Marketing 300 Final Exam Review
Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.
customer management organization
Which of the following is NOT an accurate description of modern marketing?
Marketing emphasizes selling and advertising exclusively.
Which of the following is true with regard to marketing research?
Marketing research gives marketers insights into customer motivations.
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
Not all customers will be satisfied.
Which of the following statements is true of social classes?
People within a social class tend to exhibit similar buying behavior.
________ refers to activities that communicate the merits of the product and persuade target customers to buy it.
Promotion
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
SWOT analysis
Which of the following is true with regard to services?
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.
Which of the following statements is true of cultural factors that influence consumer behavior?
Social classes show distinct product and brand preferences in areas such as clothing and travel.
The buyer decision process consists of five stages. Which of the following is NOT one of these stages?
conspicuous consumption
Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.
consumer-generated marketing
Which of the following is LEAST relevant when a firm evaluates different market segments?
core competencies of competitors
Within a company, who is most likely to perform strategic planning?
cross-functional teams of divisional managers close to their markets
Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?
descriptive research
Market segmentation can be best described as the process of ________.
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs
Business information services such as Experian Marketing Services and Nielsen help marketers to ________.
segment people and locations into marketable groups of like-minded consumers
A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.
understand the competition better
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?
undifferentiated marketing
Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
undifferentiated marketing
Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.
value creation and exchange
Which of the following refers to a cultural factor in the context of segmenting international markets?
values and attitudes
Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
variety-seeking buying behavior
The selling concept is typically practiced ________.
with goods that buyers normally do not think of buying
Which of the following customer questions is answered by a company's value proposition?
"Why should I buy your brand rather than a competitor's?"
A segment is less attractive if it ________.
already contains many strong and aggressive competitors
________ consumers are the most affluent U.S. demographic segment and are expected to have an annual buying power approaching $1 trillion by 2017.
Asian American
Which of the following is a disadvantage of using information from internal databases?
Internal information may be incomplete or in the wrong form for making marketing decisions.
Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
Refer to the scenario below to answer the following question(s). The Attic Trunk opened in 1999 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele consisting mostly of older, first-generation Hispanics. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract a more price-conscious, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby by the new segment of customers. By the mid-2000s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and so on, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in buying behavior of customers by the mid-2000s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted the wealthy, mature clientele. This clientele had been replaced with price-conscious families with children, a mix of Asian and African Americans as well as Caucasians. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, fashion accessories, and jewelry. Other owners followed suit in the late 2000s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge. 16) Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind?
Children have considerable amounts of disposable income and have a strong influence on family buying decisions.
Which of the following statements reflects the marketing concept?
Consider customer focus and value as the paths to sales and profits.
Which of the following is a disadvantage of online focus groups?
Controlling the online sample is difficult.
Which of the following is a characteristic of customer-driven marketing?
Customers know what they want.
Which of the following is most likely a disadvantage of focus group interviewing?
Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
Which of the following is a disadvantage of using a differentiated marketing strategy?
The costs of doing business increase.
Which of the following is true with regard to strategic planning?
The focus of strategic planning is to define a game plan for long-run survival and growth.
Which of the following is true with regard to mail questionnaires?
The response rate of mail questionnaires is often very low.
Which of the following is an advantage of telephone interviews?
The speed with which data is collected is high.
Which of the following is an example of a pure tangible good?
a bag of potato chips
Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________.
a product's rate of adoption
Which of the following product offerings is intangible?
a taxi ride
Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
age and life-cycle
Mission statements should ________ and be defined in terms of ________.
be market oriented; satisfying basic customer needs
Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
benefit segmentation
Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.
brand personality
Marketing mix planning begins with ________.
building an offering that brings value to target customers
Many marketers use the self-concept premise that people's possessions contribute to and reflect their identitiesthat is, "we are what we consume." According to this premise, consumers ________.
buy products to support their self-image
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.
causal
Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.
channel
Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
concentrated marketing
If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved?
connection to the world of entertainment
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon ________.
customer-perceived value
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.
demand
Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
demographic segmentation
A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.
ethnographic research
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since he will need a lot of water as he cycles. Having gathered a great deal of information, he has finally narrowed down his choices to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of the buyer decision process.
evaluation of alternatives
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
experimental research
If Jason used mostly open-ended questions in the survey to encourage people to answer in their own words, he is performing ________ research.
exploratory
The information sources that are the most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer.
personal
Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.
geographic segmentation
Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited eight regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods is Redrunners using?
group interviewing
Eduardo usually purchases the same breakfast cereal, the kind he grew up eating. Eduardo exhibits ________.
habitual buying behavior
Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
image
Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
income
Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats.
information search
Secondary data consist of ________.
information that already exists somewhere, having been collected for another purpose
Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using ________.
internal databases
A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.
lifestyle
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
market development
Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
market nicher
Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.
personal characteristics
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
marketing myopia
Refer to the scenario below to answer the following question(s). Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind. With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." 21) If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.
mass customization
An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?
need recognition
Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method that can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?
online surveys
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) ________.
opinion leader
Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?
political
Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.
political factors
Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles.
position
"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
positioning statement
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
positioning statement
Pat thought he had received the best deal on his new car. Shortly after buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________.
postpurchase dissonance
Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
product development
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
product differentiation
Henry Ford's philosophy was to perfect the Model T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
production
Companies that define their missions in terms of products or technologies are considered myopic primarily because ________.
products and technologies eventually become outdated
Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________.
promising only what they can deliver and then delivering more than they promise
Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
psychographic segmentation
Buyer responses are influenced by marketing stimuli. The responses to the stimuli include all of the following EXCEPT ________.
purchasing behavior
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.
question mark
A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.
reference group
A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
segmentation by usage rate
Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?
selective attention
Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ________.
selective distortion
Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.
shopping
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.
societal marketing concept
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.
specialty product
Hispanic Americans tend to be deeply family oriented and make shopping a family affair. Older consumers are brand loyal, while younger Hispanics have shown increasing price sensitivity and willingness to choose store brands. Hispanic Americans make up a ________.
subculture
Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
target marketing
Product planners need to consider products and services on three levels. At the second level, product planners must ________.
turn the core benefit into an actual product