marketing exam #2

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equation for units sold to make profit

(fixed cost + profit) / (price - variable cost)

marketing research includes all of the following except: A. collecting data. B. creating data. C. recording data. D. interpreting data. E. analyzing data.

B. creating data

One of the major tools used by marketers to meet the needs of loyal customers is

CRM (customer relationship management) programs

Which of the following is true about quantitative research?

It confirms insights and provides a basis for taking a course of action.

Which of the following is NOT one of the five groups in the diffusion of innovation curve?

Non-adopters

What is neuromarketing?

The use of EEG scanners to measure consumers' brain waves.

Which of the following is the best example of a family brand?

Tostitos Multigrain Scoops and Tostitos Chunky Salsa

Barbara is using a test model of her firm's new inline skates to see whether they work according to the design specifications. Barbara is involved in

alpha testing

before chick fil a launched its mac and cheese, it had its employees try it before it hit the market - this is engaging in

alpha testing

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?

associated services

Wanda and Jim are working on a research project to anticipate customer attitudes toward a proposed new product line for their company. They have worked with the marketing manager to determine the answers that are needed and have created a detailed design of the project. Their next logical step will be to

begin to collect data

If a fast food restaurant collected photographs of its regular customers so that it could use facial detection software to identify visitors captured by security cameras, this would be an example of using

biometric data

The pharmaceutical industry often justifies the high prices for new drugs by arguing that it researches as many as one hundred new compounds before it comes up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products

blockbuster

Which of the following is NOT one of the four criteria used for determining how good a brand is or how much equity it has?

brand conceptualization

Jake developed a toothpaste using only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste to have greater brand awareness.

brand extension

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to

build separate marketing programs for different demographic segments

Pioneer or breakthrough products

can change consumer preferences.

In many cases, pioneers lose their market lead and initial market share to imitators who

capitalize on the pioneers' weaknesses.

The number of customers who discontinue their use of a service divided by the average number of total participants is called

churn

target visa card is an example of

co-branding

in conducting research after you define your objective and design the research, the next step in the process is

collecting data

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alternatives. For most consumers, these are _____________ goods.

convenience

brands are assets that can be legally protected through

copyrights and trademarks

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer.

core customer value

Sometimes brand names become synonymous with a product itself. If that happens, the brand

could lose its trademark status

samsung making new product lines beyond its phones - ex. stereo systems and lawnmowers. what is this benefit?

create diversification and reduce risk

lead users

customers who use products for some other tasks, who can give insights and ideas for new and improved products

Before deciding on a new promotional campaign, Jeffrey's Muffins looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Jeffrey's use to make sense of the data that was available?

data mining

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in

data mining

kellogs can go back in its database and look at campaigns and see if any are worth repeating. shifting through this data is known as

data mining

For many years, General Electric's corporate strategy was to be among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation.

decreasing product mix breadth

if hersheys determined snack mix was not meeting its revenue goal, and eliminated its entire product line, hershey's would be

decreasing product mix breadth

The process by which the use of a new product or service spreads throughout a market group is referred to as

diffusion of innovation.

Marketers with luxury brands use brand extension cautiously to avoid

diluting the core brand

chef tammy prepares meals weekly and sells them to her clients and delivers them every monday. chef tammy is using a ____ channel of distribution

direct

manufacture v. copycat brand

distinguished by price

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

early majority

When consumers associate a brand with a certain level of quality and familiar attributes, allowing consumers to make quick decisions, the brand

facilitates purchasing

breakeven formula

fixed costs/(price - variable costs)

Tyree is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings.

focus groups

What is wrap rage?

frustration by a customer when the packaging makes it difficult to get at the product

Which of the following is LEAST likely to be a source of ideas for new products?

geodemographic segmentation

In what country have regulators demanded that Facebook stop collecting biometric data on its users?

germany

Procter & Gamble is a huge national brand manufacturer. By having leading brands like Tide and Crest, P&G

has greater control over marketing strategy

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is

he can be less concerned about competitors' actions

Innovators are a critical group of new product adopters because they

help the product gain market acceptance.

Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randall could use __________ to help him develop his survey.

in depth interviews

In a competitive market, perceived value is determined by consumers mostly

in relationship to the value of competitors' offerings

Assuming that a market research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is

is top management committed to the study?

38. The manager of a company selling baby products asks you to conduct research into the question, "Is life expectancy getting longer in Kuwait?" The problem with this research objective is that

it is irrelevant to the baby products company

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the latest and greatest games. They use this information to create new products that primarily provide the benefit of

keeping up in a market where sales come mostly from new products.

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see whether they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products.

lead users

a ____ brand is one where there is a contractual arrangement between firms allowing one to use its brand name for a fee

licensed

Which of the following brand strategies is being used when the local ice cream shop decides to add a new flavor to its menu?

line extension

Another name for a manufacturer's brand is a(n) __________ brand.

national

Many former Enron professionals who had nothing to do with the corporate scandal found that listing employment with Enron hurt their chances of being hired elsewhere. For these people, the Enron name has

negative brand equity

One of the key characteristics of brainstorming sessions is

no idea is immediately accepted or rejected.

Even if they succeed, new-to-the-world products are

not adopted by everyone at the same time.

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

observability

old navy in epps bridge strip mall wants to know what other stores in the strip customers visit after they leave old navy - this is

observation research

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.

A restaurant chain is working to improve the quality of its food and service. It recruits customers who agree to respond to customer satisfaction surveys once every three months over the next two years, to track its progress. What kind of data is the restaurant chain collecting?

panel data

walmart has efficient logistics systems, which element of the marketing mix is this

place

getting product surveys and getting paid to fill out surveys and share my feedback. this type of testing is a

pre-market test - gauge price point, awareness, elements of marketing mix

The diffusion of innovation theory is useful to marketers in helping them

predict which types of customers will buy their product immediately and later.

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

premarket testing

After reviewing the existing data on seasonal spending by his company's customers, Marvin decided he needed new information collected to address his research questions. Marvin will need __________ data to address the questions in his market research study.

primary

When a research team has gathered data for specific research needs, this is known as

primary data

A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.

primary, secondary

CVS makes its own version of Tylenol w/ similar ingredients, but costs less, this is a

private label copycat brand

Between concept testing and market testing, a firm should engage in which stage of the product development process?

product development

________ is the number of items within a product line.

product line depth

the complete set of all products offered by a firm is called its

product mix

When the market research problem is not clearly defined, a researcher will likely engage in __________ research.

qualitative

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct

quantitative research

Which of the following provides the information needed to confirm insights and help managers to pursue appropriate courses of action?

quantitative research

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

relative advantage

Laura prefers Sony products and will only purchase alternatives when there are no Sony products available. Laura's brand loyalty means she is most likely

relatively insensitive to price

Brands that are owned by ___________ are called private-label brands.

retailers

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

satisfying the changing needs of current and new customers.

Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is

secondary data

Company sales invoices, census data, and trade association statistics are examples of

secondary data

McDonald's recently introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McDonald's sells only unhealthy food. Suppose that McDonald's, as a follow-up, collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether consumer perceptions are improving. This would be an example of

sentiment marketing

social media =

sentiment mining

When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product.

shopping

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. They overcome that aspect of consumers' search process by offering a free, no questions asked return policy.

shopping

When testing new products, most firms consider the question of whether testing products on animals

should be done when the new product does not contribute to the health and well-being of human users.

when samsung made a new phone, i wanted one but waited to see if my friends got one and liked it before i got my own. i had ____ and didnt want to be wrong. waited to get a ______, i am in the ________ category of diffusion of innovation

skeptics, stamp of approval, late majority

In addition to using sentiment mining to determine customer attitudes about products, some companies also participate in ________ by joining in online conversations with customers.

social engagement

Malcolm is the campaign manager for a congressional candidate. He wants to know how voters across his district feel about recent sexual harassment scandals involving politicians. Malcolm will most likely use __________ to gather this type of data.

surveys

Quantitative research offers a means to confirm ideas through

surveys or experiments

Jalel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends, including sales by different musical styles, online downloads, and concert attendance. Jalel will most likely use __________ to gather this type of data.

syndicated data

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographical area.

test marketing

Blogs represent valuable sources of marketing research insights, but they are also a challenge for firms because

they include both positive and negative commentary.

if kleenex became synonymous with all tissues, then kleenex could lose their

trademark status

Samples are often used for new products when __________ will influence the diffusion of the product.

trialability

Zappos.com, an online shoe store, worked to overcome the problem of new product __________ with its easy, no-hassle return procedure.

trialability

When consumers are __________, observation becomes particularly useful in understanding consumers' preferences.

unable to articulate their experiences

Disintermediation

use of electronic channels to go direct to consumer and eliminate the middle man - this increased reliance on UPS and FedEx

The first question a marketing researcher should ask when considering a research study is

will the research be useful?


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