MRKG Test 2 – Flashcards
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Questor Corporation owns the Spalding brand name but does not produce a single golf club or tennis ball. This arrangement is an example of what type of involvement level for international marketing?
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Licensing
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Which of the following describes a company hiring a foreign firm to produce a designated volume of its product to specification?
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Contract manufacturing
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Toshiba Electronics is very interested in taking advantage of business opportunities in India but does not have access to India's market. Toshiba has the patent on a low-cost, quality computer system that could assist small businesses in India. Sony Computer, Toshiba's competitor, is experienced in India's small business market but does not have a computer comparable to Toshiba's. If Toshiba and Sony work together to utilize these strengths to seize this opportunity in India, what type of business structure would they likely use?
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Strategic alliance
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According to Nielsen Marketing Research, consumers spend more time on ____ than e-mail.
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social networking sites
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Sam's Club has developed a website that allows employees to create a profile and connect with co-workers for the purpose of getting acquainted and building a work related network. This is an example of a
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social network.
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Digital media such as blogs allow marketers to interact with prospective customers in
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Real time
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Marketing strategists say businesses ____ consumers via social media.
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should connect to
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The fastest-growing group on Facebook is
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women aged 55 and over.
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IHOP is active on Facebook for the purpose of engaging in ____ marketing.
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Relationship
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KFC has restaurants in Mexico where Inactives make up the majority of the online population. To match their marketing efforts with the characteristics of the population, KFC should
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focus more on traditional promotions rather than social networking.
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Sears sells online through its website, while also selling through physical store locations. This type of retailing is referred to as
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bricks-and-clicks.
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The ability to process orders electronically and increase the speed of communications via the Internet reduces
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distribution costs
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____ relates to perceptions of value and is the most flexible element of the marketing mix.
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Pricing
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Dell hosted an online contest for innovative keyboard designs. This is an example of
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Opinion gathering
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Dell hosted an online contest for innovative keyboard designs. This is an example of
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Crowdsourcing
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Johnson & Johnson learns about consumer needs by understanding the environment in which a product is used and the different applications of the product. The company uses ____ as a research tool to gain this information.
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Social networking
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Due to consumer concerns over privacy, the ____ is considering regulations that would limit the amount of consumer information that marketers can gather online.
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Federal Trade Commission
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Cognitive, affective, and behavioral are the three major components of
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attitudes.
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Changing people's attitudes toward a firm and its marketing program is
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a long, expensive, and difficult task that may require extensive advertising campaigns.
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The development of a person's self-concept is a function of
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psychological and social factors.
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A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
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social influences.
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Jennifer is interested in joining Kappa Lambda Iota sorority. She begins to shop at Sarah's, a local store where the Kappas buy their clothes. She also asks her family for a new car because all the sorority members have new cars. In these instances, Jennifer is influenced by
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a reference group.
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Marketers who attempt to use reference-group influence in advertisements are most likely to succeed when messages indicate that
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People and are highly satisfied by it.A group becomes a reference group for an individual when that person identifies with this group so strongly that he or she
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Which one of the following is most likely to be a product for which both the purchasing decision and the brand decision are strongly influenced by reference groups?
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Jeans
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Market researchers for a local bakery determined that Jewish people consume 63 percent of the portion of bagels sold in New York City. This is an example of ____ influence on consumer buying decision processes.
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subcultural
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According to Coleman's major social class categories, the social class in our society that favors prestigious schooling, neighborhoods, and brands is the
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Middle class
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Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?
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Traveler's Insurance umbrella
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Which of the following is most likely to be considered a convenience good?
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Gatorade
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Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.
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shopping
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Buyers do not compare alternatives when shopping for ____ products.
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specialty
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a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.
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A product line is defined as
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A product mix is best described as
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all products offered by a firm.
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Which stage of the product life cycle is characterized by intense competition?
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Maturity
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Sales usually start to decline during the ____ stage of the product life cycle.
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end of the maturity
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Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle.
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decline
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Which of the following is not a stage in the buyer's product adoption process?
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Exploration
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What is the primary distinction between a line extension and a product modification?
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With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
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The major drawback to using aesthetic modifications is
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that the value of the modification is determined subjectively.
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Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.
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idea generation
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What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?
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Screening
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Breakeven analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.
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business analysis
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Ideally, test marketing should follow which stage in the new-product development process?
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Product development
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The test-marketing stage
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is a sample launching of the entire marketing mix.
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Which of the following is the most flexible variable in the marketing mix?
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Price
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Price is a key element in the marketing mix because it relates directly to
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the generation of total revenue.
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When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
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price competition.
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A danger associated with engaging in price competition is that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.
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price war
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A measure of sensitivity of demand in relation to changes in price is
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price elasticity of demand.
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If a product has an inelastic demand and the manufacturer raises its price,
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total revenue will increase.
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Costs that vary directly with changes in the number of units produced or sold are called
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variable costs.
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the money a company brings in from selling products equals the amount spent producing the products.
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At the breakeven point,
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Markup is measured either as a percentage of ____ or a percentage of ____.
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selling price; cost
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Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective.
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profit
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If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on
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market share.
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Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.
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status quo
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Research indicates that both market share and ____ are good indicators of profitability.
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product quality
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Some grocery stores collect data on competitive prices
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by using full-time comparison shoppers.
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Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
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retailer.
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Nordstrom's, Macy's, and JC Penney's are all considered
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department stores.
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Walmart and Target are both examples of
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discount stores.
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As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.
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department stores
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A narrow product mix with a deep product line would most likely be carried by
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specialty retailers.
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Stores such as T.J. Maxx, Burlington Coat Factory, and Marshalls buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
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off-price retailers.
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Category killers compete primarily on the basis of
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low prices and enormous product availability.
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Which of the following is an example of a category killer?
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Toys "R" Us
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Which of the following is the least flexible of these important retailing strategy issues?
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Location
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Identifying an unserved or underserved market segment and serving it through a strategy that is distinguished in the mind of the consumer is called
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retail positioning.
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Brianna owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Brianna is focusing on
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atmospherics.
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Through the years, drugstores have added more unrelated products to their product mix, such as lawn care supplies, food items, housewares, and small appliances. This illustrates which of the following retail strategy issues?
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Scrambled merchandising
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Kevin is talking with Peter about purchasing a Wendy's franchise. Peter tells Kevin that one of the major advantages of franchising for him to consider is the
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higher success rate for franchises.
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Energizer batteries would be classified as which type of product?
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Convenience
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Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix
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depth
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One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix
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width
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The four major stages of a product life cycle include
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introduction, growth, maturity, and decline.
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When a company prices one item in a line low with the intention of selling a higher-priced item in the same line, it is using
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bait pricing
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Schwinn adds features to its bicycles no other companies offer in order to create
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product differentiation.
