The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others, is referred to as __________. integrated marketing institutional marketing business marketing reseller marketing organizational marketing A business market is also referred to as a transactional market. a corporate market. a government market. a reseller market. an industrial market. Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale are referred to as multinational buyers. resellers. organizational buyers. ultimate consumers. institutional buyers. Wholesalers and retailers resell the goods they buy without reprocessing them. Which of these statements regarding organizational buyers is most accurate? Wholesalers and retailers resell the goods they buy without reprocessing them. Wholesalers and retailers alter the goods they sell to meet the specific needs of their customers prior to resale. Manufacturers purchase processed goods and resell them to suppliers who in turn resell them to ultimate consumers. Ultimate consumers can be considered organizational buyers when they purchase in large quantities. Government agency purchases are more similar to ultimate consumer purchases than they are to wholesalers and retailers. All of the following are organizational buyers EXCEPT: industrial firms. government units. ultimate consumers. resellers. wholesalers. industrial, reseller, and government. Organizational buyers can be divided into three different markets, which are industrial, wholesaler, and retailer. industrial, retailer, and government. retailer, manufacturer, and government. industrial, government, and ultimate consumer. industrial, reseller, and government. The owner of a sushi restaurant hires a window washing service to clean exterior windows. Which of the following represents an organizational buyer? A local baker buys sugar at the grocery store to make cookies with his children at home. A dentist buys a new LG SmartTV 55-inch 3D OLED HDTV for her den. Mr. Langley hires a housecleaning service to clean his apartment. The owner of a sushi restaurant hires a window washing service to clean exterior windows. The city mayor rents a tuxedo to wear to his daughter’s wedding. A firm that reprocesses a product or service it buys before selling the product again to the next buyer is referred to as a(n) industrial firm. reseller firm. government agency. wholesaler. retailer. Mining companies, farms, financial services, and fisheries are all examples of consumer markets. cooperative markets. reseller markets. industrial markets. government markets. Keystone Foods, which invented the individual quick freeze process for beef, provides McDonald’s with millions of pounds of chicken, beef, and fish annually for use in its restaurants. The firm sources the animal proteins from farms and processes them in a variety of ways, such as breading or freezing, before selling them to McDonald’s. Keystone is operating in a(n) __________ market. consumer government service industrial reseller retailers and wholesalers The reseller market includes manufacturers. logistics and supply chain providers. government agencies. end-user service providers. retailers and wholesalers. European Style Furniture (ESF), headquartered in New York, acquires fine furniture from several high quality manufacturers in Europe and enjoys exclusive distribution rights from them to sell to furniture stores throughout the U.S. In this context, ESF is most likely classified as a producer. reseller. service provider. government agency. industrial firm. fewer customers but with larger orders Important market characteristics in organizational buying behavior include which of the following? unlimited markets but orders become progressively smaller over time diminishing international opportunities as more firms enter the market many customers placing progressively larger orders over time fewer customers but with larger orders a market that functions independently of consumer demand A heavy emphasis is placed on delivery time, technical assistance, and postsale service. Important product or service characteristics in organizational buying include which of the following? Products or services that are technical in nature and purchased on the basis of specifications. A heavy emphasis is placed on delivery time, technical assistance, and postsale service. Direct selling to organizational buyers is rare. Personal relationships are preferred to online buying over the Internet. delivery time, technical assistance, and postsale service. In the organizational buying process, important product or service characteristics include delivery time, technical assistance, and postsale service. low price, buyer incentives, and extended contracts. buyer incentives, technical assistance, and exclusive contracts. quantity discounts, delivery time, and exclusive contracts. low price, buyer incentives, and post-sale service. the demand for industrial products and services that is driven by the demand for consumer products and services. Derived demand refers to a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. the demand for industrial products and services that is driven by the demand for consumer products and services. the relationship between total revenue and total cost to determine profitability at various levels of output. the point on a demand curve where supply and demand intersect. the percentage change in quantity demanded relative to a percentage change in price. Purchases of sodium fluoride by Procter & Gamble for use in the manufacture of Crest toothpaste would be an example of __________ demand. applied unitized industrial derived consumer South Cape Ostrich Tanning (SCOT) is a producer of fine ostrich leathers, which are sold to manufacturers that make a variety of products from shoes to car interiors. Demand for SCOT’s leather is a result of consumer interest in products like Via La Moda handbags made from this exotic and expensive leather. SCOT has __________ demand for its product. derived unitized industrial applied reseller get competitive bids from at least three prospective suppliers Because orders in organizational buying are typically much larger than in consumer buying, buyers must often __________ when the order is above a specific amount, such as $5,000. pay estimated sales taxes in advance move up the time required to execute a purchase agreement get competitive bids from at least three prospective suppliers forgo the purchase because senior management is unlikely to approve it forgo identifying the members of the supplying center and their roles in the selling process the size of the purchase involved in organizational buying is typically smaller than that in consumer buying but it is done more frequently. All of the following statements about the purchase involved in organizational buying are true EXCEPT: the length of time required to arrive at a purchase agreement can vary with size of purchase. the dollar value of a single purchase made by an organization often runs into thousands or millions of dollars. the size of purchase impacts who participates in the purchase decision. the size of purchase impacts who makes the final decision. the size of the purchase involved in organizational buying is typically smaller than that in consumer buying but it is done more frequently. are restricted to far fewer buyers. Firms selling consumer products or services often try to reach thousands or millions of individuals or households. Firms selling to organizations try to reach tens of millions of wholesalers, retailers, and government units. are restricted to far fewer buyers. hope to obtain similar numbers of business customers, or even more. do not have customers, per se. simultaneously purchase from organizational buyers and ultimate consumers. achieve its own objectives An organization buys products and services for one main reason, which is to achieve its own objectives. beat its competitors. satisfy the needs of its suppliers. employ people. maintain inventory. help the firm achieve its objectives The primary organizational buying objective for business firms is to create an atmosphere of inclusiveness. help smaller companies stay in business. increase the proficiency of its buyers. help the firm achieve its objectives. balance inventory. increase profits through reducing costs or increasing revenues. The primary buying objective for business firms is usually to increase profits through increasing costs and increasing revenues. increase profits through reducing costs and decreasing revenues. increase profits through reducing costs or increasing revenues. maintain profits through reducing costs and increasing revenues. reduce profits through reducing costs and reducing revenues. the objective attributes of the supplier’s products and services and the capabilities of the supplier itself. Organizational buying criteria refer to the restrictions placed on potential solutions to a problem in a purchase decision. the specific qualifications of a potential customer based upon past performance, reliability, and consistency regarding the purchase of an organization’s offerings. the subjective attributes of the supplier’s products and services and the capabilities of the supplier itself. the objective attributes of the supplier’s products and services and the capabilities of the supplier itself. the factors that an ultimate consumer would consider that represent both the objective attributes of a brand and the subjective ones to compare different products and brands. Organizational buying criteria serve the same purpose as __________ criteria used by consumers. consideration evaluative decision alternative prepurchase There are seven commonly used organizational buying criteria. One of them is __________. price loyalty flexibility adaptability consumer demand ability to meet the quality specifications required for the item There are seven commonly used organizational buying criteria. One of them is __________. flexibility ability to meet the quality specifications required for the item adherence to government regulation senior management directives consumer demand ability to meet required delivery schedules There are seven commonly used organizational buying criteria. One of them is __________. adaptability consumer demand ability to meet required delivery schedules senior management directives adherence to corporate social responsibility policies There are seven commonly used organizational buying criteria. One of them is __________. consumer demand longevity promotional incentives technical capability senior management directives warranties and claim policies There are seven commonly used organizational buying criteria. One of them is __________. consumer demand promotional incentives longevity senior management directives warranties and claim policies past performance on previous contracts There are seven commonly used organizational buying criteria. One of them is __________. adherence to governmental policies regulatory support past performance on previous contracts consumer demand senior management directives Purchases are often made after lengthy or complex negotiations. Which of the following characterizes organizational buyer-seller relationships? Purchases are often made after lengthy or complex negotiations. Purchases are usually of small dollar values. Short-term contracts are often prevalent. Reciprocal arrangements are illegal. Delivery schedules are less important than production capacity. long term contracts are often prevalent Which of the following characterizes organizational buyer-seller relationships? Purchases are often made after brief negotiations. Purchases are usually of small dollar values. Long-term contracts are often prevalent. Reciprocal arrangements are prohibited by the federal government. Delivery schedules are largely irrelevant. The group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision is referred to as the gatekeeper. buying center. purchasing department. procurement committee. acquisition office. All of the following are roles in a buying center EXCEPT: specifiers. deciders. buyers. influencers. users. In an effort to make better and more efficient purchase decisions, the Ford Motor Company includes various people in them, depending on the purchase situation. Individuals may include key personnel from various departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford’s __________. selling committee sustainable procurement department purchasing unit buying center buying committee As shown in buying center photo above, an organization’s buying center includes individuals who can play one or more of the following roles EXCEPT: gatekeepers. deciders. buyers. product champions. influencers. The people in the organization who actually use the product or service are referred to as __________, which is one role in the buying center. consumers deciders buyers influencers users On a visit to Conner Industries, a West Plains Band Saw salesperson heard a production employee saying, “This band saw has a 36-inch wheel that could really save us time, and with its adjustable height, it can be operated by someone tall like me as well as by our shorter workers. I bet this would speed up my production time by 30 percent. Why don’t we order this band saw?” The person the salesperson heard giving input has which buying center role? purchasing agent decider buyer user motivator In a buying center, __________ affect the buying decision, usually by helping define the specifications for what is bought. gatekeepers deciders buyers influencers users affect the buying decision usually by helping define the specifications for what is bought. Within the buying center, influencers are people who have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. control the flow of information in the buying center. affect the buying decision usually by helping define the specifications for what is bought. have the formal or informal power to select or approve the supplier that receives the contract. actually use and evaluate the product or service. In a buying center, __________ have formal authority and responsibility to select the supplier and negotiate the terms of a contract. buyers gatekeepers adopters influencers users The purchasing manager of Ingram Printing has selected HP as the supplier of its new high-speed printer and negotiated the terms of the contract. The purchasing manager is the __________ for Ingram. user gatekeeper influencer buyer decider In a buying center, __________ have the formal or informal power to select or approve the supplier that receives the contract. gatekeepers deciders buyers influencers users have the formal or informal power to select or approve the supplier that receives the contract. Within the buying center, deciders are people who have the formal authority and responsibility to select the supplier and negotiate the terms of the contract. control the flow of information in the buying center. have the formal or informal power to select or approve the supplier that receives the contract. affect the buying decision usually by helping define the specifications for what is bought. actually use and evaluate the product or service. the buyer or purchasing manager. For routine orders, the decider is usually the buyer or purchasing manager. the CEO. the COO. the head of R&D. the customer. An IT engineer specifies the type of electronic shopping cart to be used on the company’s new website. The engineer also chooses the supplier who receives the contract to provide the software. In the buying center, this person is the __________. gatekeeper decider broker influencer user People who control the flow of information in the buying center, such as technical experts and secretaries, can keep salespeople and information from reaching others in the buying center and are referred to as __________. deciders obstructionists gatekeepers power-brokers influencers A sales representative for a pharmaceutical company visits the doctor’s office, hoping to explain a new drug to the doctor. However, the office receptionist explains that the doctor is with patients and will not be able to see the sales rep. The receptionist is acting as a(n) __________. user influencer buyer decider gatekeeper Beth is part owner of a chain of auto repair shops. Her company was considering adding tire sales in some of its facilities, and several people were slated to meet to discuss the idea. Beth gathered information about possible distributors. Her son had been laid off from a job with one of them, so she removed this company from the group she was preparing to present to the others. Here, Beth was acting in what role in the buying center? gatekeeper decider user obstructionist power-broker influencer, gatekeeper, and decider Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three food concession trailers. Mark has contacted three dealers of such trailers, which come fully customized to user specifications. After receiving three bids, Mark concluded that Century Industries has the best offer. He will present only the Century Industries information to the family tomorrow. What buying center roles does Mark perform? gatekeeper and buyer decider and user buyer and decider influencer and buyer influencer, gatekeeper, and decider When a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other, it is referred to as a(n) __________. reverse auction traditional auction bidder’s war e-auction Webfront auction Dell, Inc. sells surplus, refurbished, or closeout computer merchandise at its dellauction.com website to many buyers who bid competitively against one another. This is an example of a traditional auction. reverse auction. bidder’s war. I-auction. Webfront auction. As shown in Figure 5-6A above, what type of online auction does one seller and many buyers typify? forward auction. reverse auction. traditional auction. vertical auction. bidder’s war. In a traditional auction, as the number of buyers increases, the price increases. decreases. stays the same. has no relation to the number of buyers. fluctuates depending on economic conditions. In an e-marketplace, an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other is referred to as a vertical auction. reverse auction. horizontal auction. traditional auction. reciprocal auction. in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. A reverse auction refers to an online auction where firms may sell their overstock – unused raw materials, packaging, and tools – to the highest bidder. in which a manufacturer offers to share its facilities, inventory, or services with other smaller firms that are invited to bid in competition with each other. in which a smaller manufacturer seeks to share the facilities, inventory, or services of a larger firm, and invites those firms to bid in competition with each other. in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. where firms seek to purchase other firms’ overstock – unused raw materials, packaging, and tools – while trying to find the lowest price possible. put downward pressure on prices. Reverse auctions are seller-initiated. benefit the sellers significantly more than the buyers. have an increasing number of buyers as the auction progresses. put downward pressure on prices. have many buyers. Reverse auctions are buyer-initiated. benefit the sellers significantly more than the buyers. have an increasing number of buyers as the auction progresses. do not allow sequential bidding. have many buyers at the start of the auction. what type of online auction does one buyer and many sellers typify? forward auction. reverse auction. traditional auction. vertical auction. bidder’s war. In a reverse auction, as the number of sellers increases, the price increases. stays the same. has no relation to the number of sellers. decreases. fluctuates depending on economic conditions. Movie studios use tracking studies in which prospective moviegoers are asked questions about an upcoming film release to help them forecast sales. This is an example of movie advertising. marketing research. tactical support. cross-movie research. movie audits. reduce uncertainty and improve marketing actions. Test screenings and tracking studies are examples of market research techniques used in the movie industry to estimate a production company’s potential market share. identify prospective nominees for industry awards such as the Oscars. create an advance market for the movie’s DVD release regardless of whether it is successful in its theater release or not. identify possible story lines and/or plots for future movie ventures. reduce uncertainty and improve marketing actions. The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions is referred to as __________. marketing enquiry strategic intelligence data mining marketing tactics marketing research Will consumers accept a small gratuity for participating in a market research study for a new or existing product? All of the following are challenges marketers face when conducting marketing research EXCEPT: Will consumers’ actual purchase behaviors match their stated interests or intentions? Will consumers reveal honest answers to questions about personal or status issues? Will consumers buy the same brand they say they will? Will consumers accept a small gratuity for participating in a market research study for a new or existing product? Will consumers really know whether they are likely to buy a new product that they have never thought about before? When collecting marketing research, people may not be willing to tell you what you want to know if it is potentially embarrassing. Which of the following statements concerning marketing research is most accurate? The primary purpose of marketing research is to collect data for historical purposes. When collecting marketing research, people may not be willing to tell you what you want to know if it is potentially embarrassing. Marketing research, if done properly, will always result in a positive marketing result. People are just as able to give accurate information about products they have only heard about as those they have actually used. Among those people who participate in market research studies, there is an almost perfect correlation between a respondent’s stated intentions and his/her actual buying behavior. do marketing research to identify what needs were not being satisfied. Grape-Nuts was one of the first cereals Post Cereal Company ever marketed. It scores well in brand awareness studies, but recently its sales have been steadily declining. Rather than assume the product was a “dog,” the Grape-Nuts marketing manager decided Post should first update the flavor of the cereal by making it slightly sweeter. increase the amounts spent on advertising and sales promotion. do marketing research to identify what needs were not being satisfied. hire additional salespeople who were younger and more assertive to contact grocery stores. realign Grape-Nuts as a “star” and increase production. Members of the Book Promoters Association of Canada recently questioned what could be done to rejuvenate the Canadian book publishing industry. Some claimed the problem was that many Canadian bookstores had been replaced by Amazon.com. Others said the problem was stodgy advertising. Still others believed the problem small budgets for marketing programs. The best way to identify the problem would be to use __________. market analysis marketing management a marketing audit marketing research data mining The first step of the marketing research approach is to __________. develop findings define the problem take marketing actions collect relevant information develop the research plan develop the research plan The second step of the marketing research approach is to __________. develop findings define the problem take marketing actions develop the research plan collect relevant information collect relevant information The third step of the marketing research approach is to __________. develop findings define the problem take marketing actions develop the research plan collect relevant information The fourth step of the marketing research approach is to __________. develop findings define the problem take marketing actions develop the research plan collect relevant information Setting research objectives and identifying possible marketing actions that might result from the research would take place during which step of the five-step marketing research approach? collect relevant information develop the research plan develop findings obtain secondary data define the problem develop the research plan Specifying constraints, identifying data needed for marketing actions, and determining how to collect data would take place during which step of the five-step marketing research approach? collect relevant information develop the research plan develop findings take marketing actions define the problem collect relevant information Obtaining primary and secondary data would take place during which step of the five-step marketing research approach? collect relevant information develop the research plan develop findings take marketing actions define the problem Analyzing data and presenting the results of this analysis would take place during which step of the five-step marketing research approach? collect relevant information develop the research plan develop findings take marketing actions define the problem Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step marketing research approach? collect relevant information develop the research plan develop findings take marketing actions define the problem collect relevant information Obtaining primary and secondary data would take place during which stage of the five-step marketing research approach? define the problem develop the research plan collect relevant information develop findings take marketing actions It took a systematic approach to analyzing the problem and responded to its advertisers’ concerns. Watch was a teen publication given out free to high school students, but the publication was unable to deliver the response rates to coupons or sample offers that its advertisers expected. After defining the marketing problem, its publisher developed a research plan, gathered information from teen focus groups, analyzed the findings, and replaced Watch magazine with Fuel for boys and Verve for girls. How would a marketer judge the publisher’s actions? Why fix something that is not broken? The magazine was still attracting some advertisers. It made a big deal out of a small decline – a few copy changes would have been enough. The approach it took was too complicated and costly to provide an effective solution to the problem. It took a systematic approach to analyzing the problem and responded to its advertisers’ concerns. This publisher used an approach that works for corporations but will just waste time for a small publisher. Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually, the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would resume flying if it could prove that the airline could regain at least 75 percent of its lost customers. It decided to allocate $50,000 to determine the likelihood that its former customers would fly on the airline again and find methods requiring little or no money that could be used to increase that probability. This description represents which step in the marketing research approach? define the problem develop the research plan collect relevant information develop findings take marketing actions set the research objectives There are two key elements when defining a marketing research problem. One of these is __________. specify constraints set the research objectives determine how to collect data evaluate previous research results identify data needed for marketing actions criteria or standards used in evaluating proposed solutions to a problem. Measures of success refer to the goals the decision maker seeks to achieve in solving a problem. criteria or standards used in evaluating proposed solutions to a problem. identification of acceptable alternatives for collecting data to solve a problem. objective data used to identify the most profitable solution to a marketing problem. subjective data used to identify the most profitable solution to a marketing problem. Consider the LEGO MINDSTORMS photo above. LEGO designers created MINDSTORMS kits to appeal to middle-school students, among others. When attempting to choose between potential designs, what was the measure of success for use by LEGO in this instance? age gender assembly time cost advertising Consider the LEGO MINDSTORMS photo above. If the marketing research measure of success is assembly time for a particular design meant for middle-school students, which would be the best possible marketing action if the results of a marketing research study concluded, “All ten teams could assemble Design B in 20 minutes but only 3 teams completed Design A”? redesign the kits so that assembly time is more uniform introduce design B introduce the Design A, but add more new features to charge a higher price mine the data further for student reactions consult the marketing dashboards to analyze LEGO sales in the U.S. When Home Depot entered the Quebec market in Canada, two percent of people were aware of the retail chain. To determine advertising effectiveness during the first 18 months in Quebec, awareness research was done a second time. For this research, it was decided that if at least 50 percent of a 600-person sample of the population were aware of the Home Depot brand, it would continue its present advertising program. This is an example of a(n) objective. constraint. assumption. measure of success. barrier to entry. There are three key elements when developing a marketing research plan. One of these is __________. specify constraints set the research objectives determine how report the findings evaluate previous research results identify data needed for marketing actions determine how to collect data There are three key elements when developing a marketing research plan. One of these is __________. specify the objectives evaluate previous research results determine how to collect data identify possible marketing actions identify data needed for marketing actions develop the research plan Specifying constraints, identifying data needed for marketing actions, and determining how to collect data, would all take place during which step of the five-step marketing research approach? define the problem develop the research plan collect relevant information develop findings take marketing actions develop the research plan The retail mall owner told the marketing researcher, “We have the option of staying open late twice a week or opening up an hour early every day. We need to know which will be most profitable since we cannot do both. The decision must be made in 11 weeks and we only have $10,000 budgeted for this research project.” In which step of the marketing research process would the owner determine this budget and time frame? define the problem develop the research plan collect relevant information develop findings and recommendations take marketing actions limitations on the time and money available What are the two most common constraints in marketing problem solving? limitations of personnel and office space limitations of the strategic thinking and creativity of the firm’s advertising agency limitations on the time and money available government regulations and rights to privacy limitations on access to upper and middle management selecting representative elements from a population and treating their answers as typical of all those in whom they are interested. In marketing research, the term sampling refers to testing the effectiveness of a marketing alternative in a supervised setting. the collection of various secondary data through electronic or mechanical means. allowing a subject to experience first-hand a new or updated product or service. selecting representative elements from a population and treating their answers as typical of all those in whom they are interested. testing members from all ages, both genders, and different levels of income and education to guarantee reliable information. The process of selecting elements from a population, collecting data from them, and using it as representative of all those a researcher is interested in is referred to as hypothesis generation. sampling. information gathering. statistical inference. probability extrapolation. The method of __________ involves generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions. nonprobability sampling probability sampling extrapolation statistical inference criteria sampling Drawing conclusions about a population from a sample taken from that population is referred to as nonprobability sampling statistical inference probability sampling extrapolation criteria sampling The National Health Interview Survey is conducted annually by the Centers for Disease Control and Prevention. By examining information gathered from a national sample of 600 respondents throughout the U.S., it was able to announce that 14.1 percent of all Americans lacked healthcare insurance. To make this statement, the Centers for Disease Control and Prevention had to use focus groups. no constraints. internal secondary data. statistical inference. interpolation. collecting relevant information GI Design is a small studio that designs and builds items such as fountains and tabletops made from copper. To increase sales, Greg, the owner, developed a research plan to determine what landscape architects and interior designers wanted in copper furnishings and appropriate pricing. He had begun to interview representative designers. Greg was engaged in __________, the third step of the five-step marketing research approach. developing the research plan solving the problem developing findings and recommendations collecting relevant information taking marketing actions The two main types of data are independent and dependent. primary and secondary. comprehension and case specific. extraneous and experimental. measurable and non-measurable. All of the following are sources of primary data EXCEPT: government publications. observational data. experiments. social media. panels. Facts and figures that have already been recorded before the project at hand are referred to as primary data. empirical data. secondary data. demographic data. observational data. internal secondary data; external secondary data Secondary data can be divided into two parts – __________ and __________. primary data; empirical data empirical data; secondary data tertiary data; demographic data demographic data; observational data internal secondary data; external secondary data Children’s accessory and toy store Red Carpet Baby! uses U.S. Census Bureau information to determine the number of families with children under age 5 for each state in its market area. Data obtained from this source are called __________. proprietary data primary data secondary data observational data experimental data Facts and figures that are newly collected for a project at hand are referred to as statistical data. empirical data. secondary data. primary data. inferential data. Observing people and asking them questions are the two principal ways to obtain external secondary data. internal secondary data. primary data. experimental independent variables. nonprobability data. When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm to make marketing decisions today, she is using internal secondary data. primary data. external secondary data. sensitivity analysis. probability data. All of the following are examples of marketing input data EXCEPT: advertising budgets. call reports. accounting records. sales budgets. advertising expenses. salespeople’s call reports. All of the following are examples of marketing outcome data EXCEPT: customer phone calls. repeat sales reports. accounting records. salespeople’s call reports. sales reports by geographic region. Published data from outside the organization are referred to as __________ data. proprietary external primary internal secondary internal primary external secondary The U.S. Census Bureau publishes the __________, which is conducted every five years and contains detailed information on the number and sales of U.S. establishments that produce goods or resources. North American Industry Classification System Economic Census Annual Survey of Manufacturers Annual Wholesale Trade Survey Survey of Business Owners The 2012 __________ contains data on the number and sales of establishments in the United States that produce a product or service based on its geography, industry sector, and North American Industry Classification code. Annual Retail Trade Survey Annual Survey of Manufacturers Economic Census Annual Wholesale Trade Survey Service Annual Survey When customers have their groceries scanned at the supermarket checkout counter, the data are collected and processed by tracking services such as IRI’s InfoScan. Consumer product firms like Procter and Gamble use data collected by IRI to allocate scarce marketing resources. Which of the following data are NOT collected at retail checkout counters? coupon redemptions product bar codes product sales free sample redemptions household demographics When Karsh and Hagan Advertising Agency uses information found in Nielsen Television Index Ranking Report published by Nielsen Media Research to plan television advertising schedules for its clients, it is relying on __________ data. neuromarketing primary internal secondary observational external secondary According to research conducted by Canadian cultural anthropologists, Canadians place a high importance on personal relationships. This leads them to be extremely reluctant to buy through an impersonal medium like a telephone. For an insurance company that was hoping to sell insurance through telemarketers, this research would be an example of internal secondary data. a constraint. an assumption. a dependent variable. external secondary data. Mechanical, personal, or neuromarketing methods are ways that __________ data can be collected. virtual primary source hypothetical observational statistical Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher Price is collecting __________ data. observational questionnaire interview on-site focus group Nielsen Media Research collects national TV ratings by using a “people meter.” This is a box that is attached to TV sets, VCRs, DVRs, cable boxes, and satellite dishes in about 20,000 households across the country. A viewer uses the remote to signal the people meter that he or she is watching a TV program. The box then transmits the viewing information to the Nielsen Company. The information Nielsen is collecting is referred to as __________. internal secondary data interactive industry data sensitivity data external secondary data observational data combine its new online ratings with its existing TV ratings. The purpose of Nielsen Media Research’s “cross-platform television ratings” is to expand its scope to include the effectiveness of online college courses. expand its scope to include satellite radio programming. combine its new online ratings with its existing TV ratings. expand its business to a global market. gain access to every American home that owns a television, mobile phone, or computer. mechanical observational data National TV ratings, collected with a “people meter” and published by Nielsen Media Research, are an example of __________ data. internal secondary data interactive industry data external secondary data mechanical observational data sensitivity data People posing as customers, who are paid to check on the quality of a company’s products and services and write a detailed report on the experience, are referred to as __________. mystery shoppers customer ombudsmen secret customers Facebook “likers” repeat customers who pose as customers to check on a firm’s products or services and are paid to write a detailed report on their experiences. Mystery shoppers are people hired by a firm to get legal, though not necessarily ethical, information about competitive firms. hired by a firm’s employees to prove to the courts that competitors are using unfair pricing practices. hired by a customer to report on illegal or unethical practices that are regularly taking place at a particular establishment. who pose as customers to check on a firm’s products or services and are paid to write a detailed report on their experiences. hired by law firms to check on the safety of their clients’ products. Melanie manages a local store for a national drug store chain, and had received complaints from several customers about rude employees. To check on her customer service, Melanie hired a team of researchers, who posed as customers shopping in the store. Occasionally, they bought something, but their primary purpose was to take notes and record the actions of the service staff. The research notes Melanie received were a form of __________ data. secondary developmental observational national questionnaire The field of marketing that studies the brain and its response to marketing stimuli is referred to as extrapolation. hypothesizing. neuromarketing. deduction. conjecture. What type of marketing uses brain scanning to analyze the buying processes of research participants? subliminal marketing permission marketing ultrasense marketing optimization marketing neuromarketing The facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors are referred to as primary data. secondary data. statistical inference. observational data. questionnaire data. The most common way of collecting questionnaire data to generate ideas, which involves a single researcher asking questions of one respondent, is referred to as a(n) panel. focus consultation. individual interview. face-to-face exchange. interactional interview. Where it is desirable for the interviewer to be flexible in asking probing follow-up questions, data would be best collected using mail surveys. mechanical observations. fax surveys. individual interviews. on-line surveys. Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher wanted to spend 15 minutes talking with a head of the household about his or her savings accounts to discuss why he or she did not also have checking accounts and credit cards with the bank. Marine Midland researchers were using __________ to collect these data. secondary interviews individual interviews intercept interviews observational data collection ethnographic research A special kind of individual interview in which researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings is called a(n) focus group. discovery interview. probing interview. guided interview. depth interview. A marketing research approach that uses a discussion leader to interview 6 to 10 past, present, or prospective customers simultaneously is referred to as a depth interview. data mining. a research team. a focused interview. a focus group. The Minnesota Twins, a professional baseball team, wanted to develop creative ways to boost sagging attendance at its ball games. The Twins hired a moderator who, after every home game during the month of July, led informal discussions with groups of 6 to 10 fans to find out what they did and did not like about the baseball team and their experience at the stadium. Discussions were videotaped for later review. These informal research sessions are called experiments. secondary data. focus groups. panels. depth interviews. A(n) __________ question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. dichotomous open-ended closed-end fixed-alternative semantic differential “Why do you smoke cigarettes?” is an example of which type of question? Likert scale fixed alternative dichotomous open-ended semantic differential A fixed alternative question requires respondents to select one or more response option from the set of predetermined choices. Another name for this kind of question is a(n) dichotomous question. open-ended question. attitudinal question. closed-end question. semantic differential question. Would you be interested in buying the Torrid merchandise on the Internet? ___ Yes ___ No Before opening six Torrid plus-size-only retail stores that cater to women aged 15-30, a great deal of information was gathered from a sample of women to determine what types of items should be carried, the image of the store, its advertising, etc. Which of the following is an example of a closed-end question that might have been asked? Why would you want to shop at a store that carries plus-size clothing? In what ways might you be uncomfortable shopping at a plus-size-only retailer? Would you be interested in buying the Torrid merchandise on the Internet? ___ Yes ___ No What type of person would shop at Torrid? What is your age? Please write the number in the space: __________ A(n) __________ question is the simplest form of a fixed alternative question that allows only a yes or no response. dichotomous open-ended closed-end attitudinal semantic differential “Have you been to a dentist within the past 6 months? ___ Yes ___ No?” is an example of which type of question? Likert scale semantic differential dichotomous open-ended evaluative A survey asked consumers of dental products the following question “Have you used toothpaste in the past week? ___ Yes ___ No” The results of this question show that 92.6 percent of the people in New York City have used toothpaste in the past week and 87.2 percent of people in Los Angeles have used toothpaste during the same period. This information was gathered by using which type of question? open-ended dichotomous holistic evaluative Likert scale Semantic differential and Likert are question types that uses a(n) scale. frequency distribution. measure of success. open-ended question. constraint. A(n) __________ scale is a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings. dichotomous open-ended Likert attitudinal semantic differential semantic differential scale What kind of question is the following? “Place an ‘X’ in the space that describes your feelings about this test.” Easy __ __ __ __ __ Difficult Likert scale semantic differential scale dichotomous question open-ended question sensitivity analysis question A(n) __________ scale is one in which the respondent indicates the extent to which he or she agrees or disagrees with a statement. Likert attitudinal dichotomous open-ended semantic differential What type of scale is the following? “Indicate your degree of agreement with the following statement: Marketing is an interesting subject” by checking one of the responses below. ( ) Strongly Agree ( ) Agree ( ) Disagree ( ) Strongly Disagree semantic differential scale dichotomous question open-ended question Likert scale attitudinal question Consider Figure 7-B above. The question “Do you eat at fast-food restaurants regularly: Yes or No?” is worded poorly because respondents don’t know what “regularly” means. This is an example of a(n) __________ question. unanswerable ambiguous two questions in one leading nonmutually exclusive A __________ is a sample of consumers or stores from which researchers take a series of measurements. representative group jury of executive opinion panel survey of experts focus group Data obtained by manipulating factors under tightly controlled conditions to test cause and effect is an example of questionnaire data. virtual modeling. an experiment. a panel. nonprobability sampling. Use a different number of salespeople in three different sales territories as your independent variable and changes in sales of health care services as the dependent variable. As marketing vice president of Health Care Services, Inc., you must test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory. Which experiment will do this best? Create an incentive program for your salesforce based upon individual performance. Use increases in customer satisfaction as your dependent variable and increases in sales performance as your independent variable. Select three degrees of service health care (poor, good, average) as your independent variable and measure customer responses for each grade using the same number of sales representatives in each territory as your dependent variable. Create an incentive program for your salesforce based upon individual performance. Use increases in customer satisfaction as your independent variable and increases in sales performance as your dependent variable. Use a different number of salespeople in three different sales territories as your independent variable and changes in sales of health care services as the dependent variable. Create an incentive program for your salesforce based upon team performance. Use increases in customer satisfaction as your independent variable and increases in sales performance for the team as your dependent variable. cause of an action; result of an action In marketing experiments, the independent variable is the __________ and the dependent variable is the __________. element that never changes; element that always changes result; factor beyond the experimenter’s control result of an action; cause of an action cause of an action; result of an action element that always changes; element that never changes GI Designs, a copper furniture manufacturer, increased the price on its copper tabletops by 20 percent for three months to see what the effect would be on its sales. The price increase is the __________ in this three-month experiment. control dependent variable independent variable constraint hypothesis When Procter & Gamble acquired the Old Spice brand, it decided to reposition the brand by using a different advertising message to see whether its sales would increase. The new advertising message is the __________ in this marketing experiment. dependent variable extraneous variable constraint independent variable error variable changes in purchases such as dollar or unit sales of individuals or organizations. When conducting marketing experiments, the independent variable often involves marketing mix elements such as product features or coupons, while dependent variables often include elements of the environmental forces that cannot be controlled. changes in channels of distribution or pricing. elements of the marketing mix that cannot be manipulated. the primary experimental hypothesis. changes in purchases such as dollar or unit sales of individuals or organizations. Offering a product for sale in a small geographic area to help evaluate potential market actions is called a(n) __________. micro market test market experimental market simulated market trial market Analyzing the data obtained during the marketing research project and presenting the findings take place during which step of the five-step marketing research approach? collect relevant information develop findings take marketing actions plan the budget identify constraints Once a market researcher has defined the problem, developed the research plan, and collected the relevant information, what is the next step in the five-step marketing research approach? set budgets determine target market take marketing actions develop findings determine if there is a planning gap between desired findings and actual findings The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions is referred to as predictive analysis. information extraction. variable analysis. database management. data mining. Many consumers buy soft drinks and potato chips together when they shop at a grocery, convenience, or mass merchandiser store. But when querying its marketing information system (MIS), one convenience store discovered that when consumers bought a sandwich, many also purchased toothpaste. This information was obtained from checkout scanner data from its stores nationwide. This convenience store used __________ to extract this hidden information from its MIS to find the statistical link between the two product categories. linear trend extrapolation heuristic modeling data mining descriptive research RFID data The final step in the five-step marketing research approach includes making action recommendations, implementing action recommendations, and __________. evaluating the results doing an environmental scan making sales or profit projections for the coming year(s) increasing or decreasing production based upon research collected identifying possible opportunities for growth Making action recommendations, implementing action recommendations, and evaluating results take place during which step of the five-step marketing research approach? define the problem take marketing actions collect relevant information develop findings develop the research plan The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts is referred to as the prognostication. sales forecast. guesstimate. marketing intuition. market potential. Three frequently used sales forecasting techniques are (1) judgments of the decision maker; (2) surveys of knowledgeable groups; and (3) __________. heuristic prognostications customer contracts trade association experts statistical methods empirical studies extending a pattern observed in past data into the future. Trend extrapolation involves extending a pattern observed in past data into the future. selecting specific points on a graph of sales or market share, multiplying by the cost of living index, and allowing for a variation of plus or minus 3%. averaging the total sales or market share for the previous 5 years and multiplying that number by the expected GDP growth rate for the next year (say 1.5%) to arrive at the next year’s forecast. selecting a given percentage and using that number as a yearly predictive base regardless of changes in sales, revenue, or market share. collecting projections from all regional sales managers and making the final projection. linear trend extrapolation In trend extrapolation, the forecasting technique that involves using a straight line is called __________. causal analysis non-parametric regression planning gap analysis infinite dimension linear trend extrapolation pattern is always a straight line. Linear trend extrapolation is a form of trend extrapolation in which pattern changes from year to year. pattern is always a straight line. slope of the line is tied directly to profits. shape of the pattern is a hyperbola. pattern follows an “S-shaped” curve. Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as consumer differentiation. psychographics. market segmentation. market delineation. aggregation marketing. Small athletic shoe manufacturers such as Vans have targeted niche markets and make shoes designed to satisfy the needs of different specific groups of customers. This strategy is an example of market segmentation. mass customization. customized manufacturing. single chain marketing. market specific selection. A relatively homogenous group of prospective buyers that results from the market segmentation process is referred to as a(n) __________. market segment target market customer base ultimate consumer preferred customer be similar in terms of their consumption behavior. To be identified as a market segment, members of the group must be similar in terms of their consumption behavior. represent a large share of the entire market and have buying power. have diverse needs and have potential for future growth. have diverse needs and be willing and able to purchase the product. have the potential for future growth and increased profit or ROI. A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________. market penetration points of difference market differentiation product positioning product differentiation Apple’s iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple’s strategy for product segmentation. market expansion. product differentiation. usage segmentation. psychographic segmentation. The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization’s marketing program. self-regulatory industry standards government regulations top-level management buyers’ or market needs controllable environmental factors not consider market segmentation at this time. When expenses are greater than the potential increased sales from market segmentation, a firm should not consider market segmentation at this time. combine departments within the company to make the process more streamlined. reduce production costs or increase prices to facilitate the segmentation process. seek alternate channels of distribution, including Internet sales. discontinue manufacturing any products that are not in the mature stage of their product life cycle. multiple products, one segment. All of the following are market segmentation strategies EXCEPT: build-to-order. multiple products, multiple market segments. one product, multiple market segments. multiple products, one segment. mass customization. the extra cost of developing and producing additional versions of the product When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________. the extra cost of developing and producing additional versions of the product creating a customer service gap indirect distribution and logistics problems restructuring the firm’s strategic planning amortization costs of product enhancements creates greater savings in production costs. When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy is a much more effective means of meeting consumers’ individual needs. creates greater savings in production costs. is a more effective way of meeting organizational objectives. has significantly higher distribution costs. is more profitable since a firm can charge the new segments higher prices without changing the product. The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S. What is the basis of its market segmentation strategy? psychographic segmentation retail outlet segmentation demographic segmentation behavioral segmentation geographic segmentation one product with multiple market segments In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. These books have been marketed by turns to preteen, teen, and adult readers around the world with creative marketing, including different book covers. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies? multiple products with one segment one product with one channel of distribution one product with multiple market segments one product with changes based on customer behavior multiple products with multiple segments reduced quality and higher prices Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? higher sales but lower profits reduced quality and higher prices meeting customer needs but at the expense of higher prices lower prices but with higher production costs higher quality but lower prices Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. Which of the following is an example of a multiple products and multiple market segments strategy? College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. Which of the following is an example of a multiple products and multiple market segments strategy? College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women. better serves customer’s needs Kellogg’s has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer’s sales revenues and profits, doesn’t reduce quality or increase price, and conforms to all FDA guidelines. uses the same promotion and packaging for all segments. decreases the cost of the physical plant. stabilizes competition. better serves customers’ needs. Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as family branding. mass customization. product differentiation. economies of scale marketing. build-to-order. Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models, there is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of mass customization. specialty customization. virtual merchandising. one product and multiple market segments. multiple products and multiple market segments. ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of family branding. mass customization. multiple products and multiple market segments. one product and multiple market segments. specialty customization. When a new product or a new retail chain steals customers and sales from older existing ones of an organization, it is referred to as cannibalization. amortization. product appropriation. product pilfering. marketing Darwinism. When Ann Taylor, a well-known retailer of sophisticated women’s clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________. amortization guerrilla marketing shrinkage marketing Darwinism cannibalization “Will our new products steal customers or sales from our older ones?” Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies? “Will our new products steal customers or sales from our older ones?” “Will the products compete head-to-head with those of a competitor?” “Can this action successfully draw customers away from competitors?” “Are there enough similarities within the market segment to warrant such high costs?” “Will this action eliminate the need for individualized advertising and promotion?” link market needs of customers to the organization’s marketing program. The purpose of the five key steps in segmenting and targeting markets is to identify competitors that provide similar products that satisfy a firm’s customers’ needs. provide guidance to reposition a firm’s products. generate new products ideas for firms that are not growing in market share. link market needs of customers to the organization’s marketing program. correlate directly to each of the five environmental forces. psychographic segmentation Four general categories used to segment consumer markets are geographic segmentation, demographic segmentation, __________, and behavioral segmentation. supplier segmentation demand segmentation regional segmentation psychographic segmentation product segmentation Segmentation based on where prospective customers live or work is referred to as zip code segmentation. geographic segmentation. regional segmentation. MSA segmentation. NAICS code segmentation. Region and city size are both variables used to employ __________ segmentation. geographic behavioral district psychographic demographic In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas. Which of the following statements best illustrates geographic segmentation? GE builds a downsized microwave oven to hang under kitchen cabinets. Del Monte offers a line of canned fruit with no added sugar or artificial sweeteners. In China, KFC sells a spicier chicken the farther away its restaurants are from the coastal areas. A fast food hamburger restaurant is only open for breakfast on weekdays and Saturdays but not Sundays. A gourmet grocer advertises its services on a small-audience classical music station even though there is a much larger-audience rock station in the area. geographic characteristics Universal Concerts wants to bring a series of music concerts to Canada next year. In general, Western Canadians prefer country music while Eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to __________. geographic characteristics demographic characteristics music format characteristics behavioral characteristics psychographic characteristics Variables that are based on some objective physical (gender, ethnicity), measurable (age, income), or other classification attribute (occupation) of prospective customers are used in which segmentation base? personality usage needs demographic behavioral Which of the following is a consumer demographic segmentation variable? personality gender usage rate needs region Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don’t remember the Old Spice brand sold to their grandfathers (pre baby boomer) many years ago. P&G is using which type of segmentation variable? behavioral demographic lifestyle geographic psychographic When a telemarketer calls to sell a consumer life insurance, the last questions asked is what category does the person’s household income falls into (less than $50,000; $50,000 to $99,999; and $100,000 and over). When the telemarketer asks about household income, this indicates the use of which type of consumer variable the firm is using to segment its market? usage behavior demographic buying situation psychographic psychographic segmentation. Segmentation based on some subjective mental or emotional attributes, aspirations, or needs of prospective customers is referred to as behavioral segmentation. affective segmentation. socioeconomic segmentation. psychographic segmentation. psychosocial segmentation. Personality and lifestyle are both variables used to employ __________ segmentation. geographic behavioral attitudinal psychographic demographic Magazines like Fitness, Field & Stream, Golf Digest, and Health focus on how people live their lives, and thus all use a __________ segmentation strategy. psychographic behavioral situational socioeconomic geographic Segmentation based on some observable actions or attitudes by prospective customers, such as what benefits they seek, as well as where, how frequently, and why they buy, is referred to as demographic segmentation. psychographic segmentation. geographic segmentation. behavioral segmentation. socioeconomic segmentation. Segmentation based on what product features are important to different customers is known as demographic segmentation. behavioral segmentation. psychographic segmentation. geographic segmentation. socioeconomic segmentation. Product features and usage rate are both variables used to employ __________ segmentation. geographic demographic loyalty psychographic behavioral A national car rental firm targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using __________ segmentation. geographic demographic loyalty psychographic behavioral College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late night snack. However, their dorm rooms are often woefully short of space. MicroFridge marketers understand this and offer a combination microwave, refrigerator, and freezer targeted to these students. MicroFridge is most likely using which basis of segmentation? sociocultural segmentation psychographic segmentation geographic segmentation behavioral segmentation socioeconomic segmentation The quantity consumed or patronage (store visits) during a specific period is referred to as usage rate. purchase metric. consumption index. consumption rate. demand amount. Frequency marketing is a strategy that focuses on demographics. benefits offered. usage rate. geography. lifestyle. Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly. This marketing strategy is based on geographic segmentation. behavioral segmentation. psychographic segmentation. demographic segmentation. buying condition segmentation. Which of the following is a criterion used for selecting a target market? similarity of needs of potential buyers within a segment difference of needs of sellers between segments feasibility of a marketing action to reach a segment market size simplicity and cost of assigning potential buyers to segments expected growth of a segment Which of the following is a criterion used for selecting a target market? similarity of needs of potential buyers within a segment difference of needs of buyers between segments expected growth of a segment feasibility of a marketing action to reach a segment simplicity and cost of assigning potential buyers to segments Which of the following is a criterion used for selecting a target segment? potential for increased profit competitive position similarity of needs of potential buyers within a segment difference of needs of buyers among segments potential of a marketing action to reach a segment not be worth doing since its market size is very small. A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market would have no expected growth. not be compatible with the company’s current resources. not be worth doing since its market size is very small. not be readily accessible to the firm’s marketing programs. be relatively expensive to reach. selecting target market segments to reach. During its market segmentation process for the Nike LeBron X basketball shoe, which sells for $200+ a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of selecting target market segments to reach. forming products to be sold into groups. developing a market-product grid and estimating size of markets. taking marketing actions to reach target markets. forming prospective buyers into segments. taken a marketing action to reach a target market segment. Doris Lewis owns Lewis Edibles, Inc., a company that makes Tongue Tinglin’ BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just formed a market segment using critical product features. formed products to be sold into groups. developed a market-product grid and estimating size of markets. taken a marketing action to reach a target market segment. formed prospective buyers into segments. The place a product occupies in consumers’ minds on important attributes relative to competitive products is referred to as product repositioning. relative positioning. competitive positioning. product positioning. selective perception. Changing the place an offering occupies in consumers’ minds relative to competitive products is referred to as product placement. perceptual mapping. product positioning. product repositioning. product differentiation. Recently, U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to __________ chocolate milk in the minds of adult consumers. segment differentiate explain promote reposition Mott’s used an advertising campaign to change the way consumers thought about its applesauce from a dinnertime side dish to a replacement for cooking oil in baking. The advertising message was that using applesauce in baking cuts calories and makes the resulting baked good healthier. Mott’s used a __________ strategy. product repositioning perceptual mapping product positioning product differentiation psychographic One approach to positioning a new product in a market is __________ positioning, which involves competing directly with competitors on similar product attributes in the same target market. perceptual head-to-head psychological differentiation market In the athletic shoe market, Reebok and Nike practice __________ positioning since both manufacturers vie for the same customers with technologically advanced products. psychological perceptual differentiation head-to-head market differentiation positioning A positioning approach that involves seeking a less competitive, smaller market niche in which to locate a brand is referred to as __________. competitive repositioning head-to-head positioning differentiation positioning downsize positioning product repositioning In the sneaker business, Heelys practiced __________ positioning when it introduced a line of Heelys sneakers that came with an imbedded, detachable wheel in the shoe’s heel marketed to young teens. head-to-head parallel market lateral repositioning differentiation use a differentiation positioning strategy. Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drug stores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches compete for the same segment through different channels of distribution. develop similar products as Timex but under different names. use a differentiation positioning strategy. compete for the same customers through similar retail outlets. create cognitive dissonance in consumers who purchased Timex wristwatches. A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand, is referred to as a perception matrix. growth-share matrix. market-product grid. perceptual map. product differentiation chart. A graph displaying consumers’ perceptions of product attributes in two dimensions is referred to as a perceptual map. perception matrix. growth-share matrix. market-product grid. product differentiation chart. in the minds of consumers. Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands against large market segments in a market-product grid. against small market segments in a market-product grid. in virtual space that represents the business or product’s time in existence and growth. in the minds of consumers. against the revenues generated by other products or brands within the company. two product attributes, ranging from high to low on that attribute. The axes on a perceptual map are sales and profitability. two product attributes, ranging from high to low on that attribute. market share and market growth rate. product variety and profitability. customer perceptions of the firm’s product versus the brand of the firm’s principal competitor. consumer judgments about the important attributes for a product or brand class Which of these is collected from consumers to develop a product’s perceptual map? consumer judgments about the important attributes for a product or brand class a listing of all prospective brands and products managerial judgments about how consumers perceive products rank order of the ratings of an existing brand’s preference relative to its competitors detailed explanations of why consumers make the choices they do discover how target customers rate competing products or brands with respect to these attributes To effectively positioning a product or brand, companies take four steps: (1) identify the important attributes for the product or brand class; (2)__________; (3) discover where the company’s product or brand is on these attributes in the minds of potential customers; and (4) reposition the company’s product or brand in the minds of potential customers. decide whether to keep or delete the market segment that your product offering targets identify the competitors’ brands that make up the consideration set identify market niches that were not selected during the market segmentation process discover how target customers rate competing products or brands with respect to these attributes create a marketing plan based on customers’ perceptions As a marketing term, __________ generally includes not only physical goods, but also services and ideas as well. marketing invention merchandise product concept A product that has tangible attributes that a consumer’s five senses can perceive is referred to as a(n) good. service. product concept. new idea. artifact. Goods can be divided into __________ goods and __________ goods. functional; aesthetic required; desired tactile; conceptual durable; nondurable product; service Intangible activities or benefits that an organization provides to satisfy consumers’ needs in exchange for money or something else of value are referred to as __________. services goods products marketing mix ideas intangibility, inconsistency, inseparability, and inventory. The four I’s of services consist of intangibility, inconsistency, inseparability, and innovation. intangibility, inventory, inflexibility, and impression. intangibility, inconsistency, inseparability, and inventory. intangibility, inventory, innovation, and impression. intangibility, inconsistency, innovation, and impression. can’t be held, seen, or touched before the purchase decision. The intangibility element of a service refers to the fact that it has value that can only be determined by using subjective criteria. can’t be held, seen, or touched before the purchase decision. requires the ability to provide the service even in times of no demand. can maintain or accumulate good will with customers. can be objectively evaluated. intangibility of services. Consumers have more difficulty evaluating services than they do products; the difficulty results from the intangibility of services. incongruity of services. inseparability of services. inflexibility of services. interdependence of services. Services depend on the people who provide them. As a result, their quality varies with each person’s capabilities and day-to-day job performance. This element of services is referred to as __________. incongruity differentiation variation inconsistency intangibility providing standardization and training. Developing, pricing, promoting, and delivering services are challenging because the quality of the service is often inconsistent. Organizations attempt to reduce this inconsistency by paying higher incentives to employees to encourage satisfactory performance. reducing incentives available to employees because of poor performance. reducing the customer contact points in the service delivery process. providing standardization and training. exercising better hiring practices. Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office, for people who are too busy to perform these simple acts. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for her clients. inseparability inconsistency incongruity inflexibility intangibility Alana operates a wedding preparation service that aids brides-to-be in the planning of their weddings. To maintain a quality image and a standardized offering, Alana provides extensive training for each of her employees. What unique aspect of services is Alana trying to address? impressionability intangibility inconsistency inseparability uniqueness of the service cannot separate the service itself from the deliverer of the service. Inseparability in services means consumers see little variation from one service provider in an industry to another. cannot separate the service itself from the deliverer of the service. are unable to differentiate price from quality. cannot evaluate a service until it is being or has been used. cannot separate themselves from the deliverer of the service. idle production capacity. A situation that occurs when a service provider is available but there is no demand is referred to as off-peak pricing. idle production capacity. static demand. capacity management. excess inventory. Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts. She has often been hired by major corporations to perform services for their harried executives, and even other employees. Her staff is overworked and she will soon hire more employees to fill demand. Arenas is not currently experiencing __________; in fact, all of her employees and equipment are fully being used. off-peak pricing idle production capacity static demand capacity marketing capacity inventory Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? incongruity intangibility inconsistency inseparability idle production capacity The type of analysis that compares the differences between consumers’ expectations about a service and their experience with it based on dimensions of service quality is referred to as customer relationship management. service encounter differential. gap analysis. a customer contact audit. a service audit. expectations and experience. In using a gap analysis, the two basic components of a customer’s evaluation of a service are expectations and customer contact. expectations and experience. intangibility and inconsistency. experience and credence. inconsistency and inseparability. Many restaurants now ask consumers to evaluate their experience on a short questionnaire when they pay their bill. This assessment of consumer expectations compared to the actual experience they had is a form of __________. service encounter survey customer profile analysis gap analysis customer contact audit service audit the degree of learning involved. An important way of viewing new products is in terms of their effects on consumption, which from the perspective of consumers is by the price. the extent of media promotion. the degree of potential product cannibalization. the presence of feature bloat. the degree of learning involved. A product that is new in some way but requires no new behaviors to be learned by consumers is a continuous innovation. discontinuous innovation. dynamically continuous innovation. product transformation. concurrent innovation. The emphasis of a marketing strategy for a continuous innovation concentrates on obtaining narrow distribution. setting a low price. generating awareness. using reminder advertising to reeducate consumers. using personal selling. At the time of its introduction, which of the following products was the best example of a continuous innovation? home security system disposable lighter microwave oven electric toothbrush video camera Wrigley’s new Alert Energy Caffeine Gum “offers a portable solution that lets adults control their caffeine intake.” This new gum is most likely which type of innovation? continuous innovation dynamically continuous innovation discontinuous innovation insignificant innovation disruptive innovation The addition of Clorox II bleach to Tide laundry detergents is an example of a discontinuous innovation. bundled innovation. dynamically continuous innovation. disruptive innovation. continuous innovation. dynamically continuous innovation. A product that disrupts consumers’ normal routines but does not require totally new learning is a continuous innovation. dynamically continuous innovation. discontinuous innovation. progressive innovation. disruptive innovation. advertising to explain points of difference and benefits. The emphasis of a marketing strategy for a dynamically continuous innovation would include advertising to generate awareness. obtaining widespread distribution. advertising to explain points of difference and benefits. setting a low price. using personal selling. dynamically continuous innovation. LG Electronics Inc. has entered into an agreement with Google to offer selected smartphone models that use a multitouch interface rather than buttons to make calls with Google’s Android operating system. When the multitouch interface was first introduced, it was an example of which type of innovation? continuous innovation. discontinuous innovation. disruptive innovation. dynamically continuous innovation. evolutionary innovation. dynamically continuous innovation. There have been pasta sauces on the market for years. These sauces have always required the pasta to be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n) continuous innovation. discontinuous innovation. evolutionary innovation. disruptive innovation. dynamically continuous innovation. discontinuous innovation. A product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n) continuous innovation. discontinuous innovation. dynamically continuous innovation. evolutionary innovation. progressive innovation. requires consumers to learn entirely new patterns of behavior and product usage. A discontinuous innovation is a product that disrupts consumers’ normal routine but does not require totally new learning. requires no new learning by consumers. is not purchased by innovators and early adopters. initiates obsolescence of a product class. requires consumers to learn entirely new patterns of behavior and product usage. educate consumers about new consumption patterns through personal selling. The emphasis of a marketing strategy for a discontinuous innovation would most likely be to generate awareness among consumers. advertise benefits to consumers that stress points of differentiation. educate consumers about new consumption patterns through personal selling. obtain widespread distribution in multiple channels. stress price differentials from competitors’ products. discontinuous innovation. In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of a continuous innovation. dynamically continuous innovation. disruptive improvement. discontinuous innovation. evolutionary innovation. discontinuous innovation. Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n) continuous innovation. discontinuous innovation. dynamically continuous innovation. disruptive improvement. evolutionary innovation. adding Ball Park Beef Franks with Cheese to the Ball Park Franks line Which of the following new products is the best example of the LOWEST level of risk from the company’s point of view? adding Ball Park Beef Franks with Cheese to the Ball Park Franks line moving from production of land-line telephones to smartphones marketing the first Apple computer changing the formula from Coca-Cola to New Coke and then back to Coca Cola Classic offering online marketing classes rebranded under a new college name Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Cosmopolitan magazine introduced Cosmopolitan-branded yogurt, and it failed quickly. This innovation strategy is known as a radical invention product line extension disruptive innovation brand extension product deletion A few years ago, Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay’s salty snacks such as Fritos corn chips. But when people think of the brand name Frito-Lay, thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. This innovation strategy is known as a brand extension. radical invention. product line extension. disruptive innovation. product deletion. an insignificant point of difference relative to competing snacks – consumers wouldn’t switch from eating snacks from Frito-Lay and others When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was __________. an insignificant point of difference relative to competing snacks – consumers wouldn’t switch from eating snacks from Frito-Lay and others too little market attractiveness – the growth in the snacks market is declining poor execution of the marketing mix – General Mills did not offer free samples at grocery stores poor product quality – the chips were not the same size incomplete market and After Microsoft launched its Xbox 360 video-game console, millions began to experience the “red ring of death.” The problem: The consoles’ microprocessors ran too hot, causing them to pop off their motherboards. This cost the company not only money to extend its product warranty, but a huge portion of future sales and market share to competitors Sony and Nintendo. This failure was due to not satisfying customer needs on critical factors. poor product quality. an insignificant point of difference. incomplete market and product protocol. too little market attractiveness. had too little market attractiveness. OUT! International’s Hey! There’s A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid’s bedroom. Although a clever idea, it failed because it did not satisfy customer needs on critical factors. had poor product quality. had bad timing. had an incomplete market and product protocol. had too little market attractiveness. The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the __________. commercialization process SWOT process business prospect development cycle opportunity stage gate sequence new-product process seven stages from new product strategy development to commercialization. The new-product process an organization goes through to identify business opportunities and convert them into salable products or services contains three main steps: research, production, and distribution. four distinct steps: research, evaluation, production, and distribution. five key phases ranging from idea generation to creating the first prototype. seven stages from new product strategy development to commercialization. three phases: planning, implementation, and evaluation. new-product strategy development The stage of the new-product process that defines the role for a new product in terms of the firm’s overall objectives is referred to as __________. distinctive competency determination new-product strategy development strategic marketing process strategic invention process product protocol definition SWOT analysis and environmental scanning. During the first stage of the new-product process, two important activities take place. They are SWOT analysis and environmental scanning. open innovation and business analysis. concept testing and product forecasting. R&D and operations set-up. environmental scanning and open innovation. The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as __________. idea generation product development open innovation assessment screening and evaluation new-product strategy development Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations, a practice known as __________. innovation alliances open innovation open collaboration piggy-back thinking stakeholder cooperation Generating insights leading to marketing actions based on massive numbers of peoples’ ideas is called __________. brainstorming groupthink outsourcing crowdsourcing NIH method Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements. brainstorming crowdsourcing group think outsourcing data mining Because early-stage financing is almost always a problem for those starting a new business, __________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. crowdfunding open sourcing venture capital online banking crowdsourcing The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as __________. development stage-gate idea generation business analysis screening and evaluation A 3M researcher worked with university students to develop the Post-it→ Flag Highlighter. His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm’s new-product objectives. At which stage of the new-product process was this product? idea generation screening and evaluation business analysis new-product strategy development concept testing The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as idea generation. business analysis. marketing analysis. product development. commercialization. An assessment of the fit of the proposed new products, from whether it can be economically developed and manufactured to the marketing strategy needed, take place during which stage of the new-product process? business analysis screening and evaluation new-product strategy development development These activities are addressed at every stage with the exception of new-product strategy development. A full-scale operating model of the product under development is referred to as a sample. framework. template. prototype. blueprint. The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________. idea generation screening and evaluation business analysis commercialization development At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child. This type of consumer or safety test occurs during the __________ stage of the new-product process. new-product strategy development development business analysis screening and evaluation market testing The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as development. market testing. business analysis. commercialization. screening and evaluation. Audiences are allowed to preview actual movies (a sneak preview) such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process? market testing business analysis commercialization screening and evaluation concept testing Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer’s new product was in the __________ stage of the new-product process. commercialization screening and evaluation business analysis development market testing on a limited basis in a defined area. Test marketing involves offering a product for sale to random sample of people in the top ten major cities of the U.S. in as broad a geographic region as possible. to consumers that are representative of the target market. on a limited basis in a defined area. only on certain days of the week and hours of the day. The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as __________. marketing program execution disbursement launch commercialization final distribution A concept that describes the stages a product goes through in the marketplace – introduction, growth, maturity, and decline – is referred to as the __________. retail life cycle product life cycle marketing mix product growth cycle diffusion of product innovation What is the marketing objective for the introduction stage of the product life cycle? harvesting market share stress differentiation maintain brand loyalty gain awareness What is the marketing objective for the growth stage of the product life cycle? minimize promotion increase market share stress differentiation gain awareness maintain brand loyalty What is the marketing objective for the maturity stage of the product life cycle? begin deletion implement skimming stress differentiation gain awareness maintain brand loyalty What is the marketing objective for the decline stage of the product life cycle? harvesting add outlets stress differentiation gain awareness maintain brand loyalty The marketing objective for a product in the __________ stage of the product life cycle is to create consumer awareness and stimulate trial. introduction growth maturity decline accelerated development Marketing for a product in the introduction stage of its product life cycle should focus primarily on gaining awareness and which other marketing objective? stress differentiation stimulate trial foster brand loyalty maximize distribution target a marketing niche The desire for a product class rather than for a specific brand is called __________ demand. selective primary derived generic secondary Gillette spent $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate __________, the desire for the product class, rather than for a specific brand, when there are few competitors with the same product. secondary demand introductory demand primary demand discretionary demand selective demand advertising to cultivate primary demand Promotional expenditures at the introduction stage of the product life cycle are best spent on __________. contests and sweepstakes to stimulate selective demand product samples to create secondary demand advertising to cultivate primary demand personal endorsements to generate word of mouth demand coupons to maintain brand loyalty or static demand When the National Cattlemen’s Beef Association developed the “Beef, It’s What’s for Dinner” advertising campaign, it was trying to stimulate __________ demand. selective generic derived primary secondary The preference for a specific brand is called __________ demand. selective secondary primary derived generic As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on creating __________ demand, or the preference for a specific brand. primary selective derived generic secondary For years, when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market, claiming that it was superior to the Ocean Spray brand. Northland was creating __________ demand for its cranberry products. primary derived generic selective secondary skimming pricing; penetration pricing The two most common pricing alternatives for products in the introduction stage of the product life cycle are __________ and __________. skimming pricing; penetration pricing price lining; product line pricing markdown pricing; quantity discount pricing skimming pricing; bundle pricing penetration pricing; experience curve pricing During the introduction stage of the product life cycle, a(n) __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development. penetration cost-plus target ROI skimming above-market capitalize on the price insensitivity of early buyers A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to __________. capitalize on the price insensitivity of early buyers discourage competition from other manufacturers ease the product into its maturity stage gain the largest unit sales possible gain more distribution outlets Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used a(n) __________ pricing strategy to help recover its research and development costs. penetration cost-plus skimming target ROI above-market During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as __________ pricing. penetration cost-plus target ROI below-market skimming Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy? penetration pricing cost-plus pricing target ROI pricing above-market pricing skimming pricing 3D OLED (organic light-emitting diode) HDTVs, such as the 55″ model from LG Electronics that costs about $10,000, which offers a significantly different viewing experience than any television previously available, are in which stage of their product life cycle? introduction growth maturity decline harvest Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors? maturity decline growth accelerated development introduction advertising emphasis switches to selective demand Which of the following is a characteristic of the growth stage of the product life cycle? advertising emphasis switches to selective demand a growing proportion of trial purchases come from brand loyal users product features remain unchanged profit margins increase as sales increase the product is sold in a narrowly selected number of retail outlets During the __________ stage of the product life cycle, product proliferation occurs as a results of each company’s efforts to differentiate its product from competitors’. introduction growth maturity decline harvest addition of new or modified product features Which of the following is a characteristic of the growth stage of the product life cycle? advertising emphasis switches to primary demand a growing proportion of initial purchasers to repeat purchasers addition of new or modified product features profit margins increase as sales increase there are a limited number of retail outlets for greater quality control Apple launched its iPad in 2010 and it, along with its companion iPad mini, have become the world’s bestselling tablet devices with their multitouch user interfaces and the availability of hundreds of thousands of apps. The product class has experienced tremendous growth in terms of sales and the addition of formidable competitors such as Samsung Galaxy, Google Nexus, Sony Xperia, etc. – all vying for market share. In which stage of the product life cycle are the iPad and other tablets? decline stage commercialization stage accelerated development stage growth stage introduction stage The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market. decline maturity introduction growth harves In which stage of the product life cycle do marginal competitors begin to leave the market? introduction growth decline maturity harves Promotional expenses at the maturity stage of the product life cycle are often designed to __________. convince those who have abandoned the brand to try it again maintain market share create a sense of nostalgia attract more price conscious consumers thwart the growing number of competitors that have entered the market To handle products in the decline stage of the product life cycle, companies often use either a __________ strategy or a __________ strategy. divesting; harvesting diversification; contraction deletion; harvesting deletion; diversification building; divesting A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as __________. trimming elimination paring down deletion harvesting category development index and brand development index Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. The two indexes, CDI and BDI, stand for __________. comprehensive demographic inventory and brand designation information consumer demographic index and buyer demographic inventory category development index and brand development index consumer development index and brand development inventory category development index and buyer development inventory above-average product category purchases by a market segment If a firm’s marketing dashboard displays a CDI over 100 for a consumer packaged good, such as General Mills’ Warm Delights Minis, this indicates which of the following? a weak brand position in a segment a strong brand position in a segment above-average product category purchases by a market segment below-average product category purchases by a market segment There is not enough information to make any conclusions. below-average product category purchases by a market segment If a firm’s marketing dashboard displays a CDI under 100 for a consumer packaged good, such as General Mills’ Warm Delights Minis, this indicates which of the following? a weak brand position in a segment a strong brand position in a segment above-average product category purchases by a market segment below-average product category purchases by a market segment There is not enough information to make any conclusions. a strong brand position in a segment If a firm’s marketing dashboard displays a BDI over 100 for a consumer packaged good, such as General Mills’ Warm Delights Minis, this indicates which of the following? a weak brand position in a segment a strong brand position in a segment above-average product category purchases by a market segment below-average product category purchases by a market segment There is not enough information to make any conclusions. a weak brand position in a segment If a firm’s marketing dashboard displays a BDI under 100 for a consumer packaged good, such as General Mills’ Warm Delights Minis, this indicates which of the following? a weak brand position in a segment a strong brand position in a segment above-average product category purchases by a market segment below-average product category purchases by a market segment There is not enough information to make any conclusions. (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 The formula to calculate a CDI = __________. (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S. sales in a market segment) × 100 (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s total U.S. sales in a market segment) × 100 The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 The formula to calculate a BDI = __________. (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S. sales in a market segment) × 100 (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S. population in a market segment) × 100 (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s total U.S. sales in a market segment) × 100 The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself A marketing strategy that alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value and sales to customers is referred to as __________. market modification product modification product repositioning market-product synergy product management alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales Product modification refers to a marketing strategy that __________. alters a product’s characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales manages a product’s life cycle to increase its use among existing customers, create new use situations, or find new customers tries to find new customers and convince users who abandoned it to purchase again drops the lowest producing market segment and replaces it with an entirely new one combines the lowest producing market segment into others to achieve marketing economies of scale improving a product’s quality Which of the following is a product modification strategy? creating new advertising for a product improving a product’s quality finding a new target market for a product creating a new use situation for a product altering a product’s distribution creating a new use situation. All of the following are product modification strategies EXCEPT: product bundling. improving a product’s quality. changing a product’s appearance. creating a new use situation. altering a product’s performance. When Proctor & Gamble revamped Pantene shampoo and conditioner with a new vitamin formula and relaunched the brand with a multimillion-dollar advertising and promotion campaign, what strategy did it use to manage the product through its life cycle? market modification product repositioning market-product synergy product positioning product modification Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of a __________ strategy. market-product grid diversification product modification market modification product repositioning A strategy for managing a product’s life cycle that attempts to find new customers, increase a product’s use among existing customers, or create new use situations is referred to as __________. market modification product modification product repositioning product extension diversification When Coca-Cola promoted Coke as a morning beverage for those consumers who don’t drink coffee, it used a __________ strategy. product modification brand modification market-product extension diversification market modification Known for its popular line of construction toys for boys, LEGOS introduced a product line for young girls called LEGO Friends. This is an example of which market modification strategy? finding new users creating new use situations increasing a product’s use by existing customers modifying the product reacting to competitors’ positions Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which of the following market modification strategies? finding new users creating new use situations increasing a product’s use by existing customers modifying the product reacting to competitors’ positions increasing a product’s use by existing customers. Florida Orange Growers Association advocates drinking orange juice throughout the day rather than for breakfast only, in a market modification strategy known as finding new users. personalizing the use situation. increasing a product’s use by existing customers. modifying the product. reacting to competitors’ positions. create new use situations Dockers, the U.S. market leader in casual pants, originally intended its product as a single pant for every situation. Dockers now promotes different looks for work, weekend, dress, and golf. Dockers’ new strategy is designed to __________. create brand awareness create new use situations increase a product’s use find new customers lower surplus inventory levels creating new use situations through a market modification strategy Mott’s applesauce promotes itself as a low-fat alternative to cooking oil for baked goods. Mott’s is __________. finding new users through a product modification strategy increasing use by existing customers through a product modification strategy modifying the product characteristics creating new use situations through a market modification strategy demarketing the product Changing the place a product occupies in a consumer’s mind relative to competitive products is referred to as __________. market modification product modification product repositioning product positioning perceptual mapping creating a new use situation. All of the following are factors triggering the need for product repositioning EXCEPT: creating a new use situation. reaching a new market. catching a rising trend. changing the value offered. reacting to a competitor’s position. Sealy, the self-proclaimed largest manufacturer of mattresses in the U.S., recently set out to redefine its function in the bedrooms of America. No longer did it want to be known as simply a mattress company. It wanted Sealy to be known as the world’s leading “sleep wellness provider.” This is an example of __________. reverse marketing demarketing repositioning segmenting positioning reposition Frosted Flakes For many years, Kellogg’s Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product with Tony in competitive situations. Recently, in response to declining sales of Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting that they enjoy Frosted Flakes, too. Kellogg’s is attempting to __________. develop a perceptual map for Frosted Flakes reposition Frosted Flakes complete the Frosted Flakes product life cycle introduce a new product line extension for Frosted Flakes position Frosted Flakes react to a competitor’s position New Balance, Inc. successfully repositioned its athletic shoes to focus on fit, durability, and comfort rather than on going head-on against Nike and Adidas on fashion and professional sports. This product repositioning strategy was designed to __________. react to a competitor’s position reach a new target market segment catch a rising trend change the value offered to its customers accommodate its target audience preference for comfortable sneakers react to a competitor’s position New Coke was repositioned as a slightly sweeter, less filling soft drink because the Coca-Cola Company discovered that its 1984 market share in supermarkets was 2 percent behind Pepsi. This product repositioning strategy was designed to __________. reach a new market catch a rising trend change the value offered change its target audience react to a competitor’s position Johnson & Johnson effectively __________ St. Joseph Aspirin from a product for infants to one targeted at adults who may need a low-strength aspirin designed to reduce the risk of heart attacks or strokes. reinvented resurrected reconfigured repositioned realigned Johnson & Johnson effectively repositioned St. Joseph Aspirin as a product for infants to an adult low-strength aspirin to reduce the risk of heart attacks or strokes. This is an example of a product repositioning by __________. reacting to a competitor’s position reaching a new market catching a rising trend changing the value offered product modification reach a new target market segment In its recent “You’re not you when you’re hungry – Snickers satisfies” TV ad campaign, Mars, the maker of the Snickers candy bar, attempted to reposition Snickers from a sugary dessert-like food to a snack food that can satisfy one’s immediate feeling of hunger. Mars used this product repositioning strategy with its Snickers brand to __________. react to a competitor’s position catch a rising trend reach a new target market segment change the value offered to its customers implement a global strategy Proctor and Gamble repositioned its Old Spice anti-perspirant brand from a deodorant your grandfather might use to a strong, hip anti-perspirant through commercials that showed the target market of 18- to 30-year-old men advocating its use. P&G used this product repositioning strategy with its Old Spice brand anti-perspirant to __________. react to a competitor’s position catch a rising trend change the value offered diversify its product portfolio reach a new market An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the needs of this large market. As a result, moisturizing lotions and creams like Oil of Olay are now repositioned as age-defying products. This is an example of which product repositioning action? reaching a new market reacting to a competitor’s position trading up changing the value offered product modification Pretzels were first introduced as a salty snack. Later, the product was repositioned as a low-fat snack in order to __________. respond to a competitor’s head-to-head positioning strategy reach a new market catch a rising trend change the value offered change its target audience |
Motts applesauce promotes itself as a low fat alternative to cooking oil for baked goods motts is
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