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The perceptual map in Figure 9-9 shows adult perceptions for beverages. Suppose a marketer is introducing a new beverage that is higher-than-average in nutrition and is intended for adults. It will probably be most useful to promote the drink as similar to what?
a.) fruit-flavored drinks
b.) tea
c.) regular milk
d.) sugared soft drinks
e.) coffee
c.) Regular Milk
What concept does the following scenario best illustrate? Suppose you've purchased a $10 ticket to a movie. As you enter the theater, you realize you've lost the ticket. Would you buy another $10 ticket to see the movie? Now, imagine you hadn't purchased the ticket yet and were about to buy one for $10. Would you still buy the ticket knowing you've lost $10 in cash?
a.) opportunity cost
b.) sunk cost fallacy
c.) anchoring bias
d.) mental accounting
d.) mental accounting
O 3) U.S. dairies, struggling to increase milk sales, tried to change the way adults thought about chocolate milk. The dairies wanted to________ chocolate milk in the minds of adult consumers.
a.) differentiate
b.) reposition
c.) segment
d.) promote
e.) explain
b.) reposition
In the segmentation process, pairing slide sleepers with firm pillows, back sleepers with medium pillows, and stomach sleepers with soft pillows would be done with a
a.) product differentiation table.
b.) cross-tabulation.
c.) needs table.
d.) growth-share matrix.
e.) market-product grid.
e.) market-product grid
Hasbro is a more than $4 billion global toy company that prides itself on donating to organizations that help children, since this group and their parents comprise the target market for its business. This is an example of a________ goal.
a.) sales revenue
b.) social responsibility
c.) customer satisfaction
d.) unit sales
e.) market share
b.) social responsibility
Sources of external information that originate with the sellers of products and services and include advertising, company websites, salespeople, and point-of-purchase displays in stores are referred to as
a.) personal sources.
b.) relational sources.
c.) stakeholder sources.
d.) marketer-dominated sources.
e.) public sources.
d.) marketer-dominated sources
Prudential, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort?
a.) baby boomers
b.) the greatest generation
c.) Generation Z
d.) Generation Y
e.) baby busters
a.) baby boomers
In Figure 5-1, D represents which stage of the consumer purchase decision process?
a.) financial transaction
b.) purchase decision
c.) alternative evaluation
d.) information search
e.) postpurchase behavior
b.) purchase decision
Consider Figure 2-7. A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits. The company would have to rely on another firm to manufacture and package the survival kits. This production issue would fall in which quadrant(s) of the SWOT analysis grid?
a.) D
b.) B
c.) C
d.) both C and D
e.) A
b.) B
Behavioral segmentation may be based on
a.) retailer and wholesaler behaviors.
b.) geographic and demographic criteria.
c.) lifestyles and demographics.
d.) demand and supply.
e.) product features and user status.
e.) product features and user status
A student would like to buy a hybrid SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because
a.) there has been no assessment of consumer wants and needs.
b.) there is no desire on the part of either party to satisfy its needs.
c.) one of the involved parties does not have the ability to satisfy its needs.
d.) two or more parties have unsatisfied needs.
e.) there is no way for each party to communicate with one another.
c.) one of the involved parties does not have the ability to satisfy its needs.
During the holiday shopping season, many online retailers offer buyers price reductions, two for-one deals, or free delivery. This is because these retailers operate in a(n)________ environment.
a.) marginal competition
b.) monopolistic competition
c.) oligopoly
d.) monopoly
e.) pure competition
b.) monopolistic competition
In terms of competitive forces, powerful buyers exist when
a.) switching costs are low.
b.) there are many buyers.
c.) preemptive practices exist.
d.) the product is critical to the buyer.
e.) the product represents a small share of the buyer's total costs.
a.) switching costs are low.
The "decoy effect" occurs when a consumer's preference between two options is influenced by the introduction of a third, less attractive option that makes one of the original options seem more appealing. Which of the following scenarios best illustrates the decoy effect?
a.) A customer is choosing between two laptops: one with a 15-inch screen and one with a 17-inch screen. They decide to purchase the larger laptop for better screen size.
b.) A customer is offered two smartphones: one with a large screen and the other with a high-quality camera. They choose the first phone based on their preference for screen size.
c.) A movie theater offers two ticket options: one for $10 with a basic seat, and another for $15 with a premium seat. The customer picks the premium seat because the basic seat now seems less comfortable in comparison.
d.) A coffee shop offers two sizes of coffee: small for $2 and large for $4. They introduce a third option, a medium size for $3.50, which makes the large coffee seem like a better value, and the customer chooses the large.
e.) A customer is choosing between two pizzas: one with a small size and the other with a medium size. They choose the medium size because it’s slightly more expensive but offers better value for the extra price.
d.) A coffee shop offers two sizes of coffee: small for $2 and large for $4. They introduce a third option, a medium size for $3.50, which makes the large coffee seem like a better value, and the customer chooses the large.
Cannibalization would most likely occur if
a.) Dell adds high-end speaker systems to its line.
b.) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.
c.) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three wheel bike.
d.) General Mills launches Caramel Crunch Cheerios.
e.) Pillsbury adds boxed sugar to its product mix.
d.) General Mills launches Caramel Crunch Cheerios.
An example of a nonprofit organization is
a.) CVS Pharmacies.
b.) the Food and Drug Administration.
c.) the pharmaceutical company Pfizer, Inc.
d.) Vitalant, a blood donation organization.
e.) the medical technology company Medtronic, Inc.
d.) Vitalant, a blood donation organization
In Figure 5-1, B represents which stage of the consumer purchase decision process?
a.) financial consideration
b.) purchase decision
c.) problem recognition
d.) alternative evaluation
e.) information search
e.) information search
In Figure 2-2, Box A represents the "why" element of visionary organization. This is referred to as the organizational
a.) tactics.
b.) mission.
c.) foundation.
d) strategies.
e.) direction.
b.) mission
Individuals exhibit reluctance to sell stocks or assets that have decreased in value, even when doing so might be the rational choice to minimize losses. This behavior reflects the tendency to avoid the pain of realizing a loss, even if it means potentially missing out on future gains.
a.) anchoring bias
b.) diminishing sensitivity
c.) loss aversion
d.) reference point
c.) loss aversion
ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of
a.) specialty customization.
b.) family branding.
c.) mass customization.
d.) multiple products and multiple market segments
c.) mass customization.
A mother of two toddlers is most likely to exclusively use an internal search during the decision process when purchasing
a.) a swing set.
b.) disposable diapers.
c.) a weekend getaway.
d.) a gift for her mother-in-law.
e.) a home security system.
b.) disposable diapers
The annual Street & Smith’s Baseball magazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which segmentation strategy?
a) multiple products with multiple segments
b.) one product with one channel of distribution
C) one product with multiple market segments
D) multiple products with one segment
E) one product with changes based on customer behavior
C.) one product with multiple market segments
Which of these is an example of a multiple products, multiple market segments strategy?
A) A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience.
B) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
C) Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes.
D) Johnson’s Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.
E) College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the United States.
B.) Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo.
A perceptual map enables a manager to see how________ perceive competing products or brands, as well as the firm’s own product or brand.
A) competitors
B) independent rating organizations such as Consumer Reports C) nonusers
D) consumers
E) stakeholders
d.) consumers
Volkswagen opened a large plant in Chattanooga, TN, in 2011. Within a few years, VW spurred more than 12,400 direct and indirect jobs in the area. The carmaker generates income of over $600 million there annually and boosts state and local tax revenues by over $50 million a year. A huge expansion was announced in 2016 that would nearly double its operations in Tennessee. This example best illustrates__________ change that has impacted the people and businesses of Chattanooga. A) a social
B) an economic
C) a regulatory
D) a competitive
E) a technological
b.) an economic
In many geographic areas, there is only a single provider for gas and electric service for businesses and consumers. However, the government regulates that organization to ensure price protection for the buyer. This is an example of
A) an oligopoly.
B) a megopoly.
C) a pure monopoly.
D) pure competition.
E) monopolistic competition.
c.) a pure monopoly
Vanguard, a financial planning firm, offers retirement plans and wealth management advice. These products are most likely targeted toward which generational cohort?
A) Generation Z
B) the greatest generation
C) baby boomers
D) Generation Y
E) baby busters
c.) baby boomers
In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant B would be called
A) cash cows.
B) question marks.
C) stars.
D) dogs.
E) jackrabbits.
B) question marks.
A marketer working in which industry would care the most about consumer responses to changing interest rates?
A) Consumer packaged goods
B) Dollar store retail
C) Automotive
D) Oil and gas
E) Fashion
c.) automotive
Spotify creates recommended playlists and tailors its homepage uniquely to consumers based on their listening history. What type of segmentation strategy is Spotify employing?
A) None of the above
B) Tiffany/Walmart strategy
C) Segments of one - mass customization
D) Multiple products and multiple market segments
E) One product and multiple market segments
C) Segments of one - mass customization
The marketing mix is composed of the 4 Ps. Which example best illustrates a company’s deliberate use of “Place” in its strategy?
A) A fast-food chain introducing new menu items based on local tastes and ingredients
B) A software firm enhancing product features with AI
C) A smartphone manufacturer lowering its prices during a recession
D) A clothing brand launching an e-commerce platform to reach customers
E) A beverage company investing heavily in influencer advertising on Instagram
D) A clothing brand launching an e-commerce platform to reach customers
The late economist Milton Friedman was known for his strong belief that companies have one simple duty: to maximize profits for their owners/stockholders. This view of company responsibility is known as:
A) Stakeholder responsibility
B) Social marketing
C) Cause marketing
D) Profit responsibility
E) Societal responsibility
D) Profit responsibility
The philosophical reason for an organization's existence is referred to as its organizational
A) strategy.
B) foundation.
C) goal.
D) direction.
E) business.
B) foundation.
Small athletic shoe manufacturers such as Vans target niche markets like street culture or action sports enthusiasts, making shoes designed to satisfy the needs of these different specific groups of customers. This strategy is an example of
A) mass customization.
B) single chain marketing.
C) customized manufacturing.
D) market segmentation.
E) market specific selection.
D) market segmentation.
The federal government enacted the________ to make it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly. A) Unfair Practices Act
B) Lanham Act
C) Fair Trade Act
D) Clayton Act
E) Robinson-Patman Act
E) Robinson-Patman Act
Quadrant A in Figure 2-7 represents a(n) ________ in a SWOT analysis.
A) weakness
B) market segment
C) strength
D) opportunity
E) threat
C) strength
Personality and lifestyle are both variables used to employ________ segmentation.
A) geographic
B) psychographic
C) attitudinal
D) behavioral
E) demographic
B) psychographic
All of these are reasons to segment a market except which?
A) It would cause an increase in market share or profit.
B) All the buyers in the entire market have similar wants and needs.
C) There are different wants and needs of buyers in the entire market.
D) The ability to assign buyers to a segment is simple and cost-effective.
E) There is a potential marketing action to reach it.
B) All the buyers in the entire market have similar wants and needs.
Which would a marketer use as a synonym for the marketing mix?
A) the four Ps of marketing
B) macromarketing forces
C) marketing management factors
D) micromarketing factors
E) environmental forces
A) the four Ps of marketing
A coffee shop introduces a loyalty program to reward frequent visits. This initiative is designed primarily to target which behavioral segmentation variable?
A) Lifestyle preferences
B) Occasions
C) Geographic location
D) Usage rate
E) Income level
D) Usage rate
In part because of the growing availability of 5G networks, customers are replacing their smartphones with new models or brands, even if their current phones still work, so they can take advantage of higher speeds for all their tasks. This increase in demand is due mostly to changes in________, an environmental force.
A) regulations
B) social culture
C) technology
D) the economy
E) competition
C) technology
What concept does the scenario of the discounts on products best illustrate? Imagine you're at a store considering two different discounts on a product you want to buy. The first discount offers a $5 reduction in price for a $20 product, while the second discount offers a $5 reduction in price for a $100 product.
A) diminishing sensitivity
B) anchoring bias
C) loss aversion
D) confirmation bias
A) diminishing sensitivity
Organizations can be divided into three types:
A) employee, distributor, and customer.
B) for-profit, nonprofit, and government.
C) public, private, and international.
D) corporation, employee-owned, and interest.
E) company, nonprofit, and cooperative.
B) for-profit, nonprofit, and government.
What concept best describes the difficulty experienced while choosing a phone in the scenario? You're shopping for a new phone online. As you browse through the options, you find yourself feeling overwhelmed by the numerous models, brands, features, and prices available. After spending an hour comparing different phones, you still can't decide which one to buy. What concept best describes the difficulty experienced while choosing a phone in the scenario?
A) inattention
B) impulse buying
C) brand loyalty
D) choice overload
D) choice overload
Is dynamic pricing (e.g. Uber surge pricing) always unethical? A) No, because if supply is inelastic then prices can’t change quickly
B) Yes, because consumers who really need a product are forced to pay more
C) No, because surge pricing only affects those who want to pay increased prices
D) Yes, because firms are taking advantage of increased demand
E) No, because surge pricing can increase supply in markets where supply is elastic
E) No, because surge pricing can increase supply in markets where supply is elastic
Netflix is a company that delivers DVD movies and television programming to consumers either by mail or streaming over the Internet. It faces many competitors, but continues to grow both in the United States and abroad. Part of what has driven success in recent years is its original content, with movies and shows like Outer Banks and All American, popular programming that cannot be seen elsewhere. Its original content provides Netflix's
A) sales orientation.
B) tactical innovation.
C) viable mission.
D) core benefit.
E) competitive advantage.
E) competitive advantage.
During its market segmentation process for the Nike Air Jordan 6 Retro Paris Saint-Germain basketball shoe, which sells for $225 a pair, Nike decided to concentrate on affluent teens rather than members of high school basketball teams. This is an example of
A) forming products to be sold into groups.
B) taking marketing actions to reach target markets.
C) selecting target market segments to reach.
D) developing a market-product grid and estimating size of markets.
E) forming prospective buyers into segments.
C) selecting target market segments to reach.
A(n)________ is a legal entity that consists of people who share a common mission.
A) SBU
B) organization
C) department
D) market
E) industry
B) organization
Many companies have cut travel budgets so that fewer businesspeople are authorized to fly first class. Despite the shrinking pool of business-class travelers, British Airways has grown market share for its trans-Atlantic business class by offering greater comfort. Promotions to frequent flyers stress that passengers can sleep in fully reclining seats and arrive refreshed to carry out a full day’s schedule. The segmentation strategy of British Airways is an example of
A) life stage segmentation.
B) social class segmentation.
C) geographic segmentation.
D) psychographic segmentation.
E) behavioral segmentation.
E) behavioral segmentation.
Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination. It should have adopted a more rigorous________ goal.
A) customer satisfaction
B) employee welfare
C) quality
D) profit
E) sales revenue
C) quality
1) In the athletic shoe market, Adidas AG and Nike, Inc. practice________ positioning since both companies vie for the same customers with technologically advanced products.
A) perceptual
B) head-to-head
C) market
D) psychological
E) differentiation
B) head-to-head
GM's original first-year________ goal for the Chevy Volt was 10,000 units, although the product was well into its second year before reaching that level.
A) survival
B) market share
C) sales
D) customer satisfaction
E) profit
C) sales
Which example best illustrates a company responding to competitive forces in a market characterized by monopolistic competition?
A) A local coffee shop differentiating its offerings with unique seasonal flavors
B) An online retailer using automated pricing algorithms to match competitor prices
C) A car manufacturer reducing its product range to a single model
D) A utility company raising prices as the sole provider in a region
E) A software firm lowering prices due to a government mandate
A) A local coffee shop differentiating its offerings with unique seasonal flavors
1) Quadrant B in Figure 2-7 represents a(n) ________ in a SWOT analysis.
A) threat
B) opportunity
C) strength
D) weakness
E) market segment
D) weakness
Agribusinesses that sell commodity products such as wheat, rice, and corn are often in a(n)________ position with their competitors.
A) monopolistic competition
B) monopolistic
C) limited competition
D) pure competition
E) oligopolistic competition
D) pure competition
1) In Figure 2-4, a representation of the BCG business portfolio analysis, SBUs found in quadrant A would be called
A) lightning strikes.
B) dogs.
C) question marks.
D) stars.
E) cash cows.
a.) stars
Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share.
The most likely way for a company to turn a question mark into a star rather than a dog is to
A) reduce advertising for it.
B) reduce the feature set for it.
C) divert funds to other SBUs.
D) inject cash into it.
E) decrease the market growth rate.
D) inject cash into it.
Society's values and standards that are enforceable in the courts are referred to as
A) industry practices.
B) cultural norms.
C) the Consumer Bill of Rights.
D) situational ethics.
E) laws.
E) laws.
Organizational strategies vary in two ways, depending on
A) the organizational culture and its core values.
B) whether an offering is new or has existed for a year or more. C) whether management plans to develop mission statements or core values.
D) the strategy's level in the organization and the offerings it provides to its customers.
E) the corporate level and the SBU level in the organization.
D) the strategy's level in the organization and the offerings it provides to its customers.
To develop a successful marketing plan for a soft drink, the process of________ would most likely be used to group consumers on the basis of whether they prefer sugar-free and caffeine-free soda, caffeine-free sugared soda, or regular soda with sugar and caffeine.
A) mass marketing
B) market aggregation
C) market segmentation
D) product alignment
E) customer grouping
C) market segmentation
When Maricela looked in her closet and said, "I don't have anything to wear to the wedding next month," she was in which stage of the purchase decision process?
A) problem recognition
B) cognitive dissonance
C) routine response behavior
D) prepurchase behavior
E) alternative evaluation
A) problem recognition
The U.S. Supreme Court issued a landmark ruling in South Dakota v. Wayfair Inc. allowing states and local governments to force online retailers to collect sales taxes even if they do not have a physical presence in the state. This affected online sellers such as Virtual Vineyards, which previously collected state sales taxes only from customers who resided in California, its home state. This ruling would be an example of which environmental force?
A) social
B) technological
C) competitive
D) economic
E) regulatory
E) regulatory
Which statement best describes the most significant difference between a for-profit organization or business firm and a nonprofit organization?
A) Nonprofit organizations are concerned with social issues and business firms are not.
B) Business firms earn a profit each year while nonprofits operate at a deficit annually.
C) Both serve customers, but business firms seek a profit while nonprofit organizations do not.
D) Nonprofit organizations are publicly owned and business firms are privately owned.
E) Nonprofit organizations do not carry on economic activities while business firms do.
C) Both serve customers, but business firms seek a profit while nonprofit organizations do not.
Which statement regarding when and how to segment markets is most accurate?
A) Market segmentation strategies work less than 10 percent of the time.
B) Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets.
C) Even if a firm finds uniform needs across all users, it should take advantage of the method to avoid falling behind its competitors.
D) Market segmentation is only feasible for large corporations; small businesses don’t have the resources to engage in the process.
E) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
E) If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment.
Criteria for forming segments involve both similarities and differences. In terms of the needs of buyers, the similarities must be________ a segment, and the differences must be________ segments.
A) between; among
B) among; across
C) throughout; absent in
D) absent in; throughout
E) within; among
E) within; among
Jimmy John’s sandwiches claim to have “Freaky Fast” delivery. This ________, which refers to the place a product occupies in consumers’ minds based on important attributes relative to competitive products, helps them differentiate themselves from other sandwich shops like Subway who emphasize their “Eat Fresh” _________.
A) segmentation
B) perception
C) targeting
D) product adaptation
E) product positioning
E) product positioning
For marketing to occur, there must be two or more parties involved. Keurig Dr. Pepper distributes Bai Antioxidant Infusions through supermarkets at a price comparable to other specialty bottled or canned drinks. The most likely "second" party needed for marketing to occur would be
A) a nutritionist promoting the health benefits of adequate hydration.
B) a local distributor of alcoholic beverages.
C) product demonstrators who offer samples of Bai products to shoppers at local supermarkets.
D) people with a desire for a cool beverage other than soda or water.
E) people who are nostalgic about childhood drinks they had during hot summers.
D) people with a desire for a cool beverage other than soda or water.
There are many diet aids on the market. Some promise immediate weight loss without exercise or a change in diet. Each is accompanied by a testimonial from a satisfied user, but most also contain the statement, "Results may vary." Most likely this statement is included to prevent the Federal Trade Commission (FTC) from requiring the dietary aid distributor to A) issue an advertising injunction.
B) run corrective advertising.
C) engage in self-regulation.
D) engage in comparative advertising.
E) guarantee truth in advertising.
B) run corrective advertising.
What is the primary purpose of requiring influencers to clearly disclose their relationships with advertisers?
A) To enable advertisers to control the messaging and creative content of influencers’ posts.
B) To ensure transparency and allow consumers to identify paid endorsements.
C) To boost the influencer’s personal brand image by signaling that brands want to work with them
D) To encourage influencers to post more frequently.
E) To restrict influencers to promoting only high-end products.
B) To ensure transparency and allow consumers to identify paid endorsements.
If Dr. Pepper Snapple Group plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent, it has set a(n)________ goal.
A) sales proportionality
B) company sales
C) industry potential
D) contribution margin
E) market share
E) market share
The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Jun decided to donate a pint of blood. After she did, Jun felt happy that she had done something nice for her community. Did an exchange occur in a marketing sense?
A) No, because the Red Cross, a service organization, did not provide Jun with a product.
B) Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity.
C) No, because the Red Cross is a nonprofit organization.
D) No, because no money changed hands.
E) Yes, because the donated blood was exchanged for a feeling of satisfaction.
E) Yes, because the donated blood was exchanged for a feeling of satisfaction.
The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of demanding clientele, The Lemon Tree's management is investing in the use of one-to-one marketing and artificial intelligence. The least important environmental force to The Lemon Tree at this time is likely to be
A) social.
B) competitive.
C) economic.
D) regulatory.
E) technological.
D) regulatory.
“For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books as well as a combination of extraordinary convenience and low prices” is a________ statement for Amazon.
A) differentiation
B) positioning
C) vision
D) perception
E) market-product
B) positioning
Universal Concerts wants to bring a series of music concerts to Canada next year. In general, western Canadians prefer country music while eastern Canadians prefer rock. In fact, a country music event in eastern Canada is very likely to have lots of empty seats. To maximize revenue, Universal Concerts should segment its Canadian market according to
A) geographic characteristics.
B) behavioral characteristics.
C) music format characteristics.
D) psychographic characteristics.
E) demographic characteristics.
A) geographic characteristics.
When purchasing a reusable water bottle, factors like durability, price, and temperature control that a consumer considers prior to purchase are called
A) consumer attributes.
B) informational alternatives.
C) buying decision choices.
D) evaluative criteria.
E) points of difference.
D) evaluative criteria.
In marketing, advertisements or salespeople can activate a consumer's purchase decision process by
A) promising product attributes that exceed the actual product potential.
B) creating a sense of irony or amusement.
C) shifting the consumer's focus from internal search to external search.
D) manipulating a customer's want into a need.
E) showing the shortcomings of competing (or currently owned) products.
E) showing the shortcomings of competing (or currently owned) products.
Alamo, a national car rental firm, targets 50 percent of its advertising to salespeople who rent a car over 40 weeks per year. The company is using________ segmentation.
A) behavioral
B) demographic
C) geographic
D) psychographic
E) loyalty
A) behavioral
One reason some people don't like to buy clothing from Internet retailers is the inability to know if the clothes will fit. ImageTwin uses a scanning system and stores an individual’s measurements. When you shop at LandsEnd.com, you can see a 3-D image of what the item should look like on your body. This is an example of the________ force in the marketing environment.
A) sociocultural
B) technological
C) competitive
D) marketing mix
E) economic
B) technological
When Ann Taylor, a well-known retailer of sophisticated women’s clothing, started losing sales to its own LOFT stores that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as
A) amortization.
B) cannibalization.
C) marketing Darwinism.
D) guerrilla marketing.
E) shrinkage.
B) cannibalization.
Google’s Pixel 6 smartphone provides an advanced software experience, including high-end photo processing, video rendering, and speech recognition. This sets the smartphone apart from its competitors and is part of Google’s________ strategy.
A) market expansion
B) psychographic segmentation
C) usage segmentation
D) product segmentation
E) product differentiation
E) product differentiation
Which of the following is NOT a reason for why the craft beer industry became very popular with the Millennial generation?
A) Regulations on craft beer brewing were relaxed allowing making it easier to make a craft beer
B) Lower advertising costs allowed craft beer startups to market themselves more
C) More variety on grocery store shelves led to consumers developing preferences for these new beers
D) Prices of craft beer were lower on average than traditional beer
E) None of the above
D) Prices of craft beer were lower on average than traditional beer
Jordan Lewis owns a company that makes Triangle BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina barbecue sauce. In developing a marketing strategy to sell the sauce, Lewis decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Lewis has just A) formed prospective buyers into segments.
B) taken a marketing action to reach a target market segment. C) developed a market-product grid and estimating size of markets.
D) formed a market segment using critical product features. E) formed products to be sold into groups.
B) taken a marketing action to reach a target market segment.
The annual Street & Smith’s Baseball magazine has 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. What is the basis of its market segmentation strategy?
A) demographic segmentation
B) geographic segmentation
C) psychographic segmentation
D) behavioral segmentation
E) retail outlet segmentation
B) geographic segmentation
After Robinhood popularized zero-commission trading for most stocks and equities, other financial institutions (e.g. JP Morgan, Fidelity) did the same. Their decision was driven primarily by which uncontrollable environmental force?
A) Competitive forces
B) Technological forces
C) Economic forces
D) Social forces
E) Regulatory forces
A) Competitive forces
Magazines such as Condé Nast Traveler, Field & Stream, Golf Digest, and Fitness focus on how people live their lives, and thus all use a________ segmentation strategy.
A) socioeconomic
B) situational
C) psychographic
D) geographic
E) behavioral
C) psychographic
Ethics refers to the
A) religious tenets of a country or ethnic region that shape its culture.
B) values and standards of society that are enforceable in the courts.
C) social norms of a nation, community, or family.
D) universal laws of man that go beyond an individual or a group's beliefs of nations or religions.
E) moral principles and values that govern the actions and decisions of an individual or group.
E) moral principles and values that govern the actions and decisions of an individual or group.
“For upscale American families who desire a carefree driving experience, Volvo is a premium-priced automobile that offers the utmost in safety and dependability” is a________ statement for Volvo in North America.
A) vision
B) market-product
C) positioning
D) perception
E) differentiation
C) positioning
A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
A) stand up to legal scrutiny.
B) produce product differentiation.
C) create sustainable demand.
D) be socially responsible.
E) increase sales and profitability.
E) increase sales and profitability.
A marketing metric refers to
A) a measure of the quantitative value or trend of a marketing activity or result.
B) the value of a product in terms of its contribution to employee welfare.
C) information about an organization's core values and code of ethics so marketers can quickly spot deviations and take corrective actions.
D) one of a series of mathematical formulas used to calculate potential profits based upon different scenarios of the forces in the marketing environment.
E) a form of linear trend analysis used to project future profits based on existing marketing plans.
A) a measure of the quantitative value or trend of a marketing activity or result.
Local newspaper readership has declined significantly in recent years. Not only are traditional newspapers losing subscribers, they are also losing advertisers. To combat these trends, many newspaper publishers now offer online versions of their printed newspapers. This is most likely a response to which environmental force?
A) competitive, resulting from new, smaller local newspapers that are flourishing
B) regulatory, since the government provides tax incentives for paper-based products
C) social, resulting from changing consumer preferences for information delivered online
D) technological, since high-speed printing presses have become easier to use
E) economic, since few can afford a newspaper today
C) social, resulting from changing consumer preferences for information delivered online
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
A) market aggregation.
B) market segmentation.
C) mass marketing.
D) product sorting.
E) product grouping.
B) market segmentation.
A need refers to a
A) feeling of vague lacking, but not fully understanding what may be required.
B) sense of urgency, which causes a person to take action.
C) feeling of deprivation of basic necessities such as food, clothing, and shelter.
D) feeling that is shaped by a person's knowledge, culture, or personality.
E) sense of personal inadequacy based upon observations by others around you.
C) feeling of deprivation of basic necessities such as food, clothing, and shelter.
A company targets Generation Z by leveraging TikTok and other social media platforms. What does this decision demonstrate about the impact of social forces on marketing?
A) Companies must use traditional media to build credibility
B) Regulatory forces dictate the use of social media
C) Social forces are less relevant than technological forces
D) Only product innovations matter for young consumer
E) Understanding generational characteristics is key to effective promotion
E) Understanding generational characteristics is key to effective promotion
Only two companies, Intel and AMD, design the computer processors for the majority of laptops and desktops sold in the U.S. today. Intel and AMD operate in which type of competitive environment?
A) an oligopoly
B) monopolistic competition
C) pure competition
D) a diopoly
E) a pure monopoly
A) an oligopoly
In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the vertical axis represents
A) industry attractiveness.
B) marketing efficiencies.
C) market growth rate.
D) relative market share.
E) market segment size.
C) market growth rate.
While many energy drinks target teen and young adult males with extreme sports themes, 5 hour Energy frequently advertises toward adults needing a quick and easy way to get through a busy workday. The strategy for 5-hour Energy would be described as________ positioning.
A) head-to-head
B) alternate
C) differentiation
D) niche
E) lateral
C) differentiation
The entertainment industry in the United States is dominated by Comcast, Viacom, Disney, and Charter Communications. In terms of the form of competition, this industry is an example of A) a merger.
B) an oligopoly.
C) a monopoly.
D) pure competition.
E) monopolistic competition.
B) an oligopoly.
ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. Here, ExxonMobil is using which segmentation variable?
A) needs
B) lifestyle
C) behavioral
D) demographic
E) psychographic
C) behavioral
An example of a marketer-dominated source of information consulted during an external search is
A) previous ownership of a product.
B) a consumer program on talk radio.
C) your mother.
D) a point-of-purchase display in a store.
E) a Better Business Bureau rating.
D) a point-of-purchase display in a store.
Mental accounting can lead consumers to treat money differently based on its source. Which scenario illustrates this concept?
A) Treating all cash inflows as fungible
B) Investing equally from all income sources regardless of origin
C) Ignoring non-monetary benefits in decision-making
D) Using a tax refund to splurge on luxury items while being frugal with regular income
E) Allocating budget strictly by percentage across categories
D) Using a tax refund to splurge on luxury items while being frugal with regular income
