question

Business products may be identified as: a. goods and services purchased for use either directly or indirectly in the production of other goods and services for resale. b. products of any kind bought for use in the home but sold later as used items. c. products, such as legal services, that can be bought by businesses or individuals but do not enter into the production of finished goods. d. products sold in a finished state for use in the home or the business office.

answer

a. goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.

question

Goods and services purchased by the ultimate consumer for personal use are called _____ products. a. personal b. purchased c. consumer d. commercial

answer

c. consumer

question

Kyle plans to buy new tires for a converted bus his family uses for camping trips. The tires are the same type used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for this bus are classified as _____ products. a. business b. service c. commercial d. consumer

answer

d. consumer

question

Concerning market segmentation, all of the following statements are correct except: a. only for-profit organizations practice market segmentation. b. firms that practice market segmentation don't necessarily change their products to meet the needs of different market segments. c. there are too many variables to attract all customers using the same marketing mix. d. market segmentation attempts to divide the total market into smaller groups.

answer

a. only for-profit organizations practice market segmentation.

question

Which of the following is the most appropriate list of criterions for effective market segmentation? a. concentrated buyers, purchasing power low, lower profits but higher volumes, occasional but loyal buyers b. measurable purchasing power, residing in core regions, high volume buyers, seasonal or occasional c. lucrative market segment, scattered buyers, market strength beyond company's capability, low profits with high volumes d. segments match marketer's capability, measurable purchasing power, effectiveness to serve the segment, good profit potential

answer

d. segments match marketer's capability, measurable purchasing power, effectiveness to serve the segment, good profit potential

question

Japanese automaker, Subaru, generates approximately one-half of its sales in just four states (Alaska, Colorado, Maine, and Washington). These states constitute Subaru's: a. primary market. b. core region. c. secondary market. d. sales region.

answer

b. core region.

question

A _____ is an example of a product which has target markets differentiated by age groups. a. headache remedy b. breakfast cereal c. light bulb d. laundry detergent

answer

b. breakfast cereal

question

Which of the following age groups would marketers of life insurance most likely target? a. Baby Boomers b. Teenagers c. Over 60 years old d. Between 25 and 35

answer

d. Between 25 and 35

question

According to a recent study, the buying power of _____ is rising at a rate nearly triple that of the national average. a. African Americans b. Native Americans c. Asian Americans d. Hispanics

answer

d. Hispanics

question

Compared with other ethnic groups, Asian Americans represent the _____ growing population, and are _____ geographically concentrated than other minority groups. a. slowest; less b. slowest; more c. second fastest; less d. second fastest; more

answer

d. second fastest; more

question

The family life cycle: a. is a way to apply psychographic segmentation. b. refers to the process of family formation and dissolution. c. provides insights into relationships among age, occupation, income, and housing. d. is composed of the 11 stages of personal growth from infancy to retirement.

answer

b. refers to the process of family formation and dissolution.

question

Five years ago, Joshua spent 28 percent of his $45,000 yearly income on his bachelor apartment. Today, Joshua is earning $60,000 annually. According to Engel's laws, the percentage of income he will spend on his new apartment will be: a. more than 70 percent. b. the same as it was back then -- about 28 percent. c. about 50 percent. d. less than 10 percent.

answer

b. the same as it was back then -- about 28 percent.

question

The 80/20 principle states that: a. market segmentation succeeds 80 percent of the time and fails the remaining 20 percent of the time. b. roughly 80 percent of total product sales come from 20 percent of customers. c. 80 percent of the market segment is tapped, and 20 percent has not yet been reached. d. 80 percent of the market can be segmented, and 20 percent cannot.

answer

b. roughly 80 percent of total product sales come from 20 percent of customers.

question

The strategy sometimes referred to as mass marketing is also known as: a. concentrated marketing. b. macromarketing. c. undifferentiated marketing. d. differentiated marketing.

answer

c. undifferentiated marketing.

question

Abecrombie and Fitch markets apparel to children, teens, and adults through two different storefronts called "Abecrombie and Fitch" and "Abecrombie". This practice is called: a. undifferentiated marketing. b. differentiated marketing. c. mass marketing. d. micromarketing.

answer

b. differentiated marketing.

question

A company that chooses to focus its efforts on satisfying only one market segment for profit is using a _____ strategy. a. niche marketing b. elimination marketing c. undifferentiated marketing d. designer marketing

answer

a. niche marketing

question

The latest ad of Crest toothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on: a. product price/quality. b. product class. c. product attributes. d. product users.

answer

c. product attributes.

question

"You don't pay more, but you get more" is an example of which of the following positioning strategies? a. Price/quality b. Attributes c. Users d. Competitors

answer

a. Price/quality

question

Which of the following would be a good example of a product user positioning strategy? a. "Chef Plauché of Galatoire's offers cuisine to please the most finely tuned palate." b. "Feed the whole family and don't break the bank at Jaeger's Homestyle Restaurant." c. "Bob's Rib House award-winning barbeque ribs -- the biggest and best in town!" d. "Dinners on the Go offers complete nutritious meals delivered right to your door."

answer

a. "Chef Plauché of Galatoire's offers cuisine to please the most finely tuned palate."

question

_____ marketing is the development, growth, and maintenance of cost-effective, high-value relationships with individual customers, suppliers, and other partners over time. b. Transaction-based c. Interactive d. Social

answer

a. Relationship

question

All of the following are characteristics of relationship marketing except: a. long-term orientation. b. emphasis on retaining customers. c. non-intrusive and infrequent customer contact. d. high degree of customer commitment to the firm.

answer

c. non-intrusive and infrequent customer contact.

question

Which of the following is an important goal of internal marketing? a. Customer satisfaction b. Vertical integration c. Retention of customers d. Employee involvement

answer

d. Employee involvement

question

The first step in measuring customer satisfaction is: a. testing market response for new products through controlled experiments. b. hiring a first-rate market research firm. c. finding out what customers need, want, and expect. d. mining the Web for blogs and discussion groups to obtain customer feedback.

answer

c. finding out what customers need, want, and expect.

question

Which of the following statements regarding customer satisfaction is true? a. Marketers must adhere to traditional performance measures to formulate customer-based missions and goals. b. Customers have greater loyalty to a company after a conflict has been resolved than if they had never complained at all. c. As happy customers typically talk about their buying experiences more than unhappy customers do, the cost of dissatisfaction can be rather low. d. Any method that makes it easier for customers to complain ends up demonstrating the ineptitude of a firm.

answer

b. Customers have greater loyalty to a company after a conflict has been resolved than if they had never complained at all.

question

Why do customers prefer to have continuing relationships with businesses or suppliers? a. Businesses tend to offer better financial incentives to customers who engage in continued relationships with them. b. By nature, customers are resistant to change and prefer preexisting relationships with businesses. c. By reducing the number of choices, the decision-making process is made easier. d. Most businesses have low switching costs which make them attractive to have continued relationships with.

answer

c. By reducing the number of choices, the decision-making process is made easier.

question

An Internet service provider (ISP) loses approximately 12 percent of its existing customers every year. The ISP is said to be experiencing: a. market reorganization. b. customer churn. c. intangibility. d. disintermediation.

answer

b. customer churn.

question

Best Buy Rewards Program tracks customer sales, and periodically issues coupons to customers based on prior purchases. This program is classified as _____ marketing. a. affinity b. database c. frequency d. social

answer

c. frequency

question

Which of the following is an example of affinity marketing? a. University of Iowa branded credit card b. Hallmark's Gold Crown card c. Blockbuster Rewards video card d. United Airlines Mileage Plus program

answer

a. University of Iowa branded credit card

question

_____ marketing is an information-based approach that collects infinite amounts of data that must be mined for specific information about markets and consumers. a. Frequency b. Affinity c. Database d. Customer service

answer

c. Database

question

Properly used, databases have the capacity to: a. predict the exact amount of a customer's next purchase. b. normalize the buying power of a company's customers. c. determine a company's share of the customer's wallet. d. identify a firm's most profitable customers.

answer

d. identify a firm's most profitable customers.

question

Which of the following organizations is most likely to use frequency marketing programs? a. Boston Red Sox b. American Insurance Group c. Southwest Airlines d. Trump Organization

answer

c. Southwest Airlines

question

YouTube offers viewers the option to share a video they have watched by sending it to one or more contacts in their e-mail address books. Using one visitor to reach many people is a form of _____ marketing. a. frequency b. viral c. grassroots d. lateral

answer

b. viral

question

_____ gathers volunteers to try products and then relies on them to talk about their experiences with friends and colleagues. a. Grassroots marketing b. Frequency marketing c. Affinity marketing d. Buzz marketing

answer

d. Buzz marketing

question

A leading detergent brand receives complaints from its customers that the chemicals used are too strong and dangerous, and they do not smell good. To counter this, the company runs a series of ads showing its experts approaching select customers with an improved detergent that addresses the concerns of the customers. The company is engaging in: a. controlled experimentation. b. viral marketing. c. buzz marketing. d. customer win-back.

answer

d. customer win-back.

question

The Eddie Bauer edition of the Ford Explorer is an example of: a. cobranding. b. comarketing. c. lateral partnership. d. internal partnership.

answer

a. cobranding.

question

_____ is a cooperative arrangement in which two businesses jointly promote each other's products. a. Bundling b. Product churning c. Comarketing d. Seller lock-in

answer

c. Comarketing

question

Strategic alliances are formed to: a. satisfy corporate officers. b. avoid problems related to anti-trust legislation. c. create a competitive advantage. d. present a united front to labor unions.

answer

c. create a competitive advantage.

question

Which of the following firms is most likely to enter into a vertical strategic alliance with Boeing? a. Airbus, a European consortium of aircraft manufacturers b. Pratt & Whitney, an aircraft engine manufacturer c. Cessna, an American airplane manufacturer d. Gulfstream Aerospace, a jet aircraft producer

answer

b. Pratt & Whitney, an aircraft engine manufacturer

question

Long-term customers are usually: a. less valuable to a company than short-term customers. b. more difficult to deal with than short-term customers. c. expensive investments because the upkeep is costly. d. more valuable assets than new ones because they buy more and cost less to serve.

answer

d. more valuable assets than new ones because they buy more and cost less to serve.

question

A product is: a. the physical attributes of something one can buy. b. whatever the seller says it is. c. a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs. d. a thing that's impossible to define, since everyone sees it differently.

answer

c. a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs.

question

Which of the following comes closest to providing a pure good? a. A company that manufactures and installs elevators b. A cleaning service c. A data storage company d. An advertising agency

answer

a. A company that manufactures and installs elevators

question

Which of the following companies is a pure service firm? a. Wal-Mart b. Microsoft c. Starbucks d. Delta Airlines

answer

d. Delta Airlines

question

All of the following industries belong to the service sector except: a. investment banking. b. retailing. c. agriculture. d. health care.

answer

c. agriculture.

question

Financial Services Inc. had call centers in Malaysia where employees worked in shifts to cater to American customers at all times. However, after receiving persistent complaints about unsatisfactory service quality and increasing inefficiency, the organization decided to bring the call centers back to the U.S. This is an example of: a. outsourcing. b. offshoring. c. backshoring. d. homeshoring.

answer

c. backshoring.

question

A company manufacturing hair care products introduced a shampoo with keratin to enhance hair quality and reduce hair breakage and hair loss. To ensure the right spot on the supermarket shelves, the company paid retailers a substantial amount of money. The money paid is called: a. push money. b. a rebate. c. a premium. d. a slotting allowance.

answer

d. a slotting allowance.

question

Supermarkets usually display items such as candy, gum, and magazines near the checkout counter because they are: a. purchased on impulse. b. easier to replenish. c. subject to shoplifting. d. purchased infrequently.

answer

a. purchased on impulse.

question

Convenience products that customers constantly replenish to maintain a ready inventory may be categorized as: a. staples. b. impulse items. c. emergency items. d. specialty items.

answer

a. staples.

question

Financial, legal, and medical services constitute: a. convenience services. b. shopping goods. c. specialty services. d. customized services.

answer

c. specialty services.

question

For which of the following products is the choice of location least important? a. Specialty products b. Shopping products c. Unsought products d. Convenience products

answer

a. Specialty products

question

Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn't purchased frequently. In addition, Sandra is working closely with a seller's marketing representative. Which type of product is Sandra's company considering purchasing? a. Accessory equipments b. Installations c. Component parts and materials d. Supplies

answer

b. Installations

Chap 9-11 – Flashcard

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