CHAPTER 9 SMARTBOOK

Which are the four components of the marketing mix?

Product, price, promotion, and placement

The ____ development process is the procedure to organize and pursue the creation of new goods or services.

product

The customer development process is the procedure to

organize and pursue the finding, obtaining, and keeping of new customers.

A(n) ______ is a customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life.

end user

A(n) ______ is a customer role that describes a person or institution that pays for or obtains a product or service.

purchaser

The 4Ps of marketing are:

product, price, promotion, place

A(n) ______ is a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained.

decision maker

The ______ development process is the procedure to organize and pursue the creation of new goods or services.

product

The ____ development process is the procedure to organize and pursue the finding, obtaining, and keeping of new customers.

customer

An end user is a customer role that describes

the person who eventually makes actual use of a product or service in his or her personal or work life.

A purchaser is a customer role that describes

an individual or institution that pays for or obtains a product or service for themselves or others to use.

The ______ process is the sequence of steps an individual or organization goes through in making a decision to buy a product or service.

purchasing

The purchaser in an organization is the one who is told by the _____ - ______ - to place an order for the items chosen.

decision maker

The ______ profile is a detailed description of an archetypical or hypothetical potential consumer for a product or service.

customer

A ______ is a change of direction in an entrepreneur's or a firm's thinking based on new data or other findings.

pivot

A(n) ______ is a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices.

influencer

The ______ market refers to all of the people or organizations in a region who might consider a product or service being offered.

total available

Which of the following statements are a purchasing process question?

Who is in each role and what is important to them in making those decisions?

How does the individual or organization use these roles to make purchasing decisions?

Which of the following statements about a customer profile are correct?

It is also called a customer persona or user persona.

Developing a customer profile is an important first step of doing research on customers and their needs.

Research should begin with face-to-face interviews with potential customers.

Researchers should be cautious not to collect biased data to draw conclusions.

Get out of the building and talk to potential customers to help develop an accurate customer profile.

Which of the following statements about a pivot are correct?

A pivot may be necessary if a product/service does not quite fit with what the targeted customer needs.

It may be time to look for a new business idea, if pivoting will not work.

A pivot to a different customer base may be appropriate to focus on individuals who would be more willing to buy a product for the original purpose.

The total available market refers to

all of the people or organizations in a region who might consider a product or service being offered.

The ______ market represents the customers that a firm expects to be interested in its particular product or service.

serviceable obtainable

______ market is the actual number of customers of an operating firm, divided by the size of the target market.

Penetrated

The ______ market refers to the customers within the geographic reach of a firm.

serviceable available

The term ____ refers to the percentage of customers a firm typically loses after their first purchase from the firm.

churn

The _____ profile is a detailed description of an archetypical or hypothetical potential consumer for a product or service.

customer

Which of the following are nonfinancial benefits that start-ups consider more important than obtaining revenue from consumers?

Feedback

Testimonials

Which of the statements about outstanding customer service are correct?

One measure of good customer service is how quickly a business fixes mistakes.

Owners and employees should go the extra mile for customers and other stakeholders.

It includes showing interest and concern for all stakeholders, such as employees, the community, suppliers as well as customers.

The serviceable obtainable market represents

customers that a firm expects to be interested in its particular product or service.

The process of dividing a market into groups that have somewhat homogeneous needs for a product or service is called ____ ____.

market segmentation

A company's penetrated market

is the actual number of customers of an operating firm, divided by the size of the target market.

In the context of the concept of churn, which of the following are true statements?

The term "churn" indicates the turnover rate for a firm's customers.

Retaining existing customers is more valuable than searching for and attracting new customers.

Match the different nonfinancial benefits with their descriptions.

feedback: the process of communicating within or to an organization about how outputs work or are received

testimonial: a statement made that is allowed to be publicly repeated and attributed to the person that made it

sharing: a process in which customers post positive comments about a firm's product or service to their social media accounts

The idea of "going all out" for the customer or providing over-the-top service is called ______.

outstanding customer service

Market segmentation requires entrepreneurs to ______.

determine the best markets for their products or services

Identify true statements about segmented markets.

Members of these markets have some common characteristics.

Firms consider these markets manageable pieces.

Which of the following are true statements in the context of target markets?

A small business can consider focusing its efforts on only one target market initially and then consider adding more later.

An entrepreneur can select more than one target market.

Professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics are called ____ ____ segments.

predetermined market

______ research is the systematic collection and interpretation of data to support future marketing decisions.

marketing

The process of dividing a market into smaller portions of people who have common characteristics is called ______.

segmentation

The term ____ ____ refers to a group of customers in the area a firm plans to serve who would be likely to be interested in the firm's product, or those of competitors.

target market

The two major categories of research are ______ and secondary research.

primary

______ research is data gathered by simple observation--seeing what consumers do, rather than asking them.

Ethnographic

Information about the buying habits and demographics of predetermined market segments help firms ______.

identify financial and shopping characteristics of these segments

Which of the following statements about marketing research are correct?

It can verify the size of the potential market.

It can help show competitors' weaknesses.

It can reveal a number of customer attributes, such as where they are likely to shop and what price points they think are fair.

Which of the following statements about focus groups are correct?

A focus group could also be gathering some friends over dinner and talking to them about the firm's product can be quite useful.

They often have between 8 and 12 people.

Participants are asked to discuss a series of questions about a particular product or service.

______ research is an approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observing.

primary

Which of the following statements regarding survey data collection are correct?

Online surveys are often inexpensive.

Mail surveys have a lower response rate.

Survey questions may be written, asked in person or on the phone, by mail or online.

Ethnographic research is based on

observations

Scalar questions are also known as

closed-ended questions

A dichotomous question example is

Are you employed?

Categorical questions

give you several predetermined groups from which to choose.

______ is (are) a form of data gathering from a small group led by a moderator.

Focus groups

______ is a data-collection method using a questionnaire-in person, on the phone, on paper, or on the Internet.

Survey

______ questions allow respondents to express themselves as they choose.

Open-ended

______ questions are answered by some sort of scale.

Scalar

______ questions have only two possible choices.

Dichotomous

Which of the following are true of secondary research?

It is free and quick.

It is readily available.

______ are questions that are answered by selecting the proper category.

Categorical

Which of the following statements about a good or service's value proposition are correct?

They are unique to a particular business.

There is often more than one benefit that supports the value proposition.

They are product or service benefits and not features.

Which is an example of an open-ended question?

What type of vacations does your family enjoy?

How often should a business adjust their marketing plan to plan for new research results, changes in competition and the environment, target markets, and new opportunities?

At least once per year

A ______ is a nonphysical product.

service

Which of the following is a challenge in secondary research?

Finding data that are unbiased, reported fairly, and reputable

A(n) ______ is a physical product.

good

A ____ item is capable of being touched, seen, tasted, or felt.

tangible

The unique selling points that customers can expect from purchasing goods or services from a specific company is called the ______.

value proposition

A tweak to your business marketing plan is beneficial in helping the business person to

increase sales.

launch new products/services from reviewing new research.

enter a new market.

Which of the following are examples of services?

house painting

tailoring clothing

fixing a pipe

Which of the following are examples of goods?

Car

Fleece sweater

Can of soup

______ describes a service that if not used when offered cannot be saved for later use.

Perishability

Which of the following is an example of a product with tangibility?

shampoo

bowl of chili

perfume

A quality of a service in which the service being done cannot be disconnected from the provider of the service is called ______.

inseparability

In marketing, identify list of things given below that are included in the total product.

The entire bundle of products.

All included services.

Extras, such as service, warranty, and delivery.

The ______ product includes the core product plus features that tend to differentiate it from the competition.

augmented

______ products are essentially similar to something already on the market.

Me-too

Which of the following are examples of service perishability?

Car rental

Airline seats

Cab

A product is inseparable when

the service and the consumption of the service happen at the same time.

The ______ product is the entire bundle of products, services, and meanings of a firm's offering.

total

The augmented product may include which of the following?

Quality level

Brand name

Packaging

Which of the following are examples of me-too products?

Generic drugs

Mobile phones

Paper towels

Which of the following are more typical outcomes of a feasibility analysis in the process of idea evaluation?

An idea may result in a product but may not attract a large enough market to be profitable.

An idea is unlikely to be economically converted into a product or service.

The first model of a product or service is called a(n) ______.

prototype

The selling of a prototype in either a real or simulated market environment is called ______.

test marketing

Which of the following is true of commercialization?

Most businesses developing a new product do not face problems during commercialization.

The process of selecting ideas that show the most potential in order to examine them further for feasibility is called idea ______.

screening

Feasibility analysis is a critical step in the process of new product development because ______.

it precedes a potentially large investment of an entrepreneur's time and money into the creation of a key service or product

Which of the following statements about the business cycle's introduction stage are correct?

There are high marketing cost to gain customer awareness in the introduction stage.

Not all products survive the introduction phase, and many get revised due to customer reactions.

The more innovative a product, the slower are sales because of customers' comfort level with a new product.

Which of the following sentences about prototypes of products are correct?

They are often referred to as a minimum viable products.

They are made to prove aspects of the inventor's idea for the product.

They may be functioning or just models.

Which of the following is a challenge associated with test marketing?

An entrepreneur's competitors may steal his or her idea and launch before he or she does.

______ is the process of making a new product ready for use by consumers.

Commercialization

The first stage of the product life cycle is called the ______ stage, where sales are often low and profits not likely.

introduction

Which of the following is a goal of the growth stage of the product life cycle?

Maximizing market shares

The ______ stage of the product life cycle is marked by sales leveling off because of fewer new customers.

maturity

Which of the following statements about the product life cycle's maturity stage are correct?

Companies attempt to steal customers from competitors to grow sales.

Some companies drop out of the market or go out of business.

Companies' sales and profits are fairly high but are not growing.

Which of the following are true statements in the context of the service life cycle?

It is possible to completely eliminate the decline stage in the life cycle of a service.

In comparison with products, services are much easier to modify "on the run."

The _____ stage of the product life cycle is marked by sales leveling off because of fewer new customers.

maturity