MKTG 2301 Exam 2

product

A(n) ________ is anything that is of value to a consumer and can be offered through a voluntary marketing exchange.

core customer value

When bicycle manufacturer, Giant, determines that some consumers use bikes for green transportation whereas others use them for a hobby, it is most likely assessing the ________ of its bicycles to consumers. Defines the basic problem-solving benefits that consumers are seeking.

actual product

When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the

augmented product

Also referred to as associated services.
When marketers develop nonphysical aspects of an offering by adding warranties, financing, and after-sales service, they are focusing on the

consumer products

Products and services used by people for their personal use.
When Madison purchases several bottles of Pepsi beverages and snacks to bring to her family's holiday celebration, it represents the purchase of

specialty

Claudia spent a lot of time shopping for her wedding dress, devoting considerable time and effort to visiting some of the finest bridal shops in her area. For Claudia, her wedding dress is a(n) ________ product.

convenience

Ajay never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered to be ________ products.

unsought product

Products or services that consumers either do not normally think of buying or do not know about.
Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) ________ that consumers don't normally think about much.

product mix

The complete set of 'General Mills' offerings includes cereal, toaster pastries, snacks, soup, yogurt, and baking products. This represents its

product line

General Mills has a variety of brands in its snacks category, including Chex, Nature Valley, Fiber One, and Cascadian Farm. This represents a

increase

In response to increased consumer demand for healthful beverages, Coca-Cola and Pepsi introduced new product lines of fruit juices in order to _________ the breadth of their product mix.

depth

The number of categories within a product line.
Dasani produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should increase the ________ of its product lines.

product line depth

Founded in 1842, Mott's started selling apple juice in 1938, and now offers a wide variety of apple-based products in its product line. Mott's, over the years, increased its

decreased

If a firm deletes an entire product line, it has ________ its breadth.

Brands are assets

Rolex goes to great lengths to protect itself and its products through the use of trademarks and copyrights. This best represents which advantage of branding?

brand equity

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as

brand awareness

________ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it.

perceived value

The relationship between a product's benefits and costs.
Target's A New Day women's clothing line provides higher quality apparel at Target-level pricing, enhancing the product's

brand association

________ reflects the mental and emotional link that consumers make between a brand and its key product attributes.

manufacturer

Nike develops its merchandise, produces it to ensure consistent quality, and invests in a marketing program to establish an appealing brand image. Nike is an example of a ________ brand.
The majority of the brands marketed in the United States are ________ brands.

family brand

In the grocery store, you can see the Kraft name on its Kraft Mayo and on Kraft salad dressings. Having the Kraft name on various products is an example of the use of a

private-label

As the size of retail firms has increased through growth and consolidation, more retailers have developed ________ merchandise, which they use to establish a distinctive identity.

brand extension

Use of the same brand name in a different product line.
Hidden Valley is well known for its Ranch dressing. The company also makes and markets seasoning packets, dips, and pasta salads. This represents a ________ strategy.

brand dilution

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.
In 2005, Frito-Lay came out with a Cheetos flavored lip balm in a failed attempt at extending its brand to a new product line. To the extent that this brand extension adversely affected consumers' perceptions about its current product lines, this could lead to

co-branding

The practice of marketing two or more brands together on the same package.
When Taco Bell teams up with Doritos chips for its Doritos Locos Tacos and advertises them with the Doritos name alongside the Taco Bell name, it is an example of

brand licensing

A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee.
Star Wars memorabilia has been continually successful since the first film was released in the 1970s, and the most recent film releases have led to a massive increase in sales. This is an example of

secondary

For most products, the UPC code is located on the ________ package.

brand repositioning

A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences.
Also called rebranding.
A marketer who wants to improve a brand's fit with its target segment or boost the vitality of old brands would most likely use a _______ strategy.

Food and Drug Administration

The primary federal agency that reviews food and package labels to ensure that the claims made by the manufacturer are true is the

derived demand

________ reflects the link between consumers' demand for a company's product and the company's purchase of necessary inputs to manufacture or assemble that particular product.

manufacturers

In B2B markets, ________ are firms that buy and reprocess products and services before selling them again to the next buyer.

wholesaler

Which intermediary is an example of a reseller?

institutions

In terms of business markets, organizations like colleges that provide services to people in their care are classified as

government

With its estimated outlay of $582.7 billion in fiscal year 2017, the Department of Defense represents which type of B2B organization?

In the B2B buying process, the search for information and evaluation of alternatives is more formal and structured.

Which statement regarding the B2B buying process is true?
1 The B2B buying process is identical to the B2C buying process.
2 The B2B buying process is less complex than the B2C buying process.
3 In the B2B buying process, decisions are made quickly and without much consideration.
4 In the B2B buying process, formal performance evaluations of the vendor generally do not occur.
5 In the B2B buying process, the search for information and evaluation of alternatives is more formal and structured.

need recognition

The business-to-business buying process is initiated by which step?

product specification

The Uptown Performing Arts Studio has had the same sound system for the past 20 years. Concert-goers have begun to complain that the music doesn't sound very good and that in some sections of the theater you cannot hear anything. The owner of the Uptown Studio has decided it is time to replace the old sound system. After recognizing this need, the owner should proceed to which step of the B2B buying process?

request for proposals

The acronym RFP, when used by those involved in business-to-business buying, stands for

web portals

In the B2B buying process, ________ can provide tremendous cost savings for firms because they eliminate periodic negotiations and routine paperwork, and offer the means to form a supply chain that can respond quickly to the buyer's needs.

proposal analysis, vendor negotiation, and selection

In this stage of the business-to-business buying process, firms are likely to narrow their selection to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale.
1 the RFP process
2 vendor specification
3 product specification
4 proposal analysis, vendor negotiation, and selection
5 vendor performance assessment

vendor performance assessment

What is the final stage in the business-to-business buying process?

Initiator

Professor Leroy wants to use a new textbook in the marketing classes he teaches. He calls Sam, the textbook publishing's sales representative, who suggests three different books to Professor Leroy, pushing one book in particular. In this buying center, Professor Leroy is the ________ and Sam is the influencer.

decider

Yuan is involved in the buying center of a large organization. He ultimately will determine whether to buy, what to buy, how to buy, or where to buy. What role does Yuan play in this situation?

gatekeeper

Anka controls the flow of information as well as access to important decision makers in the company. She serves as the ________ in the buying center.

influencer

Pharmaceutical companies have been criticized for direct-to-consumer television ads promoting the use of their brands of medication for specific medical conditions. With respect to buying centers, the pharmaceutical company plays the role of ________ in this situation.

organizational culture

A firm's ________ reflects the set of values, traditions, and customs that guide its employees' behavior.
Although she wasn't told this when hired, at her new job Zahra notices that her coworkers eat lunch at their desks while continuing to work and that they dress casually on Fridays. These behaviors are most likely part of the

autocratic

In a(n) ________ buying center, there may be many participants, but one person makes the decision alone.

consultative

At Heavy Steel Manufacturing, Jerome is the one person who is authorized to make a decision, but he gathers input from other departments before doing so. This is reflective of which type of buying center?

consensus

At Cozy Curtains, all members of the team must reach a collective agreement that they can support regarding the purchase of a specific fabric. This is reflective of a(n) ________ buying center.

single decision maker

Autocratic buying centers are characterized by a

LinkedIn

________ is well known for connecting businesspeople and is the largest network of business professionals.

white papers

When executives confront an unfulfilled business need, they normally turn to ________ prepared by potential B2B marketers.

new buys

Most B2B buying situations can be categorized into three types: straight rebuys, modified rebuys, and

new buy situation

The purchase of capital equipment by a company, which would likely be quite an involved process, is an example of a ________.
Tables Galore is looking for a wood supplier that can provide the materials for the manufacturing of its tables. The buying center proceeds through all six steps in the buying process and involves many people in the buying decision. This represents a ________.

modified rebuy

College University decides to purchase new helmets for its football team. Although the University is considering some of the same elements as before, such as the look and color of the helmets, it wants them to include the newest technology to keep players safer. This is an example of which type of buying situation?

straight rebuy

When 'Office Depot replenishes its supply of printer ink cartridges, it most likely involves a ________ situation.
Mario is the buyer at Stirred Coffee and Tea. He is often the only member of the buying center involved in the process. This is an example of a ________ situation.

need recognition

The discrepancy between a consumer's actual state and desired state is associated with which step in the consumer decision process?

functional needs

What need pertains to the performance of a product or service?

psychological needs

________ pertain(s) to the personal gratification consumers associate with the product or service.

both functional and psychological needs.

The majority of products and services are likely to satisfy
1 functional needs.
2 psychological needs.
3 personal needs.
4 both personal and functional needs.
5 both functional and psychological needs.

Information Search

According to the consumer decision process, after consumers recognize the need for a product, they then engage in an_______.
Alternative evaluation often occurs after the consumer has engaged in which step of the consumer decision process?

internal search for information

An ________ involves the buyer considering his own or her personal knowledge about a product based on past experiences.

external search for information

When Carlos was considering buying a new car, he sought out unbiased information and ratings about different makes and models in Car and Driver magazine. What corresponds most closely to this aspect of the decision process?

perceived benefits versus perceived costs of search

Dylan is in the market for a new laptop and is spending a considerable amount of time researching the various brands and models available. In contrast, he does not spend much time researching the purchase of an inexpensive kitchen appliance, like a toaster. This can best be explained by which concept?

performance

Of the five types of risk associated with purchase decisions, which one involves the perceived danger inherent in a poorly performing product or service?

financial

When a manufacturer offers a money-back guarantee on the purchase of its products to show that the products will perform as expected, it is most likely attempting to alleviate which risk?

physiological

External agencies and government bodies publish safety ratings for cars to help consumers alleviate ________ risk.

retrieval

When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are referred to as their ________ set.

evoked

Katrina is considering different brands of makeup to buy, but she can only think of three she would actually consider purchasing. These three brands make up her ________ set.

evaluate criteria

The salient or important attributes about a particular product that consumers base their product evaluations on are called

evaluative criteria

Aaron considered three important attributes when deciding which mechanic he wanted to use: the convenience of the location, hours of operation, and price for services. In this situation, these three attributes are called

determinant attribute

Kareem considered all shoe stores to be roughly equivalent in most ways; however, he considered Shoe Carnival stores to have an exceptional level of customer service. Customer service, therefore, would be considered a ________ for him in evaluating shoe stores.

compensatory decision rule

Erik was shopping for a new pair of sunglasses. Although he would have liked to take the sunglasses home immediately after purchasing them, he was willing to trade off immediate availability when he realized that he could purchase the sunglasses online for a 30 percent discount. This is an example of using a _________.

conversion rate

Because not all purchase intentions result in an actual purchase, retailers calculate the ________ to measure how effectively a decision to purchase a specific product results in a completed purchase.

post-purchase dissatisfaction

Marketers that set unrealistically high consumer expectations of a product through advertising, personal selling, or other types of promotion may generate higher initial sales, but it will eventually result in ________ if the product fails to achieve these expectations.

post-purchase cognitive dissonance

Sometimes called buyer's remorse, ________ is the internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior.

physiological, safety, love, esteem, self-actualization

What is the correct theoretical progression of Maslow's hierarchy of needs, from the bottom of the pyramid to the top of the pyramid?
1 safety, esteem, love, physiological, self-actualization
2 physiological, safety, love, esteem, self-actualization
3 esteem, safety, self-actualization, love, physiological
4 self-actualization, love, esteem, physiological, safety
5 safety, physiological, esteem, self-actualization, love

esteem

Aisha has a strong desire to make the world a better place and is concerned with saving the planet. Therefore, she shops local, buys organic foods, and recycles regularly. Which of Maslow's needs does Aisha's actions fulfill?

cognitive, affective, behavioral

What are the three components that make up a person's attitude?
1 cognitive, affective, behavioral
2 psychological, behavioral, social
3 perception, motives, needs
4 universal, evoked, reference
5 internal, external, habitual

perceptions

Sophia thinks the west side of her city is a great area to own a home and raise a family. Yasir thinks the west side has too much crime, poor schools, and would be a poor choice of location to own a home and raise a family. Sophia and Yasir have different ________ regarding the west side of the city.

reference groups

When looking for a new car, Abe considers both American- and foreign-made vehicles, but his father and friends both encourage him to buy an American-made brand. Which social factor explains this type of influence?

level of involvement

According to the elaboration likelihood model, which variable determines whether limited or extended problem solving will operate in a particular purchase decision?

limited problem solving

Jamie loves Lululemon apparel for its style and comfort. She needs new yoga pants, so she purchases a pair at Lululemon. This is an example of which type of purchase decision?

impulse buying

Mike was in the local deli and saw a display for a new flavor of sliced ham. He had not planned to buy any ham, but decided on the spot to buy a pound to try it. Mike's purchase represents

habitual decision making

Whenever Laura buys shampoo, she always automatically reaches for the same brand and puts it in her shopping cart with no thought or effort. Laura is engaged in _________.

establishing overall strategy or objectives

Angelic' Ceramics is evaluating its overall mission, including its strengths, weaknesses, opportunities, and threats. It is engaged in which step of the STP process?
1 establishing overall strategy or objectives
2 determining segmentation methods
3 evaluating segment attractiveness
4 selecting the target market
5 developing the positioning strategy

Select segmentation method

Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment?

geographic

Miracle Gro is developing a new line of flower seeds, plant food, and potting soil. The type of products it develops will vary based on climate. What type of segmentation should Miracle Gro use as the basis to design these programs?

demographic

When defining its market segments, a company identifies groups based on characteristics such as age, gender, income, and education. What type of market segmentation is this?

psychographic

Cory describes himself as having a strong need to belong to a group, which motivates him to seek out activities that involve others. Marketers use this type of information when developing ________ segments.

self-values

Which term describes the overriding desires that drive how people live their lives?

self-concept

CoverGirl often produces advertisements featuring smiling and happy-looking young people using its makeup products. This tactic relates to

benefit

The ________ segmentation method is most closely related to providing value by satisfying customers' needs and wants.

loyalty

Panera offers a My Panera card, which allows users to earn rewards every time they purchase food or drink. This is an example of ________ segmentation.

geodemographic

Esri's Tapestry is a widely used tool for ________ segmentation.

occasion

Behavioral segmentation based on when a product or service is purchased or consumed is called ________ segmentation.

evaluate segment attractiveness

During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?
1 select segmentation method
2 develop a positioning strategy
3 select target market
4 establish overall strategy or objectives
5 evaluate segment attractiveness

identifiable

The publishing conglomerate Hearst is able to purchase mailing lists of people who have an interest antiques, decorating and gardening, knowing that its Country Living magazine customers are somewhat distinct from those who subscribe to Esquire, a lifestyle magazine for sophisticated men. In terms of evaluating segment attractiveness, this is a way of ensuring the segment is

responsive

For segmentation strategy to be successful, the customers in the segment must react similarly and positively to firm's offering, corresponding to which criteria for evaluating segment attractiveness?

reachable

For the ________ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it.