Studied by 0 people
exam 1
In marketing, advertisements or salespeople can activate a consumer's purchase decision process by
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.
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.
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
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.
product differentiation
Which of the following is NOT a reason for why the craft beer industry became very popular with the Millennial generation?
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
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?
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?
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.
psychographic
Ethics refers to the
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.
positioning
A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can
increase sales and profitability.
A marketing metric refers to
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?
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
market segmentation.
A need refers to a
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?
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?
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
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.
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
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?
behavioral
An example of a marketer-dominated source of information consulted during an external search is
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?
Using a tax refund to splurge on luxury items while being frugal with regular income
Assume that the perceptual map in Figure 9-9 is an accurate representation for adult consumers. A heavy consumer of mineral water is likely to think that mineral water is
a more adult-oriented beverage than sports drinks.
Claire has just told her best friend, "I'm so glad I bought the Samsung Galaxy S21 rather that those other smartphones I was considering. Streaming is so fast, and the battery stays changed forever." Which stage of the consumer purchase decision process does Claire's conversation identify?
postpurchase behavior
The Container Store believes that unless they empower their employees and suppliers, generate a healthy profit for their shareholders and work to promote a life-sustaining environmental ecosystem, they will not keep growing. This philosophy embodies the _______________________ concept.
social responsibility
Quadrant C in Figure 2-7 represents a(n) ________ in a SWOT analysis.
opportunity
People who tried a product, were satisfied, and bought it again are called________ purchasers.
repeat
Most firms have a goal to maximize their________, achieving as high a financial return on investments as possible.
profit
The U.S. government has threatened to increase tariffs on European luxury automobiles because of a trade imbalance between the United States and the European Union. For American automakers like GM and Ford, this action would reflect a
negative impact as a result of adverse competitive, regulatory, and technological environmental forces.
While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?
The hybrid Civic is a star: the Accord is a cash cow
Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different options, so Samsung uses which type of segmentation variable based on their viewing preferences?
psychographic segmentation
Procter & Gamble (P&G) decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don’t remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable?
demographic
________ is the visual computer display of the essential information related to achieving a marketing objective.
A marketing dashboard
Which of the following best illustrates a psychographic variable?
A consumer’s lifestyle, including hobbies, interests, and values
More than half of all U.S. households are composed of only one or two persons, so Jimmy Dean offers one serving frozen breakfasts, such as its Three Cheese Omelets and Sausage Breakfast Bowls. Jimmy Dean is using________ as the basis to segment its market.
demographic characteristics
All Subaru vehicles are four-wheel-drive. Consequently, the company concentrates its marketing in those regions where four-wheel-drive is a desirable feature, such as the New England and Rocky Mountain states. Subaru is using which kind of targeting?
Geographic
A new company has an objective that its sales will exceed its expenses during its first year of operation. This is an example of which type of goal?
profit
Some universities provide retirement benefits by matching the percentage an employee pays into a retirement account up to a certain percentage. This encourages a larger percentage of employees to participate in retirement planning. This is an example of a(n)________ goal.
employee welfare
The group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware is referred to as the
consideration set.
The demographic characteristics of a population and its culture are types of environmental forces called
social forces
To serve both buyers and sellers, marketing seeks to discover and________ the needs and wants of prospective customers.
satisfy
Scanning your memory for previous experiences with products or brands is called
Internal search
An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is a
strategy
Protecting competition is the primary aim of which law?
Sherman Antitrust
A state of emergency was declared in a US state after a bird flu killed off all the chickens. The supply of eggs became scarce and as a result, egg prices shot up. Bakeries, who use eggs in their products, responded by drastically increasing prices. Is this price gouging?
No because the egg shortage increased input costs for bakeries
What decision-making bias does this demonstrate? When ground beef is advertised as "75% lean," sales are higher than when it is advertised as "25% fat."
framing
In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the horizontal axis represents
relative market share
When marketers want to use product differentiation and market segmentation strategies, what question should they ask when considering the potential for cannibalization with these strategies?
Will our new products steal customers or sales from our older ones?
