EXAM 2 BASIC MARKETING

What research approach should Sweet Dreams Mattress Company use to identify potential causes for declining sales?

Causal research

What method should a researcher use to understand the detailed experiences of customers who canceled their subscription service?

In-depth interviews with former customers

What type of data is a streaming service using when analyzing subscriber viewing habits and customer service interactions?

Internal secondary data

What is the example of statistical inference made by a marketing researcher regarding consumer purchase likelihood?

Based on our sample of 1,000 consumers, we can say with 95% confidence that between 22% and 26% of all consumers in our target market would purchase our new product.

Which research method should Green Earth Organics use to understand emotional connections with eco-friendly products?

Focus groups with current customers

What approach is a company using when reviewing industry reports and competitor analyses before launching a new energy drink?

External secondary data

Quotas

Limits on the quantity of a product that can be imported or exported during a specific time period.

Tariffs

Taxes imposed on imported goods to increase their price and protect domestic industries.

Exporting

Selling domestically produced goods to foreign markets.

Licensing

An agreement where a firm allows another firm to use its intellectual property in exchange for a fee or royalty.

Joint Ventures

A business arrangement where two or more parties agree to pool their resources for a specific project or business activity.

Direct Investments

Investing directly in foreign operations, such as building or acquiring facilities.

Primary Research

The collection of original data for a specific research purpose.

Secondary Research

The analysis of existing data that was collected for a different purpose.

Focus Group

A small, diverse group of people whose reactions are studied to gauge the response to a product or service.

Sampling

The process of selecting a subset of individuals from a population to estimate characteristics of the whole population.

Statistical Inferences

The process of using data from a sample to make generalizations about a population.

Exploratory Research

Research conducted to clarify ambiguous problems or discover ideas that may lead to potential solutions.

Descriptive Research

Research that aims to accurately describe a situation or phenomenon.

Causal Research

Research that seeks to identify cause-and-effect relationships between variables.

Symptoms vs. Problems

Symptoms are indicators of underlying issues, while problems are the root causes that need to be addressed.

Market Segmentation

The process of dividing a broader market into smaller, more defined categories of consumers.

Geographic Segmentation

Dividing a market based on geographic criteria such as countries, regions, or cities.

Demographic Segmentation

Segmenting the market based on demographic factors such as age, gender, income, and education.

Psychographic Segmentation

Segmenting the market based on lifestyle, values, interests, and personality traits.

Target Marketing

The process of identifying and reaching specific groups of consumers to tailor marketing efforts.

Differentiated Marketing

A marketing strategy that targets several market segments with a different offering for each.

Undifferentiated Marketing

A marketing strategy that ignores segment differences and appeals to the entire market with one offer.

Concentrated Marketing

A strategy that focuses on a single market segment, often referred to as niche marketing.

Product Life Cycle

The stages a product goes through from introduction to decline, including introduction, growth, maturity, and decline.

Service Quality Dimensions

The different aspects of service quality, often categorized into reliability, responsiveness, assurance, empathy, and tangibles.

GAP Analysis

A method used to identify the difference between the current state and desired future state of a product or service.

Product Adoption

The process by which consumers start to use a new product, influenced by factors such as innovativeness and buyer adopter categories.

Brand Equity

The value added to a product by having a well-known brand name, influencing consumer perception and loyalty.

Product Mix

The total range of products that a company offers, including all product lines and items.

Brand Extensions

Using an existing brand name to launch a new product in a different category.

Line Extensions

Introducing additional items within the same product line under the same brand name.

Product Manager

A professional responsible for the strategy, roadmap, and feature definition of a product or product line.

What is the process of identifying distinct user groups in a fitness app company called?

Market segmentation

What should HomeStyle Furniture primarily consider due to regional preferences in styles and colors?

Geographic segmentation

Which of the following is NOT a requirement for effective segmentation?

Segments must be trendy

What type of marketing does HealthTech use by offering different app versions for specific groups?

Differentiated marketing

What type of segmentation does a clothing retailer use when grouping customers by shopping frequency and purchase value?

Behavioral segmentation

What type of segmentation is used by Hallmark for its Mahogany line?

Demographic segmentation

What is line extension in marketing?

Manufacturing a new product (usually) with the same brand name that consumers will view as a logical addition to the original product line for a new market segment in the same product class.

What segmentation strategy does Nyquil use in its advertising?

Benefit segmentation

What characteristics should Universal Concerts consider for its Canadian market?

Geographic and psychographic characteristics