BUSML 3250 Principles of Marketing (Exam 1 Quizzes) – Flashcards
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To create and capture customer value, companies must engage the first step of the marketing process, which is:
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understand the marketplace and customer needs and wants
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Marketing was once understood in the sense of making a sale. Today, marketing is understood in the new sense of:
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satisfying customer needs
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The key element of successful marketing today is to:
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create value
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What is the final step in the marketing process?
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Capture value from customers
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Engaging customers and managing profitable customer relationships is the simplest definition of:
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marketing
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You are thirsty and decided to have an iced tea. Your thirst is a _________ and your choice of iced tea is a ________.
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need, want
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Which of the following correctly identifies the five core customer and marketplace concepts?
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1. Needs, wants, and demands 2. Market offerings 3. Value and satisfaction 4. Exchanges and relationships 5. Markets
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The primary goal of consistently delivering superior value is to:
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build profitable customer relationships
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In marketing terms, what is a market?
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The set of actual and potential buyers of a product or service
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Market offerings include:
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products, services, and experiences
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The actual and potential buyers in a market share which of the following characteristics?
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They share a particular need and/or want
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The first step to a successful value-driven marketing strategy is to determine whom to service with a market offering. To make this decision, marketers engage in which two activities?
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Segmenting and targeting
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What is the purpose of a value proposition?
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To differentiate and position a market offerings in the marketplace
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Which marketing orientation states that consumers will favor products that offer the most in quality, performance, and innovative features?
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The product concept
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Which of the following uses a sense-and-respond philosophy to promote a customer-centered marketing orientation?
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The marketing concept
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Companies such as IBM, Walmart, and Google now look economic gain and, in their marketing strategies, they also consider the well-being of customers, the depletion of natural resources, the viability of suppliers, and the interests of the local community. This reflects which marketing philosophy?
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The societal marketing concept
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What are the 4 Ps of marketing?
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Product, price, place, promotion
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What is the key to building lasting customer relationships?
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Creating superior customer value and satisfaction
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Customer-perceived value is the customer's evaluation of the difference between....
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all the benefits and all the costs of a market offering relative to those of competing offers.
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Which of the following is an accurate statement about building customer relationships in the modern marketing era?
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Building relationships through consumer-generated content is expensive and takes time
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The total combined lifetime value of a company's current and potential customers is called:
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customer equity
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For which customer relationship group should a company make continuous relationship investments to delight, engage, retain, and grow them?
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True friends
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How has the Great Recession of 2008-2009 affected marketers in terms of consumer attitudes?
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Consumers are showing an enthusiasm for frugality
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What does a company do to start the strategic planning process?
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Define its overall purpose and mission
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Mission statements should be defined in terms of satisfying basic customer needs. In other words, they should be:
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Market oriented
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After defining its mission, the next step in strategic planning is to:
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Set company objectives and goals
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What is the overall focus of strategic planning?
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To create a game plan for long-run survival and growth in consideration of changing marketing opportunities
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In portfolio analysis, a company must identify strategic business units, which are...
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key businesses that make up the company
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What are the two measurements used in the BCG matrix to classify strategic business units?
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Relative market share; market growth rate
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The BCG matrix classifies products which have a high market share in a low growth market as:
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Cash cows
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According to the growth-share matrix, stars are high-share, high-growth products. When the market growth slows these products become
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Cash cows
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Strategically, a company may phase out or sell an SBU. This is known as:
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Divesting
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To grow sales, Under Armour increased its spending on advertising by 35 percent to increase sales in its current markets. Which growth strategy does this represent?
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Market penetration
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Then Under Armour expanded its current products into global markets, it was pursuing which growth strategy?
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Market development
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When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategy?
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Diversification
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The key role marketing plays in a company's strategic planning is to:
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provide a guideline philosophy
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To improve the performance of the customer value delivery network, many companies today are partnering with...
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other members of the supply chain- suppliers, distributors, and customers.
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In which way does increasing customer satisfaction disrupt the internal value chain?
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It can increase production costs, increase inventories, and disrupt production schedules
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What is the overall goal of marketing strategy?
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To create customer value and build profitable relationships
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In determining which customers to serve, a company engages in which two marketing activities?
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Segmentation and targeting
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Some retailers, such as the Dollar Store, Dollar Tree, and Family Dollar, profitably focus on buyers with modest means. This is an example of:
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Market targeting
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What does a market segment consist of?
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A group of consumers who respond to the marketing effort in the same way
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Effective positioning is based on:
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differentiation
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The four Ps of the marketing mix have been redefined in buyer's terms as the four As.
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Product design influences acceptability, price affects affordability, place affects accessibility, and promotion influences awareness.
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What are the main components of a marketing plan?
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An executive summary, situation analysis, objectives, marketing strategy, action programs, budgets and controls, and threats and opportunities
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Which of the following is not one of the five marketing management functions?
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Customer service
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The demand for organic is growing. Green Acres Farms grows only organic vegetables. In a SWOT analysis, the rising demand for organic product would be an ____________ for Green Acres Farms, and the fact that they grow only organic vegetables is a _____________.
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opportunity, strength
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Which of the following is a true statement regarding managing and measuring marketing return on investment (ROI)?
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Marketing are increasingly using measures such as customer acquisition and retention, customer engagement, and customer equity as measures of ROI
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Which of the following correctly lists marketing intermediaries?
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Resellers, physical distribution firms, marketing services agencies, and financial intermediaries
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The ________________ consists of larger societal forces that affect how a company engages and serves its customers.
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macroenvironment
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Which of the following statements regarding generational marketing is correct?
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Marketers need to form more precise age-specific segments within each generational group
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Which of the following is an important trend in the natural environment that marketers should be aware of?
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Products that require scarce resources will face large cost increases
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Fathers were once ignored or portrayed as dolts in advertising, however today's advertisers are showing more caring and capable dads. This reflects which demographic trend?
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Changing dynamics in the American family
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One important reason that business legislation is enacted is to...
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protect consumers from unfair business practices
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P&G launched their "Tide Loads of Hope" program, which provides mobile Laundromats to families in disaster-stricken areas. P&G washes, dries, and folds clothes for these families free of charge. This is an example of...
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cause-related marketing
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Demography studies statistics that include
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age, gender, race, and occupation
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A firm can be proactive by...
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pressing lawsuits to keep competitors in line
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Which of the following is true regarding the technological environment?
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Companies must keep up with changes in technology or risk being left behind.
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________________ is the first stage in the new product adoption process.
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Awareness
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What are the four major psychological factors that influence consumer buyer behavior?
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Motivation, perception, learning, and beliefs and attitudes
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Two things can come between the intention to make a purchase and the actual purchase:
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the first is the attitudes of others and the second is unexpected situational factors
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Which adopter category consists of opinion leaders who adopt new ideas early but carefully?
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Early adopters
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What are the three cultural factors that influence consumer buyer behavior?
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Culture, subculture, and social class
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Which of the following statements regarding American subcultural groups is correct?
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Asian Americans are the most affluent US demographic segment.
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Dissonance-reducing buying behavior would result from which of the following conditions?
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High involvement and few differences between brands
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Which of the following statements is correct regarding consumer buying decisions?
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Consumers are often unaware of what influences their purchases
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A purse company's ads feature the cast of a popular reality show. Product sales increase significantly among the fans. From the fan's viewpoint, the cast is a...
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reference group
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Which of the following correctly identifies the social factors that influence consumer buyer behavior?
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Small groups, social networks, family, and social roles and status
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Which of the following statements about the use of digital and social media for B-to-B marketing is correct?
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It allows business to target individuals within a business who affect buying decisions
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The first stage of the business buying decision process is problem recognition. What is the second stage?
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General need description
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Business-to-business marketers will sometimes promote their goods directly to consumers.
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This is because business demand is derived
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A University is buying new overhead projectors for its classrooms. The University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the University's buying center?
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Influencer
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The US Government normally awards contracts to...
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the lowest bidder
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Age, personality, buying style, and job position are __________________ that can influence the business buying decision process.
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individual factors
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Which of the following statements regarding the US government market is correct?
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The US government is the largest buyer of goods and services in the world
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One problem with business-to-business e-procurement is that...
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it can erode long-standing customer-supplier relationships
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The buying center consists of all the people who are...
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involved in an organizational buying decision
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Psychographic segmentation divides buyers into different segments based on...
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lifestyle and personality
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What is the overall purpose of differentiation?
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To create superior customer value
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Which of the following descriptions best represents targeting a demographic segment?
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Marketing prepackaged lunches for children
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Choosing a differentiated targeting strategy has many benefits, but a potential downside is...
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that it can increase costs
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Which targeting strategy focuses on common consumer needs, as opposed to different needs?
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Mass marketing
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When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on...
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cultural factors
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If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because...
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the segments are not differentiable
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Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving those two very different groups, Fitbit is using...
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benefits sought segmentation
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What is positioning?
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Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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Which value proposition is the most difficult to sustain in the long run?
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More for less
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Furniture, major appliances, clothing, and hotel services are classified as...
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shopping products
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Materials and parts, capital items, and supplies and services are groups of...
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industrial products
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Which of the following best describes brand equity?
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A measure of the brand's ability to capture consumer preference and loyalty
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Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as...
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convenience products
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If a company product line is added to its existing portfolio, it has increased its...
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product mix width
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One characteristic of services is their variability. What is the main reason for services being variable?
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Service quality depends on who provides them, as well as when, where, and how they are provided.
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Which of the following statements regarding managing brands is correct?
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Customers' engagement with brands and customers' brand experiences are the key elements in maintaining a brand's position
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The number of items in a product line represents the ______________ and the total number of product lines a company carries represents the ____________.
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product line length, product mix width
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Which of the following correctly defines a product?
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A product is anything offered to a market that might satisfy a need or want
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges are called...
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product line
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When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC)...
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sales would be slow and profits nonexistent
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Which of the following statements regarding socially responsible product decisions is correct?
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The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition
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What is the first step of the new product development process?
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Idea generation
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One recent development in generating new product ideas is for a company to invite broad communities of people - such as employees, customers, and even the public at large - into the innovation process. This is known as...
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crowdsourcing
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A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?
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Growth
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Which of the following statements concerning new products is correct?
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Modified and improved products are considered new
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Which of the following statements regarding standard test marketing is correct?
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Test marketing can be costly and delay commercialization of the product
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Installing an innovation management system to collect, review, evaluate, and mange new product ideas represents a __________________ to new product development.
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systematic approach
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What is a product concept?
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A detailed version of a new product idea stated in meaningful consumer terms
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Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law?
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The Consumer Product Safety Commission (CPSC)
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When a company provides superior value by leading its industry in price and convenience, it is pursuing an...
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operational excellence strategy
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According to the text, which customer and competitor orientation should company's today practice?
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Market-centered
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Which of the following strategies would be utilized by a market challenger?
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Observe what had made the market leader successful and improve on it
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Which of the following statements regarding identifying competitors is correct?
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There is no one correct way to identify competitors
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Defining competitors as "companies that are trying to satisfy the same customer need or build relationships with the same customer group" is using a ___________ point of view.
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market
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Marketing strategy often passes through three stages. At which stage is a company started by an individual who visualizes an opportunity?
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Entrepreneurial marketing
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There are three ways that market leaders can expand total market demand. They can expand total demand by...
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finding new users of the product, promoting new uses for the product, and encouraging more usage of its products
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According to the text, digital services that overlap with traditional newspaper content are __________________ because they offer, for free, real-time content that subscription-based newspapers printed once a day can't match.
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bad competitors
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A _________________________ is used to determine the benefits that target customer's value and how customers rate the relative value of various competitors' offers.
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customer value analysis
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What is benchmarking used for?
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To assess competitor's strengths and weaknesses
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Many critics charge that the American marketing system causes prices to be higher than they would be under more "sensible" systems. What are the three factors that critics say cause these inflated prices?
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High costs of distribution, high costs of advertising and promotion, and excessive markups
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___________________________ considers the present needs of business and the future needs of consumers.
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The societal marketing concept
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What is redlining?
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The failure of large retailers to put stores in disadvantaged areas
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Sense-of-mission marketing means that the company should define its mission in broad _________ terms rather than narrow product terms.
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social
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The American Marketing Association (AMA) developed a code of ethics for marketers based on three principles. These three principles are:
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Do no harm, embrace ethical values, and foster trust in the marketing system
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What is the purpose of high-pressure selling?
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To persuade people to buy goods they had no thought of buying
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Which of the following considers the future needs of business and the current needs of consumers?
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The strategic planning concept
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According to the text, the move from irresponsible consumption to sustainable consumption is ultimately the responsibility of...
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consumers
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Designing products that are easier to recover, reuse, recycle, or safely return to nature after usage is known as a...
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cradle-to-cradle practice
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According to societal marketing principles, breakfast foods that taste good and are also nutritious would be classified as...
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desirable products
