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Marketing

The Ritz-Carlton has Service Values that guide employees in providing its Gold Standard service. One of the service values states, I own and immediately resolve guest problems. The Ritz-Carlton management uses _____ to provide customer service.

empowerment

Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoyed being the top U.S. car producer and focused more on how many cars and trucks it could manufacture, not on what customers wanted from a vehicle. GM had more of a _____ orientation.

production

Which marketing management philosophy focuses on the question: What do customers want and need?

Market

Which marketing management philosophy is often adopted by organizations that sell unsought products such as life insurance, retirement plans, and preplanned funeral services?

Sales orientation

Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage. After flying a certain number of miles or flying a specified number of times, the frequent-flyer program participant earns a free flight or some other award such as free lodging. Airlines that use frequent-flyer programs are practicing:

relationship marketing

When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created

customer satisfaction

A market-oriented organization targets its products at:

specific groups of people

An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.

societal marketing orientation

Which of the following statements about a typical sales-oriented business is TRUE?

The company invests the majority of its resources in promoting its products and services

Walker Farms heard from many of its customers that they would like organic produce. As a result, Walker Farms became a certified organic farm. Walker realized that while not all consumers were willing to pay the higher prices for organic produce, his customers wanted the organic produce. Walker realized:

different customer groups have different needs and wants

Recession, inflation, and consumers' incomes are the _____ factors of greatest concern to most marketers.

economic

A period of economic activity characterized by negative growth, which reduces demand for goods and services, is called a(n):

recession

Consumers' concern for health issues affects the way food is marketed. For example, marketers must now list the number of grams of transfat on a product's nutrition label because it has recently come to light that this type of fat is harmful. Consumers' concern for health issues is a(n) _____ factor.

social

The higher your _____, the higher your purchasing power:

disposable income

A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.

target market

All of the following are factors in the external environment affecting marketing EXCEPT:

the marketing mix

_____ is a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Inflation

Commercial truck drivers have suffered financially as a result of increasing diesel fuel prices. As they look for ways to make their trucks perform more efficiently, manufacturers have created truck body designs that are more aerodynamically sound. This is an example of how _____ factors can help during recessionary periods.

technological

Zimmer-Centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. They are particularly interested in marketing in the southwestern United States, where a large aging population lives. Which external environmental element most directly explains its continued growth?

Demography

Every night, Universal Studios Japan hosts a fireworks display. The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays. In the small nation, the use of explosives is stringently controlled. This is an example of how _____ factors can influence a business.

legal and political

A marketing manager would expect his or her product to be a high-involvement product for most consumers if it:

requires substantial financial investment

A value or attitude deemed acceptable by a group is called a(n):

norm

Ranked from the lowest to the highest level, Maslow's hierarchy of needs model includes:

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

While looking at the DVDs at Target, Tee tried to remember the name of the action movie starring Harrison Ford as an archeologist so he could buy the DVD. Which step of the consumer decision-making process is this?

Internal information search

Alanna is looking into purchasing a scooter as gas prices continue to rise. She needs a reasonably priced, comfortable, and safe scooter with room to store her books. She is not familiar with scooters, and this is a major purchase for her. The purchase will probably involve:

extensive decision making

Sam was driving when someone ran a stop sign and totaled his car. His car cannot be repaired, so he realized he's going to have to get another one. What stage of the consumer decision-making process does this represent?

Need recognition

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category is referred to as:

limited decision making

Which of the following items is MOST likely to be a fully planned purchase?

a motorcycle

An external information search is especially important when:

there are high costs associated with making an incorrect decision

A group in society, such as family, friends, or a professional organization, that influences an individual's purchasing behavior is called a(n):

reference group

Homogeneous groups of people who share elements of the overall culture as well as unique elements of their own group are called:

subcultures

_____ is characterized by low involvement, a short time frame, an internal-only information search, and low costs.

Routine response behavior

The steps of the consumer decision-making process in order are:

need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior

Another name for evoked set is:

consideration set

Rod saw a television commercial for a Honda S2000 and wants to test-drive one. The commercial is an example of a(n) _____ stimulus.

external

Mai Lin is checking out at the grocery store when she notices the candy display right next to the cash register. I haven't had a Mounds bar in years, she thinks. That looks good! I think I'll grab one. So she hands the candy to the cashier and says, I'll take this too. Mai Lin has just made a(n):

unplanned purchase

Which of the following is the BEST example of an internal stimulus that would create need recognition?

A headache

Rose is shopping for a new camera. She has set a maximum of $250 as the highest price she will pay, so she doesn't even bother considering cameras that cost more than that. Rose is narrowing the number of available choices by using a:

cutoff

How can marketers reduce consumers' cognitive dissonance?

Offer guarantees

Andrea just purchased a trip to Jamaica as a present to her husband for their tenth wedding anniversary. Andrea is anxious about the trip, afraid Bill will not like her choice of location and worried she spent too much money. Andrea is experiencing:

cognitive dissonance

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

Identifiability and measurability

Modern Maturity magazine is targeted toward adults aged 50 years and older. It has articles on health and fitness as well as the arts and finance. What segmenting base is Modern Maturity using

Demographic

A(n) _____ is a subgroup of individuals or organizations sharing one or more characteristics that cause them to have similar product needs

market segment

A(n) _____ is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

target market

Wine Spectator is a magazine that targets people who appreciate good wine and food. However, the discriminating reader of this magazine is also interested in travel and health, so the magazine features travel and health-related stories. This publication relies on _____ variables to identify its target market

psychographic

Elaine perceives Cadillac automobiles to be for older men, not for young professional women such as herself. Elaine's perception represents Cadillac's _____ in her mind

position

Pharmaceutical firms have introduced new over-the-counter antacids that block the production of stomach acids while still marketing traditional antacids. Traditional antacids treat heartburn by neutralizing stomach acid. If sales of the new acid blockers reduce sales of the traditional antacids, then _____ has occurred.

cannibalization

General Mills offers a deal where its cereal users can collect box tops and submit them to General Mills to earn money for their children's schools. This program, called the Box Tops for Education Program, is a means of changing light users into heavier users. In other words, it is a form of _____ segmentation

usage-rate

Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use _____ segmentation when stocking condiment merchandise.

geographic

A series of stages determined by a combination of age, marital status, and the presence or absence of children is known as the:

family life cycle.

For years, fryer chickens sold in grocery stores were perceived to be a rather generic product. One brand of chicken was much like another. Then Frank Perdue began an advertising campaign to tell consumers that his brand of chicken was more tender, therefore a better choice. Perdue brought _____ to the marketing of fryer chickens.

product differentiation

Candace Popwell makes and markets Festive Holiday Truffles candy. The confectionery company owner views the world as one big market with no individual segments and tries to reach it with only one marketing mix. Her essentially mass-market philosophy indicates she probably uses a(n) _____ strategy

undifferentiated targeting

Tall Paul's designs and sells household furniture and furnishings to people who are over 6'6" tall a rather small target market. Tall Paul's uses a(n) _____ targeting strategy

concentrated

What does the 80/20 principle propose?

Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product

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

accessibility

H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services like mortgages and investment advice. Block has great brand recognition, but consumers only care about it four months out of the year. H&R Block is attempting to _____ itself to make people think of it as a company offering services year-round

reposition

The place a product, brand, or group of products occupies in consumers' minds relative to competing offerings is referred to as a product's

position

Miller Lite's long-running Great Taste...Less Filling! advertising campaign was ranked by Advertising Age magazine as the 8th-best advertising campaign in history. Miller Lite was using _____ segmentation in this ad campaign.

benefit

Stouffer's offers gourmet entrees for one segment of the frozen dinner market and Lean Cuisine for another segment that wants both good taste and low calories. When Stouffer's chose to serve two well-defined market segments and develop distinct marketing mixes for each, it was implementing a(n) _____ strategy.

multisegment targeting

A(n) _____ could help determine whether or not snacking consumers consider Kashi Tasty Little Crackers healthy and tasty in comparison to other brands

perceptual map

Phillip Morris USA, the manufacturer of the Marlboro Ultra Smooth cigarette targeted to people who want to smoke a potentially safer cigarette, has asked for marketing research to explain the reasons for the recent failure of the new cigarette. This type of research is described as:

diagnostic

A _____ is a form of personal interviewing that uses a group of seven to ten people who have been recruited because of certain desired consumer characteristics.

focus group

Post Properties is a company that manages apartments in various communities. It is concerned with a glut of apartments in Atlanta, Orlando, and Dallas. Its market researcher begins by examining the rental markets in the Southeast, the history of apartment buildings, local economies, competitive rents, and ownership. All of this information was on hand and did not require any new research to locate. The market researcher looked at:

secondary data.

A regional airport manager conducted research to get a better understanding for the types of concessionaires to include in the planned terminal remodeling. She conducted two sets of group interviews, one with ten leisure flyers and another with ten business flyers. In each group, participants discussed what types of food, retail, and other services they wanted in the new terminal. These discussions are examples of:

focus groups

A(n) _____ is characterized by the researcher altering one or more variables such as price or package design while observing the effects of those alterations on another variable (usually sales).

experiment

When Wilson, a manufacturer of tennis racquets, sent a team of researchers, designers, and tennis pros out to visit with 40 women tennis players of various abilities in locations from California to Florida to find out what women players want in a racquet, what kind of research were they conducting?

Primary

_____ occurs when a sample somehow does not represent the target population.

Sampling error

Telephone interviews offer:

speed in gathering data.

The most popular method for gathering primary data is _____, in which a researcher interacts with people to obtain facts, opinions, and attitudes.

survey research

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

descriptive

While discussing an upcoming marketing research study of how the home decorating industry is affected by the teenage consumer, you emphasize the necessity of having a sample that is representative of the population. What type of sample must be used?

A probability sample

What is the last step of the marketing research process?

Follow up.

Your supervisor has instructed you to conduct a marketing research effort that will determine how your company's business customer demographics have changed. You have also been instructed to use primary data. You will:

develop a mail survey to study your primary market.

The first step in the marketing research process is to

identify and formulate the problem/opportunity to be studied

_____ research is the study of human behavior in its natural context, involving observation of behavior and physical setting.

Ethnographic

Low response rate is a problem commonly associated with:

mail surveys.

The best experiments are those in which:

all variables are held constant except the ones being manipulated.

Which of the following is the BEST example of an effective question on a mail survey?

Have you ever put food out for wild birds?

Dryel is a Procter & Gamble product that allows consumers to dry-clean their clothes in a dryer. Before launching the product, P&G researchers visited consumers' homes and watched as people sorted laundry, creating piles of darks, whites, delicates, and items that would go to the dry cleaner because the people were unsure how to clean them. This was an example of _____ research.

observation

A _____ sample is any sample in which little or no attempt is made to obtain a representative cross section of the population.

nonprobability

Andrea needs to find a kennel for boarding her son's dogs. There are several different kennels in her community, and Andrea believes all of them to be basically alike. The only feature she is genuinely concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n) _____ product.

homogeneous shopping

Most people recognize Butterball as a brand of turkey, but the Butterball brand is also found on fresh turkey breast cuts, turkey sausages, and ground turkey; lunchmeat cold cuts; fresh marinated bone-in, boneless, and whole chicken; frozen chicken products; and Butterball stuffing and gravy mixes. Butterball uses:

family branding

_____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and
often distribution is limited.

Specialty

Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and 1960. He paid $1,500 for his first watch in 2000. Now the watch is worth $15,000. For Evan, the vintage watches are an example of a(n) _____
product.

specialty

There are a number of toothpastes marketed under the Crest brand, including Cavity Protection Crest, Pro-Health Sensitive
Shield Crest, Baking Soda Crest, Tartar Protection Crest, and Crest for Kids. This is an example of Crest's:

product line depth.

Kleenex is a well-known brand name of facial tissue. People often refer to Kleenex as if it were the product name. The company that makes Kleenex may someday find its brand name becoming a(n):

generic product name

A(n) _____ brand is one owned by the wholesaler or retailer.

private

Which of the following is the best example of a shopping product for most consumers?

A digital camera

Proctor & Gamble is a well-known producer of home and beauty products. Along with these products, P&G also markets pet products, prescription drugs, and small appliances. This range of products provides the company with product:

mix width.

A number of yogurts are marketed under the Dannon brand, including Dannon All Natural, Dannon Fruit on the Bottom, Dannon Light & Fit, DanActive, and Dan-o-nino. The large variety of yogurts under the Dannon brand is an example of a:

product line.

Which of the following products is most likely to be considered an example of a heterogeneous shopping product?

An apartment

_____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.

Unsought

A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?

Repositioning

Heinz is a leading global food manufacturer. It manufactures and markets Farley's (baby food), Jack Daniel's sauces, and Weight Watcher's diet/slimming meals and supplements. The use of these brand names instead of the Heinz name is an
example of a(n) _____ branding strategy

individual

When deciding on distribution plans for specialty products, companies generally ensure that the items are:

distributed to only a few stores in the geographic area.

_____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.

Convenience

When Coca Cola introduced Coke Zero, this was an example of a _____ strategy.

product line extension

Which of the following is the best example of a convenience product?

Chewing gum

Along with its Macintosh computer line, Apple markets its iPod, iPhone, and AppleTV products. This is an abbreviated listing of the company's:

product mix.

According to recent market research, Google is one of the most valuable brands in the world. According to this research, the company and its well-known name are worth about $100 billion. This research indicates that Google has a high:

brand equity.

The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then shop in a mock store filled with real products, including the new product. This is an example of a(n):

simulated (laboratory) market test

A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like it's home brewed. In which stage of the product life cycle is Gold Peak iced tea?

Introductory

Which is the last adopter category to adopt an innovation?

Laggards

Kathy purchased an Amazon Kendle e-book reader as soon as they came onto the market. She paid $399 for the product, which she bought the first day it was released. Kathy works in Information Technology and is always looking for new electronic products to buy. She would best be described as a(n):

innovator

In which stage of the product life cycle do marginal competitors start dropping out of the market?

Maturity

A team-oriented approach to new-product development is referred to as:

simultaneous product development

Joaquin didn't buy a netbook computer when they first came out, but he did purchase one a year after they were introduced to the market. He is very active in his church and local arts council, and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Joaquin is best described as a(n):

early adopter

Normally, the longest stage of the product life cycle is the _____ stage.

maturity

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Test marketing

For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the company is attempting to present Diet Dr. Pepper as an alternative to having a dessert. This is an example of a _____ strategy.

repositioning

Which component of a service is the ability to perform the service dependably, accurately, and consistently?

Reliability

Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even though he has an incision, he really has no way of knowing if the service was actually performed even after it was allegedly performed. That is because medical services such as this exhibit _____ qualities.

credence

At the My M&M's Web site, customers can design their own versions of the famous candy. Customers choose from 25 M&M's colors; write a message, add clip-art, or even a face to each M&M, and select specific packaging. This is an example of:

mass customization.

Starbucks management has been trying to refocus on the things that originally made the company so successful. For example, Starbucks stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure you can smell the fresh ground coffee aroma when you enter the store. However, when questioned, consumers tend to focus on the need for pricing incentives such as a frequent purchasing program. According to the _____, there may be a difference between what customers want and what Starbucks management thinks customers want.

gap model of service quality

One of the reasons consumers can purchase cheap flights or hotel rooms on Web sites such as Expedia.com and Hotels.com is due to the fact that airlines cannot sell the seat on a specific flight after the plane takes off and hotels cannot recoup the revenue from that room for that night once the night passes. Which unique characteristic of services does this illustrate?

Perishability

James recently went to a new health clinic because he had a sore throat that wouldn't go away. He was not familiar with this clinic and was a bit surprised when the doctor came in and was wearing blue jeans, a flannel shirt, and tennis shoes. The doctor and nurse took proper care of James, but it seemed strange to him that the doctor was dressed that way. Which component of service quality does this illustrate?

Tangibles

A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent free so that it is not necessary to use the same reader every time. The reading service is trying to limit problems associated with the service characteristic of:

heterogeneity.

Emily's nephew is on the autism spectrum, and she has read stories on the Internet about how vaccines supposedly cause autism. Though Emily knows this theory has been debunked and that vaccines are safe, she is surprised that she feels a bit worried when she takes her own child into the pediatrician for her shots. Emily is glad her pediatrician does not think her fears are silly and will answer all of her questions without making her feel stupid for asking them. By which of the following components of service quality is Emily most likely to rate her pediatrician?

Empathy

Which unique characteristic of services means that consumers must be present during the production?

Inseparability

A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be sensed and, therefore, is referred to as being:

intangible.

Housing several departments under one roof, a _____ carries a wide variety of shopping and specialty goods, including apparel, cosmetics, housewares, electronics, and sometimes furniture.

department store

_____ is a low-profile yet important form of retailing in which consumers get products out of automated machines, and it accounts for billions of dollars worth of goods each year in the United States.

Automatic vending

Anchor stores:

are often large department stores that are located at opposite ends of a mall to create a heavy pedestrian traffic flow.

Which of the following retailers probably offers the LOWEST level of service?

a warehouse club

One of the new developments in retailing is m-commerce. M-commerce refers to the ability to:

shop using wireless mobile devices.

_____ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for
convenience.

Nonstore retailing

All of the following are factors in creating a store's atmosphere EXCEPT:

price.

_____ is the retailing strategy of using moderate to low prices on large quantities of products and lower service to stimulate a high turnover of inventory

Mass merchandising

The _____ of retail stores is a key factor in their success; the goal is to use all space in the store effectively, including aisles, displays, and
even nonselling areas.

layout

Specialty stores such as Best Buy, Staples, Dick's Sporting Goods, and Bed, Bath, and Beyond are often called category killers because:

they can destroy the profit potential for a category of merchandise for other retailers.

Off-price retailers:

are often able to take advantage of manufacturers faulty sales forecasting.

A _____ is an off-price retailer that is owned and operated by a manufacturer and carries one line of merchandise--its own.

factory outlet

When supermarkets offer a wide variety of nontraditional goods and services under one roof, they are engaged in:

scrambled merchandising.

Which of the following types of stores has a high gross margin, a narrow product assortment, and a high level of service?

A specialty store

Which type of retailing is the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties?

Direct retailing

_____ are stores that consumers purposely plan to visit. They are often built as free-standing stores.

Destination stores

Rochelle owns and operates a McDonald's restaurant. She has licensed the right to use McDonald's name, logo, and products. Rochelle's restaurant is an example of a(n):

franchise.

Telemarketing can consist of either unsolicited _____ sales calls, or _____ sales calls, which allow companies to receive orders through toll-free telephone numbers.

outbound; inbound

James wants to open a small store that caters to the model railroad hobbyist. The store would sell model trains, scenery, accessories, and books on the subject of model railroading. Which of the following types of stores would most likely support an effective launch of his business idea?

A specialty store

_____ are retailers that compete on the basis of low prices, high turnover, and high volume.

Discount stores

Vera ordered the Chihuahua Christmas ornament she saw advertised in the Sunday coupon supplement by phoning The Danbury Mint and placing her order. In terms of the communication process, Vera's purchase was an example of:

feedback

_____ is any form of sponsor-identified, impersonal paid mass communication.

Advertising

When Vincent saw Mike's new Iron Horse Yakuza Aniki mountain bike, Vincent immediately knew he wanted to own one just like it someday. According to the AIDA concept, Vincent entered the _____ stage.

desire

A manufacturer using the _____ promotional strategy focuses its promotional efforts on the consumer.

pull

Just as Grace was in sight of a billboard for the Riverbend Antique Mall, a police car drove by with its lights flashing. Grace was so concerned with watching where the police car went that she totally missed seeing the mall's billboard. In terms of the communication process, the police car acted as:

noise

Usborne Books consultants sell books directly to customers via presentations in customers' homes, at book fairs and community events, and at craft shows. Usborne consultants are engaged in:

interpersonal communication

For its new Jeep Compass, DaimlerChrysler launched a campaign targeting young, hip consumers. To reach its target, Jeep's advertising agency used music, talking bobbleheads, and other nontraditional marketing tactics to capture consumers' interest. The agency devised a host of bobblehead characters that represented the wide variety of potential Compass buyers. DaimlerChrysler was the _____ of the message in this communication process.

sender

What are the three basic tasks of promotion?

Informing
Persuading
Reminding

For which of the following purchases is Gordo most likely to pass through all four stages of the AIDA process?

Gear for mountain climbing

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