Flashcards and Answers - Exam #1 MKTG

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Rather than being just a random activity, good marketing requires _____ in determining appropriate actions to produce sound decisions. A) Corporate governance B) thoughtful planning C) short-term goals D) profit orientation E) win-lose attitude

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B) Thoughtful planning

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The ____ addresses how a product will be designed, how much it should cost, how it will be promoted, and how it will get to consumers. A) marketing mix B) competitive advantage C) marketing plan D) customer franchise E) marketing exchange

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C) Marketing Plan

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Understanding consumers' _____ is fundamental to marketing success. A) family connections B) rituals and habits C) needs and wants D) educational attainment E) physical locations

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C) Needs and Wants

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Crest toothpaste targets different consumer _____ by offering different types of toothpaste for smokers than it does for children based on their differing needs and wants. A) fragments B) geographics C) modules D) exchanges E) segments

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E) Segments

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The goal of the marketing exchange is that the parties to the transaction be A. close partners B. interdependent C. codependent D. satisfied E. savvy

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D. Satisfied

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At the most basic level, marketing involves ______ between the buyer and the seller. While being better off is the goal, it is not always the "basic" level. A. respect B. promotions C. exchanges D. persuasion E. information

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C. Exchanges

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Dasani bottled water has created a valuable brand image with consumers. this is an integral part of the _____ component of the marketing mix. a. price b. place c. planning d. people e. product

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e. product

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The ______ consists of product, price, place, and promotion as components of a firm's offering. a. marketing exchange b. marketing mix c. channel of distribution d. customer franchise e. marketing plan

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b. marketing mix

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Apple's iPad is an example of which of the following types of marketing offerings? a. innovation b. goods c. services d. ideas e. promotions

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b. goods

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A key attribute of services that differentiates it from a good is that a service is a. easy to market b. valuable c. tangible d. intangible e. less expensive

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d. intangible

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When an optical center provides eye exams and new contact lenses as its offering, it is an example of which of the following combinations? a. services and ideas b. goods and services c. needs and wants d. programs and philosophies e. tactics and strategies

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b. goods and services

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A group that sponsors bike helmet poster contests for children to promote bicycle safety is providing which of the following marketing offerings? a. services b. goods c. ideas d. innovations e. promotions

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c. ideas

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Which of the following marketing mix variables is involved in the capture of value in the marketing exchange? a. product b. services c. price d. promotion e. place

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c. price

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which of the following mix elements corresponds to what the buyer gives up in the marketing exchange? a. product b. price c. promotion d. distribution e. place

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b. price

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Red Box uses the ________ element of the marketing mix to make movie rentals available for customers when and where they need them. a. product b. promotion c. place d. price e. premium

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c. place

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Which of the marketing mix variables represents all the activities necessary to get the right product to the right customer when he customer wants it? a. procurement b. promotion c. place d. price e. product placement

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c. place

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When marketers communicate the value proposition, it involves the _____ element of the marketing mix. a. product b. price c. promotion d. place e. policy

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c. promotion

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When an electronics company sells its global positioning systems to a car manufacturer, it is engaged in ______ marketing. a. B2B b. B2C c. C2C d. A2B e. C2B

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a. B2B

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The ______ era embraced the belief that a good product would sell itself. a. sales-oriented b. market-oriented c. value-based d. consumer-demand e. production-oriented

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e. production oriented

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Which of the following is one of the core practices among value-oriented marketers? a. keep information confidential, not sharing it among the firm's different departments. b. constantly measure benefits that customers receive against the costs of offerings. c. maintain a transactional orientation in the seller-buyer relationship d. manage the relationships among the employees. e. consistently sell products below the cost of production.

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b. constantly measure benefits that customers receive against the costs of offerings.

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Recently, it has become more important for value-oriented marketers to _____ with customers. a. move from transactional orientation to a transitional perspective b. manage transactions more efficiently c. reduce the number of transactions to improve relationships d. move toward a relational perspective from a transactional orientation e. consider how they can reduce their interactions

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d. move towards a relational perspective from a transactional orientation

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A national hotel chain engages in conversations with its customers through Facebook and even allows them to book their hotel reservations through the Facebook page. This is an example of marketing using a. mobile media b. traditional methods c. unethical means d. the supply chain e. social media

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e. social media

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When companies work collaboratively to buy and sell, transport, and store merchandise through a channel of distribution, it involves the entire _______ for goods and services. a. supply chain b. promotion channel c. relationship management system d. productivity metrics e. hierarchy of purchasers

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a. supply chain

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A firm relies on a wide variety of vendors to make and distribute its products. manufacturers buy raw materials from suppliers, use shipping companies to transport finished goods to multiple locations, and establish relationships with the retailers who sell them to consumers. Put all of these businesses together, and you have a a. marketing plan b. supply chain c. value proposition d. marketing mix e. social marketing platform

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b. supply chain

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Because it has been at the center of success for many companies, marketing is considered a cornerstone of a. ethics b. supply chains c. entrepreneurship d. freedom of speech e. the gross national product

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c. entrepreneurship

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Which of the following is one of the major considerations involved when a company develops its marketing strategy? a. analysis of human resource policies b. determination of sustainable business practices c. review of all corporate standards d. identification of target markets e. summary of executive compensation

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d. identification of target markets

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Starbucks, Dunkin' Donuts and McDonald's all strive to provide good coffee and pastries to their customers. But despite these similarities, each firm selects its own target market, designs its own marketing mix, and chooses its own basis for building competitive advantage. These individual choices are directly related to each firm's: a. competitive focus b. consumer franchise c. market leadership d. marketing strategy e. competitive direction

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d. marketing strategy

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As an overall goal, _____ involves finding ways in which a company can best use its strengths to take advantage of attractive opportunities in the environment in order to outline specific actions to take appeal to potential customers. a. establishing a mission b. defining a mission c. creating a values statement d. marketing strategy e. a strategic audit

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d. marketing strategy

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A _____ competitive advantage is not easily copied by competitors and so tends to be maintained over the long run. a. generic b. portfolio c. segmented d. sustainable e. promotional

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d. sustainable

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Companies must deliver more value and satisfaction to target consumers than its competitors deliver, in order to gain: a. competitive advantage b. competitor analysis c. a competitive benchmark d. competitor-centered advantage e. a competitive franchise

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a. competitive advantage

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Walmart is known for keeping its costs low as possible, partly by developing strong relationships with its suppliers. Based on the information, what is Walmart's primary source of sustainable competitive advantage? a. product excellence b. customer excellence c. operational excellence d. locational excellence e. cost excellence

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c. operational excellence

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Zappos, an online seller of shoes and other apparel, has as its central philosophy taking excellent care of its customer base so that they will repeatedly purchase from the company. Zappos is seeking to achieve a sustainable competitive advantage through: a. product excellence b. customer excellence c. operational excellence d. locational excellence e. cost excellence

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b. customer excellence

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When a firm considers its overall objectives and considers the type of business it is in, it is engaged in which of the following steps of the marketing planning process? a. defining the mission b. conducting a situation analysis c. identifying and evaluating opportunities d. implementing the marketing mix e. evaluating performance

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a. Defining a mission

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After a firm has conducted a SWOT analysis, it wold typically progress to the next step of the marketing planning process, which is: a. defining the mission b. analyzing the situation c. identifying opportunities d. implementing the marketing mix e. evaluating performance

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c. identifying opportunities

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SWOT analysis is typically conducted during which step of the marketing planning process? a. defining the mission b. analyzing the situation c. identifying opportunities d. implementing the marketing mix e. evaluating performance

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b. analyzing the situation

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a SWOT analysis involves an assessment of factors internal to the company, which include ________ and factors outside the company, which include ____________. a. opportunities and threats; strengths and weaknesses b. strengths and weaknesses; opinions and thoughts c. substantial winning; opportunities and threats d. strengths and weaknesses; opportunities and threats e. a strategic worldview; options and tactics.

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d. strengths and weaknesses; opportunities and threats

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In recent years, as consumers have become more concerned with nutrition, McDonald's has come under fire for the unhealthy nature of many of its menu items. In a SWOT analysis, this is an example of a(n): a. strength b. strategy c. weakness d. opportunity e. threat

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e. threat

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The recent economic downturn benefited some fast food chains and inexpensive restaurants as consumers "traded down" from more expensive establishments. In a SWOT analysis, the weak economy represented a(n) ______ for these low-price restaurants. a. strength b. strategy c. weakness d. opportunity e. threat

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d. opportunity

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When companies like Toyota develop different models of vehicles to meet the unique wants and needs of different groups of consumers, they are involved in: a. a SWOT analysis b. segmentation c. product placement d. market development e. diversification

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b. segmentation

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Honda developed its CR-Z hybrid model to a distinct segment of consumers as a fun, green, sporty hybrid that stands out as being different from other hybrid models. This is an example of which of the following? a. market development b. product placement c. market positioning d. a situation analysis e. a strategic business unit

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c. market positioning

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Toyota developed the Scion brand to appeal to young car buyers who might not want to purchase cars from the brand their parents own. Young car buyers represented Scion's: a. segmentation method b. market positioning c. target market d. situation analysis e. mission statement

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c. target market

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Firms make trade-offs between product and ______ to give customers the best value. a. promotion b. positioning c. place d. planning e. price

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e. price

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If a firm makes sure a product is available for purchase when and where the customer wants it, which element of the marketing mix is involved? a. product b. price c. promotion d. people e. place

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e. place

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On its web site, Amazon.com greets returning customers by suggesting items that might interest them. These recommendations are based on items they previously purchased, products that others with similar preferences purchased, and complementary products to items of current interest. This adds value through which of the following marketing mix elements? a. product b. price c. promotion d. people e. place

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a. product

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Through which of the following marketing mix variables do companies capture value from consumers, thus generating revenue? a. product b. price c. promotion d. people e. place

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b. price

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Which of the following is an example of a marketing metric that might be used to evaluate the performance of a company's implementation of its marketing plan? a. Four Ps (price, product, promotion, place) b. SWOT analysis (strengths, weaknesses, opportunities, threats) c. STP (segmentation, targeting, positioning) d. GM (gross margin) e. SBU (strategic business unit)

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d. GM (Gross Margin)

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When managers at auto maker General Motors evaluated the firm's various divisions and chose to close some, including Saturn and Pontiac, it was involved in: a. product development b. demarketing c. diversification d. portfolio analysis e. franchise reevaluation

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d. portfolio analysis

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Suppose that a major auto maker like General Motors determined that it would close down divisions that were in low-growth markets and that had low relative market shares. According to BCG Product Portfolio Analysis, General Motors would be selecting divisions in the ______ category for closure. a. stars b. cash cows c. clunkers d. question marks e. dogs

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e. dogs

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The Toyota Camry is one of the best-selling family sedans in the USA. Sales in this particular market have been growing slowly, if at all, in recent years. According to BCG Product Portfolio Analysis, the Toyota Camry would be considered a: a. star b. cash cow c. failure d. question mark e. dog

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b. cash cow

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Which of the following is one of the four major growth strategies? a. portfolio analysis b. micromarketing c. product development d. market leadership e. product proliferation

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c. product development

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Starbucks introduced Via, its brand of instant coffee, to exploit the growth opportunities for new products in current markets. Chief Executive Howard Schultz called Starbucks' Via Ready Brew "perhaps the biggest opportunity" in company history as he prepared for the instant coffee product's North American rollout. This is an example of: a. product development b. market development c. market penetration d. product proliferation e. micromarketing

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a. product development

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In an attempt to increase sales during a lagging economy, Macy's has increased its advertising and sales promotions for its current products to stimulate sales in its current markets. Which of the following growth strategies is Macy's employing? a. product development b. market development c. market penetration d. diversification e. micromarketing

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c. market penetration

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If Starbucks opens stores in major Chinese cities, this is an example of which of the growth strategies? a. product development b. market development c. market penetration d. diversification e. micromarketing

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b. market development

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Market penetration involves a ______ market; market development involves a ______ market. a. new; current b. new;new c. current; new d. current; current e. current or new; new

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c. current; new

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Suppose that a car wash offers a 20% discount to its customers if they return for a second car wash within a week. This is an example of which growth strategy? a. product development b. market development c. market penetration d. diversification e. micromarketing

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c. market penetration

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Which of the following entities is at the center of the marketing environment? a. the company itself b. corporate partners c. competitors d. consumers e. culture

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d. consumers

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Which of the following frameworks for analysis is comprised of a company's capabilities, competitors and corporate partners? a. economic factors b. environmental factors c. immediate environment d. intermediate environment e. macro environmental factors

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c. immediate environment

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The primary strength of Pepsi is the manufacture, distribution, and promotion of carbonated beverages. These describe which factor of a Pepsi consumers' immediate environment? a. competitive intelligence b. corporate partners c. company capabilities d. competitors e. culture

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c. company capabilities

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In the immediate environment, the first gator that affects the consumer is/are the a. company itself b. corporate partners c. competitors d. consumers e. culture

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a. company itself

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When a firm evaluates likely reactions to its marketing activities, it is attempting to understand what aspect of the immediate environment? a. the culture b. the consumers c. its competitors d. its communicators e. its corporate partners

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c. its competitors

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Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its a. investors b. customers c. competitors d. corporate partners e. customer franchisors

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d. corporate partners

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Your text describes the macroenvironmental factors that operate in the external environment by which acronym? a. RFID b. CDSTEP c. CCC d. GEN X e. SWOT

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b. CDSTEP

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Culture, demographics, social issues, technological advances, economic situations, and the political/regulatory environment are all factors that make up which of the following frameworks of analysis? a. economic factors b. environmental factors c. immediate environment d. intermediate environment e. macro environmental factors

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e. macro environmental factors

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Broadly defined, ________ is/are the shared meanings, beliefs, morals, values, and customs of a group of people. a. culture b. demographics c. social issues d. psychographics e. ethnicity

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a. culture

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When McDonald's opened its fast food restaurants in European locations, it had to modify its product offering primarily due to differences in a. country culture b. regional culture c. agricultural artifacts d. cultural development e. counter-cultural artifacts

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a. country culture

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In New England, soft drink beverages are called "soda" while in many other parts of the country they are called "pop." This is an example of the effects of a. demographics b. country culture c. regional culture d. cultural development e. cultural artifacts

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c. regional culture

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Which of the following is NOT a demographic listed in your text that would typically be used to identify consumer markets? a. age b. gender c. race d. state of residence e. income

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d. state of residence

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Consumers that have similar purchase behaviors because they have shared experiences and are in the same stage of life are known as a _____ cohort. a. lifestyle b. demographic c. relational d. generational e. situational

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d. generational

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Which of the following groups of people are referred to as "Digital Natives"? a. Gen Y b. Gen X c. Baby Boomers d. Gen Z e. Millenials

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d. Gen Z

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After World War II, the birth rate in the United States rose sharply, resulting in a group known as a. Generation Y b. Generation X c. the Baby Boomers d. the Millenials e. Generation Z

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c. The Baby Boomers

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_____ are the younger edge of Gen Y who have never lived without the Internet or easy access to cell phones. a. baby boomers b. tweens c. technos d. digital natives e. millennials

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b. tweens

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The first generation of "latchkey" children, known as _____, includes those born between 1965 and 1976. a. Gen Yers b. Gen Xers c. baby boomers d. digital natives e. millennials

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b. Gen Xers

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_____, also known as Millennials, constitutes more than 60 million members in the United States alone and were born between 1977 and 2000. a. Generation Y b. Generation X c. Baby Boomers d. Generation M e. Generation Z

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a. Generation Y

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Virgin Atlantic hosts a service called Taxi2 to make it easier for passengers to share rides from the airport to their destination at a lower cost. In this way, Virgin Atlantic is responding to the social trend of a. thrift b. health and wellness concerns c. greener consumers d. privacy concerns e. a time-poor society

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a. thrift

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Which of the following best represents the concept of the "lipstick effect"? a. People who face increasing stress will often take better care of themselves. b. Consumers wonder whether or not firms who call themselves "green" actually are. c.The latest trend among consumers is to cope with a lack of leisure time by multitasking. d. Consumers will treat themselves to small luxuries, but forego larger luxury items. e.Technological advances are occurring so rapidly, consumers cannot keep up with the latest trends.

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d. Consumers will treat themselves to small luxuries, but forego larger luxury items.

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Advertising guidelines stating that companies cannot link unhealthy foods with cartoon and celebrity figures is geared toward which social trend? a. thrift b. health and wellness concerns c. greener consumers d. privacy concerns e. a time-poor society

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b. health and wellness concerns

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The social trend of _____ is causing consumers to question whether or not firms are truly operating with consideration for the environment or simply changing marketing efforts in order to appear that they are. a. thrift b. health and wellness concerns c. greener consumers d. privacy concerns e. a time-poor society

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c. greener consumers

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_____ involves a strategic effort by firms to supply customers with environmentally friendly merchandise. a. greenwashing b. eco-marketing c. greener advertising d. eco-selling e. green marketing

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e. green marketing

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The ability of marketers to use mobile applications, Facebook, and Twitter to more effectively target and reach their customers is an example of which microenvironmental factor? a. technological advances b. the political/regulatory environment c. culture d. economic environment e. natural environment

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a. technological advances

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An important economic factor is _____, which refers to the persistent increase in the prices of goods and services. a. a recession b. deflation c. inflation d. price gouging e. gross domestic product

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c. inflation

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The discrepancy between a consumer's actual state and desired state is associated with which of the following steps in the consumer decision process? a. need recognition b. information speech c. alternative evaluation d. purchase e. post purchase

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a. need recognition

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Which of the following needs pertains to the performance of a product or service? a. need recognition b. functional needs c. demographic needs d. psychological needs e. cultural needs

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b. functional needs

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_____ pertain to the personal gratification consumers associate with the product or service. a. needs recognition b. functional needs c. demographic needs d. psychological needs e. personal needs

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d. psychological needs

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The vast majority of products and services are likely to satisfy a. functional needs. b. psychological needs. c. personal needs. d. both personal and functional needs. e. both functional and psychological needs.

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e. both functional and psychological needs

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According to the consumer decision process, after consumers recognize the need for a product, they then engage in a. psychological need recognition b. an information search c. an evaluation of alternatives d. the purchase of the product e. post purchase behavior

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b. an information search

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_____ involves the buyer considering their own personal knowledge about a product based on past experience. a. impulse buying b. an internal search for information c. an external search for information d. experiential search for information e. needs recognition

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b. an internal search for information

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When John was considering buying a new car, he sought out unbiased information and ratings about different makes and models in Consumer Reports magazine as well as from Edmunds.com. Which of the following corresponds most closely to this aspect of the decision process? a. impulse buying b. an internal search for information c. an external search for information d. experiential search for information e. needs recognition

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c. an external search for information

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The fact that a family would spend a lot more time researching the market before making a home purchase than it would in the decision to purchase an inexpensive dollhouse for the youngest member of household can best be explained which of the following concepts? a. locus of control b. performance risk c. psychological risk d. social risk aversion e. perceived benefits versus perceived costs of search

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e. perceived benefits versus perceived costs of search

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Of the five types of risk associated with purchase decisions, which one involves the perceived danger inherent in a poorly performing product or service? a. financial b. social c. physiological d. performance e. psychological

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d. performance

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External agencies and government bodies publish safety ratings for cars to help consumers alleviate _____ risk. a. financial b. social c. physiological d. performance e. psychological

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c. physiological

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Alternative evaluation often occurs while the consumer is engaged which step of the consumer purchase process a. need recognition b. information search c. purchase outcome behaviors d. product purchase e. post purchase evaluation

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b. information search

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When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are referred to as their _____ set. a. universal b. retrieval c. memory d. evoked e. brand

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b. retrieval

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When Catherine was considering different brands of jeans to buy, she limited the choices to threeshe would actually consider purchasing. These three brands make up her _____ set. a. universal b. retrieval c. purchase d. evoked e. brand

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d. evoked

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Ethan considered three important attributes when deciding where he would do his banking: the convenience of the location, hours of operation, and interest rates for CDs. In this situation, these three attributes are called a. attribute sets b. evaluative sets c. evaluative criteria d. formative criteria e. alternative evaluation

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c. evaluative criteria

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Angela considered all sporting goods stores to be roughly equivalent in most ways, however, she considered LL Bean to have an exceptional level of customer service. Customer service therefore, would be considered a _____ for her in evaluating sporting good stores. a. determinant attribute b. compensatory decision rule c. noncompensatory decision rule d. locus of control e. retrieval set

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a. determinant attribute

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Nathan was shopping for a new pair of athletic shoes. Although it would have been nice to take the shoes home immediately after purchasing them, he was willing to trade off immediate availability because he found that he could purchase the shoes online for a 50% discount. This is an example of using a a. determinant attribute b. compensatory decision rule c. noncompensatory decision rule d. decision heuristic e. conversion rate

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b. compensatory decision rule

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Because not all purchase intentions result in an actual purchase, marketers calculate the _____ to measure how effectively a decision to purchase a specific product results in a completed purchase. a. performance risk b. compensatory decision rate c. noncompensatory decision rate d. decision heuristic e. conversion rate

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e. conversion rate

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Marketers that set unrealistically high consumer expectations of a product through advertising or other types of promotion, may generate higher initial sales, but it will eventually lead to _____ if the product fails to achieve these expectations. a. high conversion rates b. social risk c. post purchase dissatisfaction d. unfulfilling decision heuristics e. habitual decision making

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c. post purchase dissatisfaction

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Roberta works out at a health club, goes to yoga classes and reads magazines about women's health in order to satisfy her inner desires. Which of Maslow's needs is Roberta fulfilling? a. financial b. physiological c. safety d. love e. esteem

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e. esteem

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Sandy thinks the east side of her city is a great area to own a home and raise a family. John thinks the east side has a lot of crime, poor schools, and would be a poor choice of location to own a home and raise a family. Sandy and John have different _____ regarding the east side of the city. a. temporal states b. reference groups c. needs d. perceptions e. motives

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d. perceptions

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When she was looking for a new car, Francesca was considering both American and foreign made vehicles, but her father and boyfriend both encouraged her to buy American-made brands. Which of the following social factors explain this type of influence? a. culture b. temporal state c. lifestyle factors d. reference groups e. situational factors

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d. reference groups

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According to the Elaboration Likelihood Model, which of the following variables determines whether limited or extended problem solving will operate in a particular purchase decision? a. purchase readiness b. attentional capacity c. likelihood of purchase d. the level of involvement e. the level of elaborate thinking

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d. the level of involvement

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A purchase decision which typically involves (at most) a moderate amount of effort and time is called a. extended problem solving b. limited problem solving c. deep processing d. high involvement processing e. habitual decision making

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b. limited problem solving

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Kerry was in her grocery store and saw a display for a new organic yogurt. She had not planned to buy it, but decided on the spot to buy one and try it. Kerry's purchase represents a. habitual decision making b. deep processing c. impulse buying d. high involvement processing e. extended problem solving

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c. impulse buying

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Whenever Meredith buys toothpaste, she always automatically reaches for the same brand and puts it in her shopping cart with no thought or effort. Meredith is engaged in a. habitual decision making b. limited problem solving c. impulse buying d. high involvement processing e. extended problem solving

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a. habitual decision making

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_____ reflects the link between consumers' demand for a company's product and the company's purchase of necessary inputs to manufacture or assemble that particular product. a. institutional purchasing demand b. distribution c. derived demand d. wholesaling e. reselling demand

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c. derived demand

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In B2B markets, _____ are firms that buy and reprocess products (a product is a good or service) before selling them again to the next buyer. a. manufacturers b. producers c. resellers d. institutions e. governments

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a. manufacturers

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Which of the following is an example of a reseller? a. manufacturer b. producer c. wholesaler d. institution e. government

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c. wholesaler

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In terms of business markets, organizations like hospitals that provide goods and services to people in their care are classified as a. manufacturers b. producers c. resellers d. institutions e. governments

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d. institutions

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With its estimated outlay of $600 billion dollars for fiscal year 2011, the Pentagon represents which type of B2B organization? a. manufacturer b. distributor c. reseller d. institution e. government

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e. government

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The business-to-business buying process is initiated by which of the following steps? a. the RFP process b. need recognition c. proposal analysis d. product specification e. vendor performance assessment

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b. need recognition

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The acronym RFP, when used by those involved in business-to-business buying, stands for a. request for pricing b. reorder for products c. request for products d. request for proposals e. request for performance

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d. request for proposals

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_____ is an entry point that is commonly used to find specific sites. a. web hosting site b. an internet c. a web portal d. a micro blog e. a web link

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c. Web Portal

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In this stage of the business-to-business buying process, firms are likely to narrow their selection to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale. a. the RFP process b. Vendor specification c. product specification d. vendor performance assessment e. proposal analysis and supplier selection

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e. proposal analysis and supplier selection

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What is the final stage in the business-to-business buying process? a. RFP process b. vendor performance assessment c. order specification d. need recognition e. proposal analysis and supplier selection

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b. vendor performance assessment

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John is involved in the buying center of a large organization. He ultimately will determine whether to buy, what to buy, how to buy, or where to buy. What role does John play in this situation? a. initiator b. influencer c. decider d. buyer e. gatekeeper

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c. decider

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The individual who controls the flow of information or access to important decision makers serves as the _____ in the buying center. a. user b. initiator c. decider d. influencer e. gatekeeper

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e. gatekeeper

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Pharmaceutical companies have been criticized for direct-to-consumer television ads promoting the use of their brands of medication for specific medical conditions. With respect to buying centers, the pharmaceutical company plays the role of _____ in this situation. a. initiator b. influencer c. decider d. buyer e. gatekeeper

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b. influencer

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A firm's _____ reflects the set of values, traditions, and customs that guide its employees' behavior. a. marketing strategy b. marketing plan c. ethical climate d. demographics e. organizational culture

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e. organizational culture

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In a(n) _____ buying center, there may be many participants, but one person makes the decision alone. a. autocratic b. consensual c. consultative d. democratic e. republic

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a. autocratic

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In a(n) _____ buying center, one person is authorized to make a decision, but input from others is gathered before doing so. a. republic b. autocratic c. democratic d. consensual e. consultative

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e. consultative

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In _____ buying centers, all members of the team must reach a collective agreement that they can support a particular purchase. a. autocratic b. consensus c. consultative d. democratic e. republic

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b. consensus

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Autocratic buying centers are characterized by: a. a single decision maker b. collective agreement c. majority rule d. the solicitation of many opinions e. many decision makers

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a. a single decision maker

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Although social media is used to build relationships, in the B2B context, the majority of B2B marketers use _____ for their marketing efforts. a. facebook b. twitter c. linkedin d. hootsuite e. white papers

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e. white papers

question

Most B2B buying situations can be categorized into three types: new buys, straight rebuys, and a. standard rebuys b. capital buys c. modified rebuys d. repeat buys e. strategic buys

answer

c. modified rebuys

question

Franks Pizza oven is broken and Frank will need to buy a replacement. The purchase of capital equipment such as the ovenis an example of a _____ situation. a. straight rebuy b. standard rebuy c. modified rebuy d. new buy e. capital buy

answer

d. new buy

question

In a _____ situation, the buying center is likely to proceed through all six steps in the buying process and involve many people in the buying decision. a. straight rebuy b. standard rebuy c. modified rebuy d. new buy e. capital buy

answer

d. new buy

question

The University will purchase new computers during the summer to update its computer labs. Although the new computers will be more advanced in terms of their technology, the purchase itself will involve some of the same considerations as those used for previous purchases. This is an example of which of the following types of buying situation? a. straight rebuy b. standard rebuy c. modified rebuy d. new buy e. capital buy

answer

c. modified rebuy

question

When Kinko's replenishes its supply of copy paper, it most likely involves a _____ situation. a. new buy b. standard buy c. modified rebuy d. straight rebuy e. material rebuy

answer

d. straight rebuy

question

In _____, the buyer is often the only member of the buying center involved in the process. a. new buys b. standard rebuys c. modified rebuys d. straight rebuys e. material buys

answer

d. Straight rebuys

question

What does marketing apply to

answer

1. products 2. services 3. people 4. places 5. concepts/ideas

question

Does marketing apply to the following? 1. texas tourism 2. pick out out songs on iTunes 3. which gas station to go to 4. presidential elections 5. professor trying to get students to attend class 6. what time you go to sleep

answer

1. yes 2. yes 3. yes 4. yes 5. yes 6. no - has nothing to do with marketing because there is no specific time

question

4Ps= the marketing mix

answer

1. product 2. price 3. place 4. promotion

question

The driving force when creating the marketing mix is:

answer

the consumers needs and wants ** 1. look at their needs and wants 2. work backwards

question

Marketing provides four consumer utilities:

answer

1. form utility 2. time utility 3. place utility 4. possession utility ***consumption utility DOES NOT exist

question

Form utility

answer

more consistent with uniform quality

question

Time utility

answer

have it immediately

question

Place utility

answer

available everywhere

question

Possession utility

answer

available in the amount you need

question

What are the aspects of marketing

answer

1. Creating value (most important part of marketing) 2. Occurs in many settings 3. Satisfy customer needs (ie. phone calls ) 4. Exchanges--> all parties in exchanges should be satisfied 5. The 4Ps 6. Performed by individuals and organizations

question

What is an exchange

answer

premise of all marketing even if its doesn't involve money

question

what is exchange according to olson

answer

The primary economical element of marketing

question

What does exchange entail?

answer

1. two or more parties with unsatisfied needs - direct exchange Seller Buyer 2. each one can satisfy each other's needs - product exchange 3. able to find each other - place exchange (indirect) Seller Buyer Agent; whole sellers, distributors, retailers (Intermediaries) 4. Both can value what the other has -price aspect (they can agree on a price) 5. communicate and present - promotion aspect

question

What is the key point of exchange?

answer

The exchange should focus on maximizing the buyer and seller's value because they are able to find each other, communicate and agree on price

question

What does pricing include

answer

Everything a buyer is giving up: 1. money 2. time 3. energy

question

Place

answer

Delivers the value proposition EX: internet site; physical store (brick and mortar)

question

Promotion

answer

Communication by a marketer that informs (facts about the product), persuades (getting you to do something and why), and reminds (don't forget about us) potential buyers about a product

question

What does promotion enhance

answer

enhances a products perceived value

question

Promotion EX: Got Milk Campaign

answer

1. repositioned milk against soda 2. targeted an industry as a whole not a specific brand 3. in 1916 the dairy council invented the four food groups and promoted with posters in schools in order to convince kids to drink milk

question

Promotion EX: Budweiser Glidesdales Ads

answer

are reminder ads

question

Successful products do what?

answer

fulfill unsatisfied needs

question

what does the marketing timeline include

answer

1. production concept ~ 1900-1920 2. product concept ~ 1920-1945 3. selling concept ~ 1945-1960 4. marketing concept ~ 1960-1990 5. marketing orientation ~ 1990-present

question

production concept

answer

1. also known as the production-oriented era 2. producer driven 3. Model T was only available in black 4. a good product will sell itself 5. often neglects consumer needs(most important) 6. marketing was an after thought to production

question

Production concept:

answer

1. producer driven 2. Company's offer variety and choices 3. kellogs, general mills, and post make 85% of cereals, just variations of each other 4. planned obsolescence is when things go out of style and force a rebuy to occur

question

Selling concept:

answer

1. 1945 is the exact year on exam 2. producer driven 3. also known as the sales-oriented era 4. began because of excess capacity from WW2 5. hard-sell/personal selling approach: door to door selling 6. introduction of marketing tactics and gimmicks 7 TV ds and product placement - ie. soap operas

question

Marketing concept:

answer

1. sometimes called the market-oriented era 2. Consumer driven 3. begin with the needs of the customers and then work backwards 4. led to studying consumer behavior 5. customer is king!!!

question

marketing orientation

answer

1. consumer driven 2. develop an ongoing relationship with customers 3. CRM (customer retention management) 4. It led to database marketing 5. social marketing

question

SWOT Analysis

answer

Strengths, Weaknesses, Opportunities, and Threats

question

Strengths

answer

1. positive internal 2. uses strengths to create positioning strategy ** company

question

Weaknesses

answer

1. negative internal 2. things company does poorly 3. "sole supplier" ** company

question

Opportunities

answer

1. positive external ** industry

question

Threats

answer

1. negative external ** industry

question

SWOT Exam Question

answer

Would you call a sole wood supplier a strength, weakness, opportunity, or threat.

question

Marketing Plan Steps

answer

1. business mission and objective - must be measurable 2. situational analysis - SWOT 3. Identify Opportunities - STP (segmentation, targeting, and positioning) 4. Implement Marketing Mix (4Ps) 4 1/2. Resource Allocation - how much money to spend on something 5. evaluate performance using marketing metrics

question

Marketing Plan Phases

answer

1. Planning Phase - Business Mission & Objectives - Situational Analysis 2. Implementation Phase - Identify Opportunities - Implement Marketing Mix - Resource Allocation 3. Control Phase - Evaluate performance using marketing metrics

question

Goals of marketing campaigns

answer

3 Main Goals: - Increase market share - maximize profits - increase sales Other Goals: - Brand awareness - high quality/ performance - innovation - high satisfaction levels - Loyalty levels - social responsibility

question

Increase market share:

answer

one of the most significant measurements of market power ** the higher the market share = the more leverage within the channel --> more ability to promote

question

Maximize Profits

answer

1. assumed the most common goal by outsiders 2. Two types: - immediate profit: only works with a scarce supply - long-term profit (most common): quality product and service at a fair price and profit margin **price gouging

question

Price gouging:

answer

super low unfair prices --> people will start to compete

question

Increase Sales

answer

Two Types: 1. Revenue - measured by total dollars - most important in a cash-strapped situation (need money now in order to produce any units) 2. Unit sales - how many individual items you sell --> measured by volume

question

Brand Awareness

answer

"Top of the mind"

question

High Quality/ Performance

answer

Want to be known as the best

question

Innovation

answer

rarely the number one goal

question

High Satisfaction Levels

answer

Two Types: 1. Employee satisfaction (starbucks) - Happy EEs lead to happy customers 2. Customer Satisfaction -turn customers into loyal customers

question

Loyalty levels

answer

elaboration is the most desirable result **elaboration is when a customer markets for you

question

Macro-Strategies for Developing a Sustainable Competitive Advantage

answer

1. operational excellence 2. product excellence 3. customer excellence 4. locational excellence

question

Operational Excellence

answer

1. Efficient operations 2. Excellent supply chain 3. human resource management

question

Product Excellence

answer

1. products with high perceived value 2. effective branding and positioning

question

Customer Excellence

answer

1. Retaining loyal customers 2. Excellent customer service

question

Locational Excellence

answer

1. good physical location 2. internet presence 3. not easily duplicated

question

What is the least effect way to develop a competitive advantage because it is the easiest for competitors to copy

answer

Having the lowest prices

question

The best way to create a sustainable competitive advantage is to position the brand: _______ and ________

answer

Clearly and distinctively

question

Lifetime value of a customer

answer

Even if a relationship with a customer is unprofitable at first, over time building that relationship will be worthwhile because as it continues, it become profitable Ex: olson gave example of her father selling cars for ford

question

What is based around the idea of lifetime values of customers

answer

Customer retention programs

question

The best and most effective marketing strategies require:

answer

Careful planning

question

If marketers don't _____________ they will not be able to communicate value to their target segments

answer

understand their customer's

question

A firms market share is determined by the firm's _______ divided by the ________________.

answer

sales; overall market size

question

When a firms share is compared to the market shares of competitors this is calculation of:

answer

relative market share

question

Portfolio Analysis

answer

Based on 2 measurements: 1. Growth potential in the category - high growth means more competition - Industry wide growth 2. Relative market share - based on numbers not feelings *** must have both to determine something

question

Portfolio analysis includes

answer

1. cash cows 2. stars 3. question marks/problem children 4. dogs **goal: to have a mixture of different products at different ages

question

Cash Cows

answer

1. high relative market share 2. low growth market 3. typically generate excess cash 4. support other product lines 5. they're easy to take care of, but don't forget about them EX: tide from proctor and gamble

question

Stars:

answer

1. high relative market share 2. high growth market 3. often the first move into the industry 4. in order to continue to grow, companies must continue to invest 5. expensive to maintain, and takes a lot of time and attention 6. hope that they will become cash cows and not problem children **falling stars go sideways and turn into question marks **EX: Ipad or Prius

question

Question marks/ Problem children

answer

1. low relative market share 2. high growth market 3. also known as problem children 4. hope that they become stars 5. require a significant amount of resources 6. most managerially intensive 7. new products usually start as problem children (with existing competitors in the industry) 8. it is possible to rehabilitate fallen stars by reinvesting money, time and attention

question

Dogs

answer

1. Low market share 2. low growth market 3. should be phased out unless it helps with the sales of another successful product (compliments another product) 4. sometimes kept alive for sentimental reasons 5. do not do a lot, but they do fulfill a particular purpose

question

Growth option model includes:

answer

1. market penetration 2. market development 3. production development 4. diversification

question

Market Penetration

answer

1. Easiest growth option 2. increase consumption by selling more of a current product to a current customer - buy more frequently; larger sizes; and multipack 3. new uses for your product (baking soda) 4. old and related users (previous and someone to a current user - elaboration) 5. increase promotion in current stores 6. use CRM programs to sell more to existing customers 7. Encourage current customers to make posts of Facebook when they purchase a product in the hopes that their friends will also buy the product

question

Market Penetration Exam Question:

answer

Penetration is the easiest because its the least amount of learning about consumer behavior and production technology

question

Market development:

answer

1. second easiest growth option 2. sell current product to a new segment of customer 3. enter with essentially the same marketing mix 4. either look at new segments within the domestic markets or foreign markets 5. expanding internationally is considered more risky than expanding domestically ** start with domestic markets then go to foreign markets

question

Production development

answer

1. firms develop new products for their existing customers 2. many times firms use customer input for product expansion 3. have to learn new industries and how to produce something new 4. Three types: - related products (slightly changing products such as coke to coke zero) - after market (more difficult, but can be more profitable such as microsoft creating the xbox) - different product and/or industry (gerber creating food to accessories)

question

Diversification

answer

1. firms create new products and target a new segment of customers 2. if the market is saturated, you must move onto another market 3. cheaper to advertise to a new market: don't even waste your time

question

At the Double Tree Hotel employees are expected to put in extra effort to make sure that their customers are well taken care of and happy. Management enforces this in the hopes that customers will become loyal customers and always choose Double Tree as their hotel of choice. This is an example of a company taking steps to: a. become environmentally friendly b. increase market share c. increase efficiency within the supply chain d. sustain a competitive advantage

answer

D. sustain a competitive advantage

question

As the Christmas season approaches Big Lots deciders to discount their Christmas Essentials Line. They bring in Mary to determine which products to mark down and what percent off they should be. As well as creating the media to include in local newspapers and alerting their distributers that there will be an increase in the number of Christmas items needed this month. Mary has ben told to focus on: a. creating a sustainable competitive advantage b. the marketing mix c. increasing customer loyalty d. a SWOT analysis

answer

B. the marketing mix

question

SWOT analysis is part of the : a. planning phase b. implementation phase c. control phase d. none of these

answer

A. planning phase

question

Despite the fact that many large corporations have large market shares in their industries; some small shops are able to survive. This is probably because the small shops have: a. lower prices b. a sustainable competitive advantage c. effective advertising campaigns d. superior metrics to evaluate marketing plans

answer

B. a sustainable competitive advantage

question

Sometimes these smaller shops advertise that they are "local" or "family owned since 1945," this is part of their: a. positioning strategy b.target market c. penetration strategy d. operational excellence

answer

A. positioning strategy

question

Which of the following assess the external environment? (choose all that apply) a. opportunities b. strengths c. Threats d. weaknesses

answer

Opportunities and Threats

question

Which of the following assess the internal environment? (choose all that apply) a. opportunities b. strengths c. Threats d. weaknesses

answer

Strengths and Weaknesses

question

McDonald's introduced the Happy Meal in order to: a. Cut costs b. reduce obesity by decreasing portion size c. target a new segment d. compete with other fast food restaurants

answer

C. target a new segment

question

Stone Brewery has become the best brewery in SD and was ranked #14 best brewery in the US. Now, Stone is looking to expand internationally. Which of the following growth strategies is Stone representing? a. market penetration b. product development c. market development d. diversification

answer

C. Market development

question

Real Estate Agents can only buy/sell houses in the state that they are licensed in. This is a way for the government to restrict which of the following growth strategies? a. market penetration b product development c. market development d. diversification

answer

C. Market development --> limits the markets they can compete in

question

3D Systems Inc.. is the leader in the new and quickly growing 3D printing market. How should 3D Systems Inc, handle allocating funds when looking at their 3D printers? a. the 3D printers are highly profitable and can support other product lines b. The 3D printers are sucking up too many funds and investments should be reduced c. 3D Systems Inc will have to allocate late amounts of funds to their 3D printer in order to promote the most amount of growth d. not enough info is given

answer

c. 3D Systems Inc will have to allocate late amounts of funds to their 3D printer in order to promote the most amount of growth

question

Ivory Soap was Proctor and Gamble's first product. Even though it isn't very profitable, they still make it. This is an example of a: a. star b. cash cow c. question mark d. dog

answer

D. dog

question

Environmental Scanning

answer

You cannot create a marketing plan without looking at the big picture **Before developing the 4Ps, management MUST assess the market environment

question

Environmental Scanning - Target Market

answer

Target Market is affected by : 1. the macro-environment 2. the micro-environment (immediate marketing environment)

question

Macro-Environment

answer

Macro is external Micro is internal

question

Micro-Environmental Factors

answer

1. the company: the firm itself 2. corporate partners --> suppliers/distributers 3. competition

question

What is the macro-environment

answer

the market place at large

question

What does the Macro-environment include:

answer

C- culture D- demographic S- social issues T- technological advances E- economic situation P- political/regulatory environment *** competition is NOT included

question

Marketers look at the macro/mircro environment as well as the needs of the consumers in order to find?_______. Why is this difficult? _____________

answer

potential opportunities difficult because consumers ability to purchase changes over time and their needs and wants change

question

Marketers have a ___________ not ________ strategy when scanning the environment

answer

Proactive not reactive

question

When times change, your industry could become _________. constantly scanning the environment for new opportunities can help you continue in a new direction

answer

obsolete

question

Example of scanning environment for new opportunities

answer

Hoover used to make buggy whips and saw a need for vacuums

question

Industries on their way out?

answer

1. Film --> only digital 2. travel agents 3. real estate agents 4. banking 5. book stores 6. legal services 7. post office

question

Macro-economic factors effect:

answer

social, political, cultural, and technological factors

question

Correlation of the Macro-economy on industries (commodities):

answer

1. Neutral - things you won't buy less of in a bad economy or more of in a better economy 2. Positive - better economy the higher the sales; bad economy the lower the sales 3. Negatively - better economy the lower the sales; bad economy the higher the sales; little luxuries: chocolate, cheap liquor, cigarettes (small purchases to make yourself feel better) Ex: we buy gold company, dry cleaners, MBA programs

question

Micro-economic factors

answer

industry specific factors

question

Social trends include

answer

1. time poor society 2. privacy 3. green marketing

question

Time poor society

answer

Consumers looking for ways to maximize their limited time - do this with multitasking - hard to market to because they are generally distracted when ads are running - people re busier than ever, less leisure time **combat this by: making products accessible where ever and whenever the customer wants them; increase bus signs, billboards, and internet ads

question

Privacy

answer

Example: the creation of the do not call list to combat unwanted solicitations

question

Green marketing

answer

Refers to the marketing of environmentally conscious products - environmental awareness is more prevalent in Europe than the US - Green products add value that other products cannot have

question

_________ data allows marketers to determine which TV time slots would be ideal to run ads during

answer

Demographic

question

__________ are groups of people of the same generation. They are said to have similar buying habits because they are in the same stage of life and have lived during the same points in history

answer

Generational Cohorts

question

Generation Y:

answer

1. 60+ million americans 2. born between 1977 and 2000 3. this generation puts a strong emphasis on work/ life balance and are experts at multitasking with media

question

__________ have never lived without easy access to the internet and cell phones

answer

Tweens

question

Aging population

answer

today there are more wealthy grandparents with fewer grandchildren

question

Family structure:

answer

1. replacement rates - average women is having less kids than in 1960 2. age of parents varies - in china the age of parents is very consistent 3. Single, divorced and blended families - some industries benefit from this: appliance and hotel&travel 4. Changing Roles in Families - Patriarchy : dad makes decisions - Matriarchy: mom makes decisions - Democratic: everyone makes decisions - Filiarchy: kids run the family ****Family is a precisely defined reference group

question

law to control and protect:

answer

consumers, employees, and competition

question

America has ________ laws than any other country

answer

more

question

Regulations that protect and constrain industries:

answer

1. labels and packaging 2. intellectual property rights 3. safety issues 4. predatory (unfair) pricing 5. environmentally friendly actions 6. anti-monopolistic actions

question

Different Laws:

answer

There are differences in laws nationally, statewide, and municipality Ex: laws regarding sale and marketing of liquor varies state-to-state and city-to-city

question

Laws create __________ and _______.

answer

opportunities and threats ***opportunities for smart managers

question

A compliance market is more ___________ ____________

answer

price sensitive Ex: all public restrooms have to have toilet seat covers, but companies are going to purchase the least expensive ones

question

Why have laws been created?

answer

to discourage monopolies in order to encourage competition, keep prices from going up, and choices from going own ex: food and drug administration (FDA) was created by the Federal Food and Drug Act Ex: the CAN-SPAM act of 2003: created penalties for junk mail

question

America is the most ________ ___________.

answer

ethnically diverse

question

____ __________ __________: to cultural differences between different areas of a country.

answer

A regional culture

question

Culture affects _____ ______ ______ and _____ potential customers make purchases

answer

when, what, how and where

question

Approximately 80 percent of all population growth in the next 20 years is expected to come from ______ ______.

answer

minority groups

question

Who are the fastest growing minority population.

answer

Asian Americans

question

___________: one trait that best describes you

answer

cardinal value

question

America loves ________

answer

choices

question

what is the most enduring of all influences on behavior

answer

culture

question

Technology:

answer

With new advances in technology, retailers can easily meet inventory needs by tracking production, distribution, and sales - low tech - high tech

question

Low Tech

answer

even simple low tech problems can constrain marketing Ex: heinz ketchup used glass bottles because tomato acid would eat through plastic. --> They created marketing campaign around the "slow pour" Can impact entire industry: - skiing and snowboarding - flowers are farmed and jetted globally - laser eye surgery

question

High Tech

answer

expectations involving the cost of innovation affect pricing - Napster mentality - magic moments

question

Napster mentality

answer

generation Y belies that if its downloadable it should be free

question

Magic moments

answer

product or service that consumers resist at first but then cross a threshold and cannot live without it ex: electric garage door opener; GPS; and TIVO/ DVR

question

once you choose your target market, __________________________

answer

its very hard to change

question

4Ps are?

answer

controllable

question

the consumer is the ____________ of all marketing activities

answer

center

question

________ loans: often containing high fees, hidden costs, and higher rates of interest and target ____________ consumers

answer

Predatory; vulnerable

question

In order to best focus their marketing efforts, effective firms choose to target customer needs that:

answer

match the firms core competency (what your firm does best)

question

Factors in evaluating competitors:

answer

1. potential reactions to marketing activities 2. strengths 3. weaknesses

question

in the last few years, US incomes have become more:

answer

unevenly distributed

question

offering exclusive or one-of-a-kind promotions appeals to ___ income groups

answer

upper

question

Gaps in income groups create:

answer

opportunities to market to separate income levels

question

In order to discover useful trends and predictions about consumer marketers:

answer

combine data from different demographic research

question

True or False? Gender roles have changed in the past several years.

answer

true--> roles have become blurred

question

__________ make decisions about purchasing items like computer, cars, appliances.

answer

women

question

_______ is the most affected by long term interest rates

answer

Housing

question

because of the ______ from the macro-environment and micro-environment on the marketing mix, the target market is ________ to change. a. opportunities, hard b. constraints, easy c. constraints, hard d. opportunities, easy

answer

C. constraints, hard

question

an increase in the dry cleaning industry is a subtle indicator that: a. the economy is doing well b. the economy is doing worse c. unemployment is increasing d. both b and c

answer

D. both b and c

question

When studying consumer behavior, marketers often:

answer

borrow from psychology and sociology in order to develop strategies for dealing with discovered behavioral traits

question

when choosing between competing products, customers base their decision on the:

answer

perceived value of a product

question

The consumer decision process model (B2C)

answer

The steps consumers go through before, during, and after making purchases: 1. need recognition --> where the buying process begins 2. information search 3. alternative evaluation 4. purchase 5. post purchase

question

Step #1: Need Recognition

answer

1. the consumer recognizes an unsatisfied need 2. a consumer realizes they have a need when they recognize that there is a difference between their actual state and desired state 3. the greater the difference, the greater a consumer's need recognition will be 4. functional and psychological needs - the majority of products and services satisfy both functional and psychological needs

question

Functional needs

answer

pertain to the performance of a product

question

psychological needs

answer

pertain to the personal gratification associated with the product

question

in order to be successful at marketing a product, the firm must determine the correct ____________ of functional and psychological needs tat best appeals to its target segment

answer

balance

question

Step #2: Information Search

answer

1. after recognizing that they have a need, consumers then begin to search for information - Internal search - External search

question

internal search

answer

buyer examines their knowledge and memories about the product from past experiences - how brands appeal to the subconscious - measured using neurobiology

question

external search

answer

buyer seeks outside information to fill in gaps from internal search - media, salespeople, friends, family - consumer reports are a way for consumers to get unbiased sources of information about products - consumers now rely on the internet for increasingly more information searches

question

word of mouth

answer

hearing about a product from someone

question

word of sight

answer

seeing someone with a product

question

secondary sources

answer

internet, consumer reports, periodicals

question

primary search

answer

hands on or demos/ samples at costco

question

factors affecting consumers' search processes

answer

1. perceived benefits versus perceived costs of search (is it worth the time and effort to search for information about the product or service?) 2. locus of control -internal ( people believe they have some control over outcomes - generally engage more in search activities) - external ( people who believe fate controls all outcomes 3. actual or perceived risk - the greater the risk, the more likely the consumer is to engage in extended search for information 1. performance risk (perceived danger in poor performance - why it didn't work) 2. financial risk ( initial cost of purchase; cost of using the item or purchase) 3. social risk ( a fear of how others will react to the purchase) 4. physiological risk/safety risk ( fear of actual harm that could come from improper performance 4. type of product or service 5. frequency of repeat services

question

Step #3: Evaluation of alternatives

answer

after a consumer is aware of a problem and gathered information about the possible options they next have to evaluate the alternatives **decision between brands 1. primary vs. secondary differences 2. compensatory vs. noncompensatory 3. attribute sets

question

Primary difference

answer

demand for an entire product category (industry) Ex: tablet/e-reader

question

secondary difference

answer

demand for a specific brand ex: nook /apple

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