Exam 1
Which of the following actions would be the most likely to support and enhance an operational excellence macro strategy?
3M Corporation implementing new software to improve communication with its suppliers
According to your text, the wealthiest 10 percent of the population control approximately what percentage of Americans' total net worth?
76 percent
Retailers accumulate merchandise from producers in large amounts and sell to consumers in smaller amounts. When they sell to consumers, it is considered ________ marketing.
B2C
Christie, a marketing executive who was born in 1955, advocated that her company focus on a print campaign for its new line of lipsticks rather than spending money on online ads. This point of view may be attributed to the fact that she is a member of which generational cohort?
Baby Boomer
________ is(are) distinguished from the other generational cohorts in that the group's oldest members are now collecting Social Security.
Baby Boomers
Which of the following specifically prohibits monopolies?
Sherman Antitrust Act
________ factors override or at least influence psychological and social issues.
Situational
Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
a sustainable competitive advantage
Georgette, the outside sales rep for a major building supply company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, Georgette will help her company become more value driven if she
advises the production and purchasing departments to produce or order smaller quantities of products.
Apple computer users tend to like the company and love its products. Apple has nurtured this ________ component of its customers' attitudes.
affective
To become a more value-driven organization, Pokrah University is holding regular coffee-hour discussions with its students and surveying its graduates regarding students' educational needs and desires. By doing so, Pokrah University is becoming more value driven through
building relationships with customers.
The United States has often been called the "melting pot" society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a group's culture
can be used as a relevant identifier for a particular target group.
When studying culture, the challenge for marketers is to determine whether culture
can help identify a particular group that might be interested in the marketer's products.Correct
The idea of value-based marketing requires firms to charge a price that
captures the value customers perceive that they are receiving.
The process of value ________, in which customers collaborate in product design, often provides additional value to the firm's customers.
cocreation
Though he has never owned a Jaguar, Gerry thinks they are poorly made and have many mechanical problems. For Jaguar to sell Gerry a car, the company would need to change the ________ component of Gerry's attitude.
cognitive
Business-to-business marketing involves buying and selling goods or services by all of the following except
consumers.
The four Ps make up the marketing mix, which is the __________ set of decisions or activities that the firm uses to respond to the wants of its target markets.
controllable
Yellow Trucking provides transportation services for Dan's Delicious Donuts so that Dan's stores always have fresh stock. Yellow Trucking is an example of a
corporate partner.
Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can
create a sustainable competitive advantage.
Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups
creates opportunities to provide value to each group.
Which of these is a macroenvironmental factor? culture corporate partners competition company competencies
culture
Insight Guides, a line of travel books, provides travelers with background information about people's beliefs, values, and customs in various parts of the world. Insight's books educate travelers about a country's
culture.
Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools. These special issues are an example of
customer relationship management.
In 2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ________ step of the marketing planning process.
define the business mission
Marketers often use principles and theories from sociology and psychology to better understand consumers' actions and to
develop basic strategies for dealing with their behavior.
Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?
evaluation of alternatives
Marketers particularly want their brands and products to be in consumers' ________ sets.
evoked
If a firm wants to develop a sustainable competitive advantage, it should
examine its operations and customer relations to identify significant things competitors cannot easily copy.
Four Winds Art Gallery sells paintings. They have also recently begun offering appraisals of customers' art collections. Four Winds is
expanding from offering just goods to also offering services.
Kia has to decide which college to attend. This is the most important, riskiest, and most expensive decision she has ever made. She will be engaged in
extended problem solving.
The consumer's level of involvement can lead to two types of buying decisions: ________ or ________.
extended problem solving; limited problem solving
When skydivers purchase equipment for parachuting, their purchases are primarily addressing ________ needs.
functional
By producing motorcycles that do more than get riders to their destinations and back, Harley-Davidson is addressing consumers' ________ needs.
functional and psychological
The goal of customer relationship management is to
identify and build loyalty among a firm's most valued customers.
Leslie is the marketing manager for an electronics company. While on vacation in Ecuador, she visited electronics stores in the major malls in Quito, the capital city. Most of her company's products were available, except for smartphones. When she returned to work, she mentioned this observation to her international sales manager. Leslie was providing the important marketing function of
identifying opportunities to expand.
The "Milk Life" advertising campaign, designed to increase awareness of the health benefits of milk, was intended to help market a(n)
industry
Marketers are particularly interested in postpurchase behavior because it
involves actual rather than potential customers.
The strategic marketing planning process
is not always sequential
A competitive advantage based on location is often sustainable because
it is not easily duplicated
When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries?
language
Among the factors affecting the consumer decision-making process is the way consumers spend their time and money to live, otherwise known as
lifestyle
Chris bought Timberland boots because he felt they were perfect for his outdoor activities. Pat bought the same kind of boots because he felt they were stylish, especially with the logo clearly visible. The psychological factor driving Pat's behavior is
lifestyle.
To build relationships, firms focus on the ________ of the relationship, not how much money is made during each transaction.
lifetime profitability
Value creation through place decisions for a consumer product involves
making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.
Many marketing students initially overlook the importance of marketing channel management because
many of these activities take place behind the scenes.
Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ________ growth strategies.
market development
Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a ________ growth strategy.
market development
To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.
market growth rate
Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy.
market penetration
Which of the following growth strategies employs the existing marketing mix and focuses the firm's efforts on existing customers?
market penetration
The process of dividing the market into groups of customers with different needs, wants, or characteristics is called
market segmentation.
The primary purpose of the ________ plan is to specify the marketing activities for a specific period of time.
marketing
The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that
match its core competencies.
Successful firms focus their efforts on satisfying customer needs that
match their core competencies.
Yvonne knows her firm must look at everything it does from a consumer's point of view. One major difficulty is that consumers' ________ change(s) over time.
needs, wants, and ability to purchase
The U.S. Centers for Disease Control and Prevention (CDC) estimates that approximately 87.5 percent of U.S. adults are
obese
For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates
opportunities.
Barry is considering buying a hybrid car, but he's not sure that he believes the gas mileage estimates. Barry is concerned about
performance risk.
There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection?
physiological risk
Which element of the marketing mix is most relevant to the activity "delivering value"?
place
The government has enacted laws that promote both fair trade and competition by prohibiting the formation of monopolies or alliances that would damage a competitive marketplace, fostering fair pricing practices for all suppliers and consumers. These actions are part of the ________ environment of business.
political/regulatory
Jeffrey opened a sporting apparel store and signed a lease on the property. He also signed an agreement with the manufacturer on the amount of merchandise he will sell and the promotions he will conduct. Based on this description, which aspect of the marketing mix does he still need to work on?
price
Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's
product excellence.
Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates.
product value
Henry Ford's statement, "Customers can have any color they want so long as it's black," typified the ________ era of marketing.
production-oriented
The Child Protective Act
prohibits the sale of harmful toys and components to children.Correct
Google and other search engines allow marketers to bid to have their ads shown when consumers search keywords related to the firm's products. These marketers are attempting to create value through
promotion.
Generational cohorts are groups of people of the same generation who have similar ________ because they have shared experiences and are in the same stage of life.
purchase behaviors
The shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely
reduce regional cultural differences.
Marty buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Marty is a
reseller.
Which of the following are commonly found in distribution and fulfillment centers to fill orders for stores or individual customers?
robots
A home security company will advertise the need for home surveillance products to appeal to which level of Maslow's Hierarchy of Needs?
safety
The prevailing marketing strategy of the ________ era was to find customers for inventories that went unsold.
sales-oriented
"Black Friday," as the day after Thanksgiving has come to be known in the United States, is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "doorbusters," and designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of ________ on the consumer decision process.
setting high expectations
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the franchise system. One Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of
sharing information across the organization.
Andy was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. Andy was addressing his ________ risk.
social
Reggie greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reggie hopes that this attention to his "regulars" will encourage them to
spread positive word of mouth.
Marketing channel management is also known as
supply chain management
Which of the following is a critical ethical consideration for green marketers?
sustainability
Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive.
sustainable competitive advantage
The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) ________ for these companies.
sustainable competitive advantage
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
target market segment.
After identifying various market segments that her company could pursue, Linda evaluated each segment's attractiveness based on size, income, and accessibility. Linda was involved in
target marketing.
Xavier is analyzing potential market segments. He should carefully seek potential customers who have both an interest in his products and
the ability to buy them.
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like JetBlue have been successful. Consumers obviously consider
the benefit of lower prices to be greater than the cost of reduced services and less convenience.
The greater the discrepancy between a consumer's needy state and the desired state, the greater
the consumer's need recognition will be.
In the consumer decision process, we decide how much time and effort to expend searching for information based partly on
the degree of perceived risk associated with the product or service being considered.
Heidi has been assessing several of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heidi is trying to determine
the product's relative market share.
When referring to "exchange," marketers are focusing on
the trading of things of value.
Some discount stores put products in large bins and let consumers hunt and find bargains. The price these consumers pay includes
the value of their time and energy
What is the first sense triggered in a new setting?
visual sense
Janice was tired of her winter coat, so she sold it to her friend, Marissa. This is an example of ________ marketing.
C2C
________ attributes are product or service features that are important to buyers and that are used to differentiate among choices.
Determinant
Consumers use and process different aspects of advertising or messages. ________ yields greater attention and deeper processing, and leads to strong attitudes and purchase intentions.
High involvement
Johnathan prefers shirts made with 100 percent cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Johnathan uses ________ to decide which shirts to buy.
a compensatory decision rule
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?
Recent consumer studies have indicated that Chinese consumers prefer American cars.Correct
In 2016, in response to the threats of climate change, the United Nations rectified the
Paris Accord
Which of the following statements accurately describes the current income distribution in the United States?
Wealthy households are outpacing both poor and middle-class households.
Which of the following is true with regard to mobile advertising?
Within just a couple of years, mobile advertising will be a bigger market than digital advertising.