MKTG 101 Exam #2

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  1. All the individuals and households that buy or acquire goods and services for personal consumption make up the ________.
    Consumer market
  2. Which of the following statements is true of cultural factors that influence consumer behavior?
    Social classes show distinct product and brand preferences in areas such as clothing and travel.
  3. Which of the following statements is true of social classes?
    People within a social class tend to exhibit similar buying behavior.
  4. Many companies use several ethnically specific themes in their mainstream marketing strategy. This is because several marketers have realized that insights gleaned from ethnic consumers can influence their broader markets. This type of marketing is known as ________.
    Cross-cultural marketing
  5. ________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday for the Los Angeles Lakers.
    Aspirational groups
  6. A buyer's decisions are influenced by ________ such as the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept.
    Personal characteristics
  7. In the context of the AIO dimensions for measuring consumers' lifestyles, "A" stands for ________.
  8. Shoez Inc., a manufacturer of shoes, has recently launched a brand of sturdy shoes ideal for hiking and other outdoor activities. Which of the following brand personalities could be best associated with the new brand?
  9. According to Freud, a person's buying decisions are primarily affected by ________.
  10. Which of the following is NOT part of Maslow's hierarchy of needs?
    Spiritual needs
  11. When consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands, they most likely will exhibit ________.
    Dissonance-reducing buying behavior
  12. James has decided to buy a new vehicle. His brother John has recently purchased a new truck and recommends the same model to James. James finally decides to buy the same truck. Which of the following sources of information has most likely influenced James' purchase decision?
  13. Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________.
    Product characteristics that influence rate of adoption
  14. A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.
  15. Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?
  16. Pat thought he had received the best deal on his new car. Shortly after the buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________.
    Post purchase dissonance
  17. The business marketer normally deals with ________ than the consumer marketer does.
    Far fewer buyers
  18. The Pure Drug Company produces insulin, a product with a very stable demand. Even though the price changed several times in the past two years, the demand for Pure Drug's insulin remained relatively unaffected. In this instance, the demand for insulin is representative of ________ demand.
  19. Which of the following is true about business purchases?
    Business purchases involve more professional purchasing effort than consumer purchases
  20. Sigma Inc., a software firm based in California, reordered 50 printers from the designated provider without any modifications. This is an example of ________.
    A straight rebuy
  21. In a(n) ________ situation, the buyer wants to revise product specifications, prices, terms, or suppliers.
    Modified rebuy
  22. ________ may help shape product specifications, but their major role is in selecting vendors and negotiating.
  23. A nurse in a hospital told the chief dentist, Dr.Albrecht, that the hospital should purchase equipment that would sterilize the dentists' tools without using any water because water tends to affect the durability of the tools over time. Dr. Albrecht located some articles on chemical sterilizers and gathered more information on how they worked. After talking to salespeople, Dr. Albrecht finally placed his order for the machine. In this instance, Dr. Albrecht played the role of a(n) ________.
  24. ________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.
    Product value analysis
  25. SkyWalk Aeronautics Limited received orders for 25 cargo air carriers from Zephyr Cargo Limited through its Web site in 2012. This is an example of ________.
  26. ________ refers to purchasing through electronic connections between buyers and sellers—usually online.
  27. Which of the following can help a company create direct procurement accounts with suppliers, through which company buyers can purchase equipment, materials, and supplies directly?
    Extranet links
  28. John Herr's company has standardized the size of its paper bags so that each bag can be used in five to seven different store departments. In the business buying process, this approach to cost reduction most likely took place in the ________ stage.
    Product specification
  29. All of the following are difficulties associated with selling to government buyers EXCEPT ________.
    Low sales volume
  30. Which of the following plays the most important role in government buying?
  31. ________ consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.
    Market segmentation
  32. ________ involves actually distinguishing the firm's market offering to create superior customer value.
  33. ________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
  34. "Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods." This is an example of ________.
  35. Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
    Demographic segmentation
  36. ________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.
  37. ________ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.
    Behavioral segmentation
  38. Malcolm Sanders, a graduate student from Boston, makes customized snowboards for local snowboarding enthusiasts. The demand for snowboards peaks during the winter months, a busy time for Malcolm. He advertises more aggressively and sells most of his snowboards around this time. Which market segmentation approach does Malcolm most likely use?
    Occasion segmentation
  39. Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
    Benefit segmentation
  40. A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
    Segmentation by usage rate
  41. Teen Mania Inc., a company marketing adventure sports merchandise for teenagers, targets the world's teenagers, who have similar needs and buying behavior even though they are located in different countries. Which of the following market segmentation is evident here?
    Intermarket segmentation
  42. When the size, purchasing power, and profiles of a market segment can be calculated, the market is ________.
  43. When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________.
  44. Market segments that can be effectively reached and served are ________.
  45. A(n) ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.
    Target market
  46. Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
    Concentrated marketing
  47. Which of the following is a drawback of local marketing?
  48. Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?
    Undifferentiated marketing
  49. A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.
    Product position
  50. Through ________ differentiation, brands can be differentiated on features, performance, or style and design.
  51. Perry's Mart, a grocery store in New Orleans, Louisiana, offers less merchandise selection and fairly low levels of service. Despite the lackluster service and limited selection of merchandise, customers still flock to Perry's because it charges rock-bottom prices. Perry's Mart most likely uses the ________ positioning.
  52. "To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
  53. Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
    Product differentiation
  54. ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
  55. Product planners need to consider products and services on three levels. At the second level, product planners must ________.
  56. ________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
  57. Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a ________ product.
  58. A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.
  59. ________ involves designing and producing the container or wrapper for a product.
  60. A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.
  61. A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.
    Product line
  62. ________ involves adding more items within the present range of the product line.
    Product line filing
  63. ________ occurs when a company lengthens its product line beyond its current range.
    Product line stretching
  64. A ________ consists of all the product lines and items that a particular seller offers for sale.
    Product mix
  65. Product mix ________ refers to the total number of items a company carries within its product lines.
  66. Product mix ________ refers to the number of versions offered for each product in the line.
  67. ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
    Service intangibility
  68. ________ means that services cannot be stored for later sale or use.
    Service parishability
  69. ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.
    Customer-based brand equity
  70. ________ refers to how highly consumers regard and respect the brand.
  71. The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates.
    Customer equity
  72. ________ occurs when two established brand names of different companies are used on the same product.
  73. ________ involves the use of a successful brand name for new or modified products in a new category.
    Brand extension
  74. Product improvements, product modifications, and original products can all be classified as ________.
    New products
  75. New-product development starts with ________.
    Idea generation
  76. A detailed version of a new idea stated in meaningful customer terms is called a ________.
    Product concept
  77. Which of the following groups do marketers involve for the process of concept testing new products?
    Target customers
  78. A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.
    Business analysis
  79. A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.
    A prototype
  80. All of the following are disadvantages of test marketing EXCEPT that test marketing ________.
  81. Which term refers to the course that a product's sales and profits take over its lifetime?
    Product life cycle
  82. Which of the following best characterizes the decline stage of product development?
  83. Which of the following statements characterizes the introduction stage of the PLC?
    Convincing channel intermediaries to carry the product
  84. Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
  85. Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ________ stage of the product life cycle.
  86. When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.
  87. Because of ________, a company cannot make its product illegally similar to a competitor's already established product.
    Patent laws
  88. ________ is the only element in the marketing mix that produces revenue.
  89. What sets the ceiling for product prices?
    Customer perceptions of the product’s value
  90. What sets the floor for product prices?
    Product costs
  91. Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.
  92. Which of the following processes does value-based pricing reverse?
    Cost-based pricing
  93. Which of the following involves introducing less-expensive versions of established, brand-name products?
    Good-value pricing
  94. Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________.
    Everyday low prices
  95. ________ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
    High-low pricing
  96. In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________.
    Value-added pricing
  97. Overhead costs ________ as the number of units produced increases.
    Remain the same
  98. Fixed costs ________.
    Are costs that do not vary with production or sales level
  99. Costs that change with the level of production are referred to as ________.
    Variable costs
  100. As production moves up, the average cost per unit decreases because ________.
    Fixed costs are spread over more units
  101. Why is markup pricing most likely impractical?
    The method ignores demand and competitor prices
  102. Why is markup pricing most likely popular?
    Sellers do not need to make frequent adjustments as demand changes
  103. Which of the following statements about break-even analysis is true?
    It is calculated by using variable costs, the unit price, and fixed costs.
  104. Which of the following exemplifies a pure competitive market?
    A market where many buyers and sellers trade in a uniform commodity
  105. The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.
    Oligopolistic competition
  106. If demand hardly changes with a small change in price, the demand is ________.
  107. Buyers are less price sensitive when ________.
    The product they are buying is unique
  108. Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.
    Market-skimming pricing
  109. Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?
  110. A market-penetration pricing policy should LEAST likely be used for a new product when ________.
  111. In a bid to attract more customers in a market which has several competitors, Barrymore's Bakery slashed the prices of all its products by 50%. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?
  112. Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?
    Product line pricing
  113. Which of the following product mix pricing strategies involves pricing additional/accessory products sold along with the main product?
    Product bundle pricing
  114. Which of the following product mix pricing strategies involves pricing products that must or can only be used with the main product?
    Captive product pricing
  115. Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.
  116. Which of the following product mix pricing strategies involves pricing multiple products to be sold together?
    Product bundle pricing
  117. Which of the following is a price adjustment strategy?
  118. A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
  119. By definition, ________ is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
  120. Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
  121. ________ are formed by noting current prices, remembering past prices, or assessing the buying situation.
    Reference prices
  122. Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?
    FOB-origin pricing
  123. If Detroit DLX charges the same price for the delivery of its product to customers located within the Great Lakes states, but a different price to customers elsewhere, the company is using ________.
  124. The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
    Dynamic pricing
  125. In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?
  126. Price discrimination is legal when a ________.
  127. According to Maslow's hierarchy of needs theory, when the most important need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need.
    True or False

  128. Jim is planning on buying an expensive HDTV and he realizes that there are few differences between brands of HDTV. Therefore, Jim is displaying complex buying behavior.
    True or False

  129. Abel is considering whether or not to get an electronic reader. He has read online reviews of three different kinds of readers and has talked with two friends who own electronic readers. Abel is at the awareness stage of the new product adoption process.
    True or False

  130. In B2B Marketing, Gatekeepers have formal or informal power to select or approve the final suppliers.
  131. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
  132. To the extent that a company can differentiate and position itself as providing superior customer value, it gains competitive advantage.
    True or False

  133. Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
    True or False

  134. Style is a larger concept than design. Design simply describes the appearance of a product.
    True or False

  135. For many companies, the package itself has become an important promotional medium.
    True or False

  136. Product line filling is overdone if it results in cannibalization and customer confusion.
    True or False

  137. A firm can obtain new products through acquisition or new-product development efforts.
    True or False

  138. Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.
    True or False

  139. A company launching a new product into the market must first decide where to launch the product.
  140. Product costs set the ceiling for prices.
    True or False

  141. When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is practicing market-skimming pricing.
    True or False

  142. Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an example of optional product pricing.
    True or False

  143. Consumers who have no past experience with a product are especially likely to judge it by its price.
    True or False

  144. Dynamic pricing is least prevalent online.
    True or False

Card Set:
MKTG 101 Exam #2
2015-11-06 00:21:09
marketing 101

flash cards for exam #2
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