Chapter 11-13 test for intro to business

false

A strength of survey research is that it almost always yields highly accurate information because it is based on direct answers to specific questions.

false

According to the AMA's definition of marketing, marketing provides value primarily for organizations' customers.

false

Agents and brokers are the most common type of merchant wholesaler.

high/low pricing.

Although prices for most goods at CDz, your local music and video store, are higher than prices you can find online and at discount stores, it generally has selected merchandise on sale at very attractive prices. CDz apparently has decided to use a pricing strategy known as

false

An advantage of consultative selling is that it involves less time and effort than more traditional personal selling methods.

true

Angelic sells a line of designer handbags. She is planning on opening a series of shops to sell her product. Each shop will be in a different area of the state. This type of distribution is known as exclusive distribution.

true

Attitudes are a person's lasting impressions of objects or ideas.

true

Big ideas may be based on either rational or emotional premises.

false

Business will only use market research when promoting business-to-business products and services

Begin by collecting secondary data to narrow the list of possible locations, then use the results to focus primary research efforts on a limited number of possible locations.

CDz 4U wants to build a new store in your community but needs to research the opportunity. Which of the following is likely to represent the most cost-effective way to gather the needed data?

everyday-low pricing.

CDz, your local music and video store, consistently offers its videos and CDs at a lower price than competitors. The pricing tactic CDz is using is

true

Category killers dominate a category by offering a huge variety of one type of product.

true

A 20-ounce bottle of Coca-Cola or Pepsi is the same price in your local convenience store; therefore, you are forced to make a choice based on other factors, such as taste or brand preference. This pricing tactic is an example of matching the competition.

underpromise, thus setting consumer expectations too low.

A common error marketers commit when trying to generate customer satisfaction is to

false

A product mix is a group of products closely related to each other, either in terms of how they work or the customers they serve.

false

A selective distribution strategy involves establishing a single retailer as the sole provider of a product in a given area.

a core benefit

At the most fundamental level, a consumer buys a product to obtain

department stores

Retailers Nordstrom and Neiman Marcus provide a wide variety of merchandise and a high level of service. These two companies are examples of

false

Sales tend to peak in the growth stage of the product life cycle.

false

Sophia owns a local boutique and offers to help her clients in picking an outfit that compliments their body shape. This method of delivering value to your customers is known as form utility.

false

Starbucks converting coffee beans into iced coffees and espressos is known as service utility.

Focus on creating favorable customer perceptions, but keep your claims honest and realistic.

Streamline Appliances is trying to build customer satisfaction. Which of the following strategies is most likely to help it achieve this goal?

true

Subway's "Eat Fresh" and Walmart's "Always low prices. Always" are two examples of successful big ideas.

true

Successful companies strive for customer satisfaction and develop marketing programs to encourage repeat business from existing customers.

product must not only be different from those of competitors, it must also be better.

Successful product differentiation requires that the

psychographic

When firms in B2C markets divide up the potential market according to values, attitudes, and lifestyles, they are making use of _________________ segmentation.

hanges in technology are creating both major threats and major new opportunities for those creating promotional messages

Which of the following is the most accurate statement about trends affecting promotion?

Although nonstore retailers are growing, they are growing at a slower pace than they did in the early part of the decade.

Which of the following statements about traditional retail stores and nonstore retailing is most accurate?

Budweiser

Who holds the record for the most humorous Super Bowl ads?

convenience products

With their extended hours and numerous locations in a given community, 7-Eleven stores offer _____ to consumers, who find it easy to stop in and make this type of purchase.

true

consumers are most likely to go through all steps of the purchase decision process when they are buying goods for which the financial or social implications are significant

true

Changes in technology have given consumers the power to control how and when marketing messages are received.

integrated marketing communication

Companies use _____ to coordinate their messages through every promotional vehicle.

true

Consumer perception of quality can be driven by price.

true

Consumers buy convenience products frequently and with limited consideration.

true

Customer relationship management is the ongoing process of acquiring, maintaining, and growing profitable relationships by delivering unmatched value.

ineffective, because the ad showed Japanese women responding in unrealistic ways when their husbands gave them diamonds.

DeBeers, the diamond distributor, ran ads in Japan using a marketing strategy that proved popular in the West. The result was

promotion; mix

Decisions about advertising, publicity, and product placement are all part of the firm's _____ strategy in its marketing _____.

false

Despite good marks for customer service for Internet-only retailers, the National Retail Federation (NRF) still ranks store retailers as having better customer service than the Internet-only retailers.

true

Drop shippers are often part of the distribution channel for bulky items such as timber and coal.

decline

Due to technological changes, pagers and videocassettes are slowly phasing out. These products are in the _____ stage of the product life cycle.

time utility

EZ Eats is a local fast food restaurant that is open 24-7. Management guarantees that customers will be served within five minutes after placing an order for any item on its menu. EZ Eats is focusing on satisfying customers by providing

volume goals

Each year digital camera prices continue to decrease in order to encourage sales. Manufacturers focus on _____ as they work to gain as much market share as possible, as compared to their competitors.

true

Examples of limited service wholesalers include drop shippers, truck jobbers, and cash and carry wholesalers.

false

Firms producing high-end goods with a customer base that actively seeks out their products (such as very expensive luxury automobiles, jewelry, and watches) usually rely on a selective distribution method.

true

Fixed costs are those costs companies incur regardless of the number of units sold.

truck jobber.

Freshbred delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Alabama. In addition to delivering the baked goods, Freshbred's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves. Freshbred is an example of a

publicity

Generally speaking, marketers can directly control the promotional tools they use. The tool that they cannot directly control is

analyzing garbage to measure recycling compliance

Iggy is conducting primary market research. What is he doing?

full partnership relationships with their major customers.

In customer relationship management, firms selling big-ticket items with small customer bases often find it advantageous to develop

cognitive dissonance

In order to help customers feel comfortable with their decision to purchase a new car, manufacturers are offering extended warranties, free oil changes, and maintenance checks. This is an effort to offset

describes the marketer's intent—what he or she wants the consumer to envision about the product as compared to the competition.

In promotion, the positioning statement

marks the beginning of the creative development process.

In the promotional effort, a positioning statement

false

In today's relationship era of marketing, the emphasis is on finding ways to quickly reach new customers.

demand-based pricing

Joe and Chris are working on a book together that they plan to publish via a print-on-demand (POD) website. As they sit down to plan everything out for their pricing strategy, Chris asks the question, "What will the market bear?" What analysis is Chris using?

true

Mary Kay Cosmetics, Tupperware, and The Pampered Chef all use multilevel marketing as a means to sell products directly to consumers.

the fact that deliveries typically take at least a couple of days and that consumers are concerned about the lack of security for online purchases.

MaryKate is considering setting up an online women's apparel website. If she is like most online retailers, MaryKate is likely to find that her top challenges in attracting customers away from store retailers will include

false

Motivation and attitudes are both major elements of the cultural influences on consumer decision making.

true

One benefit of achieving consumer loyalty is that consumers may be willing to forgive a company's mistakes.

true

One effective way for a firm to promote its products is to identify the key points of contact between those products and the target market, and then focus its efforts on those areas.

is often viewed by consumers as more credible than advertising.

One of the major advantages of publicity is that it

false

One reason vendor-managed inventory is so successful is that it reduces the amount of information that must be shared between producers and suppliers.

false

Paulo asked his friend Melanie to recommend a local dentist. Melanie had just seen an ad for Dr. Toothy, a local dentist, and gave Paulo the phone number. This demonstrates power of publicity.

False

Physical distribution strategy is primarily concerned with determining when the product will flow from producer to consumer.

false

Price is the easiest variable in the marketing mix for marketers to control.

decreased the costs of marketing new products and services.

Rapid improvements in digital technology and the rise of the Internet over the past 20 years have

is likely to apply rational criteria to the purchase decision.

Samuel works in the purchasing department of Emerson Electric. When making purchasing decisions for his company, Samuel

false

Supply chain management is a subset of logistics and is only concerned with the movement of products from point A to point B.

activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value.

The American Marketing Association defines marketing as the

product life cycle

The _____ is a theoretical model that includes the stages of introduction, growth, maturity, and decline.

false

The advent of the National Do Not Call list has resulted in a serious decline in all forms of direct selling.

true

The average person spends more time each week on the Internet than they do watching TV.

False

The channel of distribution refers to the actual movement of products as they travel from the producer to the ultimate consumer.

true

The consumer decision-making process involves need recognition, the search for information, evaluation of alternatives, the purchase decision, and postpurchase behavior.

true

The first step in developing a marketing plan is to identify the individuals most likely to buy your products.

true

The first telephone is an example of discontinuous product innovation.

intensive distribution

The goal of _____ is to make it convenient for consumers to find and purchase products at many locations and in many ways.

psychometric and behavioral

The key elements of the external marketing environment include all of the following EXCEPT

false

The prices quoted on the menu of an upscale restaurant all end in zeros. This approach is a way the restaurant can signal to its customers that the food it serves is a real bargain.

false

The stages of a product life cycle include expansion, peak, contraction, and trough.

idea generation, idea screening, analysis, development, testing, and commercialization.

The stages of the new product development process are

false

The three basic types of utility are product utility, perception utility, and placement utility.

true

Though Newton Coal Supply actually takes possession of coal from local mining companies, it never stores a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton is a drop shipper.

evaluating alternative laptops

Tina is an engineering major who wants a new laptop computer. She has asked several friends what they like and dislike about their computers and has read several articles in computer magazines and online sites describing the latest features in laptops. As a result, she now has a good idea about what she wants. Her next step is likely to be

true

Toyota's efforts to promote fuel economy and performance of the Prius without making any real sacrifices is an example of green marketing.

accessory equipment

Utilized by businesses, _____ include(s) small, movable capital purchases, designed for a relatively short productive life.

Wallace is performing a line extension.

Wallace manufactures tarpaulins for various uses. His are the absolute industry standard, featuring high-end, weather-resistant fabrics and oversized titanium grommets. He wants a larger market share and to do that he needs to offer tarps as convenience or shopping products, not just as specialty products. Wallace decides to manufacture plastic tarps with cheap grommets for sale at every retail outlet he can find. But he doesn't want to rebrand and start over; he'd rather play on the strength of the name he's already built for himself. Which choice best reflects the direction in which he is taking his company?

true

Walmart and Costco use everyday-low pricing to sustain their customer base.

skimming pricing

When Apple introduced the iPod, the company used _____, with the purpose of maximizing profitability by offering new products at a premium price.

handle objections

You are a salesperson for a local company. You've just finished presenting your sales message to a consumer. The next step in the selling process is to

premiums

_____ are items consumers receive free of charge in return for making a purchase.

survey interviews

_____ involve(s) interaction with research subjects. The key advantage is that the marketer can secure information about what the people are thinking and feeling.

form utility

_____ provides customer satisfaction by converting inputs into finished products.

form utility

_____ satisfies wants by converting inputs into a finished product.

demographic

_____ segmentation is a vital starting point for most marketers.

advertising

`_____ is the nonpersonal, paid communication a company places to influence consumer purchases.

true

big ideas may be based on either rational or emotional premises

true

continuous innovation involves slight modifications of existing products

true

distributors reduce the costs associated with moving goods from producers to consumers