1. 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
Answer: business marketing.
2. Organizational
buyers include manufacturers, wholesalers, retailers, and government agencies
Answer: That buy goods and services for their own use or resale
Answer: That buy goods and services for their own use or resale
3. Which of the
following statements represents an organizational buying decision?
Answer: The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.
Answer: The owner of a fried chicken restaurant hires a snow removal service to keep the parking lot clear.
4. Organizational
buyers can be divided into three different markets. They are
Answer: industrial, reseller, and government markets.
Answer: industrial, reseller, and government markets.
5. The services
market sells diverse services such as legal advice, auto repair, and dry
cleaning. Along with finance, insurance, real estate businesses, and
__________, communication and public utility firms, as well as not-for-profit
organizations, these firms represent about 75 percent of all industrial firms.
Answer: transportation
Answer: transportation
6. Archer Daniels
Midland (ADM) Co. is the world's largest cocoa-bean processor. It buys cocoa
beans and converts the beans into cocoa powder and cocoa butter, which it sells
to companies that manufacture consumer products that contain chocolate. The
cocoa-bean processor is operating in a(n) __________ market.
Answer: industrial
Answer: industrial
7. Wholesalers and
retailers that buy physical product and resell them without any reprocessing
are
Answer: reseller firms
Answer: reseller firms
8. The reseller market
includes
Answer: retailers and wholesalers.
Answer: retailers and wholesalers.
9. In terms of
organizational buyers, Amazon.com, Lands' End, and JCPenney would all be
classified as __________.
Answer: resellers.
Answer: resellers.
10. When Louisiana
State University buys new laptops for its faculty it is operating as a(n)
Answer: government unit.
Answer: government unit.
11. The system that
provides common industry definitions for Canada, Mexico, and the United States,
which make easier the measurement of economic activity in the three member countries
of the North American Free Trade Agreement (NAFTA) is called:
Answer: the North American Industry Classification System (NAICS).
Answer: the North American Industry Classification System (NAICS).
12. the North
American Industry Classification System (NAICS).
Answer: The system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and releases barriers of trade for manufacturing and distribution for cross-border firms. The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
Answer: The system that provides common industry definitions between Canada the United States, which makes it easier to measure economic activity and releases barriers of trade for manufacturing and distribution for cross-border firms. The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
13. Derived demand
refers to
Answer: the demand for industrial products and services that is driven by demand for consumer products and services.
Answer: the demand for industrial products and services that is driven by demand for consumer products and services.
14. Spruceland
Millworks in Canada makes wooden pallets for transporting and storing new
appliances such as stoves, freezers, and refrigerators. The demand for
Spruceland pallets would be classified as.
Answer: derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances
Answer: derived demand, which is tied to the sales of pallets, which in turn, is tied to the sales of appliances
15. Purchases of
sodium fluoride by Procter & Gamble for use in the manufacture of Crest
toothpaste would be an example of __________ demand.
Answer: derived
Answer: derived
16. Which of the
following statements about organizational buying compared to consumer buying is
most accurate?
Answer: Brand loyalty exists in both organizational and consumer buying.
Answer: Brand loyalty exists in both organizational and consumer buying.
17. Important product
or service characteristics in organizational buying behavior include: products
or services of a technical nature, purchased on the basis of specifications; a
large portion of goods are purchased in a raw or semi-finished state, and
Answer: a heavy emphasis placed on delivery time, technical assistance, and postsal service.
Answer: a heavy emphasis placed on delivery time, technical assistance, and postsal service.
18. Which of the
following statements accurately characterizes buying behavior in organizational
markets?
Answer: Fewer customers typically exist in organizational markets than in consumer markets.
Answer: Fewer customers typically exist in organizational markets than in consumer markets.
19. The primary
organizational buying objective is to
Answer: help the firm achieve its objectives.
Answer: help the firm achieve its objectives.
20. Seven of the most
commonly used organizational buying criteria are (1) __________, (2) ability to
meet the quality specifications required for the item, (3) ability to meet
required delivery schedules, (4) technical capability, (5) warranties and claim
policies in the event of poor performance, (6) past performance on previous
contracts, and (7) production facilities and capacity.
Answer: price
Answer: price
21. Seven of the most
commonly used organizational buying criteria are (1) price, (2) __________, (3)
ability to meet required delivery schedules, (4) technical capability, (5)
warranties and claim policies in the event of poor performance, (6) past
performance on previous contracts, and (7) production facilities and capacity.
Answer: ability to meet the quality specifications required for the item
Answer: ability to meet the quality specifications required for the item
22. Seven of the most
commonly used organizational buying criteria are (1) price, (2) ability to meet
the quality specifications required for the item, (3) ability to meet required
delivery schedules, (4) technical capability, (5) warranties and claim policies
in the event of poor performance, (6) past performance on previous contracts,
and (7) __________.
Answer: production facilities and capacity
Answer: production facilities and capacity
23. To be a Wal-Mart
supplier, a firm must be able to deliver its products to Wal-Mart distribution
centers within a 15-minute window. If the driver arrives before or after the
scheduled window they will be turned away and fined. Wal-Mart's insistence of
choosing a supplier based upon their ability to provide on-time delivery is an
example of a(n)
Answer: organizational buying criterion.
Answer: organizational buying criterion.
24. Supplier
development refers to
Answer: the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers
Answer: the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers
25. Harley-Davidson
is admired by its suppliers for involving suppliers in future products,
referring to suppliers as stakeholders, using quality benchmarks, and
Answer: building long-term relationships.
Answer: building long-term relationships.
26. Reciprocity
refers to
Answer: an industrial buying practice in which two organizations agree to purchase each other's products and services
Answer: an industrial buying practice in which two organizations agree to purchase each other's products and services
27. Supply
partnership refers to
Answer: a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of and/or increasing the value of goods and services delivered to the ultimate customer.
Answer: a relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost of and/or increasing the value of goods and services delivered to the ultimate customer.
28. Starbucks
purchases from coffee growers located in more than 20 countries. Starbucks pays
the coffee farmers a fair price for the beans; the coffee is grown in an
ecologically sound manner; and Starbucks invests in the farming communities
where the coffees are produced. This is an example of
Answer: community involvement.
Answer: community involvement.
29. Organizational
buying behavior refers
Answer: the decision-making process organizations use to establish the need for products and services and to identify, evaluate, and choose among alternative brands and suppliers.
Answer: the decision-making process organizations use to establish the need for products and services and to identify, evaluate, and choose among alternative brands and suppliers.
30. 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 are
referred to as the
Answer: buying center.
Answer: buying center.
31. In an effort to
make better and more efficient purchase decisions, the Ford Motor Company forms
loosely organized groups of people who work together on purchase decisions. The
people included in these groups change depending on the purchase situation and
may include key personnel from various departments, including research and
development, finance, marketing, shipping, and sales. Such a loosely organized
group of people within an organization who are involved in the purchase
decision is correctly called an organizational
Answer: buying center.
Answer: buying center.
32. Sales engineers
from Siemens, a German manufacturer, have won a contract for a new space
telescope. They must now evaluate whether components and assemblies will be
purchased from outside suppliers or be built by Siemens itself. At what stage
of the buying decision process is this determined?
Answer: problem recognition.
Answer: problem recognition.
33. At which stage in
the buying decision process would design and production engineers draft
specifications?
Answer: information search
Answer: information search
34. During the third
stage of the organizational purchase decision process, the organization engages
in:
Answer: alternative evaluation.
Answer: alternative evaluation.
35. At which stage in
the buying decision process would a firm visit a potential supplier to assess
their financial status?
Answer: alternative evaluation
Answer: alternative evaluation
36. During the next-to-the-last
stage of the organizational purchase decision process, the organization
Answer: makes the purchase decision
Answer: makes the purchase decision
37. As in the
consumer decision process, evaluation occurs in the industrial decision
process, but it is more formalized and often more sophisticated. All items
purchased are examined in a formal product acceptance process. The performance
of the vendor is also monitored and recorded. This evaluation is described as
Answer: postpurchase behavior.
Answer: postpurchase behavior.
38. The people in the
organization who actually use the product or service are referred to as
__________.
Answer: users.
Answer: users.
39. Within the buying
center, influencers are people who
Answer: affect the buying decision, usually by helping define the specifications for what is bought.
Answer: affect the buying decision, usually by helping define the specifications for what is bought.
40. In a buying center,
__________ have the formal or informal power to select or approve the supplier
that receives the contract.
Answer: .deciders.
Answer: .deciders.
41. 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. He has contacted
three dealers of such trailers, which come fully customized to user
specifications, and has determined Century Industries has the best price. He
will present only the Century Industries information to the family tomorrow. In
which buying center roles is Mark acting?
Answer: influencer, gatekeeper, and decider
Answer: influencer, gatekeeper, and decider
42. June Golden is
part of the buying center for a large manufacturer. Her field of expertise is
logistics and she is responsible for choosing transportation providers for the
company. A sales representative for Yellow Roadway (a very large trucking firm)
regularly buys June's secretary lunch. The representative does this because he
views the secretary as a(n) __________ and he wants to be sure that information
about his company reaches June.
Answer: gatekeeper
Answer: gatekeeper
43. June Golden is
part of the buying center for a large manufacturer. Her field of expertise is
logistics and she is responsible for choosing transportation providers for the
company. A sales representative for Yellow Roadway (a very large trucking firm)
regularly buys June's secretary lunch. The representative does this because he
views the secretary as a(n) __________ and he wants to be sure that information
about his company reaches June.
Answer: gatekeeper
Answer: gatekeeper
44. The three types
of organizational buy classes are
Answer: straight rebuy, new buy, and modified rebuy.
Answer: straight rebuy, new buy, and modified rebuy.
45. The assistant
heard her supervisor in the supply room yell, "Call Crate & Barrel—we
need another case of their coffee mugs for the conference next week." The
supervisor was asking her assistant to make a:
Answer: straight rebuy.
Answer: straight rebuy.
46.In the __________,
users, influencers, or deciders in the buying center want to change product
specifications, price, delivery schedule, or suppliers.
Answer: modified rebuy
Answer: modified rebuy
47.The office of SFX
Entertainment, a talent promoter, needs a new fax machine that will print at
three seconds a page (instead of five seconds per page like the one it is using
now) and that has both local and network printing capabilities. Its purchase of
a replacement fax machine would be an example of a
Answer: modified rebuy
Answer: modified rebuy
48. At the weekly
meeting for Choice Hotels (the company that owns Clarion Hotel, Quality Inn,
Comfort Inn, Comfort Suites, Sleep Inn, and Mainstay Inn), the marketing
manager said, "We need an inexpensive creative way to increase awareness
of our hotels among people who travel by automobile. To do that I want to find
some new media that the other hotel chains are not using." The purchase of
this new media for the hotel chains' advertising would be an example of a
Answer: new buy.
Answer: new buy.
49. If a purchase is
a new buy for a manufacturer, the seller should expect a long time for a buying
decision to be reached, work with technical personnel and
Answer: to act as a consultant to the buyer.
Answer: to act as a consultant to the buyer.
50. A buy class
situation affects buying center tendencies in different ways. If there are many
people involved, the problem definition is uncertain, and the buying influence
comes from technical/operating personnel, the buy class situation most likely
is a
Answer: new buy
Answer: new buy
51. A straight rebuy
is a(n) __________ while a modified rebuy is a(n) __________.
Answer: reorder; changed order
Answer: reorder; changed order
52. If a purchase is
a straight or modified rebuy for a manufacturer, the seller should emphasize a
reliable supply and __________ in meetings with the purchasing agent.
Answer: competitive price
Answer: competitive price
53. In terms of the
buying center, Lands' End quality assurance personnel would assume the role of
__________.
Answer: influencers
Answer: influencers
54. Online buying in
organizational markets is prominent because Internet/Web technology
Answer: substantially reduces buyer order processing costs.
Answer: substantially reduces buyer order processing costs.
55. E-Marketplaces
refer to
Answer: online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.
Answer: online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.
56. eBay is the
predominant person-to-person trading community in the world. The eBay Business
Web site is an example of a(n)
Answer: e-marketplace.
Answer: e-marketplace.
57. E-marketplace can
take two different formats
Answer: independent trading communities and private exchanges.
Answer: independent trading communities and private exchanges.
58. Plastics Net,
Hospital Network.com, Textile Web, and eBay Business are all examples of
Answer: independent e-marketplaces.
Answer: independent e-marketplaces.
59. Large companies
tend to favor __________ that link them with their network of qualified
suppliers and customers.
Answer: private exchanges
Answer: private exchanges
60. When prospective
buyers observe the bids of others and decide whether or not to increase the bid
price, it is called a(n)
Answer: traditional auction
Answer: traditional auction
61. Dell, Inc. sells
surplus, refurbished, or closeout computer merchandise at its dellauction.com website
to many buyers who bid sequentially. This is an example of a(n)
Answer: traditional auction.
Answer: traditional auction.
62. Reverse auction
refers to fada
Answer: 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.
Answer: 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.
63. 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
Answer: reverse auction.
Answer: reverse auction.
64. Reverse auctions
Answer: are buyer-initiate
Answer: are buyer-initiate
1. Four major trends
affecting world trade in the past decade are formal economic integration and
free trade among nations, global competition among global companies for global
customers, the emergence of networked global marketspace, and
Answer: a gradual decline in economic protectionism by individual countries.
Answer: a gradual decline in economic protectionism by individual countries.
2. Four major trends
affecting world trade in the past decade are a gradual decline in economic
protectionism exercised by individual countries, formal integration and free
trade among nations, global competition among global companies for global
customers, and
Answer: emergence of networked global marketspace.
Answer: emergence of networked global marketspace.
3. The practice of
shielding one or more sectors of a country's economy from foreign competition
through the use of tariffs or quotas is referred to as
Answer: protectionism.
Answer: protectionism.
4. Those in favor of
protectionism advocate that protectionism:
Answer: safeguards a nation's economy from foreign competition.
Answer: safeguards a nation's economy from foreign competition.
5. Tariffs refer to:
Answer: government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs.
Answer: government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs.
6. President Bill
Clinton attempted to protect American firms from foreign competition by placing
a government tax on Japanese automobiles imported to the United States.
President Clinton's goal was to raise the price on Japanese imports, thereby
encouraging American consumers to purchase American-made automobiles. The tax
the President threatened to impose is an example of a(n) __________.
Answer: tariff
Answer: tariff
7. A restriction
placed on the amount of a product allowed to enter or leave a country is
referred to as a
Answer: quota
Answer: quota
8. The world's
largest manufacturer of peppermint candy canes was in Albany, Georgia, until it
could no longer afford to buy the sugar needed for its operation. It moved its
manufacturing business to Mexico where there are no restrictions (as existed in
the U.S.) on the amount of sugar that can be brought into the nation. The
movement of this U.S. business to Mexico was caused by a(n) ___________
established by the U.S. government.
Answer: quota
Answer: quota
9. World Trade
Organization (WTO) refers to
Answer: a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
Answer: a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.
10. Which of the
following statements about the World Trade Organization (WTO) is most accurate?
Answer: The WTO uses panels of trade experts who can issue binding decisions.
Answer: The WTO uses panels of trade experts who can issue binding decisions.
11. Which of the
following statements about the World Trade Organization (WTO) is most accurate?
Answer: The 153 member countries of the WTO account for more than 97 percent of world trade
Answer: The 153 member countries of the WTO account for more than 97 percent of world trade
12. Which of the
following statements about the World Trade Organization (WTO) is most accurate?
Answer: The WTO sets rules governing trade among its members.
Answer: The WTO sets rules governing trade among its members.
13. The EU has
benefited its member nations because most tariffs that affect pricing practices
have been removed, fewer regulatory restrictions on transportation,
advertising, and promotion imposed by countries; and:
Answer: firms do not need to market their products and services on a nation-by-nation basis.
Answer: firms do not need to market their products and services on a nation-by-nation basis.
14. The North
American Free Trade Agreement was designed to encourage free trade between
Answer: the United States, Canada, and Mexico.
Answer: the United States, Canada, and Mexico.
15. CAFTA-DR, a
comprehensive free trade agreement between Costa Rica, the Dominican Republic,
El Salvador, Guatemala, Honduras, Nicaragua, and _____________.
Answer: the United States
Answer: the United States
16. Global
competition refers to
Answer: when firms originate, produce, and market their products and services worldwide.
Answer: when firms originate, produce, and market their products and services worldwide.
17. In terms of the
global marketplace there are three primary types of companies: international
firms, multinational firms, and __________ firms.
Answer: transnational
Answer: transnational
18. In terms of the
global marketplace there are three primary types of companies: __________,
multinational firms, and transnational firms.
Answer: international
Answer: international
19. In terms of the
global marketplace there are three primary types of companies: international
firms, __________ firms, and transnational firms.
Answer: multinational
Answer: multinational
20. Three types of
companies populate and compete in the global marketplace: international firms,
multinational firms, and __________ firms.
Answer: transnational
Answer: transnational
21. In terms of the
global marketplace there are three primary types of companies: international
firms, multinational firms, and transnational firms. The key factor that distinguishes
one from another is
Answer: The firm's orientation toward and strategy for global markets and marketing.
Answer: The firm's orientation toward and strategy for global markets and marketing.
22. Generally
speaking, a(n) __________ firm markets their existing products and services in
other countries the same way they do in their home country.
Answer: international
Answer: international
23. A firm that views
the world as consisting of unique parts and markets to each part differently is
referred to as a(n)
Answer: multinational firm.
Answer: multinational firm.
24. Multidomestic
marketing strategy refers to:
Answer: the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
Answer: the strategy used by firms that have as many different product variations, brand names, and advertising programs as countries in which they do business
25. The strategy of
transnational firms that employ the practice of standardizing marketing
activities when there are cultural similarities and adapting them when cultures
differ are referred to as a(n)
Answer: global marketing strategy
Answer: global marketing strategy
27. Cross-cultural
analysis refers to
Answer: the study of similarities and differences among consumers in two or more nations or societies.
Answer: the study of similarities and differences among consumers in two or more nations or societies.
28. Values refer to
Answer: personally or socially preferable modes of conduct or states of existence that tend to persist over time
Answer: personally or socially preferable modes of conduct or states of existence that tend to persist over time
29. Which of the
following examples best demonstrates a company's appreciation for another
country's values?
Answer: Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
Answer: Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
A German company
allows customers to make large purchase using lay-away (paying small amounts
until the item is paid for and delivered.
Answer: Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
Answer: Calvin Klein reduced the number of outdoor advertising placements showing scantily clad models in countries with predominantly Muslim populations.
30. Customs refer to
Answer: that is considered normal and expected about the way people do things in a specific country.
Answer: that is considered normal and expected about the way people do things in a specific country.
31. KFC in Japan
sells tempura crispy strips. In northern England, it stresses gravy and
potatoes, while in Thailand it offers fresh rice. In Holland instead of
potatoes, KFC offers customers a potato and onion croquette. In France, KFC
sells pastries alongside its chicken. These examples illustrate that KFC
exhibits an understanding of and appreciation for the __________ of other
societies.
Answer: customs
Answer: customs
32. A law, amended by
the International Anti-Dumping and Fair Competition Act (1998), that makes it a
crime for U.S. corporations to bribe an official of a foreign government or
political party to obtain or retain business in a foreign country is referred
to as the
Answer: Foreign Corrupt Practices Act
Answer: Foreign Corrupt Practices Act
33. Which of the
following statements about bribery is most accurate?
Answer: It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
Answer: It is illegal for a U.S. corporation to bribe an official of a foreign government or political party to obtain or retain business in a foreign country
34. The
representations of ideas and concepts to which different cultures often attach
different meanings are referred to as:
Answer: cultural symbols.
Answer: cultural symbols.
35. Even though there
are approximately one hundred different languages and dialects in the world,
the three major languages used in global diplomacy and commerce are
Answer: English, French, and Spanish.
Answer: English, French, and Spanish.
36. The practice of
shielding one or more sectors of a country's economy from foreign competition
through the use of tariffs or quotas is referred to as
Answer: protectionism
Answer: protectionism
37. A country's
communication, transportation, financial, and distribution systems are
considered to be its:
Answer: economic infrastructure.
Answer: economic infrastructure.
38. Foreign countries
with very low per capita incomes may, nonetheless, be attractive markets for
expensive goods. To get a more accurate picture of a country's purchasing
power, a country's __________ must also be considered.
Answer: income distribution
Answer: income distribution
39. Currency exchange
rate refers to
Answer: the price of one country's currency expressed in terms of another country's currency.
Answer: the price of one country's currency expressed in terms of another country's currency.
40. Trade among
nations or regions depends on political stability. In recent times, billions of
dollars have been lost in the __________ and __________ as a result of internal
political strife, terrorism, and war.
Answer: Middle East, Africa
Answer: Middle East, Africa
41. Once a company
has decided to enter the global marketplace, it must select a means of market
entry. Four general options exist: (1) exporting, (2) __________, (3) joint
venture, and (4) direct investment.
Answer: licensing
Answer: licensing
42. Once a company
has decided to enter the global marketplace, it must select a means of market
entry. Four general options exist: (1) _________, (2) licensing, (3) joint
venture and (4) direct investment.
Answer: exporting
Answer: exporting
43. Once a company
has decided to enter the global marketplace, it must select a means of market
entry. Four general options exist: (1) exporting, (2) licensing, (3) _________,
and (4) direct investment.
Answer: joint venture
Answer: joint venture
44. Once a company
has decided to enter the global marketplace, it must select a means of market
entry. Four general options exist: (1) exporting, (2) licensing, (3) joint
venture, and (4) ________.
Answer: direct investment
Answer: direct investment
45. A firm's profit
potential and control over marketing activities increases as it moves from
exporting to direct investment as a globe market-entry strategy. But so does
the firm's:
Answer: financial commitment and risk.
Answer: financial commitment and risk.
47. Indirect exporting refers
to
Answer: when a firm sells its domestically-produced goods in a foreign country through an intermediary.
Answer: when a firm sells its domestically-produced goods in a foreign country through an intermediary.
48. A small Canadian
winery located in British Columbia has developed a superior tasting wine. They
have no overseas contacts but want to get their wine on the shelves in selected
Asian and European markets where growth has been substantial in the last two
years. What type of exporting option would best suit this company?
Answer: indirect exporting
Answer: indirect exporting
49. Direct exporting
refers to
Answer: when a firm sells its domestically-produced goods in a foreign country without intermediaries
Answer: when a firm sells its domestically-produced goods in a foreign country without intermediaries
50. The prominent
global market-entry strategy among small-and medium-sized companies is
Answer: exporting
Answer: exporting
51. Offering the
right to a trademark, patent, trade secret, or similarly valued items of
intellectual property in return for a royalty or fee is referred to as
Answer: licensing.
Answer: licensing.
52. Tricon was the
restaurant division of PepsiCo until it was spun off in 1997. Since then Tricon
has opened 6,000 KFC restaurants abroad. It has 158 in Indonesia and more than
500 restaurants in China. All are locally owned, and the owner pays a fee to
Tricon. Tricon is engaged in
Answer: licensing
Answer: licensing
53.A global
market-entry strategy in which a foreign company and a local firm invest
together to create a local business in order to share ownership, control, and
profits of the new company foreign company and a local firm invest together to
create a local business, it is referred to as
Answer: joint venture
Answer: joint venture
54. The __________
arrangement between Ericsson, a Swedish telecommunications firm, and CGCT, a
French switch maker, enabled them together to beat out AT&T for a $100
million French contract.
Answer: joint venture
Answer: joint venture
55. A global
market-entry strategy that entails a domestic firm actually investing in and
owning a foreign subsidiary or division, is referred to as
Answer: direct investment
Answer: direct investment
56. The product
strategy of selling virtually the same product in other countries is referred
to as
Answer: product extension
Answer: product extension
57. The company that
makes Breathe-Right nasal strips sells the same product in other countries.
This is an example of which type of international product strategy?
Answer: product extension
Answer: product extension
58. Changing a
product in some way to make it more appropriate for a country's climate or
preferences is an example of which type of product strategy?
Answer: product adaptation
Answer: product adaptation
59. Frito-Lay
produces and markets potato chips in Russia that have seafood-flavor. This is
an example of
Answer: product adaptation
Answer: product adaptation
60. Designing a
product to serve the unmet needs of a foreign nation is which type of product
strategy?
Answer: product invention
Answer: product invention
61. When a firm sells
a product in a foreign country below its domestic price or below its actual
cost it is referred to as
Answer: dumping
Answer: dumping
62. Gray market
refers to
Answer: a situation where products are sold through unauthorized channels of distribution.
Answer: a situation where products are sold through unauthorized channels of distribution.
63. A situation where
products are bought in a lower-priced country from a manufacturer's authorized
reseller, shipped to higher-priced countries, and sold through unauthorized
retailers below the manufacturer's suggested retail price, is referred to as
__________.
Answer: a gray market
Answer: a gray market
64. When Breath Right
decided to enter the global market there were many contributing factors such as
countries having a large over-the-counter (OTC) market, high per-capita sending
in the OTC market, and future prospects for growth. However, according to Kevin
McKenna, vice president for international at CNS, the real key to success is
Answer: having a local partner that is entrepreneurial with an ability to distribute and sell
Answer: having a local partner that is entrepreneurial with an ability to distribute and sell
65. Many changes
influenced the opportunities for global sales of Breathe Right strips. These
include increased availability of OTC products formerly available only by
prescription, a global push toward self-care, spurred by increasing cost of
medical care, extension of OTC products beyond the pharmacy and into grocery
and other channels, and even
Answer: an expansion of the pharmacist role from that of medical professional to selling and marketing OTC products.
Answer: an expansion of the pharmacist role from that of medical professional to selling and marketing OTC products.
66. To ensure the
Breathe Right brand continues to meet growth expectations, CNS uses a
three-stage approach to penetrate and develop new markets : (1) explore/test
the concept, (2) establish the product, and (3)
Answer: manage the product
Answer: manage the product
1. Filmmakers want
movie titles that use basically the same factors that make a good brand name;
they must be __________, grab attention, have no legal restriction, and capture
the essence of the film.
Answer: concise
Answer: concise
3. Concept tests of
plots using surveys, testing of marketing campaigns, sneak previews, and
tracking studies are all examples of market research techniques. Collectively,
they are used in the movie industry to
Answer: reduce uncertainty and to improve marketing decisions.
Answer: reduce uncertainty and to improve marketing decisions.
4. The process of
defining a marketing problem and opportunity, systematically collecting and
analyzing information,
Answer: and recommending actions is referred to as __________. marketing research
Answer: and recommending actions is referred to as __________. marketing research
5. Members of the
Book Promoters Association of Canada recently questioned what could be done to
rejuvenate the Canadian book publishing industry. Some members claimed the
problem was Canadian retailers had been replaced by Wal-Marts. Others said the
problem was with stodgy promotions. Still others said the problem was caused by
too little money being budgeted to fund marketing programs. The best way to
identify the true problem would be to use __________.
Answer: marketing research
Answer: marketing research
6. Decision making is
the act of
Answer: consciously choosing from alternatives.
Answer: consciously choosing from alternatives.
7. Setting research
objectives and identifying possible marketing actions would take place during
which stage in the five-step marketing research approach?
Answer: define the problem
Answer: define the problem
8. Research
objectives are __________.
Answer: specific measureable goals
Answer: specific measureable goals
9. Effective decision
makers rely on criteria or standards used in evaluating proposed solutions to a
problem, which is known as
Answer: measures of success
Answer: measures of success
10. When Home Depot
entered the Quebec market, two percent of the population was aware of the
retail chain. To determine how effective its advertising was in the first 18
months of its presence in the Canadian province, it conducted awareness
research for a second time. Prior to conducting the research, it was decided
that if at least 50 percent of the population were aware of the Home Depot
brand that it would continue its present advertising program. This is an
example of a(n)
Answer: Measure of success
Answer: Measure of success
11. The second step
of the marketing research approach is __________.
Answer: develop the research plan
Answer: develop the research plan
12. The third step of
the marketing research approach is __________.
Answer: collect relevant information
Answer: collect relevant information
13. The fourth step
of the marketing research approach is __________.
Answer: develop findings
Answer: develop findings
14. The fifth step of
the marketing research approach is __________.
Answer: take marketing actions
Answer: take marketing actions
15. Constraints refer
to
Answer: in a decision, the restrictions placed on potential solutions to a problem.
Answer: in a decision, the restrictions placed on potential solutions to a problem.
16. What are two
common constraints in marketing problem solving?
Answer: limitations on the time and money available
Answer: limitations on the time and money available
17. After defining
the problem and developing the research plan, the next step in the marketing
research process is to
Answer: collect relevant information
Answer: collect relevant information
18. Penningtons
Superstore, which specializes in plus-size fashions for women, wanted to see if
it should add a line of plus-size junior wear. The following statement reflects
which step in the marketing research process? "To see which is more
effective, offering products for this market in our current stores or opening
separate stores targeted directly to the teenage market, let's distribute
questionnaires to current shoppers and solicit their opinions, set up some
focus groups with plus-size teens, and locate any relevant secondary
research."
Answer: Collect relevant information.
Answer: Collect relevant information.
19. Data refers to
Answer: the facts and figures related to the problem that is divided into two main parts: secondary data and primary data.
Answer: the facts and figures related to the problem that is divided into two main parts: secondary data and primary data.
20. Secondary data
are the
Answer: facts and figures that have already been recorded before the project at hand.
Answer: facts and figures that have already been recorded before the project at hand.
21. Secondary data
can be divided into two parts- ________ and ________.
Answer: internal data; external secondary data
Answer: internal data; external secondary data
22. Primary data
refer to
Answer: facts and figures that are newly collected for a project at hand.
Answer: facts and figures that are newly collected for a project at hand.
23. A survey by
Economic Research Service of the U.S. Department of Agriculture, government
statistics from the Department of Commerce, stock market information from the
Wall Street Journal would all be examples of
Answer: external secondary data
Answer: external secondary data
24. The 2007
__________ contains data on the number and sales of establishments in the
United States that produce a good or service based on its geography, industry
sector, and North American Industry Classification code.
Answer: Economic Census
Answer: Economic Census
26. A general rule of
thumb among marketing researchers is to obtain __________ first and then
collect __________.
Answer: secondary data; primary data
Answer: secondary data; primary data
27. Two Important
advantages of secondary data are
Answer: they are usually inexpensive and save time
Answer: they are usually inexpensive and save time
28. STAT-USA provides
Answer: information on U.S. business, economic and trade activity collected by the federal government
Answer: information on U.S. business, economic and trade activity collected by the federal government
30. Google
Answer: is the most popular portal to the entire Internet accessed by entering key words or topics for specific searches
Answer: is the most popular portal to the entire Internet accessed by entering key words or topics for specific searches
31.Facts and figures
obtained by watching, either mechanically or in person, how people actually
behave are referred to as __________ data.
Answer: observational
Answer: observational
32. Shelly, the
manager of a large grocery store, was concerned. She had received complaints
from several customers who said they had been treated rudely by clerks at the
store. In order to determine whether or not her clerks were indeed rude, Shelly
hired a team of marketing researchers. The researchers posed as customers
shopping in the store, but were actually taking notes and recording the actions
of the store clerks. Later, Shelly reviewed those notes. The research notes
Shelly reviewed were a form of __________ data.
Answer: observational
Answer: observational
33. Nielson Media
Research collects national TV ratings by using a "people meter." This
box is attached to TV sets, VCRs, cable boxes, and satellite dishes in over
9,000 homes across the country. It has a remote that operates the meter when a
viewer begins and finishes watching a TV program and transmit the viewing
information to Nielson Media Research. Nielson Media Research is collecting
____________.
Answer: observational data
Answer: observational data
34. People posing as
customers, who are paid to check on the quality and pricing of a company's
products and services and write a detailed report on the experience, are
referred to as __________.
Answer: mystery shoppers
Answer: mystery shoppers
35. Which of the
following statements concerning ethnographic research is most accurate?
Answer: Ethnographic research uses anthropologists and other trained researchers to observe consumers in their natural use environment
Answer: Ethnographic research uses anthropologists and other trained researchers to observe consumers in their natural use environment
36. A new field of
marketing that studies the brain and its response to marketing stimuli is
referred to as
Answer: Neuromarketing
Answer: Neuromarketing
37.Questionnaire data
refers to
Answer: the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Answer: the facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
38. Research and
media firm Youth Culture published Watch magazine, a teen publication given out
free to high school students, but the publication was unable to deliver
response rates to coupons or sample offers that its advertisers expected. Youth
Culture handed out surveys to learn how students felt about the publication.
Feedback indicated teen boys and girls were demanding very different things
from the publication. This feedback was gleaned from __________ data.
Answer: Questionnaire
Answer: Questionnaire
40. When Marine
Midland Bank sent market researchers door-to-door in the neighborhoods of their
branch banks to talk to people with saving accounts and discuss with them why
they did not also have checking accounts and credit cards Marine Midland
researchers were using ___________ to collect data.
Answer: individual interviews
Answer: individual interviews
41. 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
Answer: depth interview.
Answer: depth interview.
42. A marketing
research approach that uses a discussion leader to interview 6 to 10 past,
present, or prospective customers is referred to as
Answer: a focus group.
Answer: a focus group.
43. The practice of
identifying "emerging shifts in social behavior," which are driven by
changes in pop culture that can lead to new products is called __________
hunting
Answer: trend
Answer: trend
44. Surveys that
enable the interviewer to be flexible in asking probing questions or getting
reactions to visual materials would be best conducted using
Answer: personal interviews.
Answer: personal interviews.
45. Marketers are
increasingly using online surveys to collect primary data. The reason:
Answer: most consumers have an Internet connection and an e-mail account.
Answer: most consumers have an Internet connection and an e-mail account.
46. Marketers are
increasingly using online surveys to collect primary data. Marketers can ask
consumers to complete a "__________" survey. These small Web pages
containing an advertisement that appears on your screen outside the current Web
site loaded into your browser.
Answer: pop-over
Answer: pop-over
47. The advantage of
____________ are that the cost is relatively minimal and the turnaround time
for data collection to report presentation is much quicker than the traditional
methods of data collection.
Answer: on-line surveys
Answer: on-line surveys
48. 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.
Answer: open-ended
Answer: open-ended
49. "Why do you
smoke?" is an example of which type of question?
Answer: open-ended
Answer: open-ended
50. A(n) __________
question requires respondents to select one or more response options from a set
of predetermined choices.
Answer: closed-end
Answer: closed-end
53. A __________
provides an online meeting place where people with similar interests can
communicate and find useful information.
Answer: social network
Answer: social network
54. Data obtained by
manipulating factors under tightly controlled conditions to test cause and
effect is an example of
Answer: an experiment.
Answer: an experiment.
55. Simply put, in
marketing experiments, the independent variable is the __________ and the
dependent variable is/are the __________.
Answer: cause of an action; effect of an action
Answer: cause of an action; effect of an action
56. When Procter
& Gamble Co. acquired the Old Spice brand it decided to reposition the
brand by using different advertising to see whether sales would then increase.
The possible sales increase is the __________ in this experiment.
Answer: dependent variable
Answer: dependent variable
57. Drivers are used
with which of the four P's?
Answer: product, price, promotion, and place inclusively
Answer: product, price, promotion, and place inclusively
58. In marketing
experiments, the independent variables of interest - sometimes called the
marketing __________-are often one or more of the marketing mix elements, such
as product features, price, or promotion
Answer: drivers
Answer: drivers
59. Offering a
product for sale in a small geographic area to help evaluate potential market
actions is called __________.
Answer: Test markets
Answer: Test markets
60. What type of
market would a food company use to offer a product for sale in a small geographic
area to help them evaluate potential marketing actions?
Answer: test market
Answer: test market
61. Involving
operating computer networks that can store and process data is referred to as
Answer: information technology.
Answer: information technology.
62. A collection of
databases that store, organize, and manage data sources is called a _________
Answer: data warehouse
Answer: data warehouse
63. When a marketing
manager begins asking "what if" questions to determine how changes in
a factor like price or advertising affect marketing results like sales or
profits, she is performing a(n) ___________ analysis.
Answer: sensitivity
Answer: sensitivity
64. The extraction of
hidden predictive information from large databases to find statistical links
between consumer purchasing patterns and marketing actions is referred to as
Answer: data mining.
Answer: data mining.
65. Data Mining
refers to
Answer: The extraction of hidden predictive information from large databases.
Answer: The extraction of hidden predictive information from large databases.
66. Analyzing data
and presenting findings would take place during which stage of the five-step
marketing research approach?
Answer: develop findings
Answer: develop findings
67. Once a market
researcher has defined the problem, developed the research plan, and collected
the relevant information, what is the next thing he or she needs to do?
Answer: analyze data and present findings
Answer: analyze data and present findings
68. Making action
recommendations, implementing action recommendations, and evaluating results
would take place during which stage of the five-step marketing research
approach?
Answer: Take marketing actions
Answer: Take marketing actions
69. The final stage
in the five-step marketing research approach includes making action
recommendations, implementing action recommendations, and
Answer: monitor how the decisions work turn out
Answer: monitor how the decisions work turn out
70. Evaluating the
results of a marketing decision involves
Answer: monitoring the marketplace to determine if action is necessary in the future.
Answer: monitoring the marketplace to determine if action is necessary in the future.
71. Marketing teams
must be vigilant for ways to improve the analysis and results - to learn
lessons that might apply to future marketing research efforts. Evaluating the
effectiveness of a marketing decision involves
Answer: determining if the marketing research and analysis used to develop the recommendations was effective.
Answer: determining if the marketing research and analysis used to develop the recommendations was effective.
72. 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
Answer: sales forecasting.
Answer: sales forecasting.
73. Sales forecast
refers to
Answer: 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.
Answer: 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.
74. A(n) __________
forecast involves starting with the last known value of the item being
forecast, listing the factors that could affect the forecast, assessing whether
they have a positive or negative impact, and making the final forecast.
Answer: lost-horse
Answer: lost-horse
1. The place a
product occupies in consumers' minds on important attributes relative to
competitive products is referred to as
Answer: product positioning.
Answer: product positioning.
2. The purpose of
market segmentation is to respond more effectively to the wants of groups of
potential buyers in order to
Answer: increase sales and profits.
Answer: increase sales and profits.
3. A basic test of
the usefulness of the market segmentation process is whether it leads to
tangible marketing actions that can
Answer: increase sales and profitability.
Answer: increase sales and profitability.
4. Market
segmentation refers to
Answer: aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
Answer: aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
5. To be identified
as a market segment, its members must
Answer: have common needs and respond similarly to market actions.
Answer: have common needs and respond similarly to market actions.
7. The phrase
"relatively homogeneous collections of prospective buyers" is most
descriptive of
Answer: market segments.
Answer: market segments.
8. A marketing
strategy that involves a firm using different marketing mix activities to help
consumers perceive the product as being different and better than competing
products is referred to as __________.
Answer: product differentiation
Answer: product differentiation
9. When Procter &
Gamble introduced Crest toothpaste, the first fluoride toothpaste, it was
intended for use by children and was therefore given a child-appealing
bubblegum flavor. Sometime later the same basic formula was given a fresh,
minty flavor to appeal to adults. What is this marketing strategy called?
Answer: product differentiation
Answer: product differentiation
10. Alka-Seltzer was
made originally as a hangover remedy that cured the headache and settled the
stomach. Today you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer,
Alka-Seltzer Morning Relief (for morning headaches and fatigue), and
Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product is targeted to a
slightly different market segment. The maker of Alka-Seltzer is using
Answer: product differentiation.
Answer: product differentiation.
11. The process of
segmenting a market and selecting specific segments as targets is the link
between __________ and the organization's marketing program.
Answer: market needs
Answer: market needs
12. The process of
segmenting a market and selecting specific segments as targets is the link
between the various buyers' needs and
Answer: the organization's marketing program.
Answer: the organization's marketing program.
13. Small athletic
shoe manufacturers such as Vans have targeted niche markets and made shoes
designed to satisfy the needs of different specific groups of customers. This
strategy is an example of
Answer: market segmentation
Answer: market segmentation
14. Which of the
following statements regarding market segmentation is most accurate?
Answer: If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.
Answer: If a business firm goes to the trouble and expense of segmenting its markets, it expects to reveal a way to increase sales, profits, and return investment.
15. Time magazine
publishes 200 different U.S. editions each targeted at unique geographic and
demographic segments using a special mix of advertisements. Time is using which
of the following segmentation strategies?
Answer: one product with multiple market segments
Answer: one product with multiple market segments
16. When compared to
a multiple-products-multiple-market segments strategy, a
one-product-and-multiple-market-segments strategy
Answer: creates greater cost savings in manufacturing costs.
Answer: creates greater cost savings in manufacturing costs.
17. Which of the
following is an example of a multiple products and multiple markets strategy?
Answer: Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of products.
Answer: Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of products.
18. Kellogg's
different types of cereals, each targeted at a different type of user, are an
example of multiple products aimed at multiple markets. Manufacturing these
different cereals is clearly more expensive than producing one but seems
worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't
reduce quality or increase price, and
Answer: better serves the customers' needs.
Answer: better serves the customers' needs.
20. Which of the
following is an example of a "Tiffany/Wal-Mart" strategy?
Answer: Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
Answer: Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22.
21.You can go to your
nearest Hallmark card store and buy a birthday greeting card for a friend and
pay $4.50, or you can buy a card that's not quite as nice but just as
sentimental from the store's new $.99 line of greeting cards. This is an
example of
Answer: a "Tiffany/Wal-mart" strategy
Answer: a "Tiffany/Wal-mart" strategy
22. Tailoring goods
or services to the tastes of individual customers on a high-volume scale is
referred to as
Answer: mass customization.
Answer: mass customization.
23. Custom Foot runs
six retail locations. At first glance none looks any different from your basic
old-fashioned shoe store, but the only boots on hand are display models.
There's no inventory for sale, and customers go home empty-handed—at least
initially. Customers browse the store, mixing and matching design components
such as style, color, and leather type. About 100 display boots provide style
guidelines. Once you choose a boot style, you select materials, colors, and
textures. Custom Foot guarantees your boots will be ready within three weeks.
This is an example of
Answer: mass customization.
Answer: mass customization.
24. To create a
__________ strategy, nikeid.com allows customers to visit its Web
site and design a sneaker to their own personal specifications.
Answer: mass customization
Answer: mass customization
25. Manufacturing a
product only when there is an order from a customer is referred to as
Answer: build-to-order (BTO).
Answer: build-to-order (BTO).
26. The increased
customer value achieved through performing organizational functions like
marketing or manufacturing more efficiently is referred to as __________.
Answer: organizational synergy
Answer: organizational synergy
27. When new products
or a new chain steals customers and sales from older existing ones it is
referred to as
Answer: cannibalization
Answer: cannibalization
28. The purpose of
the five key steps in segmenting and targeting markets is to
Answer: link market needs of customers to the organization's marketing program.
Answer: link market needs of customers to the organization's marketing program.
29. The second step
in segmenting and targeting markets is to
Answer: group products to be sold into categories.
Answer: group products to be sold into categories.
30. The third step in
segmenting and targeting markets is to
Answer: develop a market-product grid and estimate size of the overall market
Answer: develop a market-product grid and estimate size of the overall market
32. Criteria for
forming segments involve both similarities and differences. Which of the
following statements is most accurate?
Answer: Within a segment the needs of potential buyers should be similar; among segments, the needs of buyers should be different
Answer: Within a segment the needs of potential buyers should be similar; among segments, the needs of buyers should be different
33. Neilsen Claritas'
PRIZM is used to classify every household into one of 66 demographical and
__________ distinct neighborhood segments to identify lifestyles and purchase
behavior within a defined geographic market area, such as zip code.
Answer: behaviorally
Answer: behaviorally
34.Four general
categories used to segment consumer markets are geographic segmentation,
demographic segmentation, __________, and behavioral segmentation.
Answer: psychographic segmentation
Answer: psychographic segmentation
35.Which of the
following statements demonstrates the formation of a segment based on region?
Answer: In China KFC sells a much spicier chicken the farther away its restaurants are from the coastal areas.
Answer: In China KFC sells a much spicier chicken the farther away its restaurants are from the coastal areas.
36. Universal
Concerts is planning on bringing a series of concerts to Canada next year. In
general, Western Canadians much prefer country music, yet in Eastern Canada a
country music event is very likely to have lots of empty seats. If they can
have only one venue, Universal Concerts should segment its Canadian market
according to __________, if it hopes to have a sold-out concert.
Answer: geographic characteristics
Answer: geographic characteristics
37. Which of the
following is a consumer demographic variable?
Answer: gender
Answer: gender
38. Procter &
Gamble Co. (P & G) decided to skip a generation of consumers when it began
to market Old Spice deodorant. The target market is men aged 18 to 34, who
don't remember the Old Spice brand sold to their grandfathers many years ago. P
& G is using which type of segmentation variable?
Answer: demographic
Answer: demographic
39. Which of the
following statements demonstrates the formation of a segment based on household
size?
Answer: GE built a downsized microwave oven to hang under kitchen cabinets.
Answer: GE built a downsized microwave oven to hang under kitchen cabinets.
40. Which of the
following statements regarding segmentation bases is most accurate?
Answer: The identification of demographic variables is more objective than the identification of psychographic variables which is more subjective.
Answer: The identification of demographic variables is more objective than the identification of psychographic variables which is more subjective.
42. Magazines like
Fitness, Field & Stream, Golf Digest, and Health all use a __________
segmentation strategy.
Answer: psychographic
Answer: psychographic
48. People who might
become users of the type of good or service your firm sells are referred to as
Answer: prospects.
Answer: prospects.
49. A framework to
relate the market segments of potential buyers to products offered or potential
marketing actions by an organization is referred to as __________.
Answer: market-product grid
Answer: market-product grid
50. Market-product
grid refers to
Answer: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
Answer: a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
51. A market-product
grid is a framework to relate the market segments of potential buyers to
Answer: products offered or potential marketing actions by an organization.
Answer: products offered or potential marketing actions by an organization.
53.After establishing
the markets and product groupings on a market-product grid the next step is to
Answer: make intelligent "guesstimates" of market size, for example, using a simple scale from zero to three (no market, a small market, a medium market, and large market).
Answer: make intelligent "guesstimates" of market size, for example, using a simple scale from zero to three (no market, a small market, a medium market, and large market).
54. One advantage of
a market-product grid is that it can be used to
Answer: determine which target market segments to select and which product groupings to offer.
Answer: determine which target market segments to select and which product groupings to offer.
55. Which of the
following statements regarding market segmentation is most accurate?
Answer: The bases for segmenting markets and the bases of selecting the segments are considerably different from one another.
Answer: The bases for segmenting markets and the bases of selecting the segments are considerably different from one another.
56. Which of the
following is a criterion for selecting a target market?
Answer: expected growth of segment
Answer: expected growth of segment
57. Which of the
following is a criterion used for selecting a target segment?
Answer: competitive position
Answer: competitive position
59.Which of the
following is a criterion used for selecting a target segment?
Answer: compatibility with the organization's objectives and resources
Answer: compatibility with the organization's objectives and resources
60. Five general
criteria are often used to pick target segments. They include the size of the
market, expected growth of the market, competitive position of the firm with
respect to the market, and cost of reaching the segment. What is the fifth
criterion?
Answer: Compatibility with the organization's objectives and resources
Answer: Compatibility with the organization's objectives and resources
61.In developing a
marketing strategy for the recently released Nike Air Jordan XVII with a price
tag of $200, Nike decided to concentrate on affluent teens rather than members
of high school basketball teams. This is an example of
Answer: selecting target market segments to reach.
Answer: selecting target market segments to reach.
62. Doris Lewis owns
Lewis Edibles, Inc., a company that makes Tongue Tinglin' B.B.Q. 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
Answer: taken marketing actions to reach target markets.
Answer: taken marketing actions to reach target markets.
64. If a firm cannot
afford to do both, it will often favor _________ over __________ because a
single customer segment will likely require a variety of products, each of
which will have to be designed and manufactured.
Answer: market synergies; product synergies
Answer: market synergies; product synergies
65. The place a
product occupies in consumers' minds on important attributes relative to
competitive products is referred to as
Answer: product positioning.
Answer: product positioning.
66. Product
positioning refers to
Answer: the place a product offering occupies in consumers' minds on important attributes.
Answer: the place a product offering occupies in consumers' minds on important attributes.
67. Product repositioning
refers to
Answer: changing the place an offering occupies in consumers' minds relative to competitive products.
Answer: changing the place an offering occupies in consumers' minds relative to competitive products.
68. Motts Applesauce
used an advertising campaign to change the way consumers thought about
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 also makes the resulting baked good healthier. Motts was using a
__________ strategy.
Answer: repositioning
Answer: repositioning
69. Positioning that
involves competing directly with competitors on similar product attributes in
the same target market is referred to as __________.
Answer: head-to-head positioning
Answer: head-to-head positioning
70. In the sneaker
market, Reebok and Nike practice __________ positioning since both
manufacturers compete in the same target market with similar product
attributes.
Answer: head-to-head
Answer: head-to-head
71. Positioning that
involves seeking a less competitive, smaller market niche in which to locate a
brand is referred to as __________.
Answer: differentiation positioning
Answer: differentiation positioning
72. Some Timex
wristwatches can be purchased for less than $30; some Rolex wristwatches carry
a price tag of several thousand dollars. In general, consumers view Timex
watches as being dependable, relatively accurate, and inexpensive. The Rolex
brand tends to be perceived as an expensive status symbol. Timex watches can be
purchased in drug stores, discount stores, and department stores in all sizes
of communities. Rolex watches are distributed more selectively, and are often
available only in fine jewelry stores or specialty shops. By using distinctly
different pricing and distribution strategies, the marketers of Timex and Rolex
watches have attempted to
Answer: use a product differentiation strategy.
Answer: use a product differentiation strategy.
73. To avoid
cannibalization within company product lines, firms often use
Answer: differentiation positioning.
Answer: differentiation positioning.
74. A perceptual map
can be used to identify a firm's product in terms of how closely it fits the
"ideal" and where it fits in relationship to competitors. The map is
based on perceptions of
Answer: consumers
Answer: consumers
75. A key to
positioning a product or brand effectively is discovering the perceptions of
its potential customers. In determining its positioning in the minds of
customers, companies take four steps: (1) __________, (2) discover how target
customers rate competing products or brands with respect to these attributes,
(3) discover where the company's product or brand is on these attributes in the
minds of potential customers, and (4) act to reposition the company's product
or brand in the minds of potential customers
Answer: identify the important attributes for the product or brand class
Answer: identify the important attributes for the product or brand class
76. 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 __________.
Answer: perceptual map
Answer: perceptual map
77. A graph
displaying consumers' perceptions of product attributes in two dimensions is referred
to as a?
Answer: Perceptual map
Answer: Perceptual map
78. Marketers use perceptual
maps as a means to display or graph in two dimensions the location of products
or brands
Answer: in the minds of consumers.
Answer: in the minds of consumers.
79. The axes on a
perceptual map are
Answer: two product attributes each listed in terms of their opposites.
Answer: two product attributes each listed in terms of their opposites.
Neilsen Claritas'
PRIZM is used to classify every household into one of 66 demographical and
__________ distinct neighborhood segments to identify lifestyles and purchase
behavior within a defined geographic market area, such as zip code.
Answer: Behaviorally
Answer: Behaviorally
1. The Apple II,
Macintosh, MacBook Air, iPhone 3GS, iPod, and the iPad are all examples of a
company's commitment to __________.
Answer: continuous innovation
Answer: continuous innovation
2. Product refers to
Answer: good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
Answer: good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
3. A good, service,
or idea consisting of a bundle of tangible and intangible attributes that
satisfies consumers' needs and is received in exchange for money or something
else of value is referred to as __________.
Answer: a product
Answer: a product
4. Consumer product
classifications are based upon three variables: 1) effort the consumer spends
on the decision, 2) frequency of purchase, and 3)
Answer: attributes used in making the purchase decision
Answer: attributes used in making the purchase decision
5. A product is a
good, service, or idea consisting of a bundle of tangible and intangible
attributes that satisfies consumers' needs and is
Answer: received in exchange for money or something else of value.
Answer: received in exchange for money or something else of value.
7. Goods can be
divided into __________ goods and __________ goods.
Answer: durable; nondurable
Answer: durable; nondurable
8. A nondurable good
is defined as a(n)
Answer: item consumed in one or a few uses.
Answer: item consumed in one or a few uses.
9. Which of the
following is the best example of a nondurable good?
Answer: gasoline
Answer: gasoline
10. which of he
following is the example of a nondurable good?
Answer: LAUNDRY DETERGENT
Answer: LAUNDRY DETERGENT
11. Products that
usually last over many uses, such as cars and appliances are referred to as
Answer: DURABLE GOODS
Answer: DURABLE GOODS
12. Which of the
following is considered a durable good?
Answer: silverware
Answer: silverware
13. The division of
products into durable and nondurable goods is to __________.
Answer: provide direction for marketing actions
Answer: provide direction for marketing actions
14. Advertising is
important for products such as Butterfinger candy bars and Dasani bottled water
that is purchased frequently and at relatively low cost. Wide distribution in
retail outlets is essential. Why?
Answer: They are nondurable goods and easily substitutable so consumers need to be reminded of their existence.
Answer: They are nondurable goods and easily substitutable so consumers need to be reminded of their existence.
17. Which of the
following would most likely be considered a consumer product?
Answer: suitcase
Answer: suitcase
18. Business products
are also referred to as __________ products
Answer: industrial
Answer: industrial
19. Business products
are also referred to as __________.
Answer: B2B products
Answer: B2B products
20. Business products
refer to
Answer: products that organizations buy that assist in providing other products for resale.
Answer: products that organizations buy that assist in providing other products for resale.
21. Marissa, a
college student and her father, a wealthy businessman, were each considering
the purchase of a new automobile. As a college student with limited financial
resources, Marissa went from car dealer to car dealer in several different
cities searching for the lowest price on a new economy car. She devoted a great
deal of time and energy to getting the best value for her money. Marissa's
father, however, knew that he would buy another new car next year. Because it
was convenient, he simply went to the local auto dealer and, with little
thought or effort regarding the buying decision, bought the first luxury car
that he saw. For Marissa, an automobile was a __________ good; for her father,
a car was a __________.
Answer: shopping product; a convenience product
Answer: shopping product; a convenience product
23. With respect to
distribution, convenience products are available
Answer: on a widespread basis at many outlets.
Answer: on a widespread basis at many outlets.
24. Shopping products
refer to
Answer: items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
Answer: items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
25. You decide to buy
a new car. You talk to friends about it, research mechanical specifications in
Consumer Reports, test drive different makes and models, and compare prices at
several dealerships. Into which classification of consumer products would your
new car purchase fall?
Answer: Shopping product
Answer: Shopping product
27. Which type of
consumer product is purchased infrequently and takes an extensive amount of
time to make the purchase decision and obtain the item?
Answer: specialty products
Answer: specialty products
29. Distribution is
very limited with which of the following types of consumer products?
Answer: specialty products
Answer: specialty products
30. Unsought products
are
Answer: products which the consumer does not know about, or knows about but does not initially want.
Answer: products which the consumer does not know about, or knows about but does not initially want.
31. Which of the
following is most likely to be an example of an unsought product?
Answer: cancer insurance
Answer: cancer insurance
32. With respect to
promotion, which of the following strategies would most likely be used for
unsought products?
Answer: generating awareness
Answer: generating awareness
33. The elements that
distinguish services from goods are the four I's, which are
Answer: intangibility, inconsistency, inseparability, and inventory.
Answer: intangibility, inconsistency, inseparability, and inventory.
34. Intangibility of
services means
Answer: the services can't be seen or touched before the purchase decision
Answer: the services can't be seen or touched before the purchase decision
36. Before moving out
of their apartment, Brad and Kim Westgate decided to have their carpets cleaned
by Service Master, a company specializing in professional carpet cleaning. The
carpet cleaners arrived at Brad and Kim's apartment, unpacked their equipment,
cleaned the carpets, packed up their tools, and drove away in their bright
yellow van. The service provided by Service Master, could not be held, touched,
or seen before the purchase decision. This scenario illustrates the __________
of services.
Answer: Intangibility
Answer: Intangibility
38. Developing,
pricing, promoting, and delivering services are challenging. Organizations
attempts to reduce inconsistency through
Answer: providing standardization and training
Answer: providing standardization and training
39. Andrea Arena 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 themselves. One way she tries to ensure ___________
of services for her regular customers is to make sure that the same
well-trained person is always assigned to work for them.
Answer: Consistency
Answer: Consistency
41. Idle production
capacity is
Answer: a situation where a service provider is available but there is no demand.
Answer: a situation where a service provider is available but there is no demand.
42. The inventory
costs of services include:
Answer: salary of service provider and equipment costs.
Answer: salary of service provider and equipment costs.
43. A range of
offerings from the tangible to the intangible or goods-dominant to the
services-dominant is called the
Answer: goods-services continuum.
Answer: goods-services continuum.
45. The Vermont Teddy
Bear Company sells handmade Teddy bears designed to be given as gifts for
almost every occasion imaginable. The Love Bandit Bear is one bear designed for
people to give to each other on Valentine's Day. The Love Bandit Bear is an
example of a
Answer: product item.
Answer: product item.
46. A group of
products that are closely related because they satisfy a class of needs, are
used together, are sold to the same customer group, are distributed through the
same types of outlets, or fall within a given price range is referred to as a
__________.
Answer: product line
Answer: product line
47. A product line is
a group of products that are closely related because they satisfy a class of
needs, are used together, __________, are distributed through the same type of
outlets, or fall within a given price range.
Answer: are sold to the same customer group
Answer: are sold to the same customer group
48. Which of the
following statements about product lines is most accurate?
Answer: A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
Answer: A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.
If I correctly
understand the definitions of "broad" and "narrow" the
correct answer does not seem to agree with the explanation:
Answer: An important benefit of having a broad product line is that it enables both consumers and retailers to simplify their buying decisions.
Answer: An important benefit of having a broad product line is that it enables both consumers and retailers to simplify their buying decisions.
49. The proliferation
of extra features that overwhelms many consumers with mind-boggling complexity
is referred to as
Answer: feature bloat
Answer: feature bloat
50. Prego recently
introduced a Pasta Bake Sauce, which was made so that it was not necessary to
precook the pasta before blending pasta, sauce, meat, and cheese in a
casserole. Legally, this product would only be considered new
Answer: for the first six months that it was regularly available.
Answer: for the first six months that it was regularly available.
51. Although there
are three levels of newness from the organization's perspective, there is a
fourth way of viewing new products, and that is from the perspective of
__________ which involves __________.
Answer: consumption; consumers
Answer: consumption; consumers
52. A product that
requires no new behaviors be learned by consumers is a
Answer: continuous innovation.
Answer: continuous innovation.
53 At the time of its
introduction, which of the following products was the best example of a
continuous innovation?
Answer: Breathe Right nasal strips, a sticky strip that is worn across the nose at night to help people breathe
Answer: Breathe Right nasal strips, a sticky strip that is worn across the nose at night to help people breathe
54. The emphasis of a
marketing strategy for a continuous innovation concentrates on
Answer: advertising to generate awareness.
Answer: advertising to generate awareness.
55. LG Electronics
Inc. has entered into an agreement with Google to offer phones with Google
software installed on them. This is an example of which type of innovation?
Answer: dynamically continuous innovation
Answer: dynamically continuous innovation
56. The emphasis of a
marketing strategy for a dynamically continuous innovation would include
Answer: advertising to explain product benefits and proper use
Answer: advertising to explain product benefits and proper use
57. A product that
establishes new consumption patterns among consumers is a
Answer: discontinuous innovation.
Answer: discontinuous innovation.
58. Napster was the
first software that allowed an individual to easily search and swap MP3 musical
files with other individuals. When it was introduced, it would have been an
example of a
Answer: discontinuous innovation.
Answer: discontinuous innovation.
59. The emphasis of a
marketing strategy for a discontinuous innovation would most likely be to
Answer: educate consumers about entirely new consumption patterns through product trial and personal selling.
Answer: educate consumers about entirely new consumption patterns through product trial and personal selling.
60. Ideally, before a
new product is developed, a firm should have a precise protocol, a statement
that identifies: (1) a well-defined target market; ( 2) specific customers'
needs, wants, and preferences; and (3)
Answer: what the product will be and do.
Answer: what the product will be and do.
61. There are eight
main reasons a new product can fail: (1) insignificant point of difference; (2)
incomplete market and product protocol; (3) not satisfying customers on
critical factors; (4) bad timing; (5) too little market attractiveness (6) poor
product quality; and (7) poor execution of the marketing mix, and (8 ) __________.
Answer: no economical access to buyers
Answer: no economical access to buyers
62. There are eight
main reasons a new product can fail: (1) no economical access to buyers; (2);
insignificant point of difference (3) incomplete market and product protocol;
(4) not satisfying customers on critical factors; (5) too little market
attractiveness (6) poor product quality; and (7) poor execution of the
marketing mix, and (8 ) __________.
Answer: bad timing
Answer: bad timing
64. Which of the
following is an example of an organizational problem that can cause a new product
failure?
Answer: Not really listening to the voice of the consumer.
Answer: Not really listening to the voice of the consumer.
65. The seven stages
an organization goes through to identify business opportunities and convert
them to a salable product or service is referred to as the __________.
Answer: new-product process
Answer: new-product process
66. The new-product
process an organization goes through to identify business opportunities and
convert them to a salable good or service contains
Answer: seven stages from new product strategy development to commercialization.
Answer: seven stages from new product strategy development to commercialization.
69. During the first
stage of the new-product process, two important activities take place.They are
Answer: SWOT analysis and environment scanning
Answer: SWOT analysis and environment scanning
70. The stage of the
new-product process that involves developing a pool of concepts to serve as
candidates for new-products is referred to as __________.
Answer: idea generation
Answer: idea generation
71.Many
forward-looking companies have discovered that their own organization is not
generating enough useful new-product ideas. This has led to finding and
executing creative new product ideas by developing strategic relationships with
outside individuals and organizations referred to as __________.
Answer: open innovation
Answer: open innovation
74. For six months,
the Marriott Corporation sent a six-person intelligence team to travel and stay
at economy hotels around the country. The purpose of this was
Answer: to collect ideas from competitors' strengths and weaknesses that could be used in their own new-product development process
Answer: to collect ideas from competitors' strengths and weaknesses that could be used in their own new-product development process
75. 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 __________.
Answer: screening and evaluation
Answer: screening and evaluation
77. An external
evaluation that consists of preliminary testing of a new-product idea (rather
than the actual product) with consumers is referred to as
Answer: a concept test.
Answer: a concept test.
78. Concept tests are
part of which stage in the new product process?
Answer: screening and evaluation
Answer: screening and evaluation
79. 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
Answer: business analysis.
Answer: business analysis.
80. In the
new-product process, product ideas that survive the business analysis proceed
to actual __________.
Answer: development
Answer: development
81. The stage of the
new-product process that involves exposing actual products to prospective
consumers under realistic purchase conditions to see if they will buy is
referred to as
Answer: market testing
Answer: market testing
82. Test marketing
involves offering a product for sale
Answer: on a limited basis in a defined area.
Answer: on a limited basis in a defined area.
83. The stage of the
new-product process that positions and launches a new product in full-scale
product and sales refers to __________.
Answer: commercialization
Answer: commercialization
84. The most
expensive stage for most new products is
Answer: commercialization
Answer: commercialization
The first stage in
the new-product process is
Answer: new-product strategy development.
Answer: new-product strategy development.
IDEO is a company
that
Answer: develops and designs new products for other organizations.
Answer: develops and designs new products for other organizations.
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