BusM 241 Finals Quiz review (Doug Witt) – Flashcards
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A typical commercial bank, as reported in "Why Service Stinks," knows that the top 20 percent of its customers generate up to six times more revenue than they cost, while the bottom 20 percent costs three to four times more than they make for the company.
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True
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Technology, as reported in "Why Service Stinks," allows companies to cater to the profitable customers while:
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giving other people skimpier service
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Market share is:
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the ratio of the sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
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According to Michael Porter, sound strategy starts with having the right goal and the only goal that can support a sound strategy is:
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superior profitability
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Which of the following would constitute the best target market for week-night Utah Jazz tickets?
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NBA basketball fans living in or near Salt Lake City.
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The four Ps are commonly known as:
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the marketing mix
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According to Levitt in "Marketing Myopia," Henry Ford was a genius because:
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Ford figured out how much people would pay then designed a car that he could build and sell for that amount.
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Theodore Levitt asserts:
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Oil companies should have broadened their perspective about gas to include natural gas distribution to homes.
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According to "Michael Porter's Big Ideas," strategy is about all of these except:
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operational effectiveness
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According to "Michael Porter's Big Ideas," strategy is about
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choosing to be different making choices tradeoffs, deciding what NOT to be
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In marketing, the concept of "exchange" refers to:
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the process through which any buyer and seller trade something of value.
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Southwest Airlines, as reported in "Start With the Customer," helps to create a "family feeling" with customers by inviting frequent fliers to:
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help interview new flight attendants
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Can everything be marketed?
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Yes!
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Which statement(s) correctly represent the opinions of Carlos Ghosn and Michael Porter?
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Ghosn remarked, "We don't want to be something for everybody, we want to be everything for some people. By that definition, we're going to distinguish ourselves." Michael Porter says, "A strategy delineates a territory in which a company seeks to be unique. Strategy 101 is about choices: You can't be all things to all people."
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A BYU co-ed would like to buy a Vespa scooter, but she cannot afford one. Which of the following reasons would explain why marketing fails to occur in this example?
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no ability on the part of each to satisfy the other
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Through the use of advertising and promotions marketers are able to create fundamental needs which cause consumers to purchase their products.
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False! Fundamental needs are basic to the human condition and cannot be created through clever advertising or promotion.
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According to Jagdish N. Sheth and Rajendra S. Sisodia: "Customers should be viewed and managed as assets of the organization to be invested in, depreciated, and replaced." In addition to the outsourcing of customers, "companies also need to think about trading, sharing, firing, and outright selling customers."
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True!
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The Lanham Act cannot protect the rights to a trademark if:
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the name or symbol has become generic.
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Younger members of Generation Y are also referred to as:
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millennials
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More magazine is a publication designed to appeal to women over the age of 40. Demand for such magazines is an example of how ______ forces impact the marketing environment.
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social
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A car collector, Mr. F. Hansen, who said his 1975 Chevrolet Corvette was certified as the last Corvette convertible to be produced, sued General Motors to stop it from manufacturing any more of the convertible sports cars. The suit also requested $1.5 million in damages. Hansen claimed he bought the car for its collector's value. It came with a letter from GM dated August 25, 1975, that said the car was "the last Corvette convertible that General Motors Corp. would ever manufacture." Hansen said the value of his car has been decreasing ever since GM resumed manufacturing Corvette convertibles in 1985. If the court ruled in favor of Mr. Hansen, what general type of regulation would such a ruling represent?
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Protecting consumers from unfair trade practices
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Which of the following is the best example of a company responding to the societal change of blended families?
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Hallmark introducing cards for step parents.
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The video game industry has traditionally marketed their programs primarily towards men. Gaming companies are now hiring women to add female characters to games and:
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designing new games centered more around traditionally female interests such as taking care of babies.
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The factors that drive competition include:
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entry, bargaining power of buyers and suppliers, existing rivalries and substitution possibilities.
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The roles of men and women in American society have changed dramatically during the past decades. For instance, more women are actively and successfully pursuing careers in both the public and private business sectors. Women across the nation have established successful managerial and professional positions including doctors, lawyers, and marketing executives. Such changes in the role of women in society have necessitated that businesses adjust their marketing strategies and service delivery. Which of the following could be examples of marketing changes affected by changing roles of women in the workforce?
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24-hour grocery stores extended banking hours automatic teller machines changes in how women are portrayed in advertisements
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Febreeze is an odor-controlling spray that is manufactured by Procter & Gamble. When Febreeze was introduced, it was tagged as a pet killer by people in a chat room and the rumor spread. If Procter & Gamble had not been so convinced it was a potentially very successful product, Febreeze could have been deleted from the P&G product line as a result of:
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negative word of mouth.
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Marketers use three approaches to try to change consumer attitudes toward products and brands: (1) changing beliefs about the extent to which a brand has certain attributes; (2) changing the perceived importance of attributes; and (3) __________.
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adding new attributes to a product
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Which of the following statements about social class is most accurate?
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Social class is relatively permanent and homogeneous.
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High involvement purchases typically have which of the following sets of characteristics?
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The item is expensive, can have serious personal consequences, or could reflect on one's social image.
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The two major styles of family decision making are:
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joint and spouse dominant
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When General Motors started selling its Saturn cars, it announced that the cars would have a non-negotiable price. There would be no negotiations. A customer who wanted to buy a Saturn would pay the posted price. General Motors probably adopted this pricing policy because:
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women have an intense dislike of price negotiation, yet still want to buy a car.
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Women influence approximately what percent of new car-buying decisions?
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83%
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Pepsi-Cola made "freshness" an important product attribute when it stamped freshness dates on its cans. Prior to doing so, few consumers considered cola freshness an issue. Pepsi is trying to change consumer's attitudes toward Pepsi by:
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changing the perceived importance of a specific attribute.
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Students who wear sweatshirts displaying the Greek letters for fraternities or sororities to which they belong are demonstrating pride in a(n) __________ group.
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membership
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According to "The Dealership Experience" (Supplemental Reading), consumers who purchase expensive automobiles like Mercedes Benz and BMW feel they have a right to expect perfection from the manufacturer and perfect service from the dealer. When these rigid expectations are not met, the buyer tendency is to switch brands for their next purchase.
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False! None of that nonsense is mentioned or implied in the article.
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Which of the following statements represents a possible measure of success in the "define the problem" stage of the marketing research process?
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If observations show that children like Toy A more than Toy B in terms of hours spent playing with it, then we will move ahead with making Toy A.
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Analyzing data and presenting findings would take place during which stage of the five-step marketing research approach?
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Develop findings
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Two special methods vital to marketing are __________ and __________.
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sampling; statistical inference
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The two main types of data are _________.
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primary and secondary
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Research objectives are __________.
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specific measureable goals
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Best Western International, Inc., a national hotel chain, paid couples to videotape themselves as they spent three to seven days on a cross-country trip. From this, Best Western found that women usually decide when to pull off the road and where to stay. These couples were encountering the hotel rooms in a "natural use environment," and so providing __________ research to Best Western.
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ethnographic
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The final stage in the five-step marketing research approach includes making action recommendations, implementing action recommendations, and __________.
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monitor how the decisions work turn out
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Three frequently used sales forecasting techniques are judgments of the decision maker, surveys of knowledgeable groups, and __________.
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statistical methods
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Once a marketing researcher has defined the problem, developed the research plan, and collected the relevant information, what is the next thing he or she needs to do?
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analyze data and present findings
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In setting research objectives marketers have to be clear on the purpose of research they are about to do that leads to marketing actions. The three main types of marketing research include exploratory research, causal research, and __________ research.
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descriptive
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Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about milk. The dairies wanted to __________ milk in the minds of the consumer.
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reposition
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Many families today hold potluck meals during holidays or special events. Participants bring casseroles, vegetables, breads, and desserts and all share the food. It is easy to forget to take the bowl that you brought to the dinner home with you. Clorox company, owner of the Glad brand, created GladWare inexpensive disposable containers for transporting food. Clorox has recognized how to use _________ variables to segment its market.
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behavioral
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Which of the following statements regarding market segmentation is most accurate?
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In most segmentation situations, a single product does not fit into an exclusive market niche.
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According to Harley Davidson it continues to focus nearly all of its marketing efforts toward men because women still find heavy motorcycles generally un-appealing.
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False!
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Tony Hsieh, CEO of Zappos, offers $2,000 to anyone who:
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takes the loyalty training class and decides to quit anyway.
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To avoid cannibalization within company product lines, firms often use
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differentiation positioning.
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The ultimate criterion for an organization's marketing success in customer relationship management is that __________ as a result of increased synergies.
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customers should be better off
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Philip Kotler in "Future Markets" disagrees with "The Rise of the Real Mom" by Advertising Age regarding the effectiveness of cause-related marketing. Kotler says that cause-related marketing was a fad of the 90s, while Advertising Age notes a significant resurgence.
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False!
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In "The Rise of the Real Mom," the authors suggest that Millennial-Age women are more accepting of the potential trade-offs between motherhood and career; in effect realizing that you can't be great at everything.
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True
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A means of displaying or graphing in two dimensions, the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as:
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perceptual map
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During the development process for a new product, the Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other machine on the market. Based on this price, Asko created and priced the product considering what profit margins would be allowed for wholesalers and retailers in order to achieve the $989 retail price. Asko used:
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value pricing
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Which of the following statements about the Robinson-Patman Act is true?
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The Robinson-Patman deals with price discrimination. The Robinson-Patman contains provisions dealing with promotional allowances. The Robinson-Patman allows price differentials to different customers under certain changing market conditions. The Robinson-Patman allows sellers to "meet the competition."
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"The customer is our enemy; the competitor is our friend." That's the unofficial world-view of $11-billion-in-sales Archer Daniels Midland (ADM), according to FBI mole-executive Mark Whitacre in an interview. Given this information, which of the following illegal pricing practices would ADM have been most likely to engage in?
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price fixing
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For precision shooting competitions, Leupold & Thomas, U.S. manufacturers of rifle scopes, patented a revolutionary new laser optic system specifically designed for competitive target shooters. Shooting competitions are won by hundredths of an inch, so the image seen through the scope is crucial. Given the advantage afforded by the patent, Leupold decided to set an initial price for the new Competition Series II scope at $1,600 and up, even though their production costs are 20 percent lower than their current Competition Series I scopes which start at $1,200. Which pricing strategy is Leupold & Thomas using?
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market skimming
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American's consumption of gasoline remains fairly constant as prices fluctuate between $1.39 per gallon and $1.59 per gallon. This would suggest that demand for gasoline between these two price points is:
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inelastic
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When using a product line pricing strategy, a retailer will:
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set the price of a line of products at a number of different specific pricing points.
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As suggested by Theadore Levitt in Marketing Myopia, Henry Ford could be considered a genius because:
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he figured out that many people would pay $500 for an automobile.
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In one of its least favorite actions, Amazon.com was caught fiddling with its price tags. Shoppers complained after learning that Amazon was offering different customers different prices for the same DVD. According to company officials Amazon was trying to see how much it could charge for an item before shoppers balked. No matter what the reasoning behind it, Amazon.com had been caught red handed using:
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price discrimination.
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You are the marketing manager for a company that manufactures Music2Go portable MP3 players and you want to reduce your break-even production quantity. Other things being equal, you can do this by:
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reducing unit variable cost.
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What would be the most difficult in determining how much additional profit might result from a new advertising campaign?
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predicting the additional sales generated by the campaign
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In the early 1980s, typical round trip coach fares from the East Coast to London were over $500. Then Freddie Laker introduced a competing service into Newark at $350. Major airlines matched his price--and continued to do so until they drove Laker out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. Laker's experience is an example of:
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predatory pricing.
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Woodsgift Farm sells floral jellies made from pansies, honeysuckle, wisteria, and other flowers. To price its jellies, the owner of the farm always adds 30 percent to the cost of everything that goes into making the jellies including their salaries, jars, sugar, and pectin. What is this pricing method called?
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target return-on-sales pricing
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Sometimes a seller requires it dealers to abstain from handling competitor's products in an arrangement called _________ .
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exclusive dealing
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In marketing terms, the number of intermediary levels indicates the _______ of a channel.
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length
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By definition, a conventional distribution channel consists of one or more independent producers, wholesalers, and _________.
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retailers
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Three strategies are available when determining the number of channel members to use at each level, they are: intensive, selective and _________ .
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exclusive
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A partnership of suppliers, distributors and customers designed to improve the performance of the entire system is referred to as a _______.
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value delivery network
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Companies manage their supply chains through ___________.
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information
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An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.
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specialized role
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A recent major trend, whereby producers are bypassing intermdediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones is referred to as _________ .
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disintermediation
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The most common type of contractual agreement in business is the ____________ .
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franchise organization
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Channel members add value by bridging the major gaps of ______ that separate goods and services from those who would use them.
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time, place and posession
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More companies are adopting the concept of ____________. This carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.
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integrated marketing communications
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Before all other stages the communicator using the buyer-readiness stages must first build _________.
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awareness
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An advertising agency assembles words and illustrations into an advertisement that will convey the intended message. What they are doing is called _________.
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encoding
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Today, marketers are moving toward viewing communications as managing the __________ over time.
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customer relationship
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Marketing communicators must be good at ________ messages that take into account how the target audience ______ them.
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encoding; decodes
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If the _________ is effective, consumers will then demand the product from channel members, who will in turn demand it from producers.
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pull strategy
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Moving away from _____, there has been a shift toward one-to-one marketing spawning a new generation of more specialized and highly targeted communications efforts.
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mass marketing
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The communications tools a company uses to pursue its advertising and marketing objectives is often referred to as the company's ________ .
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promotional mix
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Pike's Place is a fish market in Seattle. Their "product" could be construed as: (Check ALL that apply.)
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food fish entertainment fun a service
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Howard Moskowitz, PhD is a market researcher and psychophysicist, famous for his observations about vertical and horizontal segmentation of food products like spaghetti sauce. What we should learn from Dr. Moskowitz is:
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there is not necessarily a "better" when it comes to taste and texture, just different product variations for different consumer segments.
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Honda's racing experience teaches us that failure can be beneficial.
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True! Failure can be viewed as part of the learning process which may ultimately lead to success.
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In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving horses and buggies, your great-great-grandfather got in his new car and drove it into his new garage. Great-great-grandfather's new automobile was an example of a:
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discontinuous innovation.
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The key difference between a product line and a product mix is:
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a product line refers to a limited group of products bound by similar usage, customer base, pricing, distribution, or consumer needs, while a product mix includes everything an organization sells or distributes.
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The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is one bear it designed for people to give to each other on Valentine's Day. The Love Bandit Bear is an example of a:
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product item.
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Which of the following would most likely be considered accessory equipment for a home builder?
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Photocopier
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When consumers think of Harley-Davidson, the image of a masculine, non-conformist is the likely associated with that brand of motorcycle. With Vespa motorscooters, the image might more likely be a brainy environmentalist. Both Vespa and Harley-Davidson:
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have brand personalities.
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An example of brand extension is:
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Yamaha makes snowmobiles and musical instruments
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______ is the positive differential effect that knowing the brand name has on customer response to the product or service.
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Brand equity
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The role of the BMW product advocate is to:
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behave like a consumer, drive the car and come up with ways to improve the ownership experience.
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BMW typically manages their products to a ___ year life cycle.
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Seven
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What are effective methods of overcoming consumer purchase barriers?
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money-back guarantee warranty easy instructions for use demonstrations free sample
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What is one benefit of having a strong trademark represented by a registered name or symbol (logo)?
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A recognizable trademark can be important and beneficial in helping consumers recognize your brand.
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The "diffusion of innovation" refers to:
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a model that seeks to explain why, and at what rate new ideas, technology and products are adopted by various groups of consumers.
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Scenario: In February, 2011, Apple Computer announces a new line of MacBook Pro laptop computers with cutting-edge technology that makes them lighter and faster with a world-class display, a new and innovative touchpad, a separate SSD flash drive to make the operating system run faster, and a brand new, super fast interface for external devices. This would be a good example of:
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changing the value offered by trading up.
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When BMW featured their cars in starring roles in short films, they were attempting to create stronger ______ for BMW.
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brand personality
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The V-Rod engine was developed in a joint venture between Harley Davidson and Porsche. The Düsseldorf engine test is an example of activities which take place during the _____ stage of the new-product process.
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development
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Harley Davidson began the project code named "Digger," in order to accomplish what objective?
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Address a different segment of the motorcycle market.
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What model name did Harley Davidson select for the name of its new V-Rod motorcycle?
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V-Rod
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How did Harley Davidson organize the teams, departments and individuals during the development process for the V-Rod?
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The company and the Digger project participants were organized into cross-functional teams.
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Which three components presented the greatest design challenges to Harley Davidson during the development of the V-Rod? (Check three answers)
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radiator exhaust pipe gas tank
