BMT 1400 Midterm Test Practice Questions – Flashcards
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Given the unique characteristics of their product and the fact that no other competitors exist, Zeon Manufacturing Company focuses their energy on finding the most efficient way to produce their product. Zeon Manufacturing Company appears to be part of the:
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production era.
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At a county fair you will find numerous vendors selling their products. As a single transaction purchase, these vendors do not anticipate future sales from you. As a result they are persistent in convincing you to buy their products. This "hard sell" is an example of what marketing era?
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The Selling Era
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Emerson has had tremendous success in her business. Her customers have been very loyal and have even referred friends to her business. Which of the following statements best describes Emerson's situation?
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Emerson has satisfied her customers by delivering perceived value beyond their expectations.
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An organization's marketing activities are
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designed to facilitate satisfying exchange relationships with customers
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True or False: Marketing consists primarily of selling and advertising.
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False
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When Mont Blanc purposely asks customers to pay much more for its fountain pens than its competitors charge for similar pens, this is an example of Mont Blanc's emphasis on which aspect of the marketing mix?
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Price
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If Merrill Lynch perceived that consumers within a particular group were becoming more conservative in their investing and if it therefore developed more products with lower risk, it would be
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responding to changes in the marketing environment.
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The concept of "exchange" is fundamental to the definition of marketing. What is the best description of exchange?
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Provision or transfer of goods, services, or ideas in return for something of value.
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True or False: Provision or transfer of goods, services, or ideas in return for something of value.
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True
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True or False: Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices.
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True
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Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices.
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service
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True or False: Forces in the marketing environment do not directly affect the marketing manager's ability to perform certain marketing activities.
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False
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True or False: Forces in the marketing environment do not directly affect the marketing manager's ability to perform certain marketing activities.
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False
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When a company identifies key customers that it wants to keep as customers for a period of several years, and then develops service programs designed to keep these customers loyal to its products and services, this is an example of:
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relationship marketing
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Concerning marketing activities, which of the following statements is the most accurate?
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Many marketing activities are performed to support exchanges even though some situations do not result in exchanges.
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When Dell Computer sells more than 90 percent of its computers in the U.S. over the Internet, the Internet represents which aspect of the marketing mix?
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Distribution
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A group of persons for whom a firm attempts to create and maintain a marketing mix that fits the needs and preferences of that group is known as a
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target market
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A company's customers, suppliers, stockholders, employees, and local communities are all examples of a company's:
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stakeholders
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Ford highlights that they are the only automobile company to hold five J.D.Power & Associates Initial Quality model awards. By featuring this current status in its promotion efforts, Ford is hoping it has a ________ to increase sales.
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market opportunity
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Procter & Gamble sells a number body wash and soap brands in the U.S., including Camay, Ivory, Noxzema, Olay, Old Spice, Safeguard, and Zest. P's decision to add a body wash using the Zest brand was most likely initiated at which level of strategic planning?
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Strategic Business Unit Strategy
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Four Seasons Hotels strive to deliver products and services that exceed expectations of their guests. One aspect of this goal is addressing guest concerns expeditiously. To this end, all employees are able to make decisions to remedy an issue without having to secure a supervisor's approval. This is an example of _________in action.
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empowerment
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Nestle USA sells numerous products, including pet food (Purina), frozen foods (Stouffer's), Candy (Wonka), and baby food (Good Start), just to name a few categories. Nestle USA most likely organizes its marketing department by:
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products
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When Coca-Cola Co. sells about 42 percent of the U.S. volume in soft drinks, this is called Coca-Cola's:
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market share
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True or False: Marketing objectives must be consistent with the firm's overall objectives.
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True
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To formulate a marketing strategy, one must:
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identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
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The strategic planning process begins with:
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an analysis of the marketing environment.
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True or False: A market opportunity arises when the right combination of circumstances and timing allows an organization to take action toward reaching a target market.
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True
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When Microsoft employs the top software designers in the world to work on a new software package, this is an example of Microsoft's:
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competitive advantage
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A long-term view, or vision, of what an organization wants to become is called a:
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mission statement
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True or False: The marketing control process consists of establishing performance standards, evaluating actual performance by comparing it with established standards, and reducing the differences between desired and actual performance.
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True
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When the quality of FedEx's delivery service is used as the industry standard against which other fast-delivery companies measure their performance, this is called:
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benchmarking
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According to the text, all of the following are considerations in assessing resources and opportunities except:
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a firm's stock prices
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All marketing mix decisions must have two characteristics: ___________ and ___________.
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consistency; flexibility
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When UPS sets a goal of reducing customer complaints by 10 percent next month compared to the same month a year earlier, this is an example of a(n):
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performance standard
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True or False: The information required to control marketing activities is always readily available and inexpensive to obtain.
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False
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True or False: The time lag between the performance of marketing activities and the effects of such activities limits a marketing manager's ability to measure the effectiveness of marketing activities.
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True
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When a company develops a written plan for launching a new product into the marketplace, this plan is called a(n):
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intended strategy
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The creation of Citi Mobile was most likely in response to which environmental forces?
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Competitive,Technological, and Sociocultural
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A new product has challenged Sony's leadership position in consumer electronics. The Apple iPod dominates the market for personal music players. This external factor should have been identified in the:
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competitive environment
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With fuel costs rising, manufacturers of large SUVs have seen sales fall. But, hybrid or alternative fuel vehicles have increased in popularity. This observation would be classified as part of the:
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economic environment
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Computers killed the typewriter. This is an example of how the _______ can threaten or offer opportunities to a business.
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technological environment
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The banning of cigarette advertising on television in the U.S., is an example of which element of the marketing environment?
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political/legal environment
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To effectively monitor changes in the marketing environment, marketers must engage in
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environmental scanning and analysis
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True or False: Many marketers view political forces as being beyond their control; therefore they try to adjust to conditions that result from these forces.
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True
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The great emphasis on dieting and "eating right" in the U.S. is an example of the impact of:
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sociocultural forces
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The strength of a person's "buying power" depends on economic conditions and
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size of resources that can be traded in an exchange
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Marketers' obligations to be profitable, to provide a return on investment to stockholders, to create jobs for the community, and to supply goods and services to customers relate to which of the following social responsibility dimensions?
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Economic
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The U.S. federal agency that regulates false advertising, misleading pricing, and deceptive packaging practices is the:
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FTC
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True or False: The amount of future income already committed to past credit agreements influences one's ability to use more credit.
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True
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In Kennedy's consumer "bill of rights," a marketer's obligation not to knowingly market a product that could harm consumers is known as
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the right to safety
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Honda's Hybrid Civic automobile which uses an electric motor to supplement its internal-combustion engine is an example of:
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green marketing
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Socially responsible business practices have provided all of the following benefits except
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reducing marketing costs
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True or False: Codes of conduct encourage ethical behavior by eliminating opportunities for unethical behavior because employees know what is expected of them and what the punishment will be if they violate the codes.
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True
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A synergistic use of businesses' core competencies to address stakeholders' interests and provide social benefits is known as
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strategic philanthropy
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Which of the following is one of the four stages of the business cycle?
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Prosperity
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When a graduate student saves money to make a down payment on a used car, this is an example of:
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discretionary income
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Companies that seek to offer new products to their customers often reach conclusions after extensive marketing research. All the following are likely research tools used in this process, except:
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reliability studies
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_________ involves gathering, interpreting, and applying information to uncover opportunities and challenges.
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Marketing Research
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Rodrigo is an owner of a dry cleaning business. He is concerned that over the past several months he has seen a reduction of business from some of his regular customers. In addition, he notes that coupons he has placed in local newspapers are not being redeemed as often. Which of the following statements best describes Rodrigo's plan of action.
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He should conduct marketing research to explore his current situation
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Laurie is conducting marketing research on behalf of her company. An online questionnaire she developed has generated numerous responses, and she will continue with a series of in-person interviews. It appears Lauire is at what stage of the marketing research process?
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Collecting the data
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Which of the following statements correctly summarize marketing research data?
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Exhaust secondary data sources first. If necessary, then collect primary data
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Which of the following characteristics are typical of primary data? Tends to be more expensive. Can be outdated Customized to meet your needs. Fresh, new data
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1, 3, and 4 only
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All of the following are secondary data sources, except:
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Scheduling a focus group
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All of the following are primary data tools, except:
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The U.S. Census
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Emerson was recently invited to participate in a research study. She was told she would be part of a group of 8-12 women who will be brought together to discuss their views on SUVs, mini-vans, and station wagons. The session will last 90 minutes and she will be paid for her time. It appears Emerson will be part of a:
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Focus Group
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When Canon collects warranty card information from customers who have purchased one of its digital cameras, this is an example of:
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primary data
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If Strike-King Fishing Lures knows that its market share in the southwest region has dropped 13 percent in the first quarter of the year but does not know what might have contributed to this decline, it is in which stage of the marketing research process?
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Problem definition
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The statement: "If we increase our TV ad budget by $1.5 million during the next quarter, we expect that our market share for this product will increase by two points" is an example of a(n):
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hypothesis
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The biggest disadvantage of mail surveys is that:
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there may be a low response rate
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Research conducted to clarify the characteristics of certain phenomena and thus solve a particular problem is considered
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descriptive research
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All of the following are steps in the marketing research process except
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surveying the population
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When the marketing department asks the accounting department of the company to generate a list of the 20 most profitable customers in the past year, this is an example of:
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secondary data
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True or False: The population for a particular marketing research design is the portion of the total market that is actually questioned or observed.
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False
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A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group is considered a
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quota sampling
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True or False: In general, corporate executives prefer research reports that are short, clear, and simply expressed.
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True
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Procter & Gamble (P&G) markets two antiperspirants and deodorants in the U.S., Secret for women and Old Spice for men. P&G's targeting strategy is:
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differentiated
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Xerox highlights its range of business color printers. According to this ad, it appears Xerox is segmenting based on which variable?
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Product Use
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Recently, 100-calorie snack food offerings have grown in popularity. Like Hostess, companies that have added this product offering to their assortment are applying what type of segmentation?
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Behavioristic
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Steve has identified a potential group of customers for his product. Given the nature of the product, he has narrowed it down to a specific region of the country. This group of individuals is Steve's:
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Target Market
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A target market should have all the following characteristics, except:
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Should be easily influenced
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Which of the following is an example of consumer segmentation?
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A new product designed to appeal to senior citizens
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Manufacturers of snowblowers focus their advertising in regions of the country where it snows at least 10 inches a year. This target market is an example of:
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Geographic Segmentation
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Day spas provide personal care services, such as facials and massages. They often sell luxury body care products. Spa owners say they are appealing to a particular lifestyle. In other words, how people spend their time and money. This is an example of:
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Psychographic Segmentation
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Shampoo companies have identified various customer segments and have created products that meet their needs: Dandruff shampoo; Shampoo for damaged hair; Shampoo for thinning hair; etc. This is an example of:
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Behavioral Segmentation
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The number of companies with at least one hundred employees per square mile in Ohio is an example of:
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market density
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True or False: A differentiated targeting strategy is one in which the organization directs its marketing efforts at two or more segments by developing one marketing mix to be used in all selected segments.
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False
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Markets fall into one of two categories. These categories are:
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consumer and business
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Rate of use (heavy user, medium user, light user) is an example of what type of variable in market segmentation?
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Behavioristic
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True or False: With a concentrated targeting strategy, a company designs a single marketing mix and directs it at the entire market.
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False
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A market in which a large proportion of customers have similar needs for a product is called a(n) _____ market.
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homogeneous
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The number of laptop computers that Dell Computer Co. expects to sell during the next quarter in Europe is an example of:
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a sales forecast
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Through a market test, the forecaster gains information about consumers' ________ purchases.
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actual
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True or False: Trend analysis is a sales forecasting technique based on historical sales data.
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True
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If Crest segments the market for toothpaste into cavity protection, whiter teeth, and breath freshener, this is an example of what type of market segmentation?
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Benefit
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True or False: Micromarketing is the focusing of precise marketing efforts on small geographic units such as neighborhoods.
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True
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In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method?
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trend analysis
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When IBM segments the business market for its large computers into segments based on the annual sales dollars of companies in the past year, this is an example of what type of segmentation variable?
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Customer size
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True or False: When evaluating market segments, the least important factor in selecting a specific segment is likely to be the estimated cost associated with entering and marketing to a particular segment.
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False
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What is the main problem with using a market test as a forecasting tool?
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expensive
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