question

Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands?

answer

behavioral science theories

question

An economic buyer is a person who

answer

ogically compares choices to get the greatest satisfaction from spending time and money.

question

Which of the following is an "economic need"?

answer

Desire for efficiency in the use of the consumer's time and money

question

Discretionary income is defined as:

answer

income available after taxes and necessities.

question

"Discretionary income:"

answer

is a family's income AFTER paying taxes and paying for necessities.

question

According to the text, the economic-buyer theory

answer

is too simplistic to explain consumer behavior.

question

The "economic-buyer" model:

answer

is seen as too simplistic by most marketing managers.

question

____ is one of the psychological variables that affects a person's buying behavior.

answer

Perception

question

psychological variable?

answer

Motivation, perception, learning, attitude, trust, and lifestyle are some of the psychological variables which affect consumer buying. Culture is not a psychological variable; it is a social influence.

question

Regarding consumer motivation, the text states that:

answer

wants are learned needs.

question

What are the basic forces that motivate a person to do something?

answer

needs

question

Wants

answer

are needs that are learned during a person's life.

question

A _____ is a strong stimulus that encourages action to reduce or satisfy a need.

answer

drive

question

When a consumer actually purchases a particular product it is the direct result of a

answer

drive

question

four-level hierarchy of needs.

answer

physiological needs, safety needs, social needs, and personal needs.

question

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

answer

physiological, safety, social, and personal needs

question

______ needs are concerned with things that involve a person's interaction with others.

answer

social

question

Needs such as accomplishment and relaxation, which are unrelated to what others think or do, are known as:

answer

personal needs

question

Motivation theory

answer

suggests that most products must fill more than one need at a time

question

_____ refers to how we gather and interpret information from the world around us.

answer

Perception

question

Which of the following is not a selective process used in gathering and interpreting information from the world around us?

answer

Selective attention

question

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

answer

Selective perception

question

Consumers remembering only what they want to remember is called:

answer

selective retention

question

_____ is a change in a person's thought processes caused by prior experience.

answer

Learning

question

The order of the steps in the learning process is:

answer

drive, cue, response, reinforcement.

question

Psychographics may also be called

answer

lifestyle analysis.

question

The AIO items used in life-style analysis include:

answer

activities, interests, and opinions.

question

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

answer

income level

question

According to the text, social class in the U.S. is usually measured in terms of:

answer

occupation, education, and housing arrangements.

question

______ refers to the people to whom an individual looks when forming attitudes about a particular topic.

answer

A reference group

question

A good marketing manager knows that

answer

a consumer's reference group may consist of people with whom the consumer has no face-to-face contact.

question

The whole set of beliefs, attitudes, and ways of doing things of a reasonably homogeneous group of people is a(n):

answer

culture

question

The steps individuals go through in accepting or rejecting a new idea is known as

answer

the adoption process.

question

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

answer

Awareness, interest, evaluation, trial, decision, confirmation

question

A ____ is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

answer

market

question

In a generic market

answer

sellers offer various, often diverse, ways of satisfying broadly similar needs.

question

A ______________ market is a market with broadly similar needs and sellers offering various--and often diverse--ways of satisfying those needs.

answer

generic

question

The main difference between a generic market and a product-market is that:

answer

a generic-market involves a less similar set of needs than does a product-market.

question

A basic difference between a "generic market" and a "product-market" is:

answer

how similar the competing sellers' products are.

question

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

answer

product market

question

A product-market is one

answer

in which competing sellers offer physically or conceptually similar products

question

A product-market definition should include:

answer

A complete product-market definition includes a four-part description: Product type; Customer needs; Customer types; and Geographic area.

question

A complete product-market definition includes a four-part description comprising all of the following except

answer

marketing mix.

question

A generic market definition includes

answer

customer (user) needs, customer types, and geographic area.

question

______________ 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

question

The process of naming broad product-markets and then segmenting them in order to select target markets and develop suitable marketing mixes is called:

answer

Market segmentation.

question

Which is the first step in market segmentation?

answer

Naming a broad product-market of interest to the firm.

question

According to the text, segmenting:

answer

is an aggregating process.

question

According to the text, segmenting should be viewed as a(n) ______________ process.

answer

"clustering" or aggregating

question

The main difference between naming broad product-markets and market segmentation is:

answer

naming involves breaking down markets, while segmentation involves aggregating customers with similar needs.

question

The segmenting step of the segmentation process

answer

looks for similarities in needs

question

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

answer

market segment

question

"Good" market segments are those that are:

answer

operational and substantial.

question

Merging two or more submarkets into one larger target market as a basis for one strategy is known as the ____ target market approach.

answer

combined

question

Combiners

answer

try to increase the size of their target markets by merging two or more segments.

question

Combiners (as opposed to segmenters):

answer

try to increase the size of their target markets by combining two or more market segments.

question

The combined target market approach:

answer

tries to improve the general appeal of a firm's basic marketing mix rather than tailor it to meet the strongly felt needs of some people.

question

A combined target market approach

answer

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

question

Regarding segmenting, as opposed to combining:

answer

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

question

Segmenting, in contrast to combining:

answer

tries to identify homogeneous submarkets and develop different marketing mixes for each submarket.

question

Segmenters, in contrast to combiners:

answer

try to aim at homogeneous submarkets of larger product-markets.

question

When segmenting broad product-markets, cost considerations tend

answer

to lead to more aggregating.

question

When segmenting markets, cost considerations typically encourage a company to ________ and ________.

answer

aggregate; combine segments

question

When deciding how far to carry the segmenting process,

answer

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

question

Segmenting dimensions

answer

help guide marketing mix planning.

question

Which of the following is a BEHAVIORAL segmenting dimension?

answer

Needs.

question

Which of the following possible segmenting dimensions is a "demographic" dimension?

answer

Social class

question

Which of the following is a DEMOGRAPHIC segmenting dimension?

answer

Family life cycle.

question

Manufacturer, service provider, government agency, wholesaler, etc. are designations used to segment business and organizational markets according to _______________.

answer

type of customer

question

When a company segments its business customers on the basis of whether or not they require contract bids over the Internet, what segmenting dimension is this company using?

answer

Purchasing methods.

question

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

answer

Qualifying

question

Deciding whether a group of customers should be included in a target market is the purpose of _____ dimensions.

answer

qualifying

question

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

answer

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

question

Qualifying dimensions

answer

help identify the "core benefits."

question

______________ segmenting dimensions are those which actually affect a person's purchase of a specific product type or brand in a product-market.

answer

Determining

question

Compared to qualifying dimensions, determining dimensions

answer

are usually much more specific.

question

Product type determining dimensions

answer

affect the customer's purchase of a specific product brand.

question

The first step in segmenting international markets is to:

answer

segment by country or region--looking at demographic, cultural, and other characteristics

question

A detailed customer database, containing past purchases and other segmenting information, is used to focus marketing efforts on individual customers in a:

answer

Customer relationship management system.

question

_____ refers to how customers think about proposed or present brands in a market.

answer

Positioning

question

Positioning analysis

answer

is a visual aid to understanding a product-market.

question

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.

answer

Variables in the economic, technological, competitive, cultural, social, political and legal environments affect strategy planning.

question

The direct market environment

answer

includes customers, the company, and competitors.

question

A mission statement

answer

sets out the organization's basic purpose for being

question

Of the following objectives, the LAST objective(s) that a firm should specify is its ______________ objective(s).

answer

sales promotion

question

Of the following, the last objectives that a firm should specify are its

answer

advertising objectives

question

A first step in evaluating marketing opportunities is to:

answer

consider the objectives and resources of the firm

question

Which of the following is not a basic kind of market (competitive) situation?

answer

Capitalistic competition

question

Most product-markets head toward ______ over the long run.

answer

pure competition

question

In a _____________ situation, competitors offer very similar products which customers see as close substitutes, and managers just compete with lower and lower prices as profit margins shrink.

answer

pure competition

question

____ refers to market situation where one firm completely controls a broad product-market.

answer

monopoly

question

In monopolistic competition,

answer

each competitor tries to get control in its "own" target market.

question

Regarding the competitive environment:

answer

Competitive rivals" are a firm's closest competitors.

question

___________ ___________ are the firms that are considered to be the organization's closest challengers.

answer

competitive rivals

question

The economic environment:

answer

Can change very rapidly.

question

The economic environment

answer

includes changes in interest rates and inflation.

question

A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.

answer

economic

question

An emphasis on a single country's interests before everything else is known as

answer

nationalism

question

"Nationalism" is an issue in the ______________ environment.

answer

political

question

The North American Free Trade Agreement (NAFTA):

answer

Has resulted in the movement of production jobs to Mexico due to lower labor costs.

question

NAFTA:

answer

NAFTA, a free-trade pact between the U.S., Canada, and Mexico, is a long-term proposition and has eliminated most trade barriers with Mexico.

question

The _____ environment sets the basic rules for how a business can operate in society.

answer

legal

question

American economic and legislative thinking is based on the idea that

answer

competition among many small firms helps the economy.

question

The attitudes and behavior patterns of people are part of the

answer

social and cultural environment

question

Which of the following statements about world population trends is true?

answer

People are moving from rural areas into urban areas.

question

Regarding population density in the world,

answer

some Western European and Asian urban areas are more crowded than U.S. urban areas

question

The total market value of goods and services provided in a country's economy per year by both residents and nonresidents of that country is:

answer

Gross domestic product.

question

____ refers to the total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country.

answer

Gross domestic product

question

Gross national income (GNI) is the:

answer

total market value of goods and services provided in an economy in a year by residents of that country

question

Gross national income:

answer

is a widely used measure of income for different countries.

question

During the 2010-2020 decade, the U.S. population is expected to continue to shift:

answer

to the South and West

question

The best marketing opportunity for a consumer products producer is in:

answer

It depends on the marketing strategy.

question

When selecting among possible product-market strategic plans,

answer

the total profit approach requires estimates of sales, costs, and profits.

question

According to the General Electric strategic planning grid, an opportunity which is low on the "business strengths" dimension but high on the "industry attractiveness" should be:

answer

supported if it is an existing business, but probably not supported if it is a new opportunity.

question

General Electric's "strategic planning grid":

answer

requires subjective judgments about business strengths and industry attractiveness

question

GE's planning grid approach

answer

could be adapted easily by another firm with different objectives.

question

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

answer

strategic business units.

question

Strategic business units:

answer

Are organizational units within a larger company.

question

The "continuum of environmental sensitivity" suggests that:

answer

some products are more adaptable to international markets than others.

question

Market competitive situation

answer

are pure competition, oligopoly, monopolistic competition, and monopoly.

question

The three basic tasks of ALL managers, according to the text, are:

answer

planning, implementation, and control.

question

"Marketing strategy planning" means:

answer

finding attractive opportunities and developing profitable marketing strategies

question

Marketing strategies

answer

are not whole-company plans

question

A marketing strategy

answer

specifies a target market and a related marketing mix.

question

A marketing strategy specifies:

answer

a target market and a related marketing mix.

question

A target market and a related marketing mix make up a:

answer

Marketing strategy.

question

Target marketing, in contrast to mass marketing:

answer

Tailors a marketing mix to fit some specific group of customers.

question

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

answer

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

question

_____ assume(s) that everyone is the same--and consider(s) everyone to be a potential customer.

answer

Mass marketing

question

Marketing managers should view potential customers as

answer

grouped into segments of similar consumers.

question

Good marketing strategy planners know that:

answer

target marketing does not limit one to small market segments.

question

"Target marketing," in contrast to "mass marketing,"

answer

focuses on fairly homogeneous market segments.

question

The marketing mix

answer

helps to organize the marketing strategy decision areas.

question

The "four Ps" of a marketing mix are:

answer

Product, Place, Promotion, and Price

question

A marketing mix consists of:

answer

product, price, promotion, and place.

question

Any series of firms or individuals that participate in the flow of products from producer to final user or consumer is known as:

answer

a channel of distribution.

question

Sales promotion:

answer

tries to help the personal selling and mass selling people.

question

Catalogs, point-of-purchase materials, and free samples are all examples of:

answer

sales promotion

question

Coupons, samples, and point-of-purchase materials are examples of

answer

sales promotion

question

"Price":

answer

is affected by the kind of competition in the target market.

question

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

answer

time-related details are included in a marketing plan.

question

A "marketing plan" is:

answer

a marketing strategy--plus the time-related details for carrying it out.

question

_____ refers to putting marketing plans into operation.

answer

Implementation

question

Managers should make operational decisions

answer

within the guidelines set down during strategy planning

question

A "marketing program":

answer

blends all of a firm's marketing plans into one big plan.

question

Customer equity

answer

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

question

_____ help(s) innovators develop hard-to-copy marketing strategies that will be very profitable for a long time.

answer

Breakthrough opportunities

question

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

answer

Competitive advantage

question

A S.W.O.T. analysis includes:

answer

A S.W.O.T. analysis identifies and lists the firm's strengths, weaknesses, opportunities and threats.

question

A S.W.O.T. analysis

answer

should help a manager develop a strategy that leads to a competitive advantage.

question

A S.W.O.T. analysis

answer

identifies a firm's "strengths, weaknesses, opportunities, and threats."

question

_______ means that the marketing mix is distinct from and better than what is available from a competitor.

answer

Differentiation

question

Differentiation of a firm's marketing mix:

answer

May provide the firm with a competitive advantage in the marketplace.

question

Differentiation

answer

often requires that the firm fine-tune all of the elements of its marketing mix to the specific needs of a distinctive target market.

question

______________ means trying to increase sales of a firm's present products in its present markets.

answer

Market penetration

question

When a firm tries to increase sales by selling its present products in new markets, this is called:

answer

market development.

question

When a company expands globally, this is an example of:

answer

Market development.

question

____ refers to offering new or improved products for present markets.

answer

Product development

question

______ means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

answer

Diversification

question

The most risky types of marketing opportunity to pursue usually involve

answer

diversification

question

According to the text, marketing means:

answer

much more than selling and advertising

question

Marketing

answer

provides direction for production

question

____________________ is the extent to which a firm fulfills a customer's needs, desires, and expectations.

answer

customer satisfaction

question

Marketing

answer

affects almost every aspect of our daily lives.

question

Marketing can be viewed as:

answer

a set of activities performed by individual organizations.

question

The text stresses that:

answer

marketing is a social process and a set of activities performed by organizations.

question

Looking at marketing as a set of activities focuses on

answer

micro-marketing.

question

Micro-marketing:

answer

tries to accomplish a company's objectives by anticipating customers' needs and trying to satisfy them.

question

Micro-marketing:

answer

tries to anticipate and satisfy customer needs and accomplish an organization's objectives

question

_______ 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.

answer

Marketing (from a micro view)

question

From a micro view, marketing

answer

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

question

Which of the following statements best describes the modern view of marketing?

answer

Marketing begins with anticipating potential customer needs.

question

Marketing:

answer

A. applies to both profit and nonprofit organizations.

question

The aim of marketing is to

answer

identify customers' needs and meet those needs so well that the product almost "sells itself."

question

Effective marketing should begin with

answer

potential customer needs.

question

Marketing should

answer

make decisions about product design and packaging, prices or fees.

question

Viewing marketing as a social process focuses on

answer

macro-marketing.

question

Societies need a macro-marketing system

answer

to help match supply and demand.

question

MACRO-marketing:

answer

Emphasizes how the whole marketing system works.

question

Macro-marketing

answer

is a social process

question

_________ directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the society's objectives.

answer

Macro-marketing

question

Macro-marketing

answer

emphasizes how the whole marketing system works.

question

The fact that producers usually prefer to produce products in large quantities, while most consumers prefer to buy in small quantities, results in:

answer

discrepancies of quantity.

question

Discrepancies of assortment happen when

answer

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

question

"Economies of scale" means that:

answer

as a company produces larger numbers of a particular product, the cost of each unit of the product goes down

question

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

answer

economies of scale.

question

The term "economies of scale" means that:

answer

The cost of a product goes down as a company produces larger numbers of it.

question

The universal functions of marketing include .....

answer

buying, selling, transporting, storing, standardization and grading, financing, risk taking, and marketing information

question

The "universal functions of marketing":

answer

must be performed in all MACRO-marketing systems.

question

The "universal functions of marketing":

answer

are performed differently and by different parties in different economies.

question

The standardization and grading function of marketing involves:

answer

Sorting products according to size and quality.

question

The buying function of marketing involves

answer

looking for and evaluating goods and services

question

The "universal functions of marketing":

answer

must be performed in both market-directed and command economies.

question

An intermediary:

answer

is someone who specializes in trade rather than production

question

In macro-marketing

answer

no universal marketing function can be completely eliminate

question

A MACRO-marketing system should:

answer

accomplish a particular society's objectives, whatever they are.

question

_____ in the marketplace are a rough measure of how society values particular goods and services.

answer

prices

question

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

answer

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

question

An organization practicing ______ aims all its efforts at satisfying its customers--at a profit.

answer

the marketing concept

question

Managers who think of customers existing to buy the firm's output rather than of firms existing to serve customers and--more broadly--the needs of society, have a

answer

production orientation.

question

The three basic ideas in the "marketing concept" are:

answer

customer satisfaction, total company effort, profit.

question

Which of the following is one of the three basic ideas in the "marketing concept?"

answer

Total company effort.

question

Which of the following is one of the three basic ideas in the "marketing concept?"

answer

Profit as an objective.

question

Which of the following is one of the three basic ideas in the "marketing concept?"

answer

Customer satisfaction.

question

The "marketing concept" says that a business firm should aim all of its efforts at:

answer

satisfying its customers--at a profit

question

Complete acceptance of the "marketing concept" would require:

answer

making sure that all departments focus their efforts on satisfying customer needs.

question

Organizational customers:

answer

Try to consider the total cost of selecting a supplier, not just the initial cost of the product.

question

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

answer

buying center

question

A "buying center"

answer

may vary from purchase to purchase.

question

Organizational buyers:

answer

rely on many sources of information, perform vendor analysis, and focus on economic factors in order to make sensible buying decisions.

question

"NAICS" means:

answer

North American Industry Classification System

question

When looking at NAICS codes:

answer

The fewer numbers in the code, the more general the industry classification is.

question

"business and organizational customers?"

answer

Producers of goods and services, Intermediaries; Government units; Nonprofit organizations.

question

organizational buying processes

answer

Modified rebuy buying, straight rebuy buying, new task buying

question

organizational buying processes

answer

Modified rebuy buying, straight rebuy buying, new task buying

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