MKTG 3303 Exam 1

Population density and city size are ____ variables used for market segmentation. a. geographic b. demographic c. environmental d. psychographic e. geodemographic

a. geographic

Given a large market of consumers with diverse needs and backgrounds (e.g., as with cars or furniture), which of the following factors should be taken into consideration when deciding whether to focus on a single market segment, or to implement a multi-segment strategy? a. Can the various segments be reached using the same channel of distribution? b. Are consumers aware of your company and your products? c. Would the prices of the products be the same? d. All of the above are true.

a. Can the various segments be reached using the same channel of distribution?

Ford Motor Co. produces some cars aimed at the economy minded consumers, others that are designed for people wanting more luxury, and others for people who want a sporty vehicle. Which segmentation approach is Ford using? a. Multi-segment b. Concentration c. Niche d. Mass Market

a. Multi-segment

The H&R Block company wants to adopt the marketing concept as a business philosophy. To be consistent with this decision, which of the following philosophies is most appropriate? a. The customer is always right. b. Making money is our business. c. Sell, sell, sell. d. Keep prices low. e. Focus on today.

a. The customer is always right.

Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by a. a reference group b. a knowledge base c. a role conflict d. personality e. a consideration set

a. a reference group

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer? a. does the supplier also sell to my competitors? b. does the supplier consistently deliver on time? c. does the supplier offer the services required? d. does the quality of the goods meet company specifications? e. does the price meet company budget requirements?

a. does the supplier also sell to my competitors?

Eighteen-year-old students do not form a market for alcoholic beverages because they a. lack the authority to purchase this type of product b. do not want to purchase this type of product c. lack sufficient buying power to form a market d. do not have sufficient experience with this type of product e. lack the money to purchase this type of product

a. lack the authority to purchase this type of product

Scenario 7.1 Use the following to answer the questions. ​ Consumers use information from many sources when making purchasing decisions, including information from friends and family members. One of the most dissatisfying consumer experiences is with auto repair. Aware of this, Kate has asked several of her friends and family members where they have their cars repaired, since she has experienced a problem starting her car when the weather is cold. Kate has heard that Skola's Auto Repair has reasonable prices, but it can be difficult to get an appointment. Steve, one of Kate's friends, had a very poor experience with Skola's. However, once he complained to them, they fixed the situation and now he prefers their auto repair shop over others. ​ Refer to Scenario 7.1. The change in Steve's behavior toward Skola's Auto Repair, caused by the company's response to his complaint, is a function of a. learning b. influence c. attitudes d. motivation e. perception

a. learning

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's a. strengths. b. opportunities. c. weaknesses. d. threats. e. strategies.

a. strengths.

The group of people within a business who are involved in making business buying decisions is referred to as a. the buying center b. negotiators c. purchasing agents d. the new-task team e. decideres

a. the buying center

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for ____ in order to achieve their quality goals. a. the percentage of defects allowed b. how many different suppliers they use c. how long the parts should last d. controlling when shipments will arrive e. how many parts can fail

a. the percentage of defects allowed

You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize to do this means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating? a. A heterogenous targeting strategy b. A differentiated targeting strategy c. A concentrated targeting strategy d. A broad-based targeting strategy e. An undifferentiated targeting strategy

b. A differentiated targeting strategy

​Marketers use a variety of characteristics to segment markets they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except: a. Social Class b. Hometown c. Age d. Family size

b. Hometown

U.S. Electric, the maker of a highly innovative xenon light bulb used in large, manufacturing facilities, finds that it has excess inventory. The firm increases its direct marketing budget by 20 percent and adds three new sales representatives. This company is operating as if it were in which of the following orientations? a. Production b. Sales c. Market d. Customer e. Societal

b. Sales

Ben Davideau is assigned by his sales manager to come up with the names and addresses of twenty firms in his territory that have some potential for using sizable quantities of his firm's products. Wanting to be as efficient as possible, Ben looks in a. an SIC listing. b. Standard & Poor's Register c. the Census of Business d. the Census of Manufacturers e. Sales & Marketing Management

b. Standard & Poor's Register.

Marketing knowledge and skills... a. are not necessary for a nonprofit organization. b. enhance consumer awareness and help provide people with satisfying goods and services. c. constitute the marketing mix. d. were most important during the production era. e. are most valuable for advertising executives but less important for wholesalers and distributors.

b. enhance consumer awareness and help provide people with satisfying goods and services

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ____ segmentation. a. personality b. lifestyle c. psychographic d. social class e. family life cycle

b. lifestyle

J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in a. strategic analysis. b. marketing planning. c. marketing management. d. marketing. e. market organization.

b. marketing planning.

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ____ purchase. a. straight rebuy b. modified rebuy c. new-task d. repetitive e. repetitive order

b. modified rebuy

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market? a. producer b. reseller c. consumer e. government d. supply

b. reseller

A group of brands that a consumer views as alternatives for possible purchase is called a(n) a. evaluation criteria b. inert set c. evaluation group d. awareness set e. evoked set

e. evoked set

If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities? a. $2,000 b. $1,500 c. $1,000 d. $500 e. $0

c. $1,000

A marketing mix consists of which of the following components? a. Market segments, marketing plans, marketing strategy, and a mission statement. b. Customers, distributors, retailers, and manufacturers. c. Product, price, promotion, and distribution. d. All of the above are true.

c. Product, price, promotion, and distribution.

Which of the following buying situations is most consistent with routinized response behavior? a. Molly buying a new set of tires for her car b. Bryan buying a new software program c. Stephanie buying bottled water d. Ian buying his first pair of basketball shoes e. Aaron buying a new fishing rod and reel.

c. Stephanie buying bottled water

the marketing plan is a. a plan of all aspects of an organization's business strategy. b. written differently for each SBU. c. a written document detailing activities to be performed to implement and control marketing actions. d. designed to specify not only marketing, but all other functional areas of business activities as well. e. updated only periodically.

c. a written document detailing activities to be performed to implement and control marketing actions.

Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met. a. the external b. the internal c. both the internal and external d. the planned e. both the planned and realized

c. both the internal and external

AppleTM has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for AppleTM, something that an organization does extremely well and may give a company an advantage over its competition. a. benchmark b. sustainable competitive advantage c. core competency d. strategic vision e. marketing opportunity

c. core competency

TimeWarner Cable uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following segmentation variables is TimeWarner using? a. product-related b. geographic c. demographic d. education e. psychographic

c. demographic

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a. random factor analysis b. market test c. expert forecasting survey d. external judgment survey e. Delphi technique

c. expert forecasting survey

In the process of perception, individuals receive sensations through sight, sound, taste, smell, and hearing. These sensations are called a. selective inputs b. perceptual motives c. information inputs d. olfactory receptors e. psychological influences

c. information inputs

All of the following are important concerns of business customers except a. obtaining a level of quality that meets specifications b. achieving a specific level of quality in the products offered to target markets c. obtaining products that exceed specifications to ensure the best possible product performance d. obtaining more products for which the quality level is consistent e. supporting customers with services they expect

c. obtaining products that exceed specifications to ensure the best possible product performance

The "baby boom" generation was born between: a. 1929 - 1945 b. 1990 - 2001 c. 1965 - 1981 d. 1945 - 1964

d. 1945 - 1964

Which of the following factors should be taken into consideration when a company is deciding which market segment(s) to target? a. What are the company's strengths and weaknesses, as compared to competitors in each segment? b. What is the level of competition in each segment? c. What is the level of demand in each segment? d. All of the above are true

d. All of the above are true

Which of the following statements describes a benefit of market segmentation? a. A company can more effectively market its product by focusing on a certain set of consumers. b. A company can choose its competition by focusing on specific market segments. c. A company can more efficiently allocate its resources. d. All of the above are true

d. All of the above are true

James and Rachel are neighbors, and both drive a Ford Expedition sports utility vehicle. James bought the Expedition because it is rugged and he can take it on hunting trips. Rachel purchased the Expedition because all of her kids (and their soccer and baseball teammates) and equipment can easily fit inside. This example best illustrates which of the following segmentation variables? a. "Heavy" vs. "light" users. b. Climate c. Age and income d. Benefits sought

d. Benefits sought

Joe recently purchased a new riding mower from Home Depot. However, shortly thereafter he started to wonder if he made a wise purchase decision. Which of the following terms represents what Joe is feeling? a. Attitude formation. b. Purchase evaluation. c. Price sensitivity. d. Cognitive dissonance.

d. Cognitive dissonance

Which of the following scenarios involves the distribution element of the marketing mix? a. Deciding whether or not a certain product should continue to be sold b. Determining whether an advertising message would be more effective on television or in magazines c. Choosing between a company jet or the airlines for executive travel d. Deciding whether or not to have retail outlets in addition to a website e. Developing a new warranty policy for an existing product

d. Deciding whether or not to have retail outlets in addition to a website

"Psychographics" is a segmentation variable that is based on which of the following? a. Climate, subculture, and family life cycle. b. Race, ethnicity, and family life cycle. c. Age, income, gender, and education. d. Personality, personal values, and lifestyle.

d. Personality, personal values, and lifestyle.

Cognitive, affective, and behavioral are the three major components of a. lifestyles b. motives c. consumer socialization d. attitudes e. self-concept

d. attitudes

For which of the following products would a consumer most likely use limited decision making? a. detergent b. washing machine c. toothpaste d. hair dryer e. automobile

d. hair dryer

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent? a. new-task b. institutional c. straight rebuy d. modified rebuy e. repetitive

d. modified rebuy

Evaluative criteria for brands within the consideration set are both a. internal and external b. perceptive and routinized c. extended and routinized d. objective and subjective e. selective and expansive.

d. objective and subjective

Shortly after moving into their new home, Mark and Katherine Gould purchase and install smoke detectors and an alarm system. The Goulds are concerned about fulfilling their need for a. survival b. esteem c. self-actualization d. safety e. belonging

d. safety

The three major categories of influences on the consumer buying decision process are: a. situational influences, demographic influences, and psychological influences b. demographic influences, situation influences, and marketer-dominated influences c. social influences, situation influences, and marketer-dominated influences d. situational influences, social influences, and psychological influences e. marketer-dominated influences, psychological influences, and person-specific influences

d. situational influences, social influences, and psychological influences

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy. a. concentrated targeting b. differentiated c. single mix d. undifferentiated e. heterogeneous market

d. undifferentiated

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ____ in this purchase decision. a. buyer b. decider c. buying center captain d. order giver e. gatekeeper

e. gatekeeper

Scenario 8.1 Use the following to answer the questions. ​ Samsung is entering the home appliance market with its new French Door Refrigerator. In designing the production facility, it has a need for various pieces of equipment, including the perpetual assembly belt-drive, quasi-assembly pods, and finishing stations. The purchasing agent for the appliance division is inquiring about who will be needed for input on the purchasing decision. Samsung has already contacted several producers of the quasi-assembly pods, and has begun negotiations with their sales representatives. ​ Refer to Scenario 8.1. There are many factors that would influence Samsung's business buying decisions. Which one of the following would not? a. organizational b. interpersonal c. individual d. enviromental e. demographic

e. demographic

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is a. evaluating each of the relevant marketing segments. b. selecting the specific target markets c. reviewing the appropriate marketing strategy d. analyzing the interaction between segmentation variables e. developing market segment profiles

e. developing market segment profiles

The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a. revenue estimate b. company sales potential c. company sales prediction d. market potential e. sales forecast

e. sales forecast