CHAPTER 4 marketing exam 2
Ace Hardware purchases a lawn cleanup tool for $9 from a small manufacturer and sells it in stores for $20. After the fall season, the price for this tool is reduced to $12. What is the maintained markup?
$3
how many needs are in maslow's hierarchy of needs
5
about ________ percent of consumer conversations about brands happen online
10
about how much of the US are opinion leaders
10%
research shows that a 5% involvement in customer retention can increase a company's profit by
70 to 80 percent
about ________ percent of consumer conversations about brands happen face to face
75
product, price, promotion, place
Marketing mix influences
recent immigrants who still cling to their native language and customs
Nonassimilated Asian Americans
need for achievement, status, prestige, and self-respect
Personal needs
purchase task, social surroundings, physical surrounding, temporal effects, antecedent states
Situational influences
________ begins with new-product purchases first by innovators, and then by early adopters.
Diffusion of innovation
among consumers who prefer a more social shopping experience.
Direct selling is likely to grow
willing to pay a premium price for good quality, prefer American-made products, strongly influenced by family and peers, convenience is not important
Hispanic Buying Products
how people actually see themselves
actual self
A channel intermediary in the consumer market that represent sellers but does not actually take title to products is called
an agent
one that a person wishes to be a member of or identified with (sports teams)
aspiration group
alternative evaluation is
assess value
one to which a person actually belongs (frat, sorority)
associative group
A learned predisposition to respond to an object in a consistently favorable or unfavorable way
attitude
Best Buy now uses ________ to sell mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics products in airports, hospitals, and businesses.
automatic vending machines
Measures the enduring differences between US adults aged 18 and up that explained and predict consumer behavior
VALS
visualization of 8 consumer segments
VALS
The Coalition of Independent Music Stores, a group of 44 prominent independent record stores in 25 states, operates as a way for these stores to strengthen themselves with tactics such as cooperative advertising. This form of ownership is known as
a contractual system
General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to China. This distribution arrangement is known as
a strategic channel alliance.
GUM Soft Picks were introduced as an alternative to flossing to reach and remove food and plaque between teeth. Because the product requires a different technique, this company would most likely face ________ barrier with new users.
a usage
Which of the following is among the six criteria most often mentioned as important in selecting a good brand name?
be memorable, distinctive, and positive
Consumer ________ helps answer questions such as why people choose one product or brand over another, how they make these choices, and how companies use this knowledge to provide value to consumers.
behavior
A cornerstone of Prince's strategy is developing new products that have the features desired by players of differing skill levels. This would be considered ________ segmentation.
behavioral
a consumer's subjective perception of how a product or brand performs on different attributes based on a personal experience, advertising, and discussions with other people
beliefs
ben had planned to order an appetizer at the bar, but after his Sprite was $8, he thought better of it. Though he didn't even look at the menu, he doubted he could afford anything on it. A product used in this way is known as a __________ item.
benchmark
When choosing a marketing channel and intermediaries, marketing executives typically consider, among other things, which will
best satisfy the buying requirements of the target market.
customers' tendencies to get to the checkout and leave the website without concluding the purchase is
big problem for online retailers
an individual's needs are
boundless
a specialized group of consumers with a structurized set of relationships involving a particular brand, fellow consumers of that brand, and the product in use
brand community
a favorable attitude toward and consistent purchase of a single brand over time
brand loyalty
marketing challengers must
break buying habits
There are two general types of franchises: product-distribution and __________ franchises.
business-format
purchase decision is
buying value
how can advertisements or salespeople activate a consumer's decision process
by showing the shortcomings of competing products
A limited-service intermediary that takes title to merchandise but sells only to business buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise is a
cash and carry wholesaler
Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. She considers herself an expert; she knows all about the various manufacturers, the types of products they sell, and even how consumers use these items. She is responsible for what to order, how much to order, and how to price these products in the store. Arianna is engaged in ________ for the store.
category management
to try to change attitudes about products and brands, companies will do what regarding their attributes
change beliefs, change perceived importance, and add new
Before Pepsi-Cola stamped freshness dates on its cans, few consumers considered cola freshness an issue. After Pepsi spent about $25 million on advertising and promotion, a consumer survey found that 61 percent of cola drinkers thought it important. This is an example of using which attitude change strategy?
changing the importance of attributes
number of brands examined, number of sellers considered, number of product attributes evaluated, number of external information sources used, time spent searching
characteristics of consumer purchase decision process
what does the alternative evaluation stage do
clarifies the information
The feeling of postpurchase psychological tension or anxiety
cognitive dissonance
making connections between 2 or more ideas or simply observing the outcomes of other's behavior and adjusting your own accordingly
cognitive learning
Tylenol products have extensive instructions for users to prevent accidental overdose and associated liver function complications. This is an example of which type of benefit that packaging can provide?
communication benefits
people who prefer known brands and use more mouth wash and toilet paper
compliant people
Selective ________ involves interpreting information so that it is consistent with your attitudes and beliefs.
comprehension
group of brands a customer considers acceptable from among the brands in the product class of which he or she is aware
consideration set
the brands a consumer considers buying out of the set of brands in a product class of which the consumer is aware are collectively called the ____________
consideration set
actions a person takes in purchasing and using products and services, mental and social processes that come before and after actions
consumer behavior
shows what , when, and where different touchpoints play a central role
consumer journey map
visual representation of all the touchpoints for a consumer who comes into contact with a company's products, services, or brands before, during, and after purchase
consumer journey map
problem recognition, information search, alternative evaluation, purchase decision, postpurchase behavior
consumer purchase decision process
process by which young people acquire skills, knowledge and attitudes necessary to function as consumers
consumer socialization
Family Influences include
consumer socialization, family life cycle, decision making within the household
A marketer's product service or brand point of contact with a consumer from start to finish in the purchase decision process
consumer touchpoints
Franchising is a variation of
contractual vertical marketing system
The three major types of vertical marketing systems are administered, contractual, and
corporate
Gillette now markets its Body line of razors, blades, and shaving gels for "manscaping," the art of shaving body hair in areas below the neckline. Here, it is primarily using which of the following market modification strategies?
creating new use situations
a stimulus or symbol perceived by consumers
cue
referring to the set of values and ideas and attributes that are learned and shared among the members of a group
culture
pstpurchase behavior can maximize
customer satisfaction and retention
A supply chain manager's key task is to balance the four ________ factors against the six total logistics cost factors.
customer service
Digital music pushed compact discs into the ________ stage of the product life cycle in the recorded music industry.
decline
Colgate-Palmolive secured the endorsements of dentists to make the claim that Colgate Total toothpaste is the number-one recommended toothpaste by most dentists, a tactic that is most effective at
decreasing perceived risk.
Prince Sports has adopted social media marketing in its promotion strategy because social media like Facebook has a significant impact among younger customers. This is an example of how Prince is using ________ segmentation.
demographic
objective attribute is
display
one that a person wishes to remain a distance from because diff of values
dissociative group
What two challenges must marketers overcome when marketing to Hispanics?
diversity of nationalities, language barrier
Procter & Gamble recently kept its retail price on its jumbo pack of Pampers and Luvs diapers, but reduced the number of diapers per pack from 140 to 132. The repositioning strategy P&G is using here is called
downsizing
a need that moves an individual to action
drive
the 4 variables that are essential to how consumer's learn from repeated experience are
drive, cue, response, and reinforcement
In a strategy known as ________, Hallmark sells its Hallmark greeting cards through Hallmark stores and its Ambassador brand of cards through discount and drugstore chains.
dual distribution
a firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Which of the following is the most likely source of that influence?
economic power
For the purchase of a smartphone, an independent rating agency indicates that many consumers use price, display, camera quality, and battery life as ________, because it assesses products on these dimensions.
evaluative criteria
three characteristics of a high-involvement purchases
expensive, serious personal consequences, social image
an external search is necessary when
experience or knowledge is insufficient, the perceived risk of making a wrong purchase decision is high, and the cost of gathering information is low
what are the 3 variations of consumer purchase decision process
extended, limited, and routine problem solving
As part of its ________ function, Macy's issues credit cards to consumers so they can buy now and pay later.
facilitating
the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
family life cycle
The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies
finding new users
For which of the following items would extended problem solving most likely be used?
flying lessons
At the Rio Olympics in 2016, members of the U.S. Women's National Team were among the first to use Nike's new lighter soccer cleats that allow for more control of the ball. The cleats also help wick away mud and grass. Shortly after the games, retailers were able to sell the same cleats, allowing them to offer which utility?
form
Sherwin-Williams, the paint manufacturer, now also operates retail stores in a strategy known as
forward integration
examples of safety needs
freedom from harm, financial security
examples of social needs
friendship, love, belonging
When a consumer has evaluated alternatives in the purchase decision process and selected one, he still must determine when to buy and
from whom he will buy.
3D printers would most likely be in the ________ stage of the product life cycle.
growth
Marketers of ________ products know that their consumers constantly seek and process information about objective and subjective brand attributes.
high-involvement
how people would like to see themselves
ideal self
practice of focusing on the identification and recruitment of influencers to advocate for products, services, and brands rather than focusing exclusively on prospective buyers
influencer marketing
5 roles of family members
information gatherer, influencer, decision maker, purchaser, user
perceived risk affects a consumer's
information search
Scanning your memory for previous experiences with products or brands is called
internal search
before completing the information search step, you would...
internal search
A unique feature of these channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers.
internet marketing channels
Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.
introduction
Skimming or penetration pricing are appropriate pricing strategies during the ________ stage of a product's life cycle.
introduction
the social, personal, and economic significance of the purchase to the consumer
involvement
most decisions are made by husband and wife
joint decision making
self-esteem, achievement, and affection are examples of
learned needs
Those behaviors that result from (1) repeated experience and (2) reasoning is referred to as
learning
Sometimes consumers skip or minimize one or more stages in the five-stage purchase decision process, depending on their
level of involvement.
The form of ownership, the type of merchandise line, and the ____________ are important ways that retail outlets can be classified.
level of service
mode of living that is identified by how people spend their time and resources, what they consider important in their environments, and what they think of themselves and the world
lifestyle
choosing a toaster or a restaurant to eat at is considered
limited problem solving
If a company markets a low-involvement product and its brand is a market leader, attention is placed on
maintaining product quality, avoiding stockout situations, using repetitive ads
Important variables in the family life cycle are age, presence of children, and
marital status
this makes possible the flow of products and services from a producer, through intermediaries, to a buyer.
market channel
Given Prince's multiple-segment strategy and limited marketing budgets, the company would want to create a ________ to help visually estimate the market size of a given product sold to a specific market segment.
market-product grid
information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores
marketer-dominated sources
based on the idea that motivation comes from a need
maslow hierarchy of needs
Marketing attention in the ________ stage of the product life cycle is often directed toward holding market share through further product differentiation and finding new buyers and uses.
maturity
Nonprofit service organizations use them, but public service announcements (PSAs)
may be limited in their effectiveness because their timing and location are controlled by others.
Marketers are concerned with which types of reference groups?
membership groups, aspiration groups, dissociative groups
the energizing force that stimulates behavior to satisfy a need
motivation
Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.
multichannel
The growth in the popularity of tennis means there are more consumers playing tennis today across many skill levels, incomes, and athletic abilities. Therefore, the ideal segmentation strategy for Prince would be
multiple products/multiple market segments.
Product line extensions are a form of which strategy?
multiproduct branding
Discount Fishing Tackle is a shop that carries a large selection of fishing rods and reels, bait, tackle boxes, waders, nets, and a few other fishing implements. Discount Fishing Tackle's breadth of product line would be described as ________ and its depth of product line would be described as ________.
narrow; deep
are subliminal messages illegal
no
evaluative criteria
objective and subjective attributes
Burlington Coat Factory and Ross stores offer customers the sport of searching the racks for great deals on brand-name products. Both retailers use an __________ retailing strategy.
off-price
individuals who exert direct of indirect social influence over others
opinion leaders
a website that is hard to navigate is an example of a
pain point
________ one of seven Ps included in services marketing because of the inseparability in the creation and delivery of the customer service experience and the impact on customers' perceptions of the service experience.
people are
The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as
people, physical environment, and process.
anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
perceived risk
problem recognition is
perceiving a need
process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
perception
a credit card and brooks brother clothiers are examples of
personal needs
Devin wasn't going anywhere for spring break; she just wanted to sit around and binge watch something on Netflix. She went next door to talk to a friend who shared her taste in television and got a recommendation for Master of None. Devin's information search was shortened by a discussion with her neighbor, which is a
personal source.
relatives, friends, social media networks that the consumer trusts
personal sources
primary sources of external information are
personal sources, public sources, marketer-dominated sources
a person's consitent behaviors or responses to recurring situations
personality
what guides and directs a consumer's behavior
personality
first level of maslow hierarchy of needs
physiological needs
List Maslow's Hierarchy of Needs from bottom to top
physiological needs safety needs social needs personal needs self-actualization needs
Having a Chevron gas station located near a car rental return location is an example of __________ utility.
place
A component of Prince's ________ strategy is choosing appropriate promotion and distribution strategies to influence the place a product occupies in the consumer's mind.
positioning
The furniture company delivered her new couch on Thursday and Samantha used it all weekend. Although she really liked the color and style, she didn't think it was very comfortable. At which stage of the purchase decision process is Samantha?
post purchase behavior
loyalty program, customer service, tech support are all part of the
postpurchase phase
advertisements, ratings and reviews, social media, in-person referrals are all part of the
prepurchase phase
subjective attribute is
prestige
Looking to attract more millennial tourists, Discover Los Angeles, the city's tourism office, portrays its city as a hipster utopia in a new campaign. It released a two-minute YouTube video that follows a young couple as they shop for vinyl, take pictures of their food, eat tacos from a food truck, and pose for selfies during a whirlwind day in the city. This ad campaign was an attempt to stimulate ________ demand.
primary
The initial step in the purchase decision process, is perceiving a difference between a person's ideal and actual situations big enough to trigger a decision
problem recognition
What is the first stage in the consumer purchase decision process?
problem recognition - perceiving a need
For Prince's profitability and long-term survival, the firm must use a marketing strategy of ________ to ensure that consumers believe that its products have unique and superior attributes when compared to the competition.
product differentiation
The VALS system is a(n) ________ measure of consumers.
psychographic
analysis of consumer lifestyle
psychographics
motivation and personality, perception, learning, values/beliefs/attitudes, and lifestyle
psychological influences
helps marketers understand why and how consumers behave as they do
psychology
various product rating organizations such as consumer reports, government agencies, and TV "consumer programs"
public sources
Becky's daughter was in the sixth grade and growing very fast. In early fall, her daughter tried on her soccer cleats from the spring and, although they were still in good shape, she could barely fit her foot inside. Becky knew she'd need to get her a new pair; she had just begun the
purchase decision process
webside, salespeople, display are all part of the
purchase phase
reason for engaging in the decision
purchase task
postpurchase behavior is
realizing value
people to whom an individual looks as a basis for self-appraisal or as a source of personal standards
reference groups
the largest ________ in North America is the West Edmonton Mall in Alberta, Canada. It is home to more than 800 stores, the world's largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels, all of which attract 30 million visitors each year.
regional shopping center
If Israel is happy with how his new Lifeproof phone case protected the phone when he dropped it in the snow, this would be considered which variable of the behavioral learning process?
reinforcement
the reward
reinforcement
an action taken by the consumer to satisfy the drive
response
The retailing mix includes store location, merchandise, and which two other elements?
retail communication and retail pricing
________ includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
retailing
Hewlett-Packard's recycling service for computers and printers is available today in more than 73 countries, regions, and territories. Hewlett-Packard has recycled about 3 billion pounds of used electronic products and supplies to be refurbished for resale or donation or for recovery of materials. Hewlett-Packard is practicing
reverse logistics
low priced, frequently purchased grocery products are considered
routine problem solving
Luke sees a public service announcement from the CDC reminding everyone to get a flu shot this fall, and he goes to the student health center to get one. The CDC is attempting to appeal to consumers' ________ needs according to the Maslow hierarchy.
safety
involve self-preservation, as well as physical and financial well-being
safety needs
after a purchase, a customer is either..
satisfied or dissatisfied
companies reduce perceived risk by
seals, influential people, free trials, instructions, warrantees, guarantees
information search is
seeking value
interpreting information so that it is consistent with your attitudes and beliefs
selective comprehension
switching the name of the lightweight snow blower from SNOW PUP to SNOW MASTER is an example of
selective comprehension
when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them
selective exposure
a filtering of exposure, comprehension, and retention
selective perception
consumer's do not remember all the information they see, read, hear, even minutes after exposure to it
selective retention
highest level of maslow hierarchy of needs
self-actualization needs
needs that involve personal fulfillment
self-actualization needs
the way people see themselves and the way they believe others see them
self-concept
Movie and game retailer Redbox has 41,500 kiosks throughout the United States, which it operates without a single clerk. This would be considered a ________ retailer.
self-service
An important feature of supply chain management is its application of sophisticated information technology that allows companies to
share and operate systems for order processing, transportation scheduling, and inventory and facility management
Trends among category killers such as Staples for office supplies and Best Buy for electronics include price matching and ________ to compete with online retailers.
shipping directly from any store with inventory rather than just warehouses
purchase tasks, social surroundings, physical surroundings, temporal effects, antecedent states
situational influences
concerned with love and friendship
social needs
personal influence, reference groups, family, culture and subculture
sociocultural influences
either husband or wife is mostly responsible
spouse dominant decisions
Using the same brand name for different products is an application of which concept from behavioral learning theory?
stimulus generalization
within the larger, or national , culture with unique values, ideas, and attitudes
subculture
you see or hear messages without being aware of them
subliminal perception
alternative evaluation is broken up into
suggesting criteria to use for the purchase, yielding brand name that might meet the criteria, developing consumer value perceptions
A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients. The division also deals with about 23,000 suppliers in nearly 100 countries. The individuals who monitor these transactions are engaged in
supply chain management
Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?
tattoos
As a situational influence, antecedent states include
the consumer's mood.
The most indirect marketing channel is employed when
there are many small manufacturers and many small retailers.
example of low-involvement purchases
toothpaste or soap
A ________ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
trademark
a married couple with children under 18 (20% of all US households)
traditional family
example of high-involvement purchases
video systems or cars
Which of the following is considered a part of total logistics cost, like transportation and order processing?
warehousing
examples of physiological needs
water, shelter, food
As it advances on the ________, Boston Market has added pickup, delivery, and full-service catering to its original restaurant format, and it also provides Boston Market meal solutions through supermarket delis and Boston Market frozen meals in the frozen food sections of groceries.
wheel of retailing
steps in purchase decision
who and when to buy
influencing of people during conversation
word of mouth
Purchase Decision Process
1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. postpurchase behavior
about ________ percent of consumer conversations about brands happen over the phone
15
How is customer service related to logistics management?
A firm must drive down logistics costs as long as it can still satisfy customer requirements
The ________ subculture as a whole is characterized by hard work, strong family ties, appreciation for education, and median family incomes exceeding those of any other ethnic group.
Asian American
fastest growing racial/ethnic subculture in the US
Asian Americans
conversant in English, highly educated, hold professional and managerial positions, and exhibit buying patterns like the typical American consumer
Assimilated Asian Americans
_______ are a marketer's product, service, or brand points of contact with a consumer from start to finish in the purchase decision process.
Consumer touchpoints
3 largest subcultures within the united states from largest to smallest
Hispanics, African Americans, and Asian Americans
What are the two primary forms of personal influence?
Opinion leadership, word of mouth activity
the practice of combining psychology, lifestyle, and demographics
Psychographics
Which of the following statements concerning the pricing of services is most accurate?
Service pricing can be used in capacity management, optimizing consumer demand for services.
What do direct mail, telemarketing, and automatic vending have in common?
They are all forms of nonstore retailing