Digital Marketing Final

TRUE OR FALSE: A single customer can account for a huge volume of purchases

True

True or False: In the context of business products, major equipment is often custom-designed for each customer according to requirements.

True

A firm that assumes individual customers have similar needs that can be met with a common marketing mix is using what marketing strategy?

Undifferentiated targeting strategy

What is a "new buy"?

A situation that leads a customer to purchase a product for the first time

Why has relationship marketing become more important now than ever before?

Because competition in the free market is becoming more intense.

True or False: Consumers would rather LEASE products than BUY them

False

What do we call the segment of the business market that seeks to achieve goals other than the standard business goals of profit, market share, and return on investment?

Institutions

In the context of business relationships in Japan, what does "Amae" mean?

It is the feeling of nurturing concern for, and dependence upon, another.

Which of the following is an advantage of a multisegment targeting strategy? a. It provides economies of scale in manufacturing and marketing. b. It decreases the costs involved in product design, marketing research, and management. c. It significantly reduces the risk of product cannibalization. d. It helps in satisfying the needs of a niche market.

It provides economies of scale in manufacturing and marketing.

What is the Multiplier Effect?

The phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Which of the following statements is true of an organization's product mix? a. Firms widen their product mix to capitalize on established reputations. b. A wide product mix decreases sales and profit-making potential. c. All product items in a product mix follow a standard marketing strategy.

a. Firms widen their product mix to capitalize on established reputations.

In which of the following ways does the product life cycle concept help marketing managers? a. It can be used to analyze a brand, a product form, or a product category. b. It tells managers about the product's shelf life. c. It informs marketers whether a product is a style, a fad, or a fashion. d. It dictates the speed of the diffusion process.

a. It can be used to analyze a brand, a product form, or a product category.

In the context of the ever-changing marketplace, which of the following statements is true of marketing research? a. It helps managers to take advantage of opportunities in the market b. It results in inacurate forecast as the market place keeps changing c. It overlooks the role of word of mouth advertising in the promotion process d. It excludes the external environment that affects sales

a. It helps managers to take advantage of opportunities in the market

Which of the following statements is true of an express warranty? a. It ranges from simple statements to extensive documents written in technical language. b. It is an unwritten guarantee that a good or service is fit for the purpose for which it is sold. c. It gives the impression of environmental friendliness to a product. d. It prohibits other firms from using a brand or part of a brand without permission.

a. It ranges from simple statements to extensive documents written in technical language.

In the context of marketing research, which of the following is specified in the research design? a. The methods of data collection b. The management decision problem to be solved c. The modifications to be made to the approved project budget d. The distribution channels of products

a. The methods of data collection

Which of the following is a criticism of online panel providers? a. They lead to biased and misleading results as members receive incentives to join the panel. b. They require the presence of a moderator to control the discussion. c. They lead to incorrect results as panel members are not selected based on specific requirements. d. They require a lot of time as panel members discuss among themselves while offering suggestions.

a. They lead to biased and misleading results as members receive incentives to join the panel.

Which of the following statements is true of product lines? a. They provide economies of scale in advertising. b. They limit the product choices offered to customers to one or two product items. c. They increase a firm's manufacturing and inventory costs. d. They require greater transportation and warehousing costs than product items.

a. They provide economies of scale in advertising.

Which of the following statements is true of companies that focus on supply chain management? a. They report lower warehousing costs. b. They incur large incremental expenditure on company assets. c. They report reduced logistical flexibility. d. They have limited interactions with their suppliers.

a. They report lower warehousing costs.

Which of the following statements is true of one-way frequency counts? a. They simply record the responses to a question. b. They are used to compare responses to one or more questions. c. They are rarely done in data analysis. d. They include hypothesis testing and regression analysis

a. They simply record the responses to a question.

Which of the following is a secondary data collection method? a. Using annual reports b. Conducting survey research c. Sending mail surveys d. Sending mail surveys

a. Using annual reports

In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of the _____. a. decline stage b. introductory stage c. growth stage d. maturity stage

a. decline stage

The purpose of market segmentation is to: a. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments. b. change consumer attitudes and beliefs toward a product. c. divide a market into submarkets of equal size and equal number of customers. d. group a large number of markets together, enabling a company to serve them simultaneously.

a. enable a marketer to tailor marketing mixes to meet the needs of one or more specific segments.

In the context of supply chain integration, relationship integration: a. includes ways in which companies collaborate on activities or projects. b. is a type of internal integration sought by firms interested in providing top-level service to customers. c. makes performance assessments transparent and measurable across the borders of different firms. d. enables companies to act as multiple individual units.

a. includes ways in which companies collaborate on activities or projects.

A _____ is a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain. a. marketing channel b. common trade alliance c. market grouping d. retailer monopoly

a. marketing channel

Mass-marketing efforts are used by marketers because: a. of the need to create brand awareness or to remind consumers of a product. b. the time consumers spend on making purchase decisions has increased in recent times. c. consumers have their own unique sets of needs and wants. d. the importance of rewarding individual consumers for their loyalty has declined in the recent years.

a. of the need to create brand awareness or to remind consumers of a product.

A _____ is not possible when a brand name has a negative or vulgar connotation in the local language. a. one-brand-name strategy b. repositioning strategy c. family branding strategy d. co-branding strategy

a. one-brand-name strategy

The first step in the marketing research process is: a. recognizing a marketing problem or opportunity. b. specifying the sampling procedures to be followed. c. planning a research design. d. collecting primary data from available sources.

a. recognizing a marketing problem or opportunity.

A moderator's major role in an online focus group is to: a. type in questions online for all respondents to see. b. limit the discussion to closed-ended questions. c. allow the respondents to control the pace of the discussion. d. make sure that costs incurred for the survey remains relatively low.

a. type in questions online for all respondents to see.

Which of the following targeting strategies results in cannibalization of products? a. The universal targeting strategy b. A multisegment targeting strategy c. A concentrated targeting strategy d. An undifferentiated targeting strategy

b. A multisegment targeting strategy

_____ occurs when two brands receiving equal treatment borrow from each other's brand equity. a. Ingredient branding b. Cooperative branding c. Family branding d. Complementary branding

b. Cooperative branding

Which of the following statements is true of a specialty product? a. It is widely distributed in a geographic area in order to sell sufficient quantities. b. It is marketed using selective, status-conscious advertising to maintain its exclusive image. c. It is unknown to a potential buyer or a known product that the buyer does not actively seek. d. It is easily substituted with products that have the same features.

b. It is marketed using selective, status-conscious advertising to maintain its exclusive image.

Which of the following statements is true of a concentrated targeting strategy? a. It follows a mass-market philosophy by viewing the market as one big market without any individual segments. b. It is often adopted by small firms to compete effectively with much larger firms. c. It allows a firm to serve two or more well-defined market segments simultaneously.

b. It is often adopted by small firms to compete effectively with much larger firms.

Which of the following stages in a customer relationship management cycle is characterized by the sharing of customer information to all areas of a business after it has been analyzed and transformed into useful information? a. Identifying profitable and unprofitable customers b. Leveraging customer information c. Identifying customer relationships with the organization d. Storing and integrating customer data

b. Leveraging customer information

Which of the following is a characteristic of products produced by multinational corporations? a. Products are not subjected to test marketing. b. Products are developed to meet unique market requirements whenever possible. c. Products are developed to cater to local markets. d. Products are inadequately distributed in local markets.

b. Products are developed to meet unique market requirements whenever possible.

In the context of a buying process, which of the following statements is true of satisficers? a. They study numerous proposals carefully before selecting one. b. They contact familiar suppliers and place orders with the first one that fulfills their requirements. c. They select the best supplier who satisfies their product and delivery requirements. d. They contact new and unfamiliar suppliers when they need to purchase a product.

b. They contact familiar suppliers and place orders with the first one that fulfills their requirements.

Which of the following statements is true of nontraditional channels? a. They increase a brand's coverage in the market. b. They help differentiate a firm's product from the competition. c. They aid upstream producers in marketing to producers. d. They lead to competition between distribution channels through cannibalization.

b. They help differentiate a firm's product from the competition.

_____ is the degree to which a product can be sampled on a limited basis. a. Complexity b. Trialability c. Compatibility d. Observability

b. Trialability

In the context of the new-product development process, the decision to market a product is made during _____. a. the business analysis stage b. commercialization c. test marketing d. the development stage

b. commercialization

Companies that successfully implement customer relationship management tend to: a. minimize the use of database technology. b. customize the goods and services offered to their customers. c. maximize the role of distributors in marketing. d. assume that customers have similar needs that can be met with a common marketing mix.

b. customize the goods and services offered to their customers.

A _____ is a sample in which every element in the population has a known statistical likelihood of being selected. a. snowball sample b. probability sample c. judgment sample d. convenience sample

b. probability sample

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry. a. product line contraction b. product line extension c. product line reeling d. product line classification

b. product line extension

The logistical function of intermediaries in marketing channels involves: a. researching about channel members and consumers b. sorting, accumulation, consolidation of products. c. contacting prospective buyers to make them aware of existing products. d. explaining a product's features, advantages, and benefits.

b. sorting, accumulation, consolidation of products.

Identify a true statement about global branding strategies. a. Using different brand names in different markets leads to greater identification of the product from market to market. b. Using different brand names in different markets means that a company does not follow localization. c. A one-brand-name strategy is useful when a company markets mainly one product. d. A one-brand-name strategy reduces the ease of coordinating promotion from market to market.

c. A one-brand-name strategy is useful when a company markets mainly one product.

In the context of the new-product development process, which of the following statements is true of the business analysis stage? a. The newness of the product, the size of the market, and the nature of the competition do not affect the accuracy of revenue projections. b. Forecasting market share for a new entry in a new, fragmented, or relatively small niche market is easy. c. Depending on the nature of the product and the company, this process may be simple or complex. d. Costs increase dramatically once a product idea enters the business analysis stage.

c. Depending on the nature of the product and the company, this process may be simple or complex.

Which of the following statements is true of an implied warranty? a. It gives the impression of environmental friendliness to a product. b. It prohibits other firms from using a brand or part of a brand without permission. c. It comes with the sale of every product under the Uniform Commercial Code. d. It ranges from simple statements to extensive documents written in technical language.

c. It comes with the sale of every product under the Uniform Commercial Code.

In which of the following ways does marketing research help managers? a. It helps them eliminate the use of big data for data analysis. b. It helps them ensure that secondary data do not influence marketing decisions. c. It helps them serve their customers accurately and efficiently. d. It helps them focus on quantity rather than quality of products.

c. It helps them serve their customers accurately and efficiently.

In the context of strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy? a. It increases production and marketing costs of a firm. b. It is difficult to tailor marketing mixes to the preferences of individual market segments. c. It often results in sterile, unimaginative product offerings that have little appeal to anyone. d. It results in cannibalization of products.

c. It often results in sterile, unimaginative product offerings that have little appeal to anyone.

Which of the following statements is true of the supplier relationship management process? a. It introduces features and cost-cutting measures into final products. b. It enables firms to act as leaders in protecting the natural environment. c. It provides structural support for developing and maintaining relationships with suppliers. d. It enables suppliers and business units to operate with limited or no interaction.

c. It provides structural support for developing and maintaining relationships with suppliers.

In the context of adopters who participate in the diffusion process, which of the following statements is true of laggards? a. They are more likely to get their information from scientific sources and experts. b. They act as an important link in the process of diffusing ideas. c. They have the longest adoption time and the lowest socioeconomic status. d. They act as influencers and begin the viral marketing chain.

c. They have the longest adoption time and the lowest socioeconomic status.

Which of the following is an objective of focus group interviews? a. To directly involve customers in test marketing b. To eliminate ideas that are inconsistent with the organization's new-product strategy c. To stimulate insightful comments through group interaction d. To get recommendations on product ideas from outside consultants

c. To stimulate insightful comments through group interaction

In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, the degree of difficulty involved in understanding and using a new product is known as _____. a. compatibility b. observability c. complexity d. trialability

c. complexity

Outsourcing enables companies to: a. focus investment on their logistical functions rather than on core business. b. eliminate the need of using a third-party logistics company. c. locate stocks at fewer plants and distribution centers. d. lengthen the order-to-cash cycle.

c. locate stocks at fewer plants and distribution centers.

Product line depth refers to the number of: a. product lines an organization offers. b. competitors present in the market for a particular product line. c. product items in a product line. d. market segments a firm is willing to target or serve.

c. product items in a product line.

Identify a true statement about the demand management process. a. It increases costs as it involves serving multiple types of customers who have variable wants and needs. b. It focuses on providing quick positive response to negative customer feedback. c. It eases the pressure on the production process of a company. d. It creates customer-focused plans of action prior to actual purchases being made.

d. It creates customer-focused plans of action prior to actual purchases being made.

Which of the following is a disadvantage of supply chain globalization? a. It leads to stagnation in the company's technology or knowledge. b. It increases labor costs and materials costs for companies. c. It restricts companies from availing trade tariff. d. It exposes companies to risks associated with geopolitical conflict.

d. It exposes companies to risks associated with geopolitical conflict.

Which of the following statements best describes simultaneous product development? a. It is a strategy that provides general guidelines for generating, screening, and evaluating new-product ideas. b. It is used to determine the reactions of potential customers in a market situation. c. It is a strategy that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation. d. It is the process where all the involved areas work together rather than sequentially during a product's development.

d. It is the process where all the involved areas work together rather than sequentially during a product's development.

In the context of purchasing profiles, _____ are business customers who consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one. a. innovators b. satisficers c. laggards d. optimizers

d. optimizers

The best order fulfillment processes: a. manage volumes of returned product efficiently. b. reduce coordination between multiple companies. c. increase inventory levels of the firm. d. reduce the time between order and customer receipt.

d. reduce the time between order and customer receipt.