mktg 300 exam 2

A customer is deciding between two brands of water filters, one of which is significantly more expensive but claims to remove 99% of contaminants. The customer spends weeks researching and comparing products. This decision process is an example of:

High involvement decision

A person decides to purchase a new car because it has the latest safety features and fuel efficiency. This decision is primarily based on:

cognitive decision

Choosing a restaurant because it's the first option you see when extremely hungry, rather than comparing all available options, is an example of:

 

Satisficing decision

When a consumer relies on reviews and specifications online before purchasing a new smartphone, this stage of the consumer decision-making process is: 

information search

A teenager buys a fashion brand because all their friends wear it, fearing they might be excluded otherwise. This behavior is primarily influenced by:

social risk

If a consumer evaluates laptops based on battery life, price, and brand reputation, assigning different weights to each attribute, they are using:

compensatory model

After buying and using a coffee maker, a consumer leaves a positive review online because the product exceeded their expectations. This is an example of:

satisfied customer behavior

Seeing a commercial that portrays a car as an emblem of luxury and status leads a consumer to perceive the brand as high-end. This scenario illustrates the influence of:

perception

Choosing a smartphone brand because influential figures in technology prefer it demonstrates the impact of:

reference groups

During the pandemic, Eric began using a new app for grocery delivery and continued using it for its convenience even after restrictions lifted. This change in behavior is an example of:

consumer adaptation

A local coffee shop wants to target customers who are environmentally conscious and prefer to support businesses that engage in sustainable practices. Which type of segmentation should the coffee shop primarily use?

Psychographic segmentation

The Pareto Principle, often observed in marketing contexts, suggests that:

80% of a company's sales come from 20% of its customers.

An online retailer uses data analytics to group customers based on their purchase history, browsing behavior, and loyalty to the brand. Which segmentation base is being used?

Behavioral

For a software company targeting businesses, which segmentation variable is least likely to be used?

Individual customer's age

A luxury cosmetics brand is planning to launch a new line of anti-aging skincare products. They have identified several potential segments in the market. Which factor should be the most critical in deciding which segment to target?

all options

An online education platform wants to target individuals seeking to enhance their job skills in specific industries. What combination of segmentation variables should it consider?

Behavioral and psychographic

A company has segmented its market based on very detailed behavioral and psychographic factors. However, it notices that despite high precision in targeting, the overall profit margins are not meeting expectations. What could be the reason for this outcome?

too sophisticated segmentation

A company has segmented its market based on lifestyle and is now trying to decide which segment to target. Which of the following should be considered to ensure effective targeting?

Growth potential, competition, and accessibility of the segment

A cosmetic company is planning to launch a new skincare line. After conducting market research, they have identified two potential customer segments: (A) women aged 25-40 who are interested in organic skincare products, and (B) teenagers looking for acne solutions. Given the importance of the segment being identifiable, which segment should the company prioritize, and why?

Segment A, because their demographic and interest in organic products are easier to identify and measure through surveys and sales data.

A startup company has developed a groundbreaking technology that significantly improves the efficiency of solar panels. The technology is new to the market, and there is little existing customer awareness or understanding of its benefits. How should the company approach market segmentation at this early stage among the options below?

Avoid segmentation and target the mass market to educate as many potential customers as possible.

XYZ Corporation, a leading sportswear manufacturer, decides to focus its marketing efforts on a segment that includes high-income individuals who participate in marathons and are concerned about product quality and performance enhancement. What is this approach an example of?

Niche marketing

An outdoor gear company uses customer data to customize marketing messages, ensuring that each customer receives offers relevant to their previous purchases and expressed interests. This approach is an example of:

Personalized Marketing

A company plans to launch a line of eco-friendly cleaning products. Which of the following actions best aligns with ensuring the segment for this product line is identifiable?

Conducting surveys to understand the environmental values of different age groups.

With personalized marketing campaigns, an e-commerce company chooses the appropriate segments from the ones that it found using data analytics based on purchasing behavior and frequency. Which STP step does this scenario best illustrate?

targeting

A small tech startup has developed a fitness app that incorporates advanced analytics to provide personalized workout plans. After conducting market research, they've identified a potential user segment consisting of young professionals aged 25-35 who are tech-savvy and have a high interest in maintaining an active lifestyle. Which of the following steps should the startup take NEXT to ensure their segmentation is effective?

Verify the segment is substantial enough to pursue profitably by estimating its size and potential market value.

A company developed and is ready to launch its new fitness app. Using a single marketing mix, it wants to target individuals who are highly motivated to improve their health but have limited time to go to the gym. Which targeting strategy would be most effective?

niche marketing

A company specializing in outdoor camping gear is considering targeting a new customer segment: urban dwellers interested in weekend camping trips. Which of the following factors should the company consider FIRST to determine if this segment is viable?

Whether the segment can be easily reached through their preferred communication and distribution channels.

A start-up clothing brand is evaluating market segments to target. They have identified a group of consumers who value sustainable fashion, but they're unsure about the size of this market. Which of the following criteria should the start-up use to ensure the segment is viable for targeting?

The ability to measure the segment size in quantifiable terms.

A small vegan restaurant is looking to expand its customer base by targeting health-conscious individuals in a large urban area. However, their budget is limited, and they want to choose the most cost-effective targeting strategy. Which targeting strategy would be the most appropriate for the restaurant?

Niche marketing, focusing on vegan fitness enthusiasts

A grocery store wants to target its "Weight Manager" customer segment. This segment is concerned with managing their health and diet, seeking low-calorie and organic food options. Which of the following is the best behavioral variable to use in this segmentation?

Health-conscious purchasing behavior

A streaming service is looking to expand by segmenting its market based on viewing behavior. They have identified a group of users who exclusively watch documentaries. This group is small but highly engaged, watching more hours of content than the average user. What is the biggest risk of targeting this segment?

The segment may not be substantial enough to justify the cost of tailored marketing

A car manufacturer launched a new SUV model aimed specifically at "adventurous" individuals, based on psychographic segmentation. This segment consists of people who enjoy outdoor activities such as hiking, camping, and off-road driving. To target this segment, the company focused its marketing on the vehicle’s off-road capabilities. However, after a year, sales of the SUV have been lower than expected, even though the segment size is large and well-defined. Most buyers in this segment still prefer competitors' models. Which of the following is the most likely reason why the segmentation strategy is not working?

The company has not sufficiently tailored its product features or marketing to meet the broader lifestyle needs of adventurous customers, beyond just off-road driving.

A luxury car brand decides to position itself to appeal to a younger demographic without alienating its existing older customer base. Which strategy best describes this approach?

 

Repositioning

When creating a positioning strategy for a new organic snack brand, it's important to:

Establish a clear, differentiating benefit that appeals to the target segment's needs

A retail brand has been experiencing a decline in sales due to an outdated image. What repositioning strategy should it consider to attract younger consumers and rejuvenate its brand image?

Collaborate with popular influencers and celebrities

A sustainable clothing brand wants to market its eco-friendly practices and ethical sourcing to environmentally conscious consumers. Which combination of segmentation and positioning should it focus on?

Psychographic segmentation and sustainability-based positioning

An energy drink company finds that its customers perceive its product as less healthy compared to its initial positioning. The company wants to reposition its product to align better with the health and fitness segment. Which of the following actions would be most effective for repositioning?

Communicating the health benefits, like added vitamins and low sugar content.

A marketing team is planning to introduce a new fitness tracker to a highly competitive market. The fitness tracker has unique features like advanced sleep tracking, stress management tools, and a built-in nutrition guide. Based on the concepts of positioning, which of the following strategies would be most effective for positioning this product?

Create a campaign around the value proposition of being an all-in-one health management tool.

A luxury car brand known for its performance and craftsmanship is looking to reposition itself in the market to appeal more to eco-conscious consumers without losing its established brand identity. Which of the following repositioning strategies should the company adopt?

Introduce a new line of electric vehicles (EVs) while maintaining the brand's luxury and performance standards.

An established cereal brand is losing market share to newer, health-focused competitors. The brand wants to reinforce its position in the market. Which action would be most effective in strengthening its current positioning?

Invest in a marketing campaign that highlights the brand's longstanding commitment to quality and nutritional value.

Considering the importance of brand awareness in positioning, which of the following would be the best initial step for a startup aiming to position its innovative eco-friendly cleaning products in the market?

Conduct market research to identify the positioning of competitors and understand the target customers' needs.

A smartphone manufacturer wants to differentiate its latest model from competitors'. The new model features an innovative foldable screen, exceptional battery life, and a highly advanced camera system. Which differentiation strategy should the company focus on to effectively communicate its points of difference (POD)?

Create a marketing campaign that emphasizes the combination of innovative features that cater to tech enthusiasts looking for the latest advancements.

Which is a correct statement of brand perceptual map?

Even though a brand shows a higher price than others, its price may not be higher than the others in the real market.

Which of the following is an example of a brand extension?

A luxury car manufacturer like Porsche launching an SUV

What is a major advantage of using a perceptual map in brand management?

It helps spot gaps in the market

When a snack food company introduces a new flavor under an existing brand of chips, this is an example of:

line extension

Zephyr Athletic Wear is a burgeoning athletic apparel brand that aims to establish itself prominently within the highly competitive athletic wear market. Zephyr's mission is to provide high-quality, stylish, and innovative athletic apparel that caters to fitness enthusiasts who do not want to compromise on style or performance. Despite having a strong product line, Zephyr faces stiff competition from established brands such as Nike and Adidas.

To differentiate itself, Zephyr has focused on creating a unique brand personality that emphasizes agility, innovation, and a chic aesthetic. Their marketing campaigns highlight the brand’s unique value proposition: apparel that seamlessly blends high performance with high fashion, targeting consumers who view their fitness wear as a statement of their personal style and values.

Zephyr is considering expanding its product line to include fitness accessories and is debating whether to develop a new brand for this line or extend the Zephyr brand. The marketing team has also conducted a perceptual map analysis to identify potential gaps in the market and to understand where Zephyr stands relative to its competitors on key dimensions such as style, functionality, and price point.

What aspect of brand equity is Zephyr primarily aiming to enhance through its unique brand personality and value proposition?

Brand associations

Zephyr Athletic Wear is a burgeoning athletic apparel brand that aims to establish itself prominently within the highly competitive athletic wear market. Zephyr's mission is to provide high-quality, stylish, and innovative athletic apparel that caters to fitness enthusiasts who do not want to compromise on style or performance. Despite having a strong product line, Zephyr faces stiff competition from established brands such as Nike and Adidas.

To differentiate itself, Zephyr has focused on creating a unique brand personality that emphasizes agility, innovation, and a chic aesthetic. Their marketing campaigns highlight the brand’s unique value proposition: apparel that seamlessly blends high performance with high fashion, targeting consumers who view their fitness wear as a statement of their personal style and values.

Zephyr is considering expanding its product line to include fitness accessories and is debating whether to develop a new brand for this line or extend the Zephyr brand. The marketing team has also conducted a perceptual map analysis to identify potential gaps in the market and to understand where Zephyr stands relative to its competitors on key dimensions such as style, functionality, and price point.

Considering Zephyr's strategy to blend high performance with high fashion, which brand positioning approach is it employing?

Positioning based on product benefits

Zephyr Athletic Wear is a burgeoning athletic apparel brand that aims to establish itself prominently within the highly competitive athletic wear market. Zephyr's mission is to provide high-quality, stylish, and innovative athletic apparel that caters to fitness enthusiasts who do not want to compromise on style or performance. Despite having a strong product line, Zephyr faces stiff competition from established brands such as Nike and Adidas.

To differentiate itself, Zephyr has focused on creating a unique brand personality that emphasizes agility, innovation, and a chic aesthetic. Their marketing campaigns highlight the brand’s unique value proposition: apparel that seamlessly blends high performance with high fashion, targeting consumers who view their fitness wear as a statement of their personal style and values.

Zephyr is considering expanding its product line to include fitness accessories and is debating whether to develop a new brand for this line or extend the Zephyr brand. The marketing team has also conducted a perceptual map analysis to identify potential gaps in the market and to understand where Zephyr stands relative to its competitors on key dimensions such as style, functionality, and price point.

Based on the perceptual map analysis, if Zephyr identifies a segment that prefers athletic wear that is both high in style and functionality but finds no brand fully meets these needs, what strategy should Zephyr consider?

Differentiation

Zephyr Athletic Wear is a burgeoning athletic apparel brand that aims to establish itself prominently within the highly competitive athletic wear market. Zephyr's mission is to provide high-quality, stylish, and innovative athletic apparel that caters to fitness enthusiasts who do not want to compromise on style or performance. Despite having a strong product line, Zephyr faces stiff competition from established brands such as Nike and Adidas.

To differentiate itself, Zephyr has focused on creating a unique brand personality that emphasizes agility, innovation, and a chic aesthetic. Their marketing campaigns highlight the brand’s unique value proposition: apparel that seamlessly blends high performance with high fashion, targeting consumers who view their fitness wear as a statement of their personal style and values.

Zephyr is considering expanding its product line to include fitness accessories and is debating whether to develop a new brand for this line or extend the Zephyr brand. The marketing team has also conducted a perceptual map analysis to identify potential gaps in the market and to understand where Zephyr stands relative to its competitors on key dimensions such as style, functionality, and price point.

Which of the following is a potential disadvantage of using perceptual maps as Zephyr has done?

They cannot guarantee that identified gaps represent a demand.

Mike realizes that the current positioning of Brand M is different from the positioning that Mike wants. Please choose an activity that can help Mike to understand why this happened.

Run a survey to understand the perceptual position of Brand M from its customers

Please choose the correct name of ‘A’ on the perceptual map.

Differentiation

Please choose the correct name of ‘B’ on the perceptual map.

repositioning

Which of the following statement about the perceptual map is CORRECT?

The price of Brand M may not be higher than the price of Brand 2 in the real market.

Which of the following is most associated with a purchase using cognitive processes compared to emotional factors? 

real-estate loan

Sophia is deciding which smartphone to buy. She spends weeks researching different models, comparing their features, prices, and customer reviews. This behavior indicates Sophia's decision-making process is primarily:

optimizing

The phase 3 post-purchase process for a high-involvement shopper is best described as:

reevaluating the purchase little or not at all.

Caty’s Cycles sells a wide variety of motorcycles. Which of the following efforts is NOT a technique Caty’s could use to minimize barriers to purchase?

all answers correct

"TechGlow," a tech-gadget company, has decided to target young professionals with their new range of smart wearable gadgets. They've identified that this segment values seamless integration with their other devices and stylish designs. In the context of Positioning, what should "TechGlow" prioritize?

Develop an action plan emphasizing the integration and design of their gadgets.

"HealthyMunch," a health food brand, has identified three market segments: fitness enthusiasts, individuals with dietary restrictions, and busy professionals looking for quick healthy meals. They've assessed that the busy professionals segment has the highest purchasing power but is also heavily targeted by competitors. Given the principles of Targeting, what should "HealthyMunch" consider doing?

Assess the attractiveness of each segment before making a decision.

A firm preparing to introduce a new deodorant has learned that more competitors are offering products formulated for women than men. This finding most likely emerged during the ________ step of the firm’s STP process.

targeting

"SportyGear" is a company producing athletic wear. After conducting market research, they discovered three primary segments: professional athletes, casual gym-goers, and fitness newbies. However, the company has limited resources and wants to ensure they pick a segment that has the most potential for growth and hasn't been saturated by competitors. Based on the material, which criteria should "SportyGear" prioritize in their decision-making? (choose TWO options / no partial points)

differentiable/competitive situation and growth

"GreenBeans," a sustainable clothing brand, is working on its market segmentation. They identified two main variables: consumer buying behavior and age groups. They noticed that younger consumers, aged 18-25, are more influenced by trends, while older consumers, aged 40-55, are influenced by the sustainability factor. Which of the following statements best describes the link between these segmentation variables?

Consumer buying behavior varies with age, indicating a potential interaction between these segmentation variables.

"BookMates" is an online bookstore looking to expand its market share. They've identified three segments in their market: avid readers who buy books frequently, occasional readers who purchase only best-sellers, and students who need academic books. Based on STP strategy, which of the following steps should "BookMates" take next?

Profile each of the identified segments to understand their specific needs.

A small beverage company wants to enter a market dominated by a few large competitors. Which strategy should it adopt to effectively challenge the established market players?

Use counter-segmentation to offer products that appeal to overlooked customer groups.

True or False: On a perceptual map, two brands, "Brand A" and "Brand B", appear close together based on price perception. Therefore, in reality, prices of "Brand A" and "Brand B" are very similar.

False

"GreenThumb" specializes in gardening tools and supplies. They recently identified a small segment of urban apartment dwellers who are keen on balcony gardening. This segment is unique and very specific but has shown a rising interest in personalized solutions. If "GreenThumb" wants to cater specifically to this segment’s unique needs using a single marketing mix, which targeting strategy would they employ?

niche marketing

A beverage company is considering launching a new fruit juice targeted at (A) a niche group of fitness enthusiasts in a small town, or (B) young professionals across a major city who prefer quick, healthy drink options. Considering the need for the segment to be substantial, which option should the company consider?

Option B, because the segment is larger and more profitable to serve.

"ReadNow," a book publishing company, traditionally catered to the mass market with generic novels. However, with an influx of specialized reader segments emerging, such as young adult fantasy enthusiasts or historical fiction aficionados, "ReadNow" is contemplating a change in strategy. What type of targeting strategy would best allow "ReadNow" to cater to these specific reader interests without alienating the broader market?

Segment Marketing

To maximize usefulness of your segmentation, the segment must be _____________________. (CHOOSE ALL CORRECT ONES)

Identifiable, Substantial, Accessible, Actionable

Given the understanding of a perceptual map, which of the following best describes its primary purpose?

To visualize a brand's position in the market relative to competitors based on certain attributes.

A company uses a perceptual map and notices that there's a gap in the market, suggesting no competitors are currently satisfying a particular consumer segment's needs. What should the company be cautious about before launching a product in that gap?

Just because there is a gap doesn't mean there is demand.

Imagine "BeauCafe", a renowned coffee brand, decides to release a new line of premium leather handbags. Which type of brand strategy is BeauCafe employing for this decision?

brand extension

A company, "HydroTech", produces state-of-the-art water filtration systems. They've developed a new filtration product that provides a faster flow rate than any other product on the market. To introduce this new product, they decided to use the "HydroTech" name but with a unique design and logo different from their primary water filtration systems. What brand development strategy is HydroTech using?

line extension

Considering the concept of a perceptual map, if "EcoDrive", a car brand, finds there's a gap in the market for affordable cars with high-end luxury features and they introduce a new car model to fill this gap, what strategy have they primarily employed based on the perceptual map's insights?

differentation