RCSC 400 exam 2 – Flashcards
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Chapter 5
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If a researcher were to ask consumers to quickly name the top 3 brands of computers they might consider purchasing, the most common brands in the __________ would most likely be Dell, Apple, and HP.
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Evoked Set
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With respect to the consumer buying process, __________ is perhaps the most important factor that affects the time, effort, and expense dedicated to the search for information.
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Degree of risk
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From the viewpoint of the consumer buying process, what is the difference between a need and a want?
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Needs are based on discrepancies between actual and desired satisfaction, whereas wants occur relative to specific products that can fulfill a need.
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The consumer buying process begins when:
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Consumers recognize that they have unsatisfied needs
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What type of segmentation divides consumer markets into segments using individual factors such as gender, age, income, and education?
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Demographic segmentation
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Advances in supply chain management now allow companies to customize products to meet the needs of individual customers on a mass scale. This individualized approach to market segmentation is called:
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Mass customization
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Which of the following IS NOT an example of mass customization?
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A college creates a custom degree program to match your unique needs
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After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a good choice based on location, reputation, and price, Sheri was not convinced she had made the right choice. Sheri is suffering from:
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Cognitive dissonance
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__________ is/are the primary reason why the consumer buying process varies across customers, products, and situations
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The complexity of the purchase
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Each of the following statements describes a unique characteristic of the business buying process EXCEPT:
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Business buyers are less likely to be dependent upon each other
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__________ segmentation is the most powerful form of segmentation in consumer markets because it uses actual product usage to make distinctions among market segments
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Behavioral
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The basic assumption of __________ is that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program
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Mass marketing
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Although a market segment can meet all criteria for viability, a firm may choose to not pursue the segment. Which of the following is a reason why this might occur?
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The segment has no synergy with the firm's mission
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Which of the following IS NOT a typical basis used to segment business markets?
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Organizational culture
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The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
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Market concentration
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Only the largest firms can execute __________, which involves the development of multiple marketing programs to serve all customer segments simultaneously.
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Mass market targeting
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One of the most successful and well-known tools of __________ segmentation is VALS™ developed by Strategic Business Insights.
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Psychographic
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Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products in an effort to precisely match the needs of individual customers. These firms are pursuing what type of approach to market segmentation?
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One-to-one marketing
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Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems.
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Market specialization
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Chapter 6
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Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a:
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Specialty Product
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Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?
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Because different firms have different cost structures
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To compete in the fast-growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. The Civic Hybrid was based on the traditional Honda Civic. Which product development strategy has Honda implemented?
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Product Line Extension
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Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so?
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Because services depend on people for their delivery.
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Why would a firm offer a deep assortment of products in its product portfolio?
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To attract a wide range of customers and market segments
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Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?
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Screening and evaluation
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The phrase "Unused service capacity is lost forever" refers to which major challenge associated with the marketing of services
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Perishability
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Why are firms so interested in the pricing element of the marketing mix?
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Because the firm's pricing has a direct bearing on its ability to increase revenue.
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Firestone carefully watches the automotive market to ascertain the demand for cars, SUVs, and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________
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Derived demand
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Most firms today compete in mature markets characterized by commoditization. In these cases, the __________ typically becomes incapable of differentiating the product offering from those of the competition
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Core product
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Which of the following is the best example of an unsought product?
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Insurance
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Why would a firm offer a wide variety of products in its product portfolio?
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To diversify its risk
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Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:
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Its ability to deliver benefits that solve a customer's problems.
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Which of the following statements is TRUE with respect to the relationship between price and revenue?
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Price cuts must be offset by an increase in sales volume to keep the same level of revenue.
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__________ refers to the strategic combination of the four basic marketing mix elements.
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The marketing program
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Which of the following IS NOT an important benefit of offering a large product portfolio?
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Package differentiation
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Why is the demand for most services—such as popular restaurants—extremely time-and-place dependent?
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Because customers must be present for service to be delivered.
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Chapter 7
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When Meghan went to buy groceries, she found everything on her list except Pampers diapers. While the store had other competing brands in stock, Meghan left and drove five miles to the next store where she found the diapers. It appears as Meghan exhibits a high degree of _______ for Pampers diapers.
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Brand insistence
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Rovio recently launched a new version of its popular Angry Birds game called "Angry Birds:Star Wars". What type of brand alliance does it represent?
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Brand Liscensing
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Branding strategy involves much more than developing a clever brand name or brand mark. To be truly effective, a brand should succinctly capture the total offering in a way that:
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Answers a question in the customer's mind.
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Walmart offers many different private-label brands including Sam's Choice, Equate, and Ol' Roy. Overall, what is the primary reason that Walmart would offer these and other private-label brands?
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Increased profit margin
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Which of the following IS NOT a function of packaging?
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Integration
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One of the most common marketing goals during the introduction stage of the product life cycle is to:
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Engage in customer education activities
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While Madison was shopping for coffee makers at Target, she recognized many of the brands that were available. Although she was looking for a machine made by Mr. Coffee, she bought a coffee maker by Hamilton Beach because Target was out of all Mr. Coffee machines. What type of brand loyalty is Madison exhibiting?
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Brand preference
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Best Buy offers many different manufacturer (name) name brands including HP, Panasonic, Sony and Canon. Which of the following is a primary reason that Best Buy would offer these and other manufacturer brands?
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Reduced marketing costs
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Which of the following is the best example of a brand mark?
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Nike's swoosh
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One way of looking at __________ is to consider the marketing and financial value associated with a brand's position in the marketplace
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Brand equity
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With respect to product descriptors, the product's _________ communicate how the product behaves, hopefully in a fashion that is distinctive and appealing to customers
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Advantages
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Which stage of the product life cycle has (1) establishing a strong, defensive market position, and (2) has achieved financial objectives that repay investment as its main priorities?
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Growth
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What is the overall goal of effective corporate branding?
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To build and enhance the organization's reputation
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During the maturity stage of the product life cycle, a firm has four general goals that can be pursued: Which of the following IS NOT one of these options?
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divest the product
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Firms using the ________ approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing mix
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Harvesting
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If you purchase a notebook computer from Dell, you will note several brand insignias on the outside, such as Dell, Intel, and Microsoft Windows. What type of branding strategy does this example represent?
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Co-branding
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Procter & Gamble is well known for its use of ________ branding because every product in P's portfolio has a different brand name
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Individual
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Overall, what is the difference between differentiation and positioning?
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Differentiation is about creating differences among competing products, while positioning is about creating a mental image in consumers' minds.
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Without a doubt, the most important tool of differentiation is:
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The brand
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As a tool of positioning strategy, perceptual maps illustrate two basic issues. First, they indicate products/brands that are similar in terms of relative mental position. Second, they illustrate:
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Voids in the current mindscape for a product category
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Chapter 9
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Typically, the difference between the planned marketing strategy and the strategy that actually takes place is:
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Caused by the way the planned marketing strategy is implemented
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The basic premise of the implementation through change approach is that:
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The organization is modified in ways that will ensure the implementation of the marketing strategy.
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In times past, developing and implementing the "right" marketing strategy was all about __________. In today's economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term.
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Creating a large number of transactions in order to maximize the firm's market share
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Marketing implementation is critical to the success of any firm. Simply put, implementation refers to:
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How the marketing plan will be put into action
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One of the links between strategic planning and marketing implementation is interdependency, which refers to the fact that:
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The marketing plan affects how it will be implemented, and implementation affects the marketing plan
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Based on the requirements for successful implementation, which of the following is the best candidate to become the "5th P" of marketing?
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People
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In the __________ approach to marketing implementation, marketing strategy is implemented as a part of the overall organizational vision
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Implementation as organizational culture
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With respect to evaluating and compensating employees, which of the following statements about outcome-based systems is FALSE
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They require more supervision than other systems
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What type of control mechanisms are used during implementation to influence employee behaviors so that they will support the marketing strategy and its objectives?
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Process controls
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According to the internal marketing approach to marketing implementation, which of the following could be best characterized as the "internal product"?
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New tasks or attitudes on the part of employees
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What type of marketing controls consists of unwritten, employee-based mechanisms that subtly affect the behaviors of employees, both as individuals and in groups?
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Informal controls
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In terms of marketing structure, what type of structure coordinates and manages all marketing activities and decisions from the top of the marketing hierarchy?
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A centralized marketing structure
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The __________ marketing strategy is what the firm wants to happen—it is the firm's planned strategic choices that appear in the marketing plan itself
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Intended
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Marketing implementation is often problematic, as marketing plans are usually devised by __________, while implementation is the responsibility of __________.
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Top management; frontline employees
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Which of the following firms is most likely to adopt a decentralized marketing structure in order to promote creativity and flexibility?
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Ritz-Carlton
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__________ is/are considered to be the "glue" of successful implementation that binds the entire organization together as a single, functioning unit
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Shared goals and values
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Identifying specific marketing activities, determining the time required to complete each activity, and organizing marketing activities into the proper sequence are examples of the steps involved in creating an
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Implementation timetable.
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Work activities that absorb inputs to create information and communication outputs that ensure the consistent day-to-day operation of the firm are referred to as:
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Organizational systems and processes.
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At WainPort Industries, the firm's senior managers approach marketing implementation with the belief that marketing strategy should be developed at the top of the organization and then transmitted to lower levels where frontline managers and employees implement it. What implementation approach is being used at WainPort?
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Implementation by command
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Planning sessions, workshops, formal reports, and personal conversations are all part of the internal __________ that is necessary to implement marketing strategy using the internal marketing approach
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Distribution
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Because they are cost effective and beneficial to ensuring consistency and standardization within the marketing program, centralized marketing structures are best suited for which of the following strategies?
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Operational excellence
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Chapter 10
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__________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.
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Customer relationship management
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With respect to competitive advantages, many see __________ as the most important asset that an organization can possess, as it stems from the value generated by the trust, commitment, cooperation, and interdependence among relationship partners
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Relationship capital
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There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs. Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?
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Anticipated repair expenses
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When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.
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Lifetime value
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Which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele?
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Membership programs
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With respect to customer expectations, which of the following best describes the zone of tolerance?
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It represents the degree to which customers recognize and are willing to accept variability in performance
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With respect to the different components of the total product offering, supplemental products play the important role of:
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Differentiating the product offering from competing products
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Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
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The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
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Which of the following IS NOT good advice with respect to leveraging customer satisfaction from a strategic point of view?
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Flesh out all uncontrollable issues and attempt to prevent them
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In the purchase of a product, time, effort, risk, and opportunity costs are all examples of:
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Nonmonetary costs
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Meghan recently took her parents to a gourmet restaurant for their 25th wedding anniversary. The evening was exceptional, with everyone receiving the utmost in terms of quality and value. However, when reflecting on the experience the next day, Meghan decided that she was not fully satisfied. Why might this happen?
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Because satisfaction can be based on factors that have nothing to do with quality or value
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The PTL Corporation provides long-distance telephone services to consumer and business markets. The company recently initiated a marketing strategy designed to promote customer knowledge and educate customers about the company and its products. The strategy is also designed to prospect for new customers. At what stage of the customer relationship development process does PTL find itself?
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Awareness
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Assume a customer planning to purchase a Wii U gaming console made this statement: "Given the expense and all the hype about the new Wii U, it ought to be the best gaming console ever made." What type of expectation does this customer have about the Wii U?
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A normative expectation
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Larger financial institutions now offer a wide range of services under one roof, from banking to stock trading. These institutions have moved away from increasing their market share to instead focus on increasing their:
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Share of customer
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What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?
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They can promote continual brand switching.
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In service offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?
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People, processes, and physical evidence
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Which of the following statements about value is FALSE?
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Value, unlike quality, means the same thing to all customers
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__________ refers to the degree of superiority of a firm's goods or services. It is a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence.
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Quality
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In which of the following situations would a customer become more tolerable of weak or poor product performance?
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When the customer has fewer product alternatives.
