Marketing 320 Final - Flashcards

Q: The difference between production orientation and marketing orientation is best explained as follows

in a marketing oriented firm, every department\'s activities are guided by what customers need and what the firm can deliver as a profit

Q: A firm with a marketing orientation

tries to determine customers\' needs before developing its product

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When a firm produces a large quantity of a product, the cost of producing each individual unit usually goes down. This is known as:

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economies of scale

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The president of a company that produces cardboard boxes is concerned about the large number of competitors with extra capacity As he put it our best shot is in the hands of our sales managers She makes all of our marketing decisions and has created enough to figure out how to sell more boxes it seems that this company were run as if it were in the

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Sales era

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Which of the following is least likely to be a government's role in market directed economy?

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to determine prices and thereby allocate resources and distribute income

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The main difference between the marketing department era ans the marketing company era is

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more emphasis on selling and advertising in the marketing department era

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discrepancies of assortment happen when

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producers specialize in producing a a narrow range of goods and services but consumers need a wide variety

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from a micro view, which of the following is the best example of marketing

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The American Red Cross seeks more blood donors

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After seeing a sale ad in the local newspaper, Ben Griffith went to a local pet supply store and bought a year's worth of high protein dog food. Which Marketing functions if any did he perform.

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All of the marketing functions

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The difference between production orientation and marketing orientation is best explained as follows

answer

in a marketing oriented firm, every department's activities are guided by what customers need and what the firm can deliver as a profit

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From the industrial revolution until the 1920's most companies were in the

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production era

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From a micro view, marketing

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is a set of activities performed by an individual organization to satisfy its customers

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The total system view of the marketing concept builds on the idea that

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all departments--not just marketing--should be guided by customer needs

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The universal functions of marketing do not include

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producing

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A firm with a marketing orientation

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tries to determine customers' needs before developing its product

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The texts considers five "eras" of marketing evolution. Which of the following shows the logical order in which these eras occur.

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Simple trade, production,sales,marketing department,marketing company

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Concerning marketing ethics:

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Individuals develop moral standards based on their own values Opinions about what is right or wrong vary from one society to another The prevailing practice of most business people is to be fair and honest (This is an all of the above answer)

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The "universal functions of marketing":

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must be performed in all MACRO-marketing systems are performed differently in different economies are performed by different parties in diff economies are needed to help overcome various separations and discrepancies. (This is an all of the above answer)

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An economic system in which government planners determine production levels is known as

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a command economy

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The________era is a time when all marketing activities are brought under the control of one department to improve short run planning

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marketing department era

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Because of increased competition during the _______era, firms put new effort into winning customers.

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sales

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An intermediary:

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is someone who specializes in trade rather than production

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Three basic ideas in the marketing concept are:

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customer satisfaction, total company effort and profit

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Marketing could not take place without

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two ore more parties who are willing to exchange something for something else

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Which of the following types of firms are collaborators?

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a. Marketing research firms b. Overnight delivery firms c. Advertising agencies d. Product-testing labs (All of the above are true)

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Which of the following is TRUE about the micro-macro dilemma?

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What is good for some producers and consumers may not be good for society as a whole.

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Based on the following company statements, which company is most likely to be in the marketing company era?

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"Our long range plan--developed by our marketing manager--is to expand so that we can profitably meet the long-term needs of our customers."

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Which of the following is NOT true about intermediaries?

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They always increase total expenses for a product.

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_______ is defined as the performance of activities that seek to accomplish an organization's objectives by anticipating customer needs and directing a flow of need-satisfying goods and services from producer to customer.

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Marketing

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Trying to balance the interests of people who want to drink beer and the dangers of drunk driving is an example of:

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the macro-micro dilemma

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MACRO-marketing:

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Emphasizes how the whole marketing system works.

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Which of the following is the best example of the marketing concept in action?

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A cleaning supplies firm learns that many consumers are having trouble hiring maids--so it develops a plan to offer customers complete house cleaning services.

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In a market-directed economy

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the individual decisions of the many producers and consumers make the macro-level decisions for the whole economy.

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Of the following headlines from a business magazine, which is most likely to be about a MACRO-marketing topic?

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Chinese Women Demand More Luxury Goods

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Which of the following statements about customer value is true?

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Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

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Which of the following is a true statement? a. Since marketing is concerned with many thousands of different products, there is no one set of marketing functions that applies to all products. b. Responsibility for performing marketing functions can be shifted and shared, but no function can be completely eliminated. Correct c. From a micro viewpoint, every firm must perform all of the marketing functions. d. Marketing functions should be performed only by marketing intermediaries or collaborators. e. Many marketing functions are not necessary in market-directed economies.

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Responsibility for performing marketing functions can be shifted and shared, but no function can be completely eliminated.

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The role of price in a market-directed economy is to: a. allocate resources and distribute income according to consumer preferences. b. serve as a rough measure of the social importance of consumer goods and services. c. coordinate the economic activity of many people and institutions. d. serve as a rough measure of the value of resources used to produce goods and services.

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All of the above

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According to the text, marketing means:

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much more than selling and advertising

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Marketing is NOT needed in a ______________ economy.

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pure subsistence

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Which of the following statements about economic systems is true?

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Consumers usually have more freedom of choice in a market-directed economy.

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Which of the following statements about marketing is FALSE?

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The cost of marketing is about 15 percent of the consumer's dollar

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______________ involve(s) sorting products according to size and quality.

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Standardization and grading

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Identify the incorrect statement regarding target marketing.

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Mass marketers cannot do target marketing

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The "four Ps" of a marketing mix are

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Product, Place, Promotion, and Price

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The Sherman Act sought to:

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prevent monopolies or conspiracies in restraint of trade

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The most important variable in a firm's marketing mix is: a. Product. b. Price. c. Promotion. d. Place.

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All of the above

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It's best to think of "breakthrough opportunities" as opportunities which:

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increase sales

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When a firm tries to increase sales by offering new or improved products to its present markets, this is called:

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market penetration.

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The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:

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strategic (management) planning.

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The return-on-investment approach to evaluating possible product-market strategic plans is useful when:

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the plans differ a lot in terms of investment required.

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If a cola producer bought out a Mango juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks, it would be pursuing a ______________ opportunity.

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diversification

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When Colgate encourages its current customers to brush more often by taking their toothbrush and toothpaste to work with them, which market opportunity is Colgate pursuing?

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Market penetration

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The main difference between a "marketing strategy" and a "marketing plan" is that:

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time-related details are included in a marketing plan

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The marketing management process is the process of a. Planning marketing activities. b. Implementing marketing plans. c. Controlling marketing plans.

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All of the above

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A mission statement

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sets out the organization's basic purpose for being.

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The most risky types of marketing opportunity to pursue usually involve

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diversification.

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The Wall Street Journal has been trying to attract new customers by promoting its newspaper for student use in business courses. This is an example of

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market development

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Scott Paper uses many intermediaries to reach its target markets; Citibank uses none. Which of the marketing mix variables is being considered here?

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place

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"Promotion" includes: a. advertising. b. personal selling. c. sales promotion. d. publicity.

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all of the above

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Product warranties are the focus of the ______________ Act.

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Magnuson-Moss

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A marketing strategy specifies:

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a target market and a related marketing mix

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The owner of the new Sharp Scissors hair salon gave coupons to potential customers walking by her store to stimulate interest and trial of her new hair salon. The coupons are an example of

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sales promotion.

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A S.W.O.T. analysis includes: a. strengths. b. weaknesses. c. opportunities. d. threats.

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all of the above

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An appropriate marketing mix should be determined PRIMARILY by

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the needs of a target market

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Portfolio management:

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allows a manager to compare different divisions within the company

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The business strengths dimension of the GE grid focuses on:

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the ability of the company to pursue a product-market plan effectively.

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The Clayton Act specifically aims at: a. tying contracts. b. price discrimination by manufacturers. c. exclusive dealing contracts limiting a buyer's sources of supply.

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all of the above

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According to the General Electric strategic planning grid, a business that is the strongest in its industry: Select one:

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is a good prospect, provided the industry has at least medium attractiveness.

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The basic objective of a firm should be to: a. engage in some specific business activity that will perform a socially and economically useful function. b. develop an organization to carry on the business and implement its strategies. c. earn enough profit to survive.

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all of the above

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Regarding the current legal environment facing U.S. marketing managers: a. state and local laws vary but contain important regulations. b. the focus has shifted from "let the buyer beware" to "let the seller beware." c. product safety is now controlled. d. businesses and individual managers are subject to both criminal and civil laws.

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all of the above

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The Federal Trade Commission Act of 1914 is primarily concerned with:

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unfair methods of competition.

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The "continuum of environmental sensitivity" suggests that:

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industrial products need to be adapted more than consumer products for international markets.

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A firm that discriminates in price on goods of "like grade and quality" may be in violation of the ___________ Act.

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Robinson-Patman

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______ means that a firm has a marketing mix that the target market sees as better than a competitor's mix.

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Competitive advantage

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In the short run at least, which of the following is usually beyond the control of the marketing manager? a. Political and legal environments. b. Economic environment. c. Cultural and social environment. d. Competitive environment.

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all of the above

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A "channel of distribution":

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is any series of firms (or individuals) from producer to final user or consumer.

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The marketing manager for Lucky Grains cereals is forecasting potential lifetime sales, costs, and profitability for a potential new product -- Lucky Rice Squares. The marketing manager is using ____ to evaluate this opportunity.

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total profit approach

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Organizational units (within a larger company) which focus their efforts on selected product-markets and are treated as separate profit centers are called:

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strategic business units (SBUs)

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Advertising is:

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any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor.

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Which of the following best illustrates a "breakthrough opportunity?"

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A drug company develops a patented pill that people can take once a year and safely avoid catching a cold.

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The difference between target marketing and mass marketing is that target marketing

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focuses on specific customers, while mass marketing aims at an entire market.

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Customer equity

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is the expected earnings stream of a firm's current and prospective customers over some time period.

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Which of the following criteria should a marketing manager use when segmenting a broad product-market?

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The people in different segments should be as heterogeneous as possible with respect to their likely response to marketing mix variables.

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Clustering techniques

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try to find similar patterns within sets of data.

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A large firm with ample resources wants to minimize the risk of "inviting" competitors to "chip away" at its target market(s). It has segmented its broad product-market and identified several homogeneous sub-markets--each of which is large enough to offer attractive sales and profit potential. Which of the following approaches should the firm use?

answer

Multiple target market approach

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Gina Williams wanted to start a decorating business. She identified several possible target markets, but decided to serve a market composed of recently married couples that owned their first home. Gina appears to be following:

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A single target market approach.

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"Qualifying dimensions," in contrast to "determining dimensions,"

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indicate whether a person might be a potential customer but do not show which product or brand that person might buy.

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When deciding how far to carry the segmenting process,

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profit should be the balancing point--determining how unique a marketing mix the firm can offer to some target market.

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A _____ is a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

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product-market

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Which of the following segmenting dimensions probably would be LEAST LIKELY to result in segments that would meet the criteria that product-market segments should be "operational?"

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Personality

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The first step in the seven-step approach for segmenting product-markets is to

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select the broad product-market

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Segmenting dimensions

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help guide marketing mix planning

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Which of the following is LEAST likely to compete in the same generic market with the others? a. Garlic powder. b. Pepper. c. Tabasco sauce. d. Salt. e. Potato chips.

answer

Potato chips.

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A _____ is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way.

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market segment

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Watson's Bakery found five different market segments among customers for its bakery goods. When developing a market-oriented strategy, the marketing manager used a ____ approach, putting two target markets together and developing a single marketing mix that would meet the needs of the new larger segment.

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combined target market

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A marketing manager has just learned about generic markets. This may lead the manager

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to think about new ways of satisfying the needs of her current customers.

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"Positioning":

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helps strategy planners understand how customers think about various brands or products in relation to each other.

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Electro Technologies, Inc. (ETI) has limited capital and wants to reduce the risk of competitors taking customers if it invests in a new product-market. Its broad product-market consists of three reasonably distinct submarkets. To identify a target market, ETI should probably focus on using the __________ approach.

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single target market

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Segmenting:

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tries to aggregate together individuals who have similar needs and characteristics.

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Market segmentation:

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tries to identify homogeneous sub-markets within a product-market.

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The segmenting step of the segmentation process

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looks for similarities in needs.

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When Procter & Gamble offers both Pantene and Vidal Sassoon shampoos to its customers, which target market approach is P&G using?

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Multiple

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A firm's "relevant market for finding opportunities" should:

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be bigger than the firm's present product-market--but not so big that the firm could not be an important competitor.

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Which of the following offers a firm the greatest potential for profit? a. Mass marketing b. The multiple target market approach c. The combined target market approach d. The single target market approach

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any of the above

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A "product-market" is a market in which:

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sellers offer very close substitute ways of satisfying potential customers' needs.

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"Good" market segments are those which are: a. heterogeneous between. b. operational. c. substantial. d. homogeneous within.

answer

all of the above

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The first step in market segmentation should be:

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defining some broad product-markets where you may be able to operate profitably.

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Regarding segmenting, as opposed to combining:

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Segmenters try to satisfy consumers "very well" instead of "pretty well."

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Saying that a "good" product-market segment should be substantial means

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it should be large enough to be profitable.

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Segmenting international markets (as contrasted with domestic markets):

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may be more difficult because critical data may not be available or dependable.

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______________ segmenting dimensions help decide whether a person might be a potential customer--but not which specific products or brands that person might buy.

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Qualifying

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Ideally, product-markets should be described in terms of: a. behavioral needs, attitudes, and how present and potential goods or services fit into customers' consumption patterns. b. urgency to get needs satisfied and desire and willingness to compare and shop. c. geographic location and other demographic characteristics of potential customers.

answer

all of the above

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A combined target market approach

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may not satisfy customers as well as the multiple target market approach.

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Compared to a product-market, a generic market:

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Has sellers offering a more diverse set of products.

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Alpine Auto Repair keeps a record of customer oil changes and sends a reminder postcard to its customers when it's time for the next oil change. This is an example of a ______ system.

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customer relationship management

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______________ is the process of naming broad product-markets and then segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes.

answer

Market segmentation

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_____ aim at one or more homogeneous segments and try to develop a different marketing mix for each segment.

answer

Segmenters

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Which of the following is the best example of a "product-market?" a. The MP3 player market b. The young adult exercise market c. The software market d. The convenience market e. The status symbol market

answer

The MP3 player market

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A market consists of: a. a group of potential customers with similar needs who are willing to exchange something of value. b. various kinds of products with similar characteristics. c. sellers offering substitute ways of satisfying needs. d. all the firms within a particular industry. e. both A and C

answer

both A and C

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Which of the following is a consumer market demographic dimension? a. Income distribution. b. Stage in family life cycle. c. Family size. d. Ethnic group.

answer

all of the above

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"Positioning" is a marketing management aid which refers to:

answer

how customers think about proposed and/or present brands in a market.

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Which of the following is NOT one of the target marketing approaches for developing market-oriented strategies in a broad product-market? a. Multiple. b. Single. c. Exclusive d. Combined. e. All of the above are target marketing approaches.

answer

Exclusive

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Reference-group influence would be WEAKEST for determining which particular ______________ a person buys.

answer

laundry soap

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A marketing manager who wants to apply the "hierarchy of needs" model should keep in mind that:

answer

the same marketing mix might satisfy two or more levels of need.

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Billy Longstreet had just bought a new car and was a bit uncertain about whether or not he had done the right thing in buying it. Two days after he purchased it, he decided to take it back to the dealer so that the dealer could install some additional optional equipment. When Billy went to the dealership to pick up the car after the installation, the salesman who sold Billy the car said, "You know, in the last two hours three different customers told me how much they liked the looks of your new car. One of them even wanted to know if it was for sale!" This attempt by the salesman to confirm the wisdom of Billy's purchase decision seems to be aimed at reducing:

answer

dissonance.

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Extensive problem solving probably would be required by a recent college graduate in the purchase of: a. living room furniture. b. a color TV set. c. a new home. d. a sports car.

answer

all of the above

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ABC Technologies manufactures computer accessories, such as modems and network cards. Even though the company has several purchasing managers, the company president has final authority on all purchases over $500, including the selection of the supplier. In the typical buying center in this company, the company president would have the primary role of:

answer

Decider.

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Buying specialists for organizations are commonly called:

answer

purchasing managers.

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Vendor analysis is a(n)

answer

formal rating of suppliers on all relevant areas of performance.

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Ranked from lowest level to highest level, the "hierarchy of needs" model includes:

answer

physiological, safety, social, and personal needs.

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While planning a vacation, Betty Jo visited the Web site of a package tour provider and closed a pop-up ad without even noticing what it was for. This is an example of

answer

selective exposure.

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Allstate Insurance promotes its auto and home insurance by telling consumers, "You're in good hands with Allstate." Which of the following types of needs is Allstate trying to satisfy?

answer

Safety needs

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Which of the following would be the most difficult task facing a marketing manager?

answer

Change existing negative attitudes

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During the purchase of janitorial services for a new building, Teresa has responsibility for working with suppliers and arranging the terms of the sale. In this role, Teresa appears to be acting as

answer

a buyer.

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Which of the following statements about opinion leaders is true?

answer

Opinion leaders on one subject aren't necessarily opinion leaders on another.

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The present state of our knowledge about consumer behavior is such that:

answer

a marketing manager usually must blend intuition and judgment with findings from the behavioral sciences to explain and predict consumer behavior.

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Whitewater Corp. is looking for a new vendor for basic plastics because the present vendor has been inconsistent about meeting delivery schedules. Which of the following buying processes is the firm's purchasing agent MOST LIKELY to use?

answer

Modified rebuy buying

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The basic relationship between consumer decisions and consumer lifestyles is such that:

answer

consumer decisions are made to maintain and enhance lifestyle.

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Straight rebuy

answer

vendor selections are likely to be made by a purchasing manager--without consulting anyone else.

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The statement, "Almond Joy is made with real almonds" is an example of:

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a belief

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According to the text, your social class level does not depend directly on your:

answer

income level

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Routinized response behavior

answer

is most common for purchases where the consumer has much experience in how to meet a need

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_____ refers to reliably getting products there exactly before the customer needs them

answer

Just-in-time delivery

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When a consumer puts much effort into deciding how to satisfy a need, he engages in

answer

extensive problem solving

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With respect to culture and consumer behavior, a. culture is the whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous set of people. b. culture may exert many subtle influences on other aspects of consumer behavior. c. different cultural subgroups are likely to require different marketing mixes.

answer

all of the above

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Which of the following gives the correct ORDERING of the steps in the "adoption process?"

answer

Awareness, interest, evaluation, trial, decision, confirmation

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Eddie Falco went to a grocery store to buy his favorite brand of ice cream. However, the store was temporarily out of that brand, so he looked over the other familiar brands and decided to try a well advertised brand. This case illustrates:

answer

Limited problem solving

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According to the text, the economic-buyer theory

answer

is too simplistic to explain consumer behavior.

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Reference group influence is likely to have the strongest effect on the particular BRAND of ______________ purchased.

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watch

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The statement, "I like Southwest Air," is an example of a(n):

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attitude

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When dealing with consumer attitudes, marketers should know that:

answer

consumer attitudes tend to be enduring.

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______ refers to processes that screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs.

answer

Selective perception

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What is the best single indicator of social class? Select one:

answer

occupation

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The AIO items used in life-style analysis include:

answer

activities, interests, and opinions.

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Which of the following buying situations gives a seller the most chance for promotion impact?

answer

New-task buying

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The desire to climb the organizational ladder represents:

answer

an aspirational group

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This act, passed by the U.S. Congress in 1977, prohibits U.S. firms from paying bribes to foreign officials.

answer

Foreign Corrupt Practices Act

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Good marketing managers know that

answer

marketers can't create internal drives in consumers

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A _____ refers to all of the people who participate in or influence a purchase.

answer

buying center

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Among the multiple buying influences, ____ control the flow of information within the organization.

answer

gatekeepers

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Lifestyle can be viewed as:

answer

a unique pattern of living which influences and is reflected by one's consumption behavior.

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Branding is good for some CONSUMERS because it: a. makes shopping easier. b. provides dependable guides to product quality. c. helps assure regular satisfaction. d. All of the above

answer

All of the above

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Quantitative marketing research a. usually makes it easier and faster for respondents to answer the questions (compared to qualitative research). b. can use a large, representative sample. c. data can be collected by mail, e-mail, online, telephone, or personal interviews. d. makes it easier for the research analyst to summarize answers. e. All of the above are true

answer

All the above

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The big advantage of qualitative research in marketing is:

answer

the in-depth responses it provides

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Statistical packages are:

answer

easy-to-use computer programs that analyze data

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Secondary data: a. may not be specific enough to answer the question under consideration. b. should be considered before primary data is collected. c. is often all that is needed to solve a problem. d. is available both internally and outside the firm. e. all of the above

answer

all of the above

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A marketing model is a

answer

statement of relationships among marketing variables.

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Which of the following would NOT be a source of primary data?

answer

The Wall Street Journal

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Sears' Kenmore brand of appliances sold in all Sears stores illustrates two kinds of brands.

answer

dealer and family brands.

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The most difficult step of the marketing research process is:

answer

defining the problem

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A "dealer brand" is sometimes called a ______________ brand.

answer

private

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According to the text, "product":

answer

means the need-satisfying offering of a firm.

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Which of the following statements regarding the "battle of the brands" is true?

answer

Manufacturer brands have been losing ground to dealer brands.

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Procedures that develop and analyze new information to help marketing managers make decisions are called:

answer

marketing research.

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A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's

answer

product assortment.

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_____ refers to an organized way of continually gathering, accessing, and analyzing information that marketing managers need to make ongoing decisions.

answer

Marketing information system

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At Verizon Communications, a marketing manager can view up-to-date marketing data that has been customized to fit his area of responsibility by using a:

answer

marketing dashboard.

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A trademark or brand name can become public property if:

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it becomes a common descriptive word for the product.

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An interview with 6 to 10 people in an informal group setting is called a(an):

answer

focus group interview.

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The Magnuson-Moss Act requires that:

answer

a warranty must be clearly written, if one is offered.

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Characteristics of a good brand name include all of the following except:

answer

Be trendy and fashionable.

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Joy Rinaldo has agreed to participate in marketing research in which she will provide information about her purchases on an ongoing basis. She is probably part of a:

answer

consumer panel.

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From a marketing perspective, a high quality copy machine is one that:

answer

does a good job satisfying a customer's requirements or needs.

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Which of the following is NOT favorable to successful branding?

answer

Access to favorable shelf locations is very limited.

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Which of the following is NOT an advantage of telephone surveys?

answer

They are especially good for getting confidential and personal information.

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Nonrecognition of the brand name of a firm's product is likely to be LEAST important for:

answer

Coal

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Branding can help BRANDERS because it: a. may lower promotion costs. b. can improve the company's image. c. encourages repeat buying. d. may develop customer loyalty. e. All of the above.

answer

all of the above

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The response rate to a survey affects

answer

how representative the sample is.

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When a marketing manager scans a firm's MIS to try to obtain information about why the firm's product sales are down, this is an example of a(n):

answer

situation analysis

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A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them is the:

answer

scientific method.

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Two similar groups of consumers are shown different magazines which include the same ad. Then each consumer is asked questions about the advertised product. This seems to be a description of

answer

the experimental method.

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Secondary data is often available--at little or no cost--from: a. both private and government sources. b. the Internet. c. trade associations. d. company files. e. All of the above.

answer

all of the above

question

Darrell Everwine read a review about a new computer program that appealed to him very much. He decided to try to find the program. However, the new program was in short supply--although other brands with similar features were available. Darrell had to try seven shops before he finally found the program in stock. For Darrell, this program achieved brand:

answer

insistence.

question

Convenience products include: a. impulse products. b. staple products. c. emergency products. d. All of the above.

answer

all of the above

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______________ is concerned with whether the research data measures what it is intended to.

answer

Validity

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The percent of people contacted who complete a survey questionnaire is the:

answer

response rate.

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Regarding an estimate from a survey, the range on either side of the survey result that is likely to contain the "true" value of the relevant population is called:

answer

confidence interval

question

A trademark

answer

includes those words, symbols, or marks that are legally registered for use by a single company.

question

The value of a brand to its current owner or to a firm that wants to buy it is called

answer

brand equity

question

The text's consumer product classes are based upon:

answer

the way people think about and shop for products

question

Which of the following would be MOST LIKELY to use individual brands rather than a family brand for its products?

answer

Manufacturer of canned pet food and sandwich spread for final consumers

question

According to the US Federal Trade Commission (FTC), a firm can call its product "new" for _____ months.

answer

6

question

According to the text, product life cycles are:

answer

getting shorter

question

Corporate chains: a. have continued to grow--and now account for about half of all retail sales. b. have an advantage relative to independent stores when it comes to promotion and use of dealer brands. c. increase their buying power by centralizing at least some of the buying for different stores. d. all of the above.

answer

all of the above

question

The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.

answer

Mass-merchandising concept

question

Cooperative chains:

answer

are formed by independent retailers to run their own buying organizations and conduct joint promotion efforts

question

Many people like to drive motorcycles. But motorcycles have a high death rate in even minor accidents. These motorcycles should probably be thought of as

answer

pleasing products.

question

Product or brand managers are commonly used when a firm:

answer

has several different kinds of products or brands.

question

In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.

answer

a low initial penetration price

question

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle.

answer

market maturity

question

During the introduction stage of the product life cycle,

answer

promotion is likely to be needed to build primary demand.

question

The first retailers to really show the importance of the mass-merchandising concept were the operators of:

answer

supermarkets.

question

During the MARKET MATURITY stage of the product life cycle:

answer

persuasive promotion becomes more important.

question

A new product idea is more likely to move quickly through the early stages of the product life cycle when: a. the product is easy to use. b. the product is compatible with the values and experiences of target customers. c. the product can be given a trial. d. the product's advantages are easy to communicate. e. All of the above are correct.

answer

all of the above

question

Regarding product life cycles, good marketing managers know that:

answer

product life cycles can be extended through product modifications.

question

Regarding retail sales in the U.S., it is true that: a. less than 8 percent of all retail sales are made by smaller stores--those with sales less than $1 million a year. b. almost 70 percent of all retail sales are made by the largest stores--those with sales over $5 million a year. c. corporate chains account for about 50 percent of retail sales. d. All of the above are true.

answer

all of the above

question

The new-product development process discussed in the text

answer

relies solely on test marketing to decide whether to drop an idea or take it to market.

question

Department stores: a. are basically a group of limited-line stores under one roof. b. are decreasing in number, average sales per store, and share of retail business. c. usually aim at customers seeking shopping products. d. All of the above are true. Correct e. Only B and C are true.

answer

all of the above

question

A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a

answer

voluntary chain.

question

When Procter & Gamble introduces a new type of shampoo into one market in Kansas City to determine how many units of it can be sold over a nine-month period, this is an example of:

answer

market testing

question

The idea that new types of retailers begin as low-status, low-margin, low-price operators and then--if successful--evolve into more conventional retailers offering more services is called the

answer

wheel of retailing theory.

question

Industry profits are largest in which of the following product life cycle stages?

answer

Market growth

question

Product life cycles refer to the life of:

answer

a product idea

question

Franchisors: a. account for about a third of all retail sales. b. often provide franchise holders with training. c. usually receive fees and commissions from the franchise holder. d. are especially popular with services retailers. e. all of the above.

answer

all of the above

question

Scrambled merchandising is carrying

answer

any product lines that a store thinks that they can sell profitably

question

Regarding supermarkets, which of the following statements is TRUE?

answer

Supermarket net profits after taxes usually are about 1 percent of sales--or less.

question

Warehouse clubs such as Sam's Club and Costco: a. usually operate in large, no-frills facilities. b. have been successful targeting small-business customers. c. emphasize homogeneous shopping products. d. usually charge consumers an annual membership fee. e. All of the above are true.

answer

all of the above

question

According to the FTC, for a producer to call a product "new," the product:

answer

must be entirely new or changed in a functionally significant or substantial respect.

question

Which of the following statements about single- and limited-line stores is TRUE? a. Many are small, with high expenses relative to sales. b. They usually believe in a "buy low and sell high" philosophy. c. Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets. d. Most conventional retailers are single- or limited-line stores. e. All of the above are true.

answer

all of the above

question

Mass-merchandisers:

answer

are large, self-service stores which stress low price to get faster turnover.

question

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

answer

sales decline

question

During the SALES DECLINE stage of the product life cycle:

answer

firms with strong brands may make profits almost until the end.

question

A _____ is a type of conventional limited-line store that is usually small and has a distinct "personality."

answer

specialty shop

question

As a product moves through its product life cycle

answer

customers' needs and attitudes may change

question

Which of the following observations concerning the product life cycle is NOT TRUE?

answer

The sales and profits of an individual brand follow the life-cycle pattern.

question

Which of the following is a common cause of new product failures?

answer

The product fails to offer the customer a unique benefit.

question

Which of the following would be considered a retailing "category killer"? a. Office Depot (office supplies) b. PayLess (drugstores) c. Lowe's (home improvements) d. Barnes & Noble (books) e. all of the above

answer

all of the above

question

High immediate satisfaction and high long-run consumer welfare is provided by:

answer

desirable products.

question

Cargill, Inc. is finally earning a profit on the unique product it introduced six months ago. Cargill's advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of the product life cycle is Cargill operating?

answer

Market growth

question

Industry sales are highest in which of the following product life cycle stages?

answer

Market maturity.

question

Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?

answer

Place - move toward selective distribution.

question

Sales promotion activities:

answer

try to stimulate interest, trial, or purchase

question

A producer is likely to focus its promotion effort on stimulating primary demand at what stage in the product life cycle?

answer

Market introduction

question

The "adoption curve" shows:

answer

when different groups accept ideas.

question

The AIDA model includes all of the following promotion jobs EXCEPT

answer

increasing demand.

question

"Promotion" is concerned with: a. how suitable messages are communicated to target customers. b. communicating information between seller and buyer or others in the channel to influence attitudes and behavior. Incorrect c. informing customers that the right Product is available at the right Place at the right Price. d. blending personal selling, mass selling, and sales promotion.

answer

all of the above

question

Producers and wholesalers that target business customers typically emphasize

answer

sales promotions.

question

LAGGARDS or NON-ADOPTERS: a. are usually the smallest businesses with the least specialization. b. tend to be older and less well educated. c. rely mainly on other laggards for information. d. are suspicious of new ideas. e. All of the above.

answer

all of the above

question

What basic promotion objective can be sought by a producer who has won brand insistence among its target customers?

answer

Reminding

question

Communicating with customers is known as the ________________ portion of the marketing mix.

answer

Promotion

question

"Advertising": a. is less expensive than personal selling for reaching large and widespread target markets. b. is any paid form of nonpersonal presentation of ideas, goods, or services by an identified seller. c. is not the same as publicity. d. is less flexible than personal selling. e. All of the above are true.

answer

all of the above

question

"Publicity":

answer

is mass selling that avoids paying media costs

question

_____ means getting customers to ask intermediaries for the product

answer

Pulling

question

The early majority group

answer

tends to avoid risk and waits to consider a new idea after many early adopters have tried it-and liked it.

question

Producers that advertise in GOOD HOUSEKEEPING magazine sometimes show that they have the Good Housekeeping "seal of approval." This illustrates their recognition of the importance of the ______________ in the communication process.

answer

message channel

question

Which of the following is NOT one of the basic promotion objectives discussed in the text?

answer

to manipulate

question

Any distraction that reduces the effectiveness of the communication process is called

answer

noise.

question

American Tourister, Inc.--a producer of luggage--is planning to introduce a new product line. The marketing manager is having her sales force call on retailers to explain American Tourister's consumer advertising plans, the unique features of the new luggage, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. This is an example of:

answer

a "pushing" policy.

question

MASS SELLING, in contrast to personal selling: a. is less expensive when the target customers are numerous and scattered. b. doesn't provide immediate feedback. c. is less flexible in adapting to customers' needs and attitudes. d. All of the above.

answer

All of the above.

question

Which of the following is NOT a promotion method? a. mass selling b. personal selling c. sales promotion d. All of the above are promotion methods.

answer

all of the above

question

Which of the following groups is likely to be the first to adopt a new product?

answer

innovators

question

What basic promotion objective should be sought by a producer whose Product is very similar to its many competitors' Products?

answer

Persuading

question

A retailer's target customers are skeptical and cautious about new ideas. Strong social pressure from their own peer group may be needed before they adopt a new product. These target customers are:

answer

the late majority.

question

Poor communication is likely if:

answer

the source and the receiver do not have a common frame of reference.

question

Communication with noncustomers, including labor, public interest groups, stockholders, and the government is generally referred to as

answer

public relations

question

A retailer's target market consists of people who usually will not consider a new idea until others have tried it--and liked it. These potential customers have a lot of contact with mass media and salespeople, but usually are not opinion leaders. These target customers are:

answer

the early majority.

question

_____ means using normal promotion effort to help sell the whole marketing mix to possible channel members.

answer

Pushing

question

Personal selling:

answer

Gets immediate feedback from consumers.

question

A stay-at-home mom is watching a "soap opera" on TV when a commercial for a new type of kitchen cleaning product by Procter & Gamble is presented. She considers whether the new product will clean better than her existing cleaning products. In the traditional communication model, the mom is the:

answer

Decoder

question

Which of the following statements about innovators is not true?

answer

Innovators need strong social pressure from their own peer group before they adopt a new product.

question

Regarding PRODUCT LIFE CYCLES and PROMOTION:

answer

Persuading becomes important in the market growth stage.

question

What basic promotion objective should be emphasized by a producer introducing a really new product which satisfies customer needs better than any existing product?

answer

Informing

question

Clairol Corp. is introducing a new brand of shampoo in a highly competitive market. Wholesalers might be willing to handle the new product, except that retailers are already complaining about overcrowded shelf space. Therefore, Clairol has decided to spend $10 million on TV advertising and send free samples to 3,000,000 households to convince consumers of the new product's superiority--and to get them to ask for it at their retail store. Clairol is using:

answer

a "pulling" policy.

question

Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of:

answer

sales promotion

question

Early adopters

answer

tend to be opinion leaders.

question

A producer is likely to focus its promotion effort on stimulating selective demand at what stage in the product life cycle?

answer

Market growth

question

The adoption curve concept is most closely related to which of the following?

answer

the product life cycle

question

The basic promotion objective of informing consumers corresponds to which stage(s) of the AIDA model? a. Getting attention. b. Holding interest. c. Arousing desire. d. Obtaining action. e. Both A and B.

answer

both A and B

question

The source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver is termed as

answer

encoding.

question

Blending the firm's promotion efforts to convey a complete and consistent message is the goal of:

answer

Integrated marketing communications.

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