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Exam #1 (Ch 1-9)

Terms in this set (85)

(O1-2) When backed by buying power, wants become ________.
demands
(O1-4) ________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.
Customer-perceived value
(O1-4) "Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________.
customer lifetime value
(O1-3) Selecting which segments of a population to serve is called ________.
target marketing
(O1-2) Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
A) vendor lock-in
B) social loafing
C) value proposition
D) marketing myopia
E) conspicuous consumption
marketing myopia
(O1-2) A ________ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want.
market offering
(O1-3) Which of the following refers to a set of benefits that a company promises to deliver to customers to satisfy their needs?
A) customer lock-in
B) a cartel
C) marketing mix
D) value proposition
E) market segmentation
value proposition
(O1-1) Which one is the final step in the five-step model of the marketing process?
A) designing a customer-driven marketing strategy
B) understanding the marketplace and customer needs
C) constructing an integrated marketing program that delivers superior value
D) building profitable relationships and creating customer delight
E) capturing value from customers to create profit and customer equity
Capturing value from customers to create profit and customer equity
(O1-1) T/F Marketing is managing profitable customer relationships.
True
(O1-2) ________ are human needs that are shaped by culture and individual personality.
Wants
(O2-4) Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.
positioning
(O2-2) The collection of businesses and products that make up a company is called its ________.
business portfolio
(O2-2) ________ are low-growth, high-share businesses/products that need less investment to hold their market share.
Cash cows
(O2-2) The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________.
market development
(O2-1) A ________ documents an organization's purpose—what it wants to accomplish in the larger environment.
mission statement
(O2-4) Which of the following is NOT an element of the marketing mix?
A) place
B) purchase
C) product
D) price
E) promotion
purchase
(O2-5) The main section of the marketing plan most likely contains a detailed ________ analysis of the current marketing situation.
SWOT
(O2-4) An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.
market segments
(O2-5) T/F The four marketing management functions are analysis, planning, implementation, and control.
True
(O2-1) Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization's weaknesses and the threats it faces
defining the organizational mission
(O3-1) Maria works for Sigma Inc., a firm that helps companies target and promote their products to the right markets. Sigma is most likely a ________.
marketing services agency
(O3-2) A value marketer is most likely to ________.
offer consumers a balanced combination of product quality at a fair price
(O3-1) Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this instance, Sam has been directed to study the ________ of the organization.
macroenvironment
(O3-1) Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.
microenvironment
(O3-5) Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to influence legislation that affects the manufacturing industry. Katrina's firm takes a(n) ________ stance toward the marketing environment.
proactive
(O3-1) T/F Business markets buy goods and services for further processing or for use in their production processes.
True
(O3-4) A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of __________.
cause-related marketing
(O3-4) The ________ environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.
political
(O3-3) Many companies use Radio-Frequency Identification Technology (RFID) product labels on their goods, which exemplifies the ________ environment in business.
technological
(O3-2) Among the generational groups in U.S. population, the ________ are the wealthiest now.
Baby Boomers
(O4-1) Which of the following is the final step of the marketing research process?
A) developing the research plan
B) implementing the research plan
C) interpreting and reporting the findings
D) selecting a research agency
E) defining the research objectives
Interpreting and reporting the findings
(O4-2) The objective of causal research is to ________.
test hypotheses about cause-and-effect relationships
(O4-3) Information collected from Internet search engines is an example of ________ data.
Secondary
(O4-3) Primary data consist of ________.
Information collected for the specific purpose at hand
(O4-3) A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.
Ethnographic research
(O4-3) ________ involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, or buying behavior. It is the most widely used method for primary data collection.
Survey research
(O4-3) In collecting primary data, marketing researchers have a choice of two main research instruments, ________.
Questionnaires and mechanical devices
(O4-3) Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
Experimental Research
(O4-3) ________ consists of inviting 6 to 10 people to meet with a trained moderator to talk about a product, service, or organization.
Focus group interviewing
(O4-3) Which of the following refers to a nonprobability sample in which the researcher selects the easiest population members from which to obtain information?
A) quota sample
B) judgment sample
C) convenience sample
D) stratified random sample
E) simple random sample
Convenience Sample
(O5-2) T/F Consumer buying behaviors are affected by cultural, social, personal and psychological factors.
True
(O5-2) ________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.
Social Classes
(O5-3) Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
variety-seeking buying behavior
(O5-2) Each culture contains smaller ________, or groups of people with shared value systems based on common life experiences and situations.
subcultures
(O5-3) George is buying his first house. He has spent a month looking at houses and comparing attributes such as price and location. He has contacted several real estate agents to look at different types of houses. George is most likely exhibiting ________.
complex buying behavior
(O5-1) Individuals and households that buy or acquire goods and services for personal consumption make up the ________.
consumer market
(O5-4) The buyer decision process consists of five stages. Which of the following is NOT one of these stages?
A) need recognition
B) information search
C) conspicuous consumption
D) purchase decision
E) postpurchase behavior
conspicuous consumption
(O5-1) According to the model of buyer behavior, which of the following is one of the two primary parts of a "buyer's black box"?
A) technological stimuli
B) buyer's decision process
C) buyer's spending habits
D) social stimuli
E) promotion stimuli
buyer's decision process
(O5-2) Family is one of the ________ factors that influence consumer behavior.
social
(O5-2) ________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.
Aspirational groups
(O6-4) T/F Many institutional markets are characterized by low budgets and captive patrons.
True
(O6-4) All of the following organizations are likely part of the institutional market EXCEPT ________.
A. LaGrange Community Hospital
B. Water Street Nursing Home
C. Millersville Community College
D. Lancaster Real Estate Company
E. Worthampshire Prison
LaGrange Community Hospital
(O6-1) Business buyer behavior refers to the ________.
buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
(O6-2) The ________ refer(s) to all the individuals and units that play a role in the purchase decision-making process.
buying center
(O6-2) Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.
a straight rebuy
(O6-3) Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here?
A) order-routine specifications
B) supplier selection
C) performance review
D) general needs description
E) proposal solicitation
performance review
(O6-3) Members of the buying center at Kid's World, a store for children's clothing, are drawing up a list of desired supplier attributes and their relative importance. Next, they intend to compare several suppliers' proposals to these attributes. In which step of the business buying process is the buying center at Kid's World involved in?
supplier search
(O6-2) In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms, or suppliers.
modified rebuy
(O6-2) The business marketer normally deals with ________ than the consumer
far fewer but far larger buyers
(O6-4) T/F Government organizations typically require suppliers to submit bids, and normally they award the contract to the lowest bidder.
True
(Q7-2) ________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Market segmentation
(Q7-2) Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
A) geographic segmentation
B) benefit segmentation
C) occasion segmentation
D) demographic segmentation
E) psychographic segmentation
demographic segmentation
(Q7-2) Pacific Fisheries divides its customers into different regional units, such as Asia, Australia, and the Americas. This is an example of ________ segmentation.
geographic
(Q7-3) A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.
target market
(Q7-3) ________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Undifferentiated marketing
(Q7-3) GamaPix makes point-and-shoot cameras and handycams for amateur photographers and hobbyists. It also has a separate line of cameras dedicated to professional photographers. Additionally, it designs separate offers for each segment. Which of the following marketing strategies does GamaPix most likely use in this instance?
A) mass marketing
B) differentiated marketing
C) individual marketing
D) local marketing
E) direct marketing
differentiated marketing
(Q7-3) Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
A) individual marketing
B) one-to-one marketing
C) mass marketing
D) concentrated marketing
E) trigger-based marketing
concentrated marketing
(Q7-3) ________ is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.
Miromarketing
(Q7-4) The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ___
value proposition
(Q7-4) Pierre's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Pierre's because it charges rock-bottom prices. Pierre's Mart most likely uses the ________ positioning.
less for much more
(Q8-2) ________ involves designing and producing the container or wrapper for a product.
Packaging
(Q8-4) ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
Line extension
(Q8-4) Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________.
licensing
(Q8-1) Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.
shopping
(Q8-1) ________ products are those products purchased for further processing or for use in conducting a business.
Industrial
(Q8-4) Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
brand extension
(Q8-2) Product mix ________ refers to the number of different product lines the company carries.
width
(Q8-2) A ________ consists of all the product lines and items that a particular seller offers for sale.
product mix
(Q8-3) Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance?
A. service variability
B. service perishability
C. service inseparability
D. service distinction
E. service intangibility
service intangibility
(Q8-1) ________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Convenience products
(Q9-1) Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.
Acquisition
(Q9-2) Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
Crowdsourcing
(Q9-2) Which of the following stages of the new product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing
Concept testing
(Q9-3) Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline
Introduction
(Q-3) Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to grow rapidly in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.
Growth
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