MKTG ch 3

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If Julio Ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is

$25,000

If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is

$25,000

If Toby Roberts has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, his disposable income is

25,000

Oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product

Monopolistic Competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

Monopoly

A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply

Concentrated Strategy

A concentrated targeting strategy means a company targets a single market segment using one marketing mix

Pure Competition

A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply Does not exist in the real world, although some industries come close

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement

Target Market

A specific group of customers on whom an organization focuses its marketing efforts

Better Business Bureau (BBB)

A system of nongovernmental, independent, local regulatory agencies supported by local businesses that help settle problems between customers and specific business firms

about how much of buyer's dollars goes toward marketing cost

About ½

Passive

Accepting them as uncontrollable

The Coca-Cola Company has recognized the significant increase in population diversity within the U.S. soft-drink market. Which one of the following best illustrates the company's integration of this knowledge into its marketing strategy?

Ads featuring Hispanic actors and Tejano music

By the turn of the 20th century, the population of the US had shifted to three large racial and ethnic groups. These groups are:

African-Americans, Hispanics, Caucasians

Disposable Income

After-tax income

what must markets do?

Aim to create and maintain the right mix of elements to satisfy customers in the target market

Random Sampling

All units in a population have an equal chance of appearing in the sample, and the various events that occur have an equal or known chance of taking place

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs

Proactive

Attempting to influence and shape them

The influences in a society and its culture(s) that change people's:

Attitudes Beliefs Norms Customs Lifestyles

Centralized organizations

Authority is concentrated at the top level Very little delegation to lower levels

Which of the following companies would probably be most interested in tracking discretionary income levels?

BMW automobiles

Which of the following companies would probably be most interested in tracking discretionary income levels

BMW automobiles

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint?

Better Business Bureau

Refer to Scenario 3.1. A regular customer of Meyers Sporting Goods feels that some of its advertisements are deceptive. He responded to an ad for sale skateboards one hour after the store opened and found that none were left. Where should he file a complaint?

Better Business Bureau

Better Business Bureau.

Managing identity requires:

Broadcasting a company's mission, goals, and values Sending a consistent image Implementing a visual identity with stakeholders

Profits can be obtained through relationships in the following ways:

By acquiring new customers By enhancing the profitability of existing customers By extending the duration of customer relationships

The marketing environment is dynamic and includes the following forces:

Competitive Economic Political Legal and regulatory Technological Sociocultural

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys?

Consumer Product Safety Commission

Corporate strategy planners are concerned with broad issues such as:

Corporate culture Competition Differentiation Diversification Interrelationships among business units Environmental and social issues

Marketing is the process of:

Creating, distributing, promoting, and pricing goods, services, and ideas To facilitate satisfying exchange relationships with customers To develop and maintain favorable relationships with stakeholders in a dynamic environment

Market orientation requires an organization-wide generation of market intelligence pertaining to:

Current and future customer needs Dissemination of the intelligence across departments Organization-wide responsiveness to it

For market segmentation to succeed, five conditions must exist:

Customer's needs must be heterogeneous Segments must be identifiable and divisible Segments must be comparable to one another with respect to estimated sales potential, costs and profits One segment must show enough profit potential to justify developing a special marketing mix The firm must be able to reach the chosen segment with a particular marketing mix

Stakeholders include:

Customers Employees Investors and shareholders Supplies Government, communities and more

Decentralized organizations

Decision making authority is delegated as far down the chain of command as possible

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. Total disposable income is at its lowest during which of the following?

Depression

A market segment profile

Describes the similarities of potential customers within a segment Explains the differences among people and organizations in different segments

What does marketing involve?

Developing and managing a product Making the product available in the right place Pricing the product at an acceptable level for buyers Communicating information to help customers determine if the product will satisfy their needs

Heidi decided to spend some of her saved money on tickets to a Cold Play concert coming to town, and now she is planning on buying a new outfit for the concert. What type of resources is Heidi making decisions about?

Discretionary income

Which category of income are marketers most interested in?

Disposable Income

Discretionary Income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.

Disposable income; discretionary income

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession?

Durability

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

Establishment and implementation are usually less expensive

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

Establishment and implementation are usually less expensive.

Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of problem-solving process is she using?

Extended

Mark is shopping for a new suit to wear to an important interview. He really wants to impress his prospective employer and is shopping at many stores to find the right outfit. Martin is using which type of consumer problem-solving process?

Extended problem solving

Which of the following agencies regulates marketing activities the most?

Federal Trade Commission

Of all the federal regulatory units, the ____________ most heavily influences marketing activities.

Federal Trade Commission (FTC)

In its advertisements, Johnson's Hair Care Products claims that its KLTR-14 gel will restore the hair of bald men. Members of the NARB believe the claim is unsupportable. What action can the NARB take?

File a complaint with the Federal Trade Commission.

Total Budget Competitors

Firms that compete for the limited financial resources of the same customers

Product Competitors

Firms that compete in the same product class but market products with different features, benefits, and prices

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices

Generic Competitors

Firms that provide very different products that solve the same problem or satisfy the same basic customer need

In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?

Flexibility

Customers

Focal point of all marketing activities

Which of the following are the most frequently sentenced organizational crimes?

Fraud and antitrust violations

__________ competitors provide very different products that satisfy the same basic customer need.

Generic

Product can be:

Good—a physical entity that you can touch Service—the application of human and mechanical efforts to people or objects to provide intangible benefits to customers Idea—concept, philosophy, image, or issue

In the near future, what subculture will become the second largest group in the United States?

Hispanics

Distribution variables minimizing these three costs:

Inventory Transportation Storage

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. Suppose that a customer has a complaint against Meyers Sporting Goods Stores. He files a complaint with the Better Business Bureau. What action could the BBB take against Meyers if the complaint was substantiated and Meyers did not change the offending practice?

Issue a warning to consumers through the local newspaper.

Why are marketers interested in consumers' levels of disposable income?

It is a ready source of buying power.

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?

Lanham Act

Prosperity

Low unemployment and relatively high total income, which together ensure high buying power (provided the inflation rate stays low)

____ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

Market segment profiles

Refer to Scenario 6.2. Currently, GE uses several sales forecasting methods. One method is to sell the different locomotive engines to buyers in different countries, and then measuring the purchasing response in each. In this case, GE Transportation is using the _____ method to forecast future sales.

Market test

You want to include a detailed marketing organizational chart in the company marketing plan. Which of the following sections of the marketing plan will you include this chart in?

Marketing Implementation

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. In what type of competitive structure is Specialty Motors operating?

Monopolistic competition

What national self-regulatory organization screens ads?

National Advertising Review Board

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?

Oligopoly

Marketers take two approaches to environmental forces:

Passive Proactive

Refer to Scenario 3.2. In what type of competitive structure is Clayton Homes most likely operating?

Perfect competition

Texas rice farmers wish to get their product into the Japanese market but are hindered by a complex maze of regulations imposed by the Japanese government. The farmers are most likely to attempt to influence which aspect of the marketing environment?

Political

Which of the following is not a reason that marketers try to maintain good relations with elected political officials?

Political officials can accept direct corporate campaign contributions.

Procompetitive Legislation

Preserves competition Laws have been created to prevent businesses from gaining an unfair advantage through bribery

Relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices

Price Variable

____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

Product

Four marketing activities (four P's)

Product Distribution (place) Promotion Price

During which stage of the business cycle is unemployment low and total income relatively high?

Prosperity

A pattern of economic fluctuations that has four stages:

Prosperity Recession Depression Recovery

In general, which of the following competitive structures is an organization least likely to operate?

Pure competition

In general, which of the following competitive structures is an organization least likely to operate?

Pure competition

What is a promotion variable?

Relates to activities used to inform individuals or groups about the organization and its products

Buying Power

Resources, such as money, goods, and services, that can be traded in an exchange

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior?

Robinson-Patman

Price discrimination is prohibited by the ___________ Act

Robinson-Patman

Refer to Scenario 3.1. Suppose that the Soljur Sports company was actually discriminating against Meyer Sporting Goods with its price increase. Which of the following acts prohibits this type of business behavior?

Robinson-Patman

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

Robinson-Patman Act.

Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?

Saturn SKY

Marketing managers may:

Select/motivate intermediaries (wholesalers and retailers) Establish/maintain inventory control procedures Develop/manage transportation and storage systems

Self-regulation

Which of the following statements about self-regulatory programs is false?

Self-regulatory guidelines generally are stricter than governmental regulatory programs.

Which of the following statements about self-regulatory programs is false?

Self-regulatory guidelines generally are stricter than governmental regulatory programs.

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?

Sherman Antitrust Act

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the

Sherman Antitrust Act.

Target Market Selection Process

Step 1: Identify Appropriate Targeting Strategy Step 2: Segmentation Variables Step 3: Market Segment Profile Step 4: Evaluate Market Segments Step 5: Select Target Markets

While playing soccer, Bryan suddenly fell and broke his arm. Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for The Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force?

Technological

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?

The Better Business Bureau

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?

The Better Business Bureau

Which of the following statements is true?

The U.S. Supreme Court ruled that the government is not authorized to ban corporate spending in candidate elections.

Recovery

The economy moves from depression or recession to prosperity

Why would a company use the undifferentiated strategy?

The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.

Marketers live in a world of constant change, and their ability to adapt to the pace of change will dictate the degree to which their marketing strategies are successful. Moreover, the changes can come in any or all of the different parts of the marketing environment. Which one of the following statements is true?

The negative effects of technology include concerns over privacy and intellectual property protection.

market share

The percentage of a market that actually buys a specific product from a particular company is referred to as that product's (or business unit's)

Stratified Sampling

The population is divided into groups with a common attribute and a random sample is chosen within each group

Environmental Analysis

The process of assessing and interpreting the information gathered through environmental scanning

Environmental Scanning

The process of collecting information about forces in the marketing environment

Strategic Marketing Management

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Collect detailed and up-to-date information on:

Their target market Consumer preferences Competitors in order to develop the marketing mix

Which of the following firms would be most likely to have a monopoly for its competitive environment?

TimeWarner Cable TV

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle?

Toyota's Highlander Hybrid

Depression

Unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

Recession

Unemployment rises and total buying power declines, stifling both consumer and business spending

Which of the following industries is most commonly regulated by state regulatory agencies?

Utility companies

Which of the following is the best example of utilizing technology to improve consumer relationships?

Waiters recording orders on handheld computers

Which of the following is the best example of utilizing technology to improve consumer relationships?

Waiters recording orders on handheld computers

When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?

Warn consumers of the unfair practices.

When a firm continues to violate what the Better Business Bureau believes to be good business practices, what is one of the main actions the bureau will take?

Warn consumers of the unfair practices.

An organization's mission statement should answer two questions:

Who are our customers? What is our core competency?

Which of the following terms refers to consumers' propensity to buy?

Willingness to spend

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle. a) prosperity b) depression c) recovery d) succession e) recession

During which stage of the business cycle is unemployment low and total income relatively high? a) prosperity b) depression c) recovery d) succession e) recession

If all the gas stations in a city collaborated to determine what gas prices should be charged, they would be violating the a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

Many health care companies are making adaptations to meet the needs of an aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in a) demographics. b) cultural values. c) income levels. d) consumerism. e) subcultures.

Marketers primarily focus their environmental analysis on ____ competitors. a) Brand b) Generic c) Total budget d) Product e) Monopolistic

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces. a) reactive b) aggressive c) proactive d) competitive e) liberal

Procompetitive laws are those designed to a) preserve competition. b) protect the consumer. c) ensure product safety. d) reduce competition. e) limit business lobbying of government officials.

The Better Business Bureau is probably the best-known a) nongovernmental regulatory group. b) state-operated enforcement agency. c) national evaluator of advertisements. d) federal regulatory group. e) self-regulatory unit operating at the national level.

The amount of money received through wages, rents, investments, pensions, and subsidies is called a) income. b) wealth. c) discretionary income. d) prosperity. e) credit.

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n) a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) noncompetition

To monitor changes in the marketing environment effectively, marketers must engage in a) environmental scanning and analysis. b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting

What type of competitive structure exists when a firm produces a product that has no close substitutes? a) Monopoly b) Oligopoly c) Monopolistic competition d) Pure competition e) Mixed competition

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product? a) oligopoly b) monopoly c) pure competition d) mixed competition e) monopolistic competition

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets? a) Sherman Antitrust Act b) Clayton Act c) Federal Trade Commission Act d) Robinson-Patman e) Act Wheeler-Lea Act

Which of the following agencies would most likely have jurisdiction over the problem with lead in the paint of children's toys? a) Consumer Product Safety Commission b) Children's Online Protection Act c) Food and Drug Administration d) Environmental Protection Agency e) National Advertising Review Board

Which of the following firms would be most likely to have a monopoly for its competitive environment? a) TimeWarner Cable TV b) Mitchell Trucking c) Continental Airlines d) Rogers Plumbing e) Chemlawn Lawn Care

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

oligopy

a competitive structure in which a few sellers control the supply of a large portion of a product.

monopolistic competition

a competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product.

monoply

a competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply.

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at

a market segment profile.

pure competition

a market structed characterized by an extremely large number of sellers none strong enough to significantly influence price or supply.

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is

a market test.

The D-Lite Corporation produces a unique type of light bulb that is used in refrigerator manufacturing. D-Lite is the only maker of this light bulb, and there are no close substitutes for it. In this case, the D-Lite Corporation would be

a monopoly

business cycle

a pattern of economic fluctuations that has four stages prosperity, recession depression and recovery.

national advertising review board

a self regulatory unit that considers challengers to issues raised by the national advertising division about an advertisement.

prosperity

a stage of the business cycle characterized by low unemployment and relatively high total income which together ensure high buying power.

recession

a stage of the business cycle during whih unployment rises and total buying power declines, stifling both consumer and business spending

recovery

a stage of the business cycle in which the economy moves form recession or depression toward prosperity.

depression

a stage of the business cycle when unemployment is extremely high, wages are very low total disposable income is at a minimum and consumers lack confidence in the economy.

better business bureau

a system of nongovernmental independent local regulatory agencies supported by local business that helps settle problems between customers and specific business firms

A strategic window is

a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.

disposable income

after tax income

Abercrombie & Fitch is developing a program to get to know its customers. Which of the following is not a reason why A&F needs to understand consumer buying behavior?

all customers are the same when it comes to buying behavior

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

allow experts to work separately to reach a consensus as to their forecasts.

federal trade comission

an agency that regulates a variety of business practices and curbs false advertising, misleading pricing and deceptive packing and labeling.

willingness to spend

an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy numerous psychological and social forces.

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered

an oligopoly.

The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as

an oligopoly.

an oligopy

Differentiated Strategy

an organization directs its marketing efforts at two or more segments, developing a marketing mix for each segment

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

analysis

what are stakeholders?

are constituents who have a stake, or claim, in some aspect of a company's products, operations, markets, industry, and outcomes

Stars

are products with a dominant share of the market and good prospects for growth

Strategic windows

are temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

what are exchanges?

are the provision of transfer of goods, services, or ideas in return for something of value

Core competencies

are things a company does extremely well, which sometimes gives it an advantage over its competition

The three major types of reference groups are:

aspirational, disassociative, and membership.

Having used both Secret and Sure deodorants, Annette feels that Secret is a good product and the one that best meets her needs. She has formed a(n) ____ about Secret.

attitude

Refer to Scenario 7.1. Positive feelings generated by satisfaction with Skola's response will become part of Steve's

attitude.

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Oligopolistic

Most marketers operate in a competitive environment of either a) oligopoly or monopoly. b) oligopoly or monopolistic competition. c) oligopoly or pure competition. d) monopoly or pure competition. e) pure competition or monopolistic competition.

Technology assessment is a) measuring how much technology has been incorporated into an organization. b) trying to foresee the effects of new products and processes on the firm's operation and on society in general. c) assessing how much technology one wants to incorporate into a company in the future. d) judging how a firm's products affect society. e) weighing the cost of new technology to determine whether a firm can afford to use it.

Technology is a) the application of scientific knowledge to build products that customers desire. b) the application of knowledge and tools to solve problems and perform tasks more efficiently. c) applied sciences. d) one of the weakest marketing environment forces. e) the result of research performed primarily by universities.

The FTC can issue a cease-and-desist order, which is an injunction to a) report to the FTC immediately. b) stop doing whatever caused the complaint. c) appear before the courts. d) pay for damages caused by negligence of the firm. e) close down the firm until further notice.

The two least common competitive structures at the opposite ends of the continuum are a) monopolies and oligopolies. b) pure competition and monopolies. c) monopolistic competition and monopolies. d) pure competition and no competition. e) oligopolies and pure competition.

What national self-regulatory organization screens ads? a) Federal Advertising Review Division b) National Advertising Review Board c) Federal Communications Commission d) Consumer Federation of America

Which category of income are marketers most interested in? a) Wealth b) Disposable income c) Discretionary income d) Total income e) Extra income

Which of the following would represent a brand competitor for Ford's Escape Hybrid sport utility vehicle? a) Honda Pilot b) Toyota's Highlander Hybrid c) Honda Civic Hybrid d) Taxi ride

__________ competitors provide very different products that satisfy the same basic customer need. a) Brand b) Generic c) Total budget d) Product e) Marketing

Problem recognition occurs when a consumer

becomes aware that there is a difference between a desired state and an actual condition.

The Gap has recently produced a new line of athletic wear that closely competes with a designer label in its quality, utility, and appearance. However, it is about half the cost of the designer brand. Product managers for The Gap line plan to use price sensitivity, brand loyalty, and end use as variables to segment their target market. These are all _______ variables for market segmentation.

behavioristic

better business bureau

By the turn of the twentieth century, the population of the United States had shifted to three large racial and ethnic groups. These groups are

blacks, Hispanics, and whites.

Which of the following companies would probably be most interested in tracking discretionary income levels?

bmw automobiles

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. Although all types of competition will affect Specialty Motors' marketing performance, it will be most concerned about _________ competitors.

brand

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors.

brand

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors.

brand

Marketers primarily focus their environmental analysis on ____ competitors.

brand

The four major competitive structures include all but

brand

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

brand

___________ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

brand

Using the breakdown approach to sales potential, estimates are made

by starting with general economic conditions.

By offering credit and financing through its GMAC division, General Motors is trying to help consumers a) expand future buying power at the expense of current buying power. b) expand disposable income at the expense of discretionary income. c) expand current buying power at the expense of future buying power. d) expand both disposable income and wealth. e)decrease both disposable and discretionary income.

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in a) environmental analysis. b) competitive forces. c) environmental scanning. d) procompetitive legislation. e) self-regulatory forces.

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors. a) Brand b) Generic c) Total budget d) Product e) Oligopolistic

Companies that market products with similar features, benefits, and prices to the same customer group are known as _________ competitors. a) generic b) product c) brand d) total budget e) monopolistic

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments. a) recession. b) prosperity. c) recovery. d) growth. e) depression.

Consumer protection legislation deals with all of the following legal concerns except a) consumer safety. b) sale of hazardous products. c) monopolistic practices. d) information disclosure. e) health claims on food packages.

Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information. a) assessing; collecting b) assessing; interpreting c) collecting; assessing d) interpreting; observing e) gathering; observing

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

In general, which of the following competitive structures is an organization least likely to operate? a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

In today's marketing environment, competitors can take on many forms. For example, Diet Coke can be seen as a competitor to Wrigley's Double Mint chewing gum. In this circumstance, these two products are described as ___________ competitors. a) Pure b) Generic c) Total budget d) Product e) Monopolistic

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

Price discrimination is prohibited by the ___________ Act. a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

The American automobile industry used to be dominated by "The Big Three," including General Motors, Ford, and Chrysler. However, as many more foreign competitors began influencing this market, the American companies had to modify and differentiate their products. The automobile industry moved from a(n) ______ structure to a(n) _______ structure. a) monopolistic; oligopolistic b) oligopolistic; pure competition c) oligopolistic; monopolistic competition d) monopolistic competition; pure competition e) monopolistic; monopolistic competition

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in a) legislation. b) lobbying. c) self-regulation. d) environmental scanning. e) trade restraint.

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in a) product differentiation. b) monopolistic competition. c) technology assessment. d) distinctive promotional methods. e) innovative marketing.

When marketers define their target market, they establish a set of a) technologies. b) monopolies. c) competitors. d) government regulations. e) sociocultural forces.

Which of the following are the most frequently sentenced organizational crimes? a) False advertising and price discrimination b) Price discrimination and fraud c) Fraud and antitrust violations d) Price fixing and antitrust violations e) Fraud and price fixing

Which of the following attributes of a Toyota Scion would be most appropriate to emphasize in television commercials during an economic recession? a) Stereo system b) Prestige c) Durability d) Leg room

enviormental analysis

checking information for accuracy, resolving inconsistencies, and assigning significance to the findings.

When selecting specific target markets, a firm should

choose the segments most in line with the firm's objectives and long-term growth.

When organizing perceptual inputs, people tend to mentally fill in missing elements in a pattern or statement. This principle is called

closure.

Environmental scanning means ___________ information about the marketing environment, whereas environmental analysis is concerned with ___________ this information.

collecting; assessing

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.

competitive advantage

When marketers define their target market, they establish a set of

competitors

When marketers define their target market, they simultaneously establish a set of

competitors

Refer to Scenario 6.1. Lil' Angels Kids Spa is currently using a(n)____ targeting strategy.

concentrated

When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his ____ set.

consideration

What is the most important factor in distinguishing disposable income from income?

consumer spending

A group of protesters carries signs encouraging people to boycott Joe's Market, a small grocery store in an urban area. The protesters claim that Joe's takes unfair advantage of elderly and minority consumers. This protest is part of what we see today as the

consumerism movement.

Resource deployment and coordination of functional areas of business are determined by

corporate strategy

Many well-known restaurants and corporations are changing to a completely smoke-free environment, and fewer restaurants offer smoking and nonsmoking sections. These firms are responding to changes in

cultural values.

Many well-known restaurants and corporations are changing to a completely smoke-free environment, and fewer restaurants offer smoking and nonsmoking sections. These firms are responding to changes in

cultural values.

Organizations that provide smoke-free environments or low-fat products are responding to changes in

cultural values.

The Classic Hotel Group has begun to offer entire floors of rooms in its hotels that are smoke-free, adults-only, and pet-friendly. The Classic Hotel Group is responding to changes in

cultural values.

A person's buying power is a function of a) disposable income. b) past income, natural resources, and financial resources. c) wages, rents, and investments. d) income, wealth, and credit. e) discretionary income.

Consumerism is a a) diverse group of individuals and organizations opposed to foreign producers that sell products in the United States that are much cheaper than those produced by U.S. manufacturers. b) social movement that is trying to encourage consumer satisfaction. c) social movement that is reorganizing the Council of Better Business Bureaus. d) diverse group of individuals and organizations attempting to protect the rights of consumers. e) social movement that provides consumers with means for expressing satisfaction and expressing their gratitude to producers.

In its advertisements for Bud Light beer, Anheuser-Busch has decided to include a statement saying "Know when to say when." This is an example of which one of the following types of regulatory forces affecting marketing efforts? a) Federal regulation b) State regulation c) City regulation d) Self-regulation e) Social regulation

Jared Bledsoe hires a local landscape firm to plant trees and shrubs in his yard. The firm plants mostly dead plants but refuses to return Jared's money or replace the dead items. Jared's best course of action would be to contact the a) police. b) Federal Trade Commission. c) Sherman Commission. d) Better Business Bureau. e) federal district court.

Of all the federal regulatory units, the ____________ most heavily influences marketing activities. a) Food and Drug Administration (FDA) b) Federal Communications Commission (FCC) c) Environmental Protection Agency (EPA) d) Federal Trade Commission (FTC) e) Federal Power Commission (FPC)

Organizations that provide smoke-free environments or low-fat products are responding to changes in a) technology. b) the legal environment. c) demographics. d) cultural values. e) political forces.

The 1990 Nutritional Labeling and Education Act directly prohibits a) exaggerated claims made by health and fitness products. b) putting the words "cholesterol-free" on any food package. c) putting nutritional information on most food products. d) exaggerated health claims on food packages. e) the use of any health claim on food packaging.

The accumulation of past income, natural resources, and financial resources is known as a) income b) collected income c) credit d) wealth e) savings

The best approach for a company to take when monitoring its competitors is a) watching for increases and decreases in competitors' prices and match them. b) analyzing all information that is readily available about competitors. c) sending employees to competitors' offices and factories to observe their actions. d) developing a system for gathering ongoing information about competitors. e) reading important business publications such as The Wall Street Journal.

The four major competitive structures are a) monopolies, oligopolies, oligopolistic monopolies, and pure competition. b) pure competition, heavy competition, moderate competition, and light competition. c) brand, product, total budget, and generic. d) oligopolies, monopolies, monopolistic competition, and pure competition. e) monopolies, limited competition, oligopolistic competition, and pure competition.

Three primary methods of collecting information for environmental scanning are a) marketing research, company records, and advance orders. b) secondary sources, company records, and observation. c) executive knowledge, media, and marketing research. d) observation, secondary sources, and marketing research. e) company database, executive knowledge, and research.

What is the most important factor in distinguishing disposable income from income? a) Taxes b) Housing c) Employment levels d) Consumer spending e) Saving

Which of the following agencies regulates marketing activities the most? a) Food and Drug Administration b) Federal Communications Commission c) Environmental Protection Agency d) Federal Trade Commission e) Federal Power Commission

Which of the following is not a reason that marketers try to maintain good relations with elected political officials? a) Political officials can influence how much a government agency purchases and from whom. b) Political officials can play key roles in helping organizations secure foreign markets. c) Political officials well disposed toward particular firms or industries are less likely to create or enforce laws and regulations unfavorable to these firms. d) Political officials can accept direct corporate campaign contributions. e) Political officials who believe that companies in a particular industry are making honest efforts to control pollution are unlikely to create and enforce highly restrictive pollution control laws over that industry.

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks? a) Sherman Act b) Clayton Act c) Robinson-Patman Act d) Lanham Act e) Celler-Kefauver Act

Which of the following statements about self-regulatory programs is false? a) Self-regulatory programs are usually less expensive than governmental regulatory programs. b) Self-regulatory programs' guidelines generally are more realistic and operational. c) Nongovernmental self-regulatory programs have neither the tools nor the authority to enforce guidelines. d) Self-regulatory guidelines generally are stricter than governmental regulatory programs. e) When a trade association sets up industry guidelines, some firms that are in the industry but not in the trade association do not follow the guidelines.

Why are marketers interested in consumers' levels of disposable income? a) It accurately predicts future buying power. b) It increases current buying power. c) It is what is left after taxes and savings to buy luxuries with. d) It is a ready source of buying power. e) It is essential for forecasting future business trends.

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices. a) Brand b) Generic c) Total budget d) Product e) price

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.

demographic

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ____ variables.

demographic

demographics

Many healthcare companies are making adaptations to meet the needs of aging population as the demand for medical services and products such as diabetes supplies increases. This change in marketing strategy is best explained by a change in

demographics

demographics.

Consumer confidence is at a low during periods of

depression

Consumer confidence is at a low during periods of

depression.

Corporate strategy

determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to reach the organization's goals

The best approach for a company to take when monitoring its competitors is

developing a system for gathering ongoing information about competitors.

Procter & Gamble markets Cheer detergent to young singles and couples and Tide detergent to families. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents

differentiated

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. The income a consumer would use to purchase a Specialty Motors automobile is considered ___________ income.

discretionary

discretionary income

Which category of income are marketers most interested in?

disposable income

discretionary income

disposable income available for spring and saving after an individual has purchased the basic necessities of food clothing and shelter.

Make products available in quantities desired to as many target market customers as possible

distribution variables

Consumerism is a

diverse group of individuals and organizations attempting to protect the rights of consumers.

Effects of these marketing environment forces on buyers/sellers can be

dramatic and difficult to predict

The rapid adoption of the use of the Internet has resulted in rapid changes such as the increase of distance learning, changing social networks, and concerns such as copyright and privacy issues that the government is focusing on. These effects of technology are collectively known as

dynamics

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

Consumer confidence is at a low during periods of a) recession. b) prosperity. c) recovery. d) slowdown. e) depression.

Consumers begin to become more price and value conscious during periods of a) prosperity b) uncertainty c) recovery d) expansion e) recession

Discretionary income is associated with all of the following except a) automobiles. b) education. C) pets. d) furniture. e) food.

J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, department stores, and discounters. It has established a reputation for offering high-quality, fashionable merchandise with quality service. J. Pitner's competitive environment would best be characterized as a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces. a) reactive b) inactive c) variable d) positive e) proactive

One way for corporations to attempt to influence the political environment is through a) special benefits to employees. b) direct contributions to candidates. c) contributions to elected officials. d) contributions to political action committees. e) organizing political action committees.

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is a) reactive. b) proactive. c) inactive. d) active. e) variable.

Total buying power declines during periods of economic a) prosperity b) uncertainty c) recovery d) expansion e) recession

When a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products from the competitors' products, a(n) _______ structure exists in the competitive environment. a) oligopoly b) monopoly c) pure competition d) oligopolistic competition e) monopolistic competition

When using credit to make purchases, consumers are a) decreasing current buying power and increasing future buying power. b) increasing their present discretionary income to extend purchasing power. c) putting themselves at significant risk of financial disaster. d) forgoing the accumulation of wealth to increase current income. e) increasing current buying power at the expense of future buying power.

Chloe and Max are searching for a health club to join. This purchase will likely be affected by ____ involvement.

enduring

Nabisco learned that health-conscious consumers preferred lower fat snack and lower-carbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action?

enviromental analysis

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

enviromental scanning

To monitor changes in the marketing environment effectively, marketers must engage in

enviromental scanning and analysis

After Home Depot gathers information related to its marketing environment, it attempts to define current environmental changes and predict future changes. This determines possible opportunities and threats facing the company. It illustrates the process that is called

environmental analysis

Nabisco learned that health-conscious consumers preferred lower fat snack and lowercarbohydrate foods. At the same time, the firm saw sales of such products slumping and was careful not to launch any new varieties of these products for a while. Which of the following best describes Nabisco's action?

environmental analysis

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

environmental scanning

Dell Computer collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

environmental scanning

XM Radio is concerned about how the increasing use of MP3 players will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access to prepare for this trend. XM Radio's process is called

environmental scanning

To monitor changes in the marketing environment effectively, marketers must engage in

environmental scanning and analysis

To monitor changes in the marketing environment effectively, marketers must engage in

environmental scanning and analysis.

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

environmental scanning.

The Lazy-Boy Furniture Company collects information about a wide variety of competitive, economic, political, legal and regulatory, technological, and sociocultural forces that affect its marketing activities. This process is called

environmental scanning.

Refer to Scenario 7.2. Since Alicia and Carlos were using gas mileage as one of their evaluative criteria, they are most likely in the ____ phase of the consumer buying process.

evaluation of alternatives

A group of brands that a consumer views as alternatives for possible purchase is called a(n)

evoked set.

The 1990 Nutritional Labeling and Education Act directly prohibits

exaggerated health claims on food packages.

By offering credit and financing through its GMAC division, General Motors is trying to help consumers

expand current buying power at the expense of future buying power.

Jeff needs to buy his textbooks for the coming semester of college. It is only two weeks before the first day of class, and he still has not made a purchase. Jeff wants to buy them somewhere other than the bookstore since he is still living at his parents' home and won't be on campus until the day before class. Jeff goes online and looks for sites that sell the textbook. Then he remembers that one of his friends had said something earlier about finding the book for a great price. Jeff then calls his friend to get the name of the site. In terms of Jeff's buying decision process, his going online to look for sites was part of _______, and his calling a friend was ______.

external information search; also external information search

A marketer that targets customers based on marital status and the presence and age of children is using

family life cycle.

Of all the federal regulatory units, the ____________ most heavily influences marketing activities.

federal trade comission

total budget competitors

firms that compete for the limited financial resources of the same customers

product competitors

firms that compete in the same product class but market products with different benefits features and prices.

brand competitors

firms that market products with similar features and benefits to the same customers at similar prices.

generic competitors

firms that provide very different products that solve the same problem or satisfy the same basic customer need

In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?

flexibility

Discretionary income is associated with all of the following except

food

income

for an individual the amount of money received through wages rents investments pension and subsidy payments for a give period.

Which of the following are the most frequently sentenced organizational crimes?

fraud and anti trust violations

Government agencies at all levels engage in marketing activities to

fulfill their mission and goals

generic

__________ competitors provide very different products that satisfy the same basic customer need.

generic

Population density and city size are ____ variables used for market segmentation.

geographic

Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be

geographic location.

Cash cows

have a dominant share of the market but low prospects for growth

Question marks

have a small share of a growing market and generally require a large amount of cash to build market share

Dogs

have a subordinate share of the market and low prospects for growth

According to the Boston Consulting Group, question marks are characterized as products

having a small share of a growing market and requiring large amounts of cash to build market share.

Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.

her customers

Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets.

heterogeneous

The amount of money received through wages, rents, investments, pensions, and subsidies is called

income

A person's buying power is a function of

income wealth and credit

A person's buying power is a function of

income, wealth and credit

A person's buying power is a function of

income, wealth, and credit.

When using credit to make purchases, consumers are

increasing current buying power at the expense of future buying power.

Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.

internal marketing

Market opportunity

is a combination of circumstances and timing that permits an organization to take action to reach a particular target market

what is value?

is a customer's subjective assessment of benefits relative to costs in determining the worth of a product

Strategic business unit (SBU)

is a division, product line, or other profit center within the parent company

A market is

is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products

market growth/market share matrix

is a helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its market strategy

Mission statement

is a long-term view, or vision, of what the organization wants to become

sustainable competitive advantage

is one that the competition cannot copy in the foreseeable future

First-mover advantage

is the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

Late-mover advantage

is the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Sustainability

is the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations and business strategies

Market Segmentation

is the process of dividing a total market into groups of customers with similar product needs and designing a marketing mix to meet those needs

Competitive advantage

is the result of a company matching a core competency to opportunities it has discovered in the marketplace

Meyers' Sporting Goods, a national chain, has been doing business with Soljur Sports, a manufacturer of skateboards, for several years. Recently, it came to the attention of Meyers' financial director that the average cost per Soljur Sports skateboard had substantially increased over that of the previous year. A corporate attorney was notified and began to look into the situation. The attorney found that Soljur Sports was selling a similar number of skateboards to a competitive chain for $10 less per skateboard. The attorney for Meyers' Sporting Goods immediately filed a complaint with the Federal Trade Commission. If the Federal Trade Commission believes that Soljur Sporting Goods is acting in violation of the law, the first move for the FTC is to

issue a complaint stating that the business is in violation of the law.

Why are marketers interested in consumers' levels of disposable income?

it is a ready source for buying power

Which of the following provides protection for and regulates brand names, brand marks, trade names, and trademarks?

lanham act

Marketers often provide consumers with experience to their products, including free samples and trial offers, to facilitate consumer

learning.

A major determining factor in deciding which type of problem-solving process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's

level of involvement.

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.

lifestyle

The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is

lifestyle.

Cole's smart phone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Cole is most likely to use _____ for this purchase.

limited problem solving behavior.

The three most widely recognized types of consumer problem solving are:

limited problem solving, extended problem solving, and routinized response behavior.

When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in

limited problem solving.

Tori went to Sam's Wholesale Club to shop for a party she was hosting on the weekend. She knew that she could buy larger quantities of food items than she normally did, and they would also be much less expensive. She checked everything off her list and proceeded to the checkout lines. Passing a display of fresh flowers, she thought "Wouldn't those be nice for the party?" She selected one of the bouquets and placed it in her cart. Tori has most likely engaged in ______ when selecting the food for her party, and ____ when selecting the flowers.

limited problem solving; impulse buying.

Unlike marketing mix variables, a firm has

little control over marketing environment forces

Effectiveness is the degree to which

long-term customer relationships help achieve an organizations objectives

market test

makes a product available to buyers in one or more areas and measures purchases and consumer responses to distribution, promotion and price

Hallaway's Corp.'s new shampoo, VS2, is faltering badly in the market. Hallaway's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ____ she has ever seen.

marketing plan

Studying marketing allows us to understand the importance of

marketing to customers, firms, and our economy and make better purchasing decisions

Undifferentiated targeting strategy

means a company designs a single marketing mix and directs it at the entire market

Customer relationship management (CRM)

means using information about customers to create marketing strategies that develop and sustain desirable customer relationships

Efficiency refers to

minimizing the resources an organization uses to achieve a specific level of desired customer relationships

monopolistic competition

monopolistic competition.

Consumer protection legislation deals with all of the following legal concerns except

monopolistic practices.

Mixed Concrete cannot be shipped farther than twenty-five miles because the concrete might harden in the truck. Citrus County Concrete Company is the only supplier of mixed concrete to customers within a thirty-mile radius. Citrus County Concrete is an example of which one of the following competitive structures?

monopoly

The type of competitive structure that exists in the case where there are almost no substitutes for a product is a(n)

monopoly

What type of competitive structure exists when a firm produces a product that has no close substitutes?

monopoly

What type of competitive structure exists when a firm produces a product that has no close substitutes?

monopoly

What national self-regulatory organization screens ads?

national advertising review board

Which of the following industries is most commonly regulated by state regulatory agencies?

national advertising review board

The Better Business Bureau is probably the best-known

nongovernmental regulatory group.

Three primary methods of collecting information for environmental scanning are

observation, secondary sources, and marketing research.

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition.

oligopolistic; monopolistic competition

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?

oligopoly

Most marketers operate in a competitive environment of either

oligopoly or monopolistic competition.

What type of competitive structure exists when just a few sellers control a large portion of the supply of a product?

oligopy

Most marketers operate in a competitive environment of either

oligopy or monopolistic competition

Implementing the marketing concept means

optimizing the exchange relationship

consumerism

organized efforts by individuals groups and organizations to protect consumer rights.

One way for corporations to attempt to influence the political environment is through

organizing political action committees.

competition

other organizations that market products that are similar to or can be substituted for a marketers products in the same geographic area.

Melanie prefers to shop at Target for most of her household needs even though the same products and brands are available at Kmart. She prefers the service, location, and friendliness of the employees at Target. Melanie's reasons that influence her decision to shop at Target are called

patronage motives.

Marketers who attempt to use reference-group influence in advertisements are most likely to succeed when messages indicate that

people in a specific group buy the product and are highly satisfied by it.

The undifferentiated targeting strategy for finding a target market will likely not be successful if

people within the market have heterogeneous needs.

Impact on value can be extensive as market changes can easily impact how stakeholders

perceive certain products

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least important. These needs, in order from most to least important are

physiological, safety, social, and esteem, self-actualization.

People for the Ethical Treatment of Animals (PETA) have demonstrated against the sale of coats made of animal furs. PETA's efforts to change shoppers' attitudes represent a ______ force for fur retailers.

political

Textile companies historically face issues concerning the use of child labor in foreign countries and the various regulations created concerning this labor. The type of marketing environment forces executives for these companies are most likely to try to influence are ______ forces.

political

Refer to Scenario 3.2. The iHome's reduction of energy use, renewable resources as materials, "pod" customization, reduction of construction waste, and tax abatement status is/are examples of reaction to which environmental forces?

political, economic, sociocultural, and technological.

Customer lifetime value

predicts the net value (profit or loss) for the future relationship with a customer

Procompetitive laws are those designed to

preserve competition.

Marketers who attempt to influence and change the various environmental forces have a(n) _____ response to these forces.

proactive

Toyota has developed aluminum car bodies that are 100 percent recyclable and light enough to help conserve fuel. What kind of response is this to environmental forces?

proactive

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

enviromental analysis

process of assessing and interpreting the information gathered through environmental scanning

enviromental scanning

process of collecting information about forces in the marketing enviroment.

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices

product

___________ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.

product

Marketing has the ability to increase consumers' perceptions of what?

product's quality and social approval

Aim to increase public awareness of the organization and of new or existing products are considered?

promotion variables

Educate customers about product features Urge people to take a stance on a political or social issue Help sustain interest in established products are examples of?

promotion variables

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle

prosperity

Assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle.

prosperity

The development of a person's self-concept is a function of

psychological and social factors.

The five categories of situational influences are:

purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as

pure competition

If in an industry, none of the many sellers could influence the price of supply of its products, this industry would be characterized as

pure competition

In general, which of the following competitive structures is an organization least likely to operate?

pure competition

The two least common competitive structures at the opposite ends of the continuum are

pure competition and monopolies

The two least common competitive structures at the opposite ends of the continuum are

pure competition and monopolies.

Although Matt's company engages in environmental scanning and analysis, he feels more comfortable changing his policies and strategies to adapt to environmental forces rather than trying to influence these forces. Matt has a(n) _____ approach to marketing environmental forces.

reactive

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces.

reactive

Marketers who view political forces as being beyond their control are taking a ___________ response toward these forces.

reactive

While Silk SoymilkTM engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk SoymilkTM has a(n) ____ approach to marketing environmental forces.

reactive

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

recession

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

recession

Consumers begin to become more price and value conscious during periods of

recession

Total buying power declines during periods of economic

recession

Consumers begin to become more price and value conscious during periods of

recessions

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economic

recovery

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments.

recovery

Consumer confidence and willingness to spend begins to increase during periods of _____, and marketers must remain very flexible to make the necessary adjustments.

recovery

buying power

resources such as money goods and services that can be traded in an exchange.

Consumers tend to remember information inputs that support their feelings and beliefs and forget inputs that do not. This is known as selective

retention.

International Office Supplies Wholesaler charges different prices to its various customers without any legal justification. This company is in violation of the

robinson patman act

While shopping at a local grocery store, Taylor sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as

routinized response behavior.

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

safety.

When evaluating market segments, assessment of competitors is important because

sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.

Guess? will be spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's

sales forecast.

Which of the following is not at the generic competitor level for Ford's Expedition sport utility vehicle?

saturn sky

If M&M Mars Candies found a magazine article that provided key information on the television viewing habits of major candy consumer groups, this would be an example of information obtained through environmental

scanning

The strength of a person's "buying power" depends on economic conditions and

see of resources that can be traded in an exchange

The Children's Online Privacy Protection Act prohibits websites and Internet providers from

seeking personal information from children under the age of 13

Perception is a three-step process that involves

selecting, organizing, and interpreting information inputs.

Refer to Scenario 7.1. A dissatisfied Skola's Auto Repair customer told a friend about his experience. The friend has been a long-time Skola's customer and the next day, didn't remember what he told her. This is an example of

selective retention.

The Pharmaceutical Research and Manufacturers of America sets guidelines for its member firms to follow regarding the use of unethical practices. Thus, it is engaging in

self-regulation.

Which of the following acts was enacted to prevent businesses from restraining trade and monopolizing markets?

sherman anti trust act

Dave is an owner and manager of three apartment buildings in northern Minnesota. During an exceptionally hot summer the temperatures soared and the toll on the window air conditioners was too much. Seventeen of them have broken down already, and more are probably going to have to be replaced. He has a total of seventy-five apartment units. Dave is now in the process of deciding how to repair the air conditioning. Should he buy new window units for all the buildings, or should he install central air conditioning? What type of decision is Dave facing?

situational involvement and extended problem solving

Claire is a market research analyst for a global consulting firm. She will be traveling to London next month to present her research to a meeting of company executives from around the world. This presentation could be instrumental in the company's decision of whether she should be promoted at the end of this year. Claire has been thinking about the trip, which will be the first time she has been out of the country. She has decided to retire the old college luggage for a more professional-looking version and has begun to evaluate various brands. Claire is most likely facing _____ for this particular purchase.

situational involvement.

The strength of a person's "buying power" depends on economic conditions and

size of resources that can be traded in an exchange.

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into

social classes.

sociocultural

The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____.

specifying how they will achieve their marketing objective

The FTC can issue a cease-and-desist order, which is an injunction to

stop doing whatever caused the complaint

Newsweek enhances its visibility to readers by making its magazine available on the Internet. Newsweek is capitalizing on which environmental force?

technological

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in

technology assesment

UPS is considering its distribution strategy for the next five years. As part of the strategy development, UPS is investigating the use of radio frequency identification, consumer payments through smart phones, Facebook, and Twitter and how they might use these to interface with their customers. UPS is most likely engaging in

technology assessment

When Cisco Systems attempts to anticipate the effect of new products and processes on its own innovations, other business organizations, and society in general, the firm is engaging in

technology assessment.

wealth

the accumulation of past income natural resources and financial resources.

Technology is

the application of knowledge and tools to solve problems and perform tasks more efficiently.

Technology is

the application of knowledge and tools to solve problems and perform tasks more efficiently.

technology

the application of knowledge and tools to solve problems and perform tasks more efficiently.

Which of the following regulatory groups is a system of nongovernmental, independent, local regulatory agencies supported by local businesses?

the better business bureau

Product variable decisions and activities directly impact what?

the creation of products that meet customers' needs and wants

Benefit segmentation

the division of a market according to benefits consumers want from the product

Relying on executive judgment for forecasting may be adequate when

the executive has considerable experience and product demand is relatively stable.

More than half of the research of technology created is paid for by

the federal government

A disadvantage of the concentrated targeting strategy is that

the firm's financial condition is tied to a single and specialized marketing mix.

socioculutral forces

the influences in a society and its culture that change peoples attitudes beliefs norms customs and lifestyles.

Market density

the number of potential customers within a unit of land area

Cause-related marketing

the practice of linking products to a particular social cause on an ongoing or short-term basis

Strategic planning

the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy

Which of the following is not a characteristic of a consumer market?

their purchasing decisions are always made by only one individual

The forecasting techniques that assume past sales patterns will continue into the future are all variations of

time series analysis.

Which of the following firms would be most likely to have a monopoly for its competitive environment?

time warner cable tv

Private nonprofit organizations employ marketing activities, why?

to create, price, distribute and promote programs that benefit particular segments of society

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors.

total budget

Companies that compete for the same limited financial resources of the same customers are known as _________ competitors.

total budget

A recent U.S. Supreme Court decision nullified federal laws that restricted political campaign fund contributions for corporate labor unions.

true

Technology assessment is

trying to foresee the effects of new products and processes on the firm's operation and on society in general.

If Morton Salt saw all table salt customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy.

undifferentiated

A new U.S. automobile company, Specialty Motors, was established in 2004. In 2008, a recession caused disposable income to decline, and the annual amount of dollars spent by consumers for automobiles dropped drastically. Specialty Motors faced the problem of trying to determine whether the economy would turn toward prosperity or toward depression. No matter what happened, Specialty Motors was also worried about an impending global steel shortage, which would make a big difference in its future marketing plans. The economy might recover from the recession, but the automobile makers might be forced to ask consumers to curtail consumption just when the hope of a better year was finally in sight. All in all, the future looked dismal for Specialty Motors. When Specialty Motors is operating during a recessionary period, its promotion efforts should stress

value and utility.

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is

variable

The textbook suggests that the best approach a firm can take in responding to marketing environmental forces is

variable

The accumulation of past income, natural resources, and financial resources is known as

wealth

Although Shelby's income is comfortable, she hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her company and in turn her future employment. Shelby lacks

willingness to spend

Sheila's new job with the federal government provides a comfortable and fairly stable income. She would like to purchase a new car now that she has a job; however, Sheila hesitates to purchase because she is concerned about how poor economic conditions may affect her position in the future. Sheila lacks

willingness to spend

Shelby's new job with the federal government provides a comfortable income and a fairly stable income. She would like to buy a new car now that she has a job; however, Shelby hesitates to purchase a new car because she is concerned about how poor economic conditions may affect her position in the future. Shelby lacks

willingness to spend.

The _____, of Coleman's social class categories, includes approximately 40 percent of the population, shops for bargains, and buys sports and recreational equipment.

MKTG ch 3

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