MKTG 300 Exam 2 Quizzes

Maui Jim is a manufacturer of premium sunglasses. It is considered a top brand. The glasses are sold directly through the company's website and resellers such as Sunglass Hut. The company's website features a browsing menu titled "Activity" where customers can shop the sunglass line by activities such as golf, fishing, running, hiking, tennis, and water sports. Maui Jim is using these activities as a segmentation approach to appeal to customers who enjoy these various activities by providing specific models of sunglasses to "fit" each activity. Maui Jim is using _______ segmentation by focusing on consumers' active lifestyles.

psychographic

Aetna Insurance is a dominant provider of health insurance, and it contracts with businesses to offer employee health insurance. Aetna typically relies on standard segments of business customers based on the number of employees working at the firm. Small businesses are those with fewer than 100 employees; medium-sized businesses employ 101 to 999; and large enterprises have 1,000 or more employees. Aetna's segmentation is based on company _______.

size

Dell is a technology manufacturer and marketer best known for its computers. In the laptop category, Dell offers several branded options: XPS, a premium model; Alienware Gaming, for the most up-to-date gaming features; Inspiron, satisfying basic computing needs; and Chromebook, as a budget model. Dell uses a different marketing mix for each model in order to specifically target customers whose needs "fit" or "match" the features provided by the laptop. Which type of segmentation strategy is Dell using to market laptops?

Multisegment targeting

L'Oréal, a beauty brand, offers a variety of powders and liquid foundation for women with different skin tones. The company's website offers guidance to women to help them assess their skin color—from fair, porcelain skin to a deep, dark complexion. L'Oréal is utilizing _______ segmentation by offering a range of products to meet the needs of all women and diverse ethnic backgrounds.

demographic

Fastenal is a distributor of industrial tools and supplies. It operates more than 2,000 branch locations across the country. It focuses primarily on the business-to-business market and has identified several distinct markets to target: 1) smokestack industrials, 2) modern warehouse, 3) mom-and-pop services, and 4) white-collar industrial. These descriptors help Fastenal's account managers to create a unique message and product or service appeal to the distinct market segments. According to the text, at which step of the market segmentation process are segment descriptors determined?

Third

Which of the following statements is true regarding trends that are leading to the continued growth of customer relationship management as a tool for targeted marketing strategies?

Consumers will demonstrate loyalty to companies and brands that have earned their loyalty and that reinforce that loyalty at every purchase occasion.

Sherman's is a furniture and appliance retailer serving a tri-city area. The company is interested in identifying viable markets in order to be more effective in marketing its products and services. Which of the following descriptions meets all the characteristics of a market?

Individuals or couples who own their own home, needing to purchase new or replacement furniture and appliances, with the disposable income or access to credit to afford new items, and a desire to purchase

Eddie Bauer has 275 store locations across the United States. It utilizes a sophisticated, data-driven approach to identifying the styles and selections that each of the stores will offer, dividing the country into eight distinct regions such as the west coast, west north central, east north central, and south Atlantic. Each region contains two or more states; for example, the west south-central region includes Texas, Oklahoma, Arkansas, and Louisiana. Eddie Bauer believes each state within a region is relatively similar in terms of climate, so the chain can determine styles that are best suited to those temperatures and weather patterns. For example, those living in the northeast or midwest would have a greater need for winter parkas than consumers in the west or east south-central regions. Based on this example, Eddie Bauer is using _______ segmentation.

geographic

Recently, there has been a growth in assisted living centers across the United States as the number of adults aged 65 and older increases due to individuals living longer. This phenomenon indicates that companies that choose to develop senior living centers can be assured that this market segment meets the criterion of _______, meaning that it is large enough to warrant developing and maintaining a special marketing mix.

substantiality

Christina is considering expanding her women's fashion boutique to include clothing for expectant mothers. However, she's concerned about whether her geographic market has enough women who are pregnant to justify her expenditures. Furthermore, she's heard that the birth rates are down across the United States. Which criterion for successful segmentation is of most concern to Christina?

Substantiality

Prisha is an avid music fan. She enjoys attending music festivals in her local city as well as around the country. Her favorite festival is Lollapalooza, held each summer in downtown Chicago, Illinois, but she's also traveled to Austin, Texas, for the South by Southwest festival. Prisha is always surprised to see so many companies with booths and representatives who are interested in interacting with concertgoers, but she assumes it's a great way for them to connect with younger customers like herself who are between the age of 18 and 30. Companies like State Farm, a leading property and casualty insurance company, believe that the best way to create relationships with customers is to join them in activities they enjoy. Which type of market segmentation best captures this combination of age and interest in contemporary or alternative music?

Psychographic

FitNFantastic is an independently owned CrossFit fitness studio, and it is currently struggling to identify its market opportunity. The owner, Badara, received his degree in sports physiology but has never taken any business courses. He's recently been doing some research about market segmentation and learned that if he were to adopt a marketing segmentation strategy, his business might benefit. Which of the following is one of the benefits for firms that use market segmentation?

Market segmentation helps marketers define customer needs and wants more precisely.

Petco provides products and services for individuals who own pets. Petco might use _______ to tailor marketing mixes to meet the needs of specific customers such as those who own cats, dogs, fish, birds, or other animals.

market segmentation

The Western Store is a retail outlet that specializes in western-style boots, jeans, shirts, and hats. The business frequently uses radio advertising on country radio stations, Pandora, and Spotify. In addition, The Western Store sponsors several high school students who compete in rodeo competitions. The store has about 3,000 followers on Facebook and Instagram. This information indicates that The Western Store's targeted markets are _______ and able to be reached via promotions and social media.

accessible

Often Running is a retail store that caters to individuals who enjoy running and walking. However, the store understands that not all individuals are the same, and many may share one or more characteristics that lead them to have similar product needs. For instance, runners participating in high school or college track teams may need several different types of shoes for training, including running shoes, indoor track shoes, and outdoor spike shoes. The group of runners who are members of a track team would represent a market _______ to the business.

segment

LUS Brands is based in Canada. The company was founded by Sahar Saidi, who is the ultimate "curly girl." Over the years, she had tried every hair care product on the market for curly hair and was always disappointed. She decided to create her own formula. After years of research and development, Sahar created shampoo, conditioner, and styling cream for women with curly hair. LUS Brands is using a(n) _______ targeting strategy.

concentrated

Ren is a business development consultant for a solar energy company. The company is seeking to expand its business with commercial accounts. Ren typically works in the education market specializing in smaller school districts where he can meet with the superintendents and school board to discuss the benefits of utilizing solar power. Ren's market segment would be categorized as a(n) _______.

institution

Pasua is an Amazon Prime member who appreciates the convenience and flexibility of ordering products from Amazon. She typically shops using the Amazon app on her phone. Pasua is always amazed how Amazon's suggestions of products she might like are so on-point. She frequently purchases one or more of Amazon's "recommended for you" items as impulse purchases. Amazon is using _______ as a targeting tool based on its ability to track interactions with customers.

customer relationship management (CRM)

The Dollar Store has created a unique following of budget-oriented shoppers by offering products priced at $1 and up. It is considered a "value" store where customers can buy generic and brand-name items at deep discount compared to full-service grocery retailers such as Kroger or Meijer. The Dollar Store is using _______ as a positioning base to differentiate its stores from its competition.

price and quality

The Good Sleep Hotel chain offers a simple solution to individuals who need to purchase one or more nights away from home—a good night's sleep! The company has one style of room, all with the same amenities, size, and ability to accommodate up to four people with two queen-size beds. Good Sleep Hotel believes that everyone deserves a restful night away from home. Focusing on this simple need enables the company to reduce its marketing expenditures and costs associated with offering different types of rooms such as singles or suites. The Good Sleep Hotel chain is using _______ targeting.

undifferentiated

Rogers and Hollands, a jewelry store chain, is often based in shopping centers. The chain primarily promotes engagement rings and wedding bands to couples who are seeking rings as an outward sign of their relationship commitments. This is an exciting time for couples, and Rogers and Hollands enjoys working with couples to find just the right ring to fit their budgets and style preferences. The focus of Rogers and Hollands on the engagement and wedding ring market exemplifies its use of _______ segmentation.

demographic

The purchase of health and beauty aid products can be overwhelming due to the number of choices. For example, Procter & Gamble offers its Old Spice brand for men, Head & Shoulders for individuals needing dandruff control, and Pantene Pro-V formula that "transforms your hair by making it stronger." Procter & Gamble utilizes a unique marketing mix for each brand of shampoo, giving the company many benefits such as greater sales volume, higher profitability, larger market share, and economies of scale in manufacturing and marketing. Procter & Gamble is using _______ targeting.

multisegment

JCPenney, a U.S.-based retail chain of 870 stores, is more than 110 years old. Since its first days as a single store location in Wyoming until today, it has experienced many transformations. The store has made changes in inventory, advertising messages, and store design to appeal to an ever-changing customer base. In recent years, JCPenney has been using a _______ strategy and now advertises that "We're always helping you find amazing deals on all your favorite items." Thus, JCPenney is attempting to change consumers' perceptions about its stores in relation to its competitors.

repositioning

Which of the following statements regarding market segmentation is true?

There are no scientific procedures for selecting appropriate segmentation variables when choosing a basis for segmenting the market.

Chun and her mother are shopping for back-to-school supplies. Chun enjoys visiting clothing stores such as American Eagle with bright lighting, energizing contemporary music, and up-to-date fashions. Even if Chun doesn't purchase anything at American Eagle, she enjoys the experience and has received _______ value.

hedonic

Tyrion is a purchasing analyst for Dow Chemical. He is responsible for negotiating agreements with raw material manufacturers used as input for various Dow Chemical products. He prides himself on his organized and rational approach to his job purchasing chemicals and attempts to utilize the same approach in his personal life. He recently ordered ink cartridges from Amazon for his printer in his home office and received free shipping since he's a Prime member. He also likes how Amazon offers the opportunity to re-order items from his previous orders. How would you classify the value Tyrion received from his purchase of ink cartridges from Amazon?

Utilitarian

Birgit likes to eat healthy foods. She recently visited Bed Bath & Beyond to purchase a high-speed blender to make smoothies, soups, sorbet, and other whole food-based recipes. Birgit compared several brands such as the Ninja Professional ($125), Vitamix ($300), and Kitchen Aid Classic ($80). Birgit decided to purchase the Ninja Professional and was pleasantly surprised at how well it blended spinach, apples, cucumbers, soy milk, and ice when making her morning green smoothie. She made her choice because of the _______ value of the Ninja but was then thrilled when she received more value than she expected from its performance.

perceived

Harry's, a men's grooming company, markets razors and hair styling products. Harry's uses a variety of promotional media including advertisements on ESPN to create awareness about its brand and to influence purchase consideration. Recently, Ravindra was watching ESPN and decided to give Harry's a try. The advertisement also helped him realize that he wasn't very satisfied with the disposable razors he had been using. In this case, the advertisement acted as a(n) _______ stimulus to trigger Ravindra's need recognition for a new shaving product.

external

The amount of information search a consumer will conduct depends on several factors. For example, Carmen is interested in purchasing a new laptop computer. Carmen is highly knowledgeable about technology since she majored in business information systems and enjoys reading about trends and new products in magazines and online forums. She has owned Dell computers and had positive experiences with the brand. Carmen plans to spend approximately $1,500, and she would like the laptop to last at least two years. Based on this information, which factor influencing information search will lead Carmen to spend more time conducting an external search?

Consumer interest

Hayley is a senior in high school who wants to major in healthcare administration in college. She's engaged in some information search activities and has identified three schools within a three-hour drive of her home that offer a major in health care management or administration. These three schools are known as Hayley's _______.

evoked set

Gustavo was shopping at Hollister for jeans. He noticed a sign near the plain T-shirts that advertised "buy one, get one half off." Since he often wears plain T-shirts, Gustavo spontaneously decided to purchase a white shirt and a black shirt. The sign served as a(n) _______ to influence consumers to make impulse or unplanned purchases.

nudge

Quentin recently purchased a Ford F-150 truck to use in his construction business. He had considered other models but decided the Ford was the best value. After owning the truck for two weeks, he received an e-mail from his sales representative at the Ford dealership thanking him for his purchase. In addition, the sales representative included a link to a review of the Ford F-150 in Car and Driver where it was chosen as the top-rated truck. Quentin had been confident about his purchase decision prior to his purchase but felt even more positive about his purchase after receiving the e-mail from his sales representative and reading the magazine review. The follow-up e-mail and article helped to mitigate any _______ Quentin have felt in the postpurchase stage of the decision process.

cognitive dissonance

Tamika enjoys shopping at Target. She learned through Target's Instagram posts that a collection from Vineyard Vines would be available in stores and online for a limited time and in limited quantities. Tamika set a reminder on her phone and accessed the Target website at the time the collection was to debut. She found an item she wanted to purchase. However, when she clicked "purchase," she received a message the item was sold out. Within minutes, the entire collection was sold out. Tamika was disappointed and experienced the _______ effect.

jilting

WeatherTech manufactures custom floor mats and accessories for automobiles. WeatherTech is predominantly an online retailer that fulfills customer orders from its website. In most cases, customers can navigate the website and identify products that are made to fit their vehicle. However, some customers may have questions before or after purchase. Which of the following actions can WeatherTech implement to stimulate positive word-of-mouth about its business and to address customer questions?

Include a toll-free number on the website which is answered by a service representative on the first or second ring and who is knowledgeable enough to address any questions or concerns a customer might have

Mei-Ling is a college junior majoring in finance and economics. She is interested in applying for internships and plans to attend her next college job fair. She wants to purchase a business suit to wear to the job fair and at subsequent interviews. Mei-Ling wants to look her best and wear appropriate attire. Since making a first impression is important, Mei-Ling will likely take considerable time to visit stores and try on multiple suits before she makes her purchase decision. Mei-Ling has never purchased a suit before, and this is the first time she will buy an expensive item without her mother assisting in the decision. Which type of decision-making will Mei-Ling utilize in purchasing her suit?

Extensive decision making

Robert is a college freshman. For the first time, he is making purchases on his own for many items such as toothpaste, shampoo, deodorant, and laundry detergent. On a recent visit to Walmart, Robert picked up a tube of toothpaste and a container of laundry detergent. He easily recognized the brands his family used and didn't spend any time comparing alternatives or even looking at prices. Robert utilized _______ decision making.

routine response behavior

Aditi and Sam are newlyweds. They will be hosting a dinner party for Sam's parents who are knowledgeable and savvy wine drinkers. Aditi doesn't know much about wine but wants to serve a bottle of wine with dinner. She visits a local liquor store specializing in wine and spends quite a bit of time looking at various wines and speaking with a knowledgeable salesperson at the store. This is an example of _______ involvement and how it can impact a customer's purchase decision process.

situational

Lucía is an avid coffee drinker. She often stops to purchase a morning or mid-afternoon coffee at Dunkin'. She likes the convenience of the drive-through, and her favorite store always gets her order right. However, depending on her schedule and location, she's equally as likely to stop at Starbucks or McDonald's for a coffee. Lucía would be classified as being in the _______ loyalty group with Dunkin'.

satisfied

Avery was a multi-sport athlete in high school. She now teaches aerobics and spin classes at her university's fitness center. She wears only Nike shoes and sports apparel and has adopted the Nike slogan, "Just Do It" as her personal statement and the way she approaches life. She believes in herself and feels stronger, fitter, and more competitive when wearing or using Nike products. Avery is also an unpaid ambassador for the brand and often posts photos of herself wearing Nike products on her social media accounts. Avery would be classified as being in the _______ loyalty group with Nike.

committed

Bertrand's parents are originally from France. They have spoken to him in both English and French for as long as he can remember. However, he thinks that they spend more time correcting his pronunciation and use of grammar when he speaks French compared to when he speaks English. Over time, Bertrand has learned that this is common for French families as they desire to speak "perfect" French. Thus, these families share a common _______ of speaking perfect French, which is one component of culture.

value

Emma was raised in the southern part of the United States where it's common to ask guests visiting the house, "would you like a Coke?" This expression is used to inquire if the guest would like a beverage to drink, not necessarily a Coca-Cola or Coca-Cola product. In contrast, people living in the Midwest might ask if the guest would like a pop or soda pop. The use of these expressions by people living in different areas across the United States demonstrates that culture is _______.

learned

Margo is a division vice-president at a large insurance company. She dreams of purchasing a Range Rover Sport vehicle that retails for approximately $70,000. She thinks the brand offers the highest level of luxury in a sport utility vehicle. In addition, she associates the Range Rover brand with prestige, wealth, and success. Once she's able to own a Range Rover, Margo will feel like she's "made it." To Margo, the people who own and drive Range Rover vehicles serve as a(n) _______ reference group.

aspirational

Brandon has always enjoyed playing video games. He started live streaming and recording videos as well as giving product reviews. Over time, Brandon has developed a following on YouTube, and he is now endorsed by several video game companies who view him as an important _______ who can influence others to purchase goods and services.

opinion leader

Consuela is a busy mom of three children ranging from 3 to 8 years of age. The kids usually accompany Consuela on trips to the grocery store, and she's often amazed at how frequently they ask for items that are not on the shopping list. The youngest is usually asking for a toy, the middle child wants candy, and the oldest wants ice cream. As part of the family decision process, the children perform the role of _______.

initiators

Marianne recently moved from the Midwest to South Florida to pursue a career in real estate. She enjoys yoga and Pilates and hopes to find a studio in her new city so she can continue her fitness routine. This example demonstrates the impact of _______ as an individual influence on consumer buying decisions.

life events

José is shopping at Kohl's for dress pants and notices several varieties of Dockers brand pants by Levi's. Although Dockers come in a range of colors and fits, he's not interested in the brand because his father has always worn Dockers. José thinks he's hipper and more stylish and that Dockers are for individuals who do not care about style. Which aspect of individual influences on buying decisions is demonstrated by this example?

Self-concept

Rishaan likes cars and associates German automobile manufacturers with high levels of quality. He drives a Volkswagen Jetta and highly values the company. Recently, Volkswagen was fined due to emissions violations in its diesel cars that only activated anti-pollution controls when they were tested. On the road, Volkswagen's diesel models emitted up to 40 times more toxic fumes than permitted by law. One of Rishaan's friends, Jeff, asked him about the Volkswagen diesel emissions problem, but Rishaan said he wasn't aware of any problems. Jeff was surprised at Rishaan's response because he distinctly remembers forwarding an article to Rishaan about the problem and discussing the issue with him. What could account for the difference between Jeff and Rishaan's recollection of this issue?

Selective retention

Danita is 40 years old and has always wanted to learn to speak Italian. She's noticed several television advertisements for Babbel promoting its system of foreign language instruction. The ads show professional people like her learning new languages and being successful. According to Maslow's hierarchy of needs, Danita's desire to learn Italian would fulfill a _______ need.

self-actualization

Maya and Damone are married with two young children. They own a home and recently made some improvements around the house. They installed a Ring doorbell and a motion-detecting security light by their garage. Both units are connected to the Ring application that notifies Maya and Damone any time a person is in view of either device. In addition, they can program the application to record video. The Ring doorbell and motion-detecting light fulfill Maya and Damone's need for _______.

safety

According to the _______, an industry classification system, the United States has 860,701 business entities in category "72," which is described as "accommodations and food service." The classification system enables business marketers to analyze, segment, and target markets.

North American Industry Classification System (NAICS)

Jarrell is the digital marketing manager for Grainger, a company selling tools, fasteners, and other items via its web-based catalog to business customers including manufacturers, automobile dealerships, and automotive service companies. He uses a blog to post case studies showing how customers are using Grainger products and provides a link to the products in the online catalog. He's then able to monitor and measure the _______ rate to identify how many customers actually click on the links, and whether or not a purchase is made. Jarrell enjoys the opportunity to track customer behavior and knows his role makes an important impact to Grainger's revenue and profitability.

conversion

Sapporo Brewery, Nissan, Yamaha, and Canon are all Japanese firms that are united under one conglomerate called a _______, defined as a network of interlocking corporate affiliations.

keiretsu

The Florida Citrus Growers organization has been concerned with a recent decline in orders for oranges by companies such as Tropicana that produce orange juice. Orange juice has been purported to have high levels of sugar, and many families are limiting the quantity of fruit juices consumed in their homes. Therefore, the demand for oranges can be classified as _______.

derived

Kalani is a sales representative with Sherwin-Williams, a paint company that markets coatings and materials to contractors, facility managers, and other business accounts. She often uses LinkedIn, a social media platform, to network with other business professionals and to identify individuals who have the job titles such as facility manager, director of operations, and paint contractor in her geographic territory. Like other business-to-business professionals, Kalani is using LinkedIn as a tool to _______.

gather leads and prospect for new customers

CDW is a technology-related firm based in Chicago. The company maintains a dedicated salesforce of account executives who are organized into a variety of divisions to primarily serve their business customers. CDW purchases equipment from manufacturers such as Dell, Asus, and Microsoft that is then sold online or via inbound or outbound telemarketing. CDW is classified as a(n) _______.

reseller

According to a recent publicity announcement, "Walgreens Boots Alliance Inc. (WBA) and Microsoft Corp. have joined forces to develop new health care delivery models, technology, and retail innovations to advance and improve the future of health care. The companies will combine the power of Microsoft Azure, Microsoft's cloud and AI platform, health care investments, and new retail solutions with WBA's customer reach, convenient locations, outpatient health care services, and industry expertise to make health care delivery more personal, affordable, and accessible for people around the world." This is an example of a _______.

strategic alliance

OfficeMax is a retailer that provides consumable products such as paper, pens, boxes, ink cartridges, and envelopes to both consumer and business markets. Business purchasers such as Lincoln Memorial Hospital typically use an intranet, a customized web-based platform to order products needed for the hospital or connected physician office facilities. The type of business products mentioned that are offered by OfficeMax to its business customers are classified as _______.

supplies

McKinsey is a consulting company that offers services to a variety of industries and issue areas. Its website includes a variety of publications such as white papers and case studies that provide readers with a glimpse of McKinsey's capabilities. The case studies and white papers are an example of _______ marketing.

content

Which of the following is an example of a business product?

Crest selling sample-size toothpaste to a dentist who will distribute the product to his or her patients

Katie is the marketing director for a local office of the Komen Foundation, a non-profit organization that advances research and treatment options for individuals with breast cancer. Katie often makes purchases of supplies, marketing materials, and branded merchandise for events such as the Race for the Cure. Which type of business buyer is the Komen Foundation?

Institution

Cintas is a company that provides business owners with items such as floor mats, cleaning supplies, custom apparel, and fire protection solutions. It is a dominant provider to many industries including category "721191"—the bed-and-breakfast inn category—that, according to the _______, has approximately 18,014 businesses.

North American Industry Classification System (NAICS)

Marc is the owner of Marc's Auto Service, specializing in imported automobiles. He typically orders parts needed to repair customers' cars from NAPA Auto Parts. NAPA can deliver to Marc's business, and if he orders a part by 8 a.m., he usually receives it by lunchtime. Marc appreciates the ability to get exactly the right part for each vehicle's make and model. These items might include oil filters, radiator hoses, belts, or light bulbs. The products Marc orders from NAPA would be classified as _______.

component parts

Jim Beam White Label bourbon is made from a recipe that is more than 200 years old. The ingredients include corn, rye, barley malt, and natural Kentucky water. The corn, rye, and barley malt arrive at Jim Beam's manufacturing facility in their natural forms as whole grains. These items are fermented using a yeast strain kept alive by Jim Beam since the end of Prohibition. Next, the company distills the mixture twice prior to aging the final product for four years in new, charred, American oak barrels. Some believe it is the best-tasting brand of Kentucky straight bourbon whiskey in the world. According to the text, how would the ingredients of corn, rye, and barley malt be classified?

Raw materials

Kyrin is the information technology director for the police department in Newburgh, Indiana. She is responsible for purchasing and maintaining all technology-related equipment and services for the department including computers, printers, body cameras, in-car video devices, servers, and networking equipment. She often buys from CDW, a technology-related firm, and appreciates the opportunity to work with dedicated account executives who are experienced in assisting _______ accounts like the police department.

government

Stepan Chemical produces chemicals that are sold to consumer product manufacturers, such as Procter & Gamble, as raw materials in the manufacturing processes to create shampoos and detergents. Stepan's chemicals are known as _______ products.

business

Levi is a supply chain manager for Moroccan Oil. This company makes hair care products such as shampoo, conditioners, and styling products. He is primarily responsible for purchasing the various ingredients that are used in manufacturing the company's products and must also work collaboratively to determine formulations, pricing, delivery schedules, and payment terms. Levi uses persuasive communication skills to create outcomes that result in lower prices or higher profit margins for Moroccan Oil. It's a complex process that demonstrates how the _______ is a key differentiator between consumer and business firms.

type of negotiations

Trevor is a marketing manager for Hormel Foods. He typically works with businesses in the hospitality and institutional markets. He's moving to a new territory and is interested in identifying the market opportunity or potential number of businesses that match his target customer specifications. Which of the following would be the most useful source to assist Trevor in this endeavor?

North American Industry Classification System (NAICS)

Christina is a supply chain professional for Panera Bread. She is responsible for negotiating prices for various ingredients such as yeast, flour, spices, and sugar that are utilized in the making of the bread products that are created prior to distribution to company-owned or franchise stores. Christina works with the manufacturing team to schedule product deliveries and to order sufficient quantities to meet the weekly demand schedule. Christina places orders for the needed items based on the projected demand for that week. Which type of buying situation best describes Christina's process?

Modified rebuy

Grubhub, a company providing delivery of restaurant menu options, and YUM! Brands, the corporate owner of Taco Bell and KFC, announced a strategic partnership. Grubhub will be an exclusive national partner to YUM! by providing dedicated support for KFC and Taco Bell. Grubhub will provide branded online delivery channels, logistics, last-mile support for delivery orders, and point-of-sale integration to streamline operations. In addition, KFC, Taco Bell, and Grubhub will engage in joint marketing initiatives that will generate new diners and drive order frequency for existing diners. A key element of the alliance between Grubhub and YUM! Brands will be the level of confidence each partner has about the other partner's reliability and integrity. Thus, maintaining _______ is critical to the success of this strategic alliance.

trust

Rodney is an account executive with Canon Business Solutions and works in Cleveland, Ohio. He typically serves accounts located in the downtown business district and specializes in larger businesses such as investment firms, law offices, and banks. His first goal when prospecting for new customers is to introduce himself to the business receptionist and try to gain some information about the type of equipment the company is currently purchasing and where it buys items such as copy machines or printers. However, the receptionists can be tight-lipped and often are not willing to provide any information to Rodney. Which role in the buying center are receptionists performing?

gatekeepers

Jaray is a chemist and responsible for new product development in the agriculture division of Syngenta. He is developing a formula for an herbicide that can be used to control weeds but is also natural and has no harmful chemicals. Jaray is seeking to collaborate with his chemical suppliers, including Dow and Stepan, to get samples of their naturally formulated surfactants to use in his herbicide. Ultimately, Jaray will decide which formulation is best and identify the one or two brands that meet Syngenta's specifications. Jaray is performing the role of _______ as a member of the buying center.

decider

Kendra is a sales representative for Dell Computers. She is primarily responsible for marketing Dell products to buyers in the educational market who will use the equipment as part of their jobs related to teaching or administrative work for the school, district, college, or university. Which of the following individuals would NOT be one of Kendra's potential customers?

Students purchasing computers through the university's technology service

Kalani is an account executive with a medical device company that sells sophisticated camera equipment used in surgical procedures such as knee and hip surgery. Therefore, she primarily works with orthopedic surgeons and hospital surgical departments to promote her company's products. Kalani's territory includes five counties in the southwestern part of Tennessee. Kalani can easily visit each customer account once a month to maintain contact. What is the primary difference between business markets and the consumer markets described by Kalani's customer accounts?

Business markets are comprised of fewer customers than consumer markets.

On its corporate website, LG states, "We create consumer electronics, appliances, and mobile devices designed to help you connect with those who matter most. Whether that means cooking a nutritious, delicious meal for your family, staying connected on-the-go, sharing your favorite photos, watching a movie with your kids, or creating a clean, comfortable place to celebrate the moments that matter, we'll be there for you every step of the way." The company also highlights its major product categories such as mobile phones, kitchen appliances, televisions, laundry machines, and vacuum cleaners. According to the text, LG would be classified as a(n) _______ type of business customer.

producer

Heritage Glass in rural Tennessee expects 60 to 70 percent of its sales to come from regions outside of the United States including the Philippines, Europe, and South America. Heritage Glass has a _____ vision.

global

Remote geographic locations such as the Bahamas must rely on imported goods since the country cannot produce everything it needs. However, the Bahamas is well known for its cigars and rum, which are exported around the world. The principle that captures this example of goods imported to the Bahamas and exported from the Bahamas is called the _______.

principle of comparative advantage

Four Roses produces bourbon in Kentucky. It has a growing export business due to the global popularity of the beverage. Some countries, such as China, impose tariffs on bourbon produced in the United States to strengthen their own domestic brands. This strategy is known as _______.

protectionism

Apple recently announced that it was investing billions to build a new manufacturing facility near its headquarters in California to produce screens for computers, tablets, and smartphone devices. This investment is part of Apple's strategy to control all component parts of its products and to return production to the United States, a process called _______.

inshoring

Yeti is based in Austin, Texas. The company produces a variety of high-quality products such as coolers, beverage containers, chairs, bags, and branded apparel. It is a publicly traded company operating in the United States, Europe, Canada, Asia, and Australia and manufactures products in the United States, China, and Thailand. A brief look at Yeti's current job openings reveals professional positions in the United Kingdom, the Philippines, and Thailand. Assuming Yeti has office locations in these countries, it would be classified as a ______ firm.

multinational

Canon is a Japanese firm specializing in imaging and optical products such as cameras, photocopiers, and printers. The company recognizes that consumers around the world have similar needs regarding the functions of cameras, photocopiers, and printers. Therefore, Canon can create and manufacture models that are sold around the world with few to no modifications. This is an example of _______.

global marketing standardization

Lihua is learning about global market standardization. She was explaining to a friend the types of products that could easily be standardized for sale around the world except for language differences. Which of the following products could most likely be standardized?

Flash drive

Captiva designs and manufactures a line of swimsuits for active women pursuing surfing, sailing, and other water sports. The brand is becoming popular since it is designed by women and is perfect for active lifestyles. Captiva uses its website to fulfill orders from women around the world but has its offices in the United States. Which stage of global business best describes Captiva's operations?

First stage

Pranav works for a German company that provides components for automobiles. He is preparing for a trip to China to meet with car manufacturers and had a short session on business etiquette. One recommendation regarded the presentation of business cards. The recommendation stated that it's a much more formal process in China and that it was important to use two hands when presenting a card to another person. Pranav is learning about the importance of _____ in global business.

culture

Luxury goods such as designer handbags and watches are highly favored in developed countries such as France, Italy, Germany, the United States, and other countries around the globe where consumers have high discretionary income and enough purchasing power to afford these items. Thus, _____ factors are important considerations when selecting global markets for export opportunities.

economic

In a global economy, products and services are exchanged around the world. Ford Motor Company has production plants in Mexico and purchases component parts from various suppliers around the world which are imported to Mexico to be used in production. Once the automobiles are completed, the finished cars are exported primarily to the United States and Canada. The difference between the value of exports of a country and the value of its imports over a given period is called _______.

balance of trade

Farmers who grow wheat and corn in Australia can export their grains to Japan. However, Japan has limits on the quantity of grain that can be imported into the country. Japan is using _____ to limit trade.

quotas

In 2012, the ______ was signed by Colombia, Chile, Peru, and Mexico to create a single region for the free movement of goods, services, investment, capital, and people.

Pacific Alliance

Matcha green tea has become a very popular beverage in recent years. Soar Organic produces some of the finest matcha green tea and works with sales agents and distributors in the United States, Canada, and Australia to aid with international financing, shipping, and supporting Soar Organic's export needs. The sales agents who reside in the countries to which Soar Organic is exporting are called _______.

export agents

Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company are products that feature the company's name or logo. Branded merchandise is available in over 150 countries through agreements known as _____, in which, for a fee, Caterpillar allows other firms to use its name or logo on products such as hats, boots, apparel, and scale model replicas of its equipment.

licensing

Cabi is a women's fashion clothing brand based in Los Angeles, California. Cabi's design team in Los Angeles creates its fashion line sixteen months to two years in advance. The design team selects fabrics and other details to create the clothes. Cabi then hires manufacturers in China to produce the items according to the specifications. Once completed, the garments are shipped to California on container ships that take up to two months in transit. It's a complex process but one that enables Cabi to control costs. Which method is Cabi using to engage in global marketing?

Contract manufacturing

Over the last 30 or so years, Toyota, a Japanese firm has made a considerable investment in the United States and has several manufacturing plants where it produces vehicles for the U.S. market. Its two plants in Kentucky make the Camry, Lexus ES 350, and Avalon. A plant in Texas produces its truck line— the Tundra and Tacoma. In total, Toyota annually produces more than 1.2 million vehicles in the United States. Which method of global marketing best describes Toyota's manufacturing operations in the United States?

Foreign direct investment

Solumbra designs and manufacturers protective clothing which helps people reduce the risk of skin cancer from exposure to ultraviolet rays. Its hats, shirts, shorts, and pants are sold globally through its website as well as through retail accounts in specialty stores. Solumbra's product line is consistent across its global markets which provides efficiency in manufacturing. Minimal modifications are made to the information and language on the product tag. Solumbra is utilizing a(n) _____ strategy for product decisions.

global marketing standardization

McDonald's operates restaurants around the world. The company seeks to make modifications in its menu selections and promotions to appeal to each local market. McDonald's recognizes how individual customer differences in culture and local ingredients impact its business opportunities. Thus, McDonald's is a global company that is acting locally to ensure its success. This strategy is known as _______.

product adaptation

Global marketing must take into consideration the value of its country's currency in relation to the countries' currency where its products will be sold. Over the last several years, the U.S. dollar has been strong, meaning that it has a higher value than the currency in other countries. If the U.S. dollar is strong, which of the following is true?

Trade deficits may grow.

Following natural disasters such as hurricanes and tornadoes, the demand for building products such as drywall or gypsum panels and lumber increases. Sometimes, these events lead to higher prices for building products as demand exceeds supply. However, due to global exporting, the prices might decline. U.S. gypsum manufacturing companies complained that China-based Knauf Tianjin was _____ products and selling panels for lower prices than they charged in China.

dumping

Hoover manufactures vacuums and wanted to expand its manufacturing capabilities. Hoover contracted with an India-based firm and invested funds to provide technology and equipment in a new manufacturing plant in Mumbai. In exchange, Hoover received vacuums that were produced in India and could be sold worldwide. This practice is called _______.

countertrade

Many customers appreciate the benefits of joining Amazon's Prime membership program that provides free shipping on many products. However, some products on Amazon's site are sold by companies outside the United States and are not eligible for Prime shipping since they are shipped directly by the exporter. Which of the following statements is true regarding Amazon and the suppliers who export their items?

Amazon's marketplace has enabled many small firms to participate in global business.

Capital Finance provides investment consulting services to businesses. It has contracts with several companies around the globe, including companies in Thailand, Australia, and India. The Internet has enabled Capital Finance to serve customers around the globe. It is estimated that _____ percent of global trade is facilitated by digital technology.

50

Miguel lives in Mexico and is studying at a university in Monterrey. He's interested in studying abroad and chooses a program in Angers, France that is approved by his university. He's interested in learning more about the city of Angers and locates a website sponsored by the local tourism board. Miguel doesn't read or speak French. Which of the following could most easily help Miguel use the tourism website?

Language translation software

Yasmin works for Bath & Body Works as a category manager. She is interested in identifying the types of products that are typically purchased as gifts, as well as determining how much Loyalty Rewards Members typically spend on gifts. She consults with a database specialist at the company and learns that, unfortunately, this information is not available as part of the information captured related to transactions or purchase history, because Bath & Body Works is not currently capturing whether the purchase was for the customer or a gift. Yasmin has encountered a common disadvantage related to secondary data. Which of the following best characterizes the disadvantage related to Yasmin's research problem?

There is a mismatch between the researcher's unique problem and the purpose for which the secondary data were originally gathered.