Exam 2 MKT 3305

H&M plans to open a new store in Saudi Arabia. It will be staffed completely by women. Saudi Arabia has strict laws about women interacting with men other than their husbands, so only women will be permitted to shop there. Which type of demographic segmentation is H&M using? a. Lifestyle b. Usage rate c. Benefit d. Age e. Gender

E. gender Gender is a demographic variable, but benefit and lifestyle are not.

_____ is the process of dividing a market into meaningful groups that are relatively similar and identifiable. a. Perceptual mapping b. Positioning c. Micromarketing d. Market sampling e. Market segmentation

E. market segmentation

During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. a. commercialization b. product testing c. market analysis d. product prototyping e. simulated marketing

a. commerialization

When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market, it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people since it could not be used to replace their current method of transportation. In other words, the Segway had problems with: a. compatibility. b. relative advantage. c. observability. d. trialability. e. longevity.

a. compatibility

_____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution. a. Convenience b. Specialty c. Branded shopping d. Unbranded shopping e. Generic

a. convenience

New-to-the-world products, where the product category itself is new, are also called: a. discontinuous innovations b. moderate innovations c. slow-diffusing products d. venture products e. creative offerings

a. discontinuous innovations

_____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards

a. early adopters

Home Cookin' Catering would like to improve customer satisfaction and increase repeat business. When you ask the owners to describe a typical customer, they say it is impossible and explain that with corporate functions, family affairs, and fund-raisers, they do not have a typical customer. You suggest it is time for market segmentation because: a. it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment b. the company needs to reduce the size of the market it serves c. the company needs to learn how to group these markets together into one market to serve all of them adequately d. it will help develop a generalized definition of the market as a whole and reveal the optimal marketing mix for this market e. this will position the company in the minds of its consumers as compared to its competitors

a. it will enable them to build an accurate description of customer needs by group and to design a marketing mix to fit each segment The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers? a. Observability b. Diffusion c. Adoption d. Trialability e. Complexity

a. observability

The marketing manager of Gevalia gourmet coffees wants to target the gay male consumer because he thinks this segment of consumers appreciates and consumes gourmet coffee. Even though gay lifestyles are becoming more accepted socially, the manager is finding it difficult to determine the market potential for this segment because many gay consumers are not willing to admit their lifestyle publicly. Which criterion of a useful segment does this illustrate? a. Substantiality b. Identifiability and measurability c. Complexity d. Responsiveness e. Validity

b. Identifiability and measurability Segments must be identifiable and their size measurable, which might be difficult due to many gay consumers not admitting their lifestyle.

A group of middle school students stop by a bicycle store. The store has just received a new shipment of high-end racing bicycles. The bicycles range in price from $1,200 to $3,000. All of the students want one of these new bikes, but none has the means to buy one. Is this group of consumers a potential market for the expensive bikes? a. Yes, they are a potential market since they are all about the same age. b. No, they do not have the ability to purchase at this time. c. No, to qualify as a market, they must need the product. d. Yes, they are a market because this product could satisfy their consumer wants and desires. e. Yes, they are a market because this group shares relatively similar product needs and purchasing characteristics.

b. No, they do not have the ability to purchase at this time. A market is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. There is no suggestion of ability to purchase in this case.

Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs? a. Complexity b. Compatibility c. Relative advantage d. Observability e. Trialability

b. compatibility Products that are compatible with others will gain from existing product knowledge, past experiences, and current needs.

A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle. a. aggregated lifestyle b. component lifestyle c. psychographic mode of living d. demographically defined lifestyle e. targeted lifestyle

b. component lifestyle

Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out, she noticed that People Magazine had an interesting cover story about Scarlett Johansson. As Amy is a huge fan of Scarlett, she had to buy a copy. In this example, the People Magazine is an example of a(n) _____ product. a. specialty b. convenience c. business d. shopping e. unsought

b. convenience

Refer to Dog Spa. Describing the market for Tumlin's grooming salon in terms of age and marital status reflects the use of _____ characteristics. a. psychographic b. demographic c. anthropological d. geographic e. sociological

b. demopgraphic

The Johnsonville Sausage Company wants to know which areas of the country consume the most sausage. The company is not especially interested in an explanation for the popularity of sausage in different regions; it simply wants factual information about it. Johnsonville is interested in using marketing research in its _____ role a. historical b. descriptive c. predictive d. normative e. objective

b. descriptive

In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced. a. screening b. development c. market testing d. concept testing e. business analysis

b. development During the development stage, the technical feasibility of manufacturing the product at a reasonable cost is thoroughly examined. This stage can be long and expensive and can involve a great deal of testing. Products are often modified after the testing.

The Belly Cast kit by Proud Body helps an expectant mom to make a cast of her pregnant body, decorate it, and keep it for a lifetime. The primary market segment for the Belly Cast kit is: a. all parents b. expectant moms c. recently married couples d. parents of toddlers e. collectors of unusual art

b. expectant moms A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs, which in this case would be expectant moms.

_____ is the segmenting of markets based on the region of the country or the world, market size, market density (number of people within a certain unit of land), or climate. a. Community segmentation b. Geographic segmentation c. Geodemographic segmentation d. PRIZM segmentation e. Demonstrated regionalization

b. geographic segmentation

Market segmentation can assist marketers to do all of the following EXCEPT: a. develop more precise definitions of customer needs and wants b. identify which variable base should be used for segmenting c. more accurately define marketing objectives d. improve resource allocation e. evaluate performance

b. identify which variable base should be used for segmenting Market segmentation itself does not signal which base should be used, but it will define needs and wants, as well as help marketers define marketing objectives, improve resource allocation, and evaluate performance.

New products are important to a company for all the following reasons EXCEPT: a. increased revenues b. immediate profits c. sustained growth d. replacement of obsolete items e. increased profits

b. immediate profits While new products bring the potential advantage of increased margins, they do not bring immediate profit.

The marketing researcher for Bubastis Cat Treats has noticed a growing number of cat owners purchasing organic treats for their pets. The researcher thinks there is a market for organic cat treats, but she's not sure if the segment is substantial. In this case, substantiality means the segment: a. has enough special stores, magazines, and other outlets that it will be possible to direct advertisements at this group b. is large enough to permit a profitable market effort toward its members c. exhibits a response rate to marketing variables different from the rates of other segments d. is too large and needs to be reduced to a more easily identifiable and measurable size e. will be difficult to develop a product to match this group of buyers

b. is large enough to permit a profitable market effort toward its members Substantiality means the selected segment will be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small.

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs a. market universe b. market segment c. aggregated market d. segmentation base e. population sample

b. market segment this is the definition of market segment

A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how the characteristic of _____ can work to slow the adoption process. a. relative advantage b. observability c. trialability d. complexity e. compatibility

b. observability

The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption? a. Complexity b. Trialability c. Observability d. Relative advantage e. Sampling

b. trialability

A _____ is a group of people or organizations that has wants and needs that can be satisfied by particular product categories, has the ability to purchase these products, and is willing to exchange resources for the products. a. firm b. buyer c. market d. consumer e. target

c. Market

Which criterion of useable market segments means the firm must be able to reach members of targeted segments with customized marketing mixes? a. Substantiality b. Identifiability and measurability c. Accessibility d. Responsiveness e. Reliability

c. accessibility

All of the following are criteria for successful market segmentation EXCEPT: a. substantiality b. identifiability and measurability c. accountability d. accessibility e. responsiveness

c. accountability The four criteria are substantiality, identifiability and measurability, accessibility, and responsiveness.

RockTenn produces cardboard cartons to be used by companies in the food industry. RockTenn is selling _____ products. a. specialty b. consumer c. business d. convenience e. unsought

c. business

The final stage in the new-product development process is: a. product testing b. market testing c. commercialization d. product prototyping e. simulated marketing

c. commercialization

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses? a. Compatibility b. Comparability c. Complexity d. Tangibility e. Competitive advantage

c. complexity

Income, ethnic background, gender, and age are all examples of _____ segmentation bases. a. geodemographic b. organizational c. demographic d. socioeconomic e. psychographic

c. demographic

After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy. This is called: a. business analysis b. diffusion c. idea screening d. test marketing e. idea generation

c. idea screening Idea screening is the first filter in the product development process. It serves to eliminate new product ideas that are inconsistent with the organization's new-product strategy.

Ford Motor Company produces passenger cars, commercial trucks and specialty vehicles, performance vehicles, and race cars. Ford uses a procedure called _____ to divide its large market. a. micromarketing b. positioning c. market segmentation d. cannibalization e. perceptual mapping

c. market segmentation Dividing one large market into divisions based on a variable such as product usage is called market segmentation.

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n): a. business audit. b. marketing plan. c. mission statement. d. environmental focus. e. portfolio matrix.

c. mission statement

Proctor & Gamble is a well-known producer of home and beauty products. Along with these products, P&G also markets pet products, prescription drugs, and small appliances. This range of products provides the company with product: a. line height. b. line consistency. c. mix width. d. line depth. e. mix depth.

c. mix width Product mix width refers to the number of different product lines that an organization offers for sale.

A market is people or organizations that have: a. the ability, willingness, and power to buy. b. a medium of exchange and products they desire. c. needs and wants and an ability and willingness to buy. d. unmet needs or wants and products or services that satisfy those unmet needs or wants. e. communication, financial, and capital resources.

c. needs and wants and an ability and willingness to buy A market is defined as having four imperative characteristics: people or organizations, needs and wants, ability to buy, and willingness to buy.

Most people recognize Crayola as a brand of crayon, but Crayola also markets paints, chalk, pencils, markers, toys, coloring books, clothing, and even software. All these products are part of Crayola's: a. marketing equity. b. product line. c. product mix. d. line depth. e. product modification.

c. product mix

The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is: a. compatibility b. complexity c. relative advantage d. product differentiation e. competitive advantag

c. relative advantage

Altria Group, Inc.'s Phillip Morris failed at an attempt to target Americans looking for a potentially safer cigarette. This market exhibits a lack of: a. substantiality. b. identifiability and measurability. c. responsiveness. d. reliability. e. accessibility

c. responsiveness

To be useful, a segmentation scheme must produce segments that meet four basic criteria. The criteria are: a. segmentability, targetability, reliability and validity, and homogeneity b. tangibility, inseparability, nonperishability, and uniqueness c. substantiality, identifiability and measurability, accessibility, and responsiveness d. reliability, flexibility, tangibility, and unbiased e. complexity, compatability, relative advantage, trialability, and observability

c. substantiality, identifiability and measurability, accessibility, and responsiveness Useful segments should be substantial, identifiable and measurable, accessible, and responsive to different marketing mixes.

Many children on the autism spectrum like to chew on clothing, paper, or anything that they can find. Kid Companions manufactures nontoxic, plastic chewable jewelry for kids to wear. The product is a great way to keep kids from chewing on their clothes, while letting them work through their chewing tendencies. However, the company is unsure how to reach parents and therapists with information about their product. This illustrates a segmentation problem with: a. substantiality. b. identifiability and measurability. c. responsiveness. d. accessibility. e. accountability

d. accessibility Segments must be accessible, which may be difficult to achieve with the homeless population

A manufacturer of lenses used in microscopes, binoculars, and telescopes has segmented its market into scientific equipment manufacturers, sporting equipment manufacturers, and retailers who sell replacement lenses. In order for this segmentation scheme to be successful, all of the following criteria must be met EXCEPT: a. substantiality b. accessibility c. identifiability and measurability d. complexity e. responsiveness

d. complexity Complexity is not a criterion.

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely: a. innovators b. early minority c. laggards d. early majority e. late majority

d. early majority

The two types of shopping products are: a. unsought and convenience. b. generic and family. c. exclusive and intensive. d. heterogeneous and homogeneous. e. consumer and business.

d. heterogeneous and homogeneous Consumers perceive homogeneous shopping products as basically similar, but they perceive heterogeneous shopping products as essentially different

A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process? a. Concept testing b. Brainstorming c. Basic research d. Idea screening e. Applied research

d. idea screening

At what stage of the new-product development process are most new-product ideas rejected? a. Test marketing b. Diffusion c. Business analysis d. Idea screening e. Idea generation

d. idea screening Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: a. generics. b. late majority. c. decliners. d. laggards. e. luddites.

d. laggards

_____ is the process of planning, collecting, and analyzing data relevant to a marketing decision. The results of this analysis are then communicated to management. a. Data collection b. Artificial intelligence c. Decision support d. Marketing research e. Single-source research

d. marketing research

Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores? a. An unsought product b. A secondary product c. A unique product d. A shopping product e. A selective product

d. shopping product

When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company said, "In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste. We're going to do a lot of sampling with this product because we believe that if people try it, they're going to love it and stick with it." In other words, its adoption rate will rely on its: a. compatibility b. comparability c. complexity d. trialability e. competitive advantage

d. trialability

_____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising. a. Hidden b. Specialty c. Equity d. Unsought e. Shopping

d. unsought

_____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility. Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price. a. Product equivalents b. Comparative convenience products c. Homogeneous shopping products d. Product counterparts e. Heterogeneous shopping products

e. Heterogeneous shopping products

All of the following are examples of products EXCEPT: a. carton of milk b. contact lenses c. haircut d. pair of shoes e. All of the above are products.

e. all of the above

In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are made. a. prototype screening b. idea generation c. concept testing d. post-brainstorming e. business analysis

e. business analysis

Unsought products typically are products that: a. consumers purchase when they see them in a convenient location. b. consumers definitely don't want. c. only require reminder advertising to be successful. d. require little or no decision making by the buyer. e. consumers don't know about or don't actively look for.

e. consumers don't know about or don't actively look for.

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas. a. New-product brain dumping b. Screening c. A focus group interview d. Brainstorming e. Diffusion

e. diffusion

All of the following are categories of adopters in the diffusion process of innovations EXCEPT: a. laggards b. innovators c. early majority d. early adopters e. doubters

e. doubters

The purpose of market segmentation is to: a. reduce the market down to a size the firm can handle b. divide the market into equal size and profit regions for sales territories c. group a large number of markets together, enabling a company to serve them simultaneously d. develop a generalized definition of the market as a whole e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups

e. enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups The purpose of segmentation is to group similar consumers and to serve their needs with a specialized marketing mix.

A manufacturer of blankets knows heavy 100 percent wool blankets sell better in the New England area where the winters are harsh and that lighter-weight blankets sell better in the Southeast market where mild winters require fewer and lighter covers for the bed. Segmenting the market according to climate is an example of _____ segmentation. a. psychographic b. lifestyle c. perceptual d. demographic e. geographic

e. geographic

The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms. a. laggards b. early adopters c. early majority d. innovators e. late majority

e. late majority

The owner of a small chain of local coffeehouses could use _____ to determine why customers do not seem to like the location of her new coffeehouse a. transactional marketing b. public relations c. an EDI system d. market synergy e. marketing research

e. marketing research

A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death) is called the: a. product diffusion process b. product phase c. product adoption stages d. product evolution cycle e. product life cycle

e. product life cycle

According to the criterion of _____, a selected segment must be large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable, even if the number of potential customers is small. a. causality b. accountability c. responsiveness d. accessibility e. substantiality

e. sustainability Substantiality means segments must be large enough to warrant a separate marketing mix

The requirement for a market segment to be responsive means: a. over half of the consumers in the identified segment will be actively interested in the product b. all the segments identified by a marketer should respond to the marketing mix c. all the segments identified by a marketer should not respond to the marketing mix d. the segments identified by a marketer should not differ in the level of their responsiveness to the marketing mix e. the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix

e. the segment identified by a marketer should differ in how it responds to the marketing mix when compared to another segment confronted with the same mix