. Further, Laura noticed the retailer also offered a variety of different products within each product grouping. Each product grouping at the retailer is an example of a(n) __________; all of the product groups together constitute the retailer's __________. a. Product tangibility; product unit b. Product line; product mix c. Product mix; product line d. Product mix; product unit e. Product unit; product tangibility

position

Elaine perceives Cadillac automobiles to be for older men, not for young professional women such as herself. Elaine's perception represents Cadillac's _____ in her mind. a. Status b. Frame c. Position d. Role e. Equity

purchase situation

Even though Jessica is familiar with her favorite wine, she was too embarrassed to give a cheap bottle as a host gift. Jessica went to several stores and spent a lot of time considering. This scenario is designated as a high-involvement product because of: a. Brand loyalty b. Purchase situation c. Financial risk d. Cognitive dissonance e. Trial investment

social media sites

Firms that are engaged in sentiment mining are analyzing data collected from: a. Experiments b. Social media sites c. Observations d. Focus groups e. In-depth interviews

lower market costs associated with reaching loyal customers

For marketers, one of the benefits of having achieved brand loyalty is: a. few worries about copyright infringement b. increased price sensitivity among loyal customers c. lower market costs associated with reaching loyal customers

undifferentiated targeting

For products like sugar, which provide the same benefit for all consumers, marketers should probably use a(n) ________ strategy. a. Differentiated segmentation b. Concentrated targeting c. Undifferentiated targeting d. Benefit segmentation e. Lifestyle segmentation

retailers

Geodemographic segmentation can be particularly useful for: a. internet marketers b. sales oriented firms c. retailers d. consumer goods manufacturers

reference groups

Hollywood stars were among the first to buy electric and hybrid vehicles, these stars became: a. reference groups b. internal loci of control c. evoked images d. cultural icons

shopping

I searched online for a computer until I found one for sale. This is an example of a ________ product. a. shopping b. unsought c. business d. convenience

responsiveness

If a market segment is especially motivated by coupons in newspapers, which segmentation success criterion is most influential in the success of this program? a. Responsiveness b. Profitability c. Substantiality d. Accessibility e. Reachability

there are high costs associated with making an incorrect decision

In which of the following situations is it especially important to use external information? a. There are high costs associated with making an incorrect decision b. There is a great deal of past experience c. The cost of gathering information is high d. Low cost items that are frequently purchased e. There is little risk of making an incorrect decision

False

John asked his coworkers for entertainment options in downtown Omaha, where he plans to visit. He is using an internal information search.

substantial

Kathy is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is a. Reachable b. Responsive c. Identifiable d. Substantial e. Profitable

retrieval set

Kevin decided to buy new shoes, he considered all the brands he could recall being advertised. This is an example of which type of attribute set?

cognitive dissonance

Marketing managers can use several tools to decrease___________________ __________________, the inner tension that a consumer experiences when realizing an inconsistency after buying a product

structured

Marketing research project often begins with a review of the relevant _______ data. a. Structured b. Secondary c. Quantitative d. Unfocused e. Primary

safety, love, and esteem

Maslow's Hierarch: physiological (lowest) to self-actualization (highest). What is in between? a. community, family, and self b. health, wealth, and happiness c. material goods, safety, and love d. safety, love, and esteem

convenience goods

Milk and bread are examples of ___________ goods because consumers don't evaluate a lot of alternatives. a. ritual goods b. convenience goods c. specialty goods d. impulse goods

demographic

NASCAR redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. This is an example of __________________ segmentation.

family, reference groups, and culture

Natalie and her fiancé Dow are planning their wedding. She knows her mother wants her to have a traditional church wedding with a Roman Catholic priest officiating. Natalie would like to have an informal ceremony on the beach, since that type of wedding has become popular with her friends. Furthermore, Dow is from Thailand and would like to have a monk officiate. Natalie and Dow's wedding decisions are most influenced by: a. Cognitive, affective, and behavioral environments b. Functional and psychological profit c. Universal, retrieval, and evoked sets d. Family, reference groups, and culture e. Impulse, habitual, and limited problem-solving processes

micromarketing/one-to-one marketing

Nike allows customers to order shoes online with custom color combinations. This would be an example of which type of target strategy? a. Psychographic segmentation b. Undifferentiated targeting c. Micromarketing/one-to-one marketing d. Differentiated targeting e. Concentrated targeting

greater perceived value

Nora is deciding whether to purchase brand name sneakers or a store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store brand sneakers because they offer: a. higher degrees of brand loyalty b. more product line depth c. a better brand image d. greater perceived value

shopping

Paul wanted a new computer. He searched online until he found one for sale. Paul is considering a computer as a ______________ consumer product. a. Shopping b. Unsought c. Business d. Convenience e. Specialty

open-ended

Representatives of the Tourism Board of Arkansas visited state welcome centers and asked visitors to the state, "What is your reason for coming to Arkansas?" This would be an example of a(n) _____ question. a. Scaled-response b. Likert scale c. Open-ended d. Dichotomous e. Multiple choice

social

Ryan was afraid his new home would look shabby to his future in-laws, so he had it painted just before their visit. Ryan was addressing his __________ risk. a. Psychological b. Financial c. Performance d. Social e. Physiological

qualitative

Social media monitoring, in-depth interviews, and focus groups are all _______ research methods. a. Qualitative b. Syndicated marketing c. Data warehousing d. Structured e. Quantitative

concentrated

Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall--a rather small target market. Tall Paul's uses a(n) _____ targeting strategy. a. One-to-one b. Undifferentiated c. Multisegment marketing d. Differentiated e. Concentrated

extended problem solving; limited problem solving

The consumer's level of involvement can lead to two types of buying decisions: ________________ and _________________. a. habitual; extended b. extended problem solving; limited problem solving c. physiological/safety; esteem/self-actualization

stimulus generalization

The creators of Chicago Fire, Chicago MED, Chicago P.D., and Chicago Justice television programs, are using _________ to assume that if you like one of the programs, you might enjoy the others. a. Stimulus discrimination b. Selective retention c. Stimulus generalization d. Social learning e. Product reinforcement

Will the research be useful?

The first question a marketing researcher should ask before embarking on a research study is: a. What is the due date? b. Will the research be useful? c. What sample size will be needed? d. Who will pay for it?

clearly articulated the firm's vision or marketing strategy objective

The first step in the STP process is to a. clearly articulate the firm's vision or marketing strategy objectives. b. identify the segmentation methods to be used. c. develop a marketing mix, so that an appropriate segment can later be identified. d. select target markets. e. produce a list of strengths and weaknesses of the firm's past marketing strategies

define the firm's vision or marketing strategy objectives

The first step in the STP process is to: a. study strengths and weaknesses of past marketing strategies b. define the firm's vision or marketing strategy objectives c. select target markets d. identify the segmentation methods to be used

search for information about cars

The floor rusted through on Kelly's old car. The next step in the consumer decision process is: a. evaluate alternative b. identify a need c. assess her satisfaction with the car she purchased d. search for information about cars

a needy state and desired state

The greater the discrepancy between consumer's ____________, the greater the consumers need recognition. a. a needy state and desired state b. search for alternatives and alternatives found c. external and internal information search

close-ended

The owner of A. C. Flora Ford Dealership wanted to know why consumers chose his company to purchase a car. He was fairly sure that most customers had one of three reasons—service, reputation, or location—but wanted to know which was revealed as the most frequent reason for purchasing. A. C. Flora will probably use a survey with __________ questions to address his research problem. a. Close-ended b. Unstructured c. Observation-based d. Experimental e. Open-ended

predictive

Through marketing research, the Boston Symphony Orchestra (BSO) learned it has an older market and is not attracting younger concertgoers. It next conducted marketing research to determine if an integrated advertising campaign targeted to the younger market would be successful. In its second use of research, BSO employed _____ marketing research. a. Historical b. Descriptive c. Predictive d. Normative e. Objective

self-values, self-concept, and lifestyles

To develop psychographic segments, the marketer must understand consumers': a. age, income, and education b. buying patterns and behaviors c. self-values, self-concept, and lifestyles

"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk."

Tom is responsible for marketing and marketing research for a midsized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is tom's best response to try to get his boss to change his mind? a. "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk." b. "We can try, but if it's wrong it's not my fault." c. "This is a matter of principle. I quit." d. "I'd rather not use any data at all than use secondary data." e. "You should never use any information from the internet in marketing research."

need recognition

Tom was in an accident and totaled his car. What stage of the consumer decision-making process is Tom in when he realizes his car cannot be repaired? a. Evaluation of alternatives b. Purchase c. Need recognition d. Post-purchase behavior e. Information search

benefit

Toothpastes sold in supermarkets that promise whiter teeth are using ________ segmentation. a. demographic b. psychographic c. loyalty d. benefit

scaled-response question

When marketing researchers for a local fitness club wanted to know consumers' intentions to start a fitness program for a New Year's resolution, they used a(n) _____ with five possible answers ranging from "Most Likely" to "Least Likely" and asked that the respondent choose one. a. Open-ended question b. Action-based question c. Sampling frame question d. Scaled-response question e. Dichotomous response

relatable

Which is not an element of attractiveness? a. substantial b. relatable c. reachable d. responsive

a line extension

Which of the following brand strategies is being used when the Dairy Bar decides to add a new flavor of ice-cream to its menu? a. A copycat brands b. A multi-brand c. A line extension d. A premium brand e. A brand extension