Principles of Marketing Final

Which of the following customer questions is answered by a company's value proposition?

"Why should I buy your brand rather than a competitor's?"

An advantage of secondary data over primary data is that

It is faster and easier to acquire than primary data.

________ involves adding more items within the present range of the product line.

Product line filling

Which of the following are Americans just not consuming as much of anymore? Bottled water SUVs Fast-casual restaurants Sparkling water Razors

Razors

Trade-in allowances are most commonly used in the ________ industry.

automotive

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.

brand

Marketing mix planning begins with ________.

building an offering that brings value to target customers

What type of research objective is most suitable for obtaining conclusive answers to questions such as whether one ad would garner greater attention and recall than another, and whether the presence versus absence of $.0.50 coupons would make people more likely to buy the national brand?

causal research

A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________.

cause-related marketing

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of

customer lifetime value

Which of the following is NOT one of the major variables used in segmenting consumer markets? demographic psychographic geographic ethical behavioral

ethical

Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.

microenvironment

In the famous case in the 1980's, Coca-Cola introduced New Coke after conducting extensive research. The failure of New Coke was largely due to: poor definition of the research problem personality and presentation differences late and occasional erroneous findings uneven pay among researchers having too many different types of research objectives

poor definition of the research problem

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

segmentation by usage rate

The full set of benefits on which a brand is differentiated and positioned is known as the brand's ________.

value proposition

Which of the following is NOT a market-oriented business definition? "We sell success and status." "We create the Hilton experience." "We empower customers to realize their dreams." "We bring innovation to every home." "We make high-quality consumer food products."

"We make high-quality consumer food products."

________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday in the NBA or WNBA.

Aspirational Groups

________ are low-growth, high-share businesses/products that need less investment to hold their market share.

Cash cows

Which of the following IS NOT a type of off-price retailer? wholesale club independent factory outlet warehouse clubs category killer

Category killer

Which consumer group tends to show more brand loyalty and makes shopping a family event, with children having a big say in the purchase decision? African Americans Arab Americans Hispanic Americans working class consumers middle class consumers

Hispanic Americans

Which type of retailer has online shopping negatively impacted the most?

Middle-market malls

Which of the following DOES NOT reflect how Millennials do their grocery shopping?

Millennials are more likely to keep an on-going grocery list throughout the week.

A five-foot high cardboard cutout of Terry the polar bear, mascot of Terry's protein shake, next to the shelf containing Terry's products in a supermarket is an example of a ________.

Point of purchase display

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Positioning

________ is defined as analyzing, planning, implementing, and controlling the personal selling efforts of a company.

Sales for management

Which of the following is true about the sales force of a company? The sales force oversees the auditing process and recovers money from defaulting. Salespeople represent workers' interests to upper management. The sales force is responsible for product development and product strategy. Salespeople often serve as the face of the company from a customer's perspective. The primary responsibility of a sales force is to formulate operational strategies.

Salespeople often serve as the face of the company from a customer's perspective.

Google Trends is an example of __________ data.

Secondary

Which of the following is true with regard to services? Services are more standardized and uniform than goods. Services can be stored for later use. Services refer to purely tangible goods. Services can be easily separated from their providers. Services consists of activities or benefits that do not result in the ownership of anything.

Services consists of activities or benefits that do not result in the ownership of anything.

Which of the following statements is true regarding social classes? Social classes show distinct differences in how much they care about appearance and body image. Social class is determined by income alone. People are relegated to a permanent social class in the United States. Lines between social classes in the United States are fixed and rigid. Wealth and income are more critical than occupational prestige in measuring social class.

Social classes show distinct differences in how much they care about appearance and body image.

Which of the following is true with regard to strategic planning? Strategic planning begins by identifying segments of consumers with identical preferences. A strategic plan deals with a company's short-term goals. Strategic planning involves developing and maintaining fit between the company's goals and the changing marketing environment. The strategic plan is a statement of an organization's purpose. At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company.

Strategic planning involves developing and maintaining fit between the company's goals and the changing marketing environment.

Which of the following is not a form of mechanical data collection? Checkout scanners Neuro-marketing People meters Eye-tracking cameras Surveys

Surveys

Which of the following is a disadvantage of using a differentiated marketing strategy? Customer loyalty is negatively impacted and difficult to obtain. Product safety decreases. The costs of doing business increase. It generates far lower sales compared to an undifferentiated marketing strategy. Quality control problems increase.

The costs of doing business increase.

What didn't Red Lobster anticipate when they launched the All-You-Can-Eat crab legs promotion i?

Their customers were capable of eating a lot of crab legs.

A defining characteristic of nonprobability samples is that: Each person has a nonzero chance of being included in the sample. Results are generalizable from the sample to the population. All of these responses apply. They involve personal judgment in the element selection process. They are more representative of the population than probability samples.

They involve personal judgment in the element selection process.

________ refers to a targeting strategy in which a firm decides to ignore market segment differences and go after the entire market with a single offering.

Undifferentiated marketing

A man weighs 200 lbs. He steps on a scale five times and receives the following weights: 200, 160, 190, 200, 155. Based on what we discussed in class, this scale would be considered:

Valid, but not reliable

Which of the following is an example of a pure tangible good? an online shoe retailer that provides free home delivery a laptop with a comprehensive warranty for three years an agency that offers free legal advice a credit card a bag of potato chips

a bag of potato chips

Which of the following abilities would LEAST likely be measured when recruiting and testing applicants for a sales position? motivation accounting skills work style sales aptitude relationship skills

accounting skills

When a customer feels uneasy about losing out on the benefits of a brand not purchased, she is likely to experience ________.

cognitive dissonance

To the extent that a company can differentiate and position itself as providing superior customer value, it gains a ________.

competitive advantage

George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. The perceived differences between his various options are quite substantial. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.

complex buying behavior

Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of_______.

consumer-generated marketing

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here?

contest

Based on discussions in class, which of the following IS NOT an example of psychological pricing? cost-based pricing everyday low pricing price-quality relationship decoy pricing odd/even pricing

cost-based pricing

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon .

customer perceived value

Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of .

customer satisfaction

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

customer-segment

Samsung has decided to decrease prices on its low-end tablets. The company can reasonably expect ________ to increase.

demand

Which of the following is an external determinant of price? fixed costs demand for your product variable costs marketing objectives marketing mix strategy

demand for your product

Which of the following variables are the most popular for marketers to use in segmenting customer groups? geographic demographic psychographic ethical behavioral

demographic

The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the education, ethnicity, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario? political environment cultural environment economic environment demographic environment technological environment

demographic environment

Upon determining who will want the product, retailers must determine in more detail how to ________ in those markets.

differentiate and position themselves

For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same and are quite expensive, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.

dissonance-reducing buying behavior

Market segmentation can be best described as the process of ________.

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs

Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since he will need a lot of water as he cycles. Having gathered a great deal of information, he has finally narrowed down his choices to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of the buyer decision process.

evaluation of alternatives

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.

everyday low

In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.

exploratory

In which of the following situations has a company most actively embraced customer-managed relationships?

iRobot invites enthusiastic Roomba owners to develop and share their own uses for the company's robotic vacuum cleaner.

Which of the following is NOT TRUE about elastic demand? products have many substitutes. price changes cause great change in demand. the demand curve is relatively flat. includes addictive substances such as drugs and cigarettes. price changes affect quantities purchased.

includes addictive substances such as drugs and cigarettes.

If a service employee provides the service, then the employee becomes a part of the service. This is an example of service ________.

inseparability

Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

integrated marketing communications

Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre's because it charges rock-bottom prices. Pierre's Mart most likely uses the ________ positioning. same for less more for less less for much less more for the same more for more

less for much less

A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.

lifestyle

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

location-based

Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.

macroenvironment

Funco Inc., a toy manufacturer, sold plastic racing cars that were manufactured with toxic materials, which threatened the health of several children. Which purpose of government regulation to protect consumers is involved?

making shoddy products

According to the Boston Consulting Group approach, _______ provides a measure of market attractiveness.

market growth rate

A is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.

market offering

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of

market segments

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal? market-skimming pricing market-penetration pricing captive-product pricing market-segmentation pricing cost-plus pricing

market-penetration pricing

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract the next segment of buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using? market-penetration pricing product-line pricing competitive pricing cost-plus pricing market-skimming pricing

market-skimming pricing

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's overarching goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.

mission statement

Specialty stores carry ________ with ________ within them. wide product lines; shallow assortments narrow product lines; deep assortments only convenience products; shallow assortments narrow product lines; shallow assortments wide product lines; deep assortments

narrow product lines; deep assortments

An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify? information search situational analysis product evaluation problem screening need recognition

need recognition

Tropicana promotes drinking orange juice at any time of day, not just breakfast. The market segmentation approach Tropicana is using is ________.

occasion segmentation

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.

opportunity

Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the concept.

product

Which of the following marketing management concepts is most likely to lead to marketing myopia?

product concept

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. product line stretching cannibalization social marketing product line filling internal marketing

product line stretching

Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by

promising only what they can deliver and then delivering more than they promise

Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? advertising direct and digital marketing sales promotion personal selling public relations

public relations

Using a ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

pull

Under which promotional mix strategy does the producer direct its marketing activities toward retailers to induce them to carry a product, who in turn try to promote it to final consumers?

push strategy

Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a ________.

rebate

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.

shopping

Your state's department of education has budgeted a significant amount of money for a radio, print, television, and online advertising campaign emphasizing the long- term benefits, both educationally and professionally, of reading every day. This is an example of a(n) campaign.

social marketing

Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of .

target marketing

Validity is

the degree to which a measure is measuring what it is supposed to measure.

Retailers are usually classified based on the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. the relative prices they charge the stability of their financial situation the number of locations they have their sustainability and environmental policies the strength of their Internet presence

the relative prices they charge

Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families? the declining divorce rate the rise of voluntarily childless couples the decline of dual-income families the rise of stay-at-home mothers the decline of single-person households

the rise of voluntarily childless couples

Customer equity refers to .

the total combined customer lifetime value of all of the company's current and potential customers

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through .

value creation and exchange

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is ________.

why they buy