Exam 1 Review

Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have ________ for customers, clients, partners, and society at large.

value

To serve both buyers and sellers, marketing seeks to ________ the needs and wants of prospective customers and to satisfy them.

discover

Charlie volunteers at the local public library. He spends each Monday afternoon helping out, and he usually feels great about it because he contributes to his community. Is this an exchange?

Yes, because volunteering is exchanged for something of value—a good feeling.

When Jamal was looking to purchase a used Honda in the fall, he saw one with a “for sale” sign in the window near his school. Though he tried the number on the sign repeatedly, no one answered the phone and there was no way to leave a message. Marketing did not occur because

there was no way for the parties to communicate.

A primary challenge for marketers in discovering the needs of prospective customers is that

customers may not know or be able to describe what they need and want.

When the temperature outside drops below 30 degrees and you need to walk your dog, marketers might say you have a(n) ________ to put on a coat.

need

Vaping is growing in popularity among teens, and Congress raised the nationwide age to purchase tobacco and vaping devices from 18 to 21 to help curtail it. Which is the most important reason that vaping companies should not consider teens to be in the market for their products?

Most teens already do not have the ability to buy because of legal restrictions.

Orbitwheels are a cross between a skateboard and pair of inline skates. Riders insert each foot in a large wheel that rotates sideways. Orbitwheels differ from a skateboard in that they are self-propelled by the rider's wave-like motion so the need to push off the ground every few feet to get moving is eliminated. The product has been popular among some kids, especially athletic teen boys. Athletic teen boys could be described as the ________ for Orbitwheels.

target market

The 4 Ps of the marketing mix include place, price, promotion, and

product.

The bike-sharing service ofo has 200 bicycles on Vineet’s college campus. He has a subscription to the service so he can simply check out a bike at one of the “boxes” painted on the concrete sidewalks on campus and return it to any box at a later time. The service encourages appropriate behavior with the bikes through a point system. Providing bikes at boxes on campus would constitute which element of the marketing mix for ofo?

place

Government restrictions that might impact the expansion or contraction of businesses are an example of

environmental forces.

Amazon's AI assistant, Google’s Duplex chatbot, and Alibaba’s AliMe customer service bot are examples of how some companies can actually influence environmental forces through

technological or competitive breakthroughs.

Customer ________ is the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

value

Spotify uses data about musical preference to suggest new music to subscribers. This use of technology aids in Spotify’s ________ efforts, in which the company can gain insights into how its products create value for customers.

relationship marketing

Market segments are homogeneous in two ways: prospective buyers will respond similarly to marketing action and they

have common needs.

Trader Joe’s doesn’t authorize or sell its products online. According to a company spokesperson, “Part of the ­­­________ is the value we are committed to providing customers, each and every time they shop our stores—great products of the highest quality at great prices.”

customer experience

Patagonia’s Worn Wear program, which encourages its customers to repair, trade, and eventually recycle all of its products, is an application of

the societal marketing concept.

The Air Force is slated to purchase 113 HH-60W aircraft from Lockheed Martin to replace its fleet of HH-60G Pave Hawk helicopters, which perform missions locating and rescuing downed pilots in hostile territory. Here, the Air Force is considered a(n)

organizational buyer.

Benefits to society from effective marketing include

enhanced competition and improved products.

A new KitchenAid refrigerator has a separate cooling system for the freezer, which lessens the humidity in the refrigeration section and reduces spoilage. The change adds to the refrigerator’s ________ utility.

form

Teach For America, a diverse network of leaders who confront educational inequity, is an example of a(n)

nonprofit organization.

The marketing department is considered part of which organizational level?

functional level

Organizational ________ describes why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work.

purpose

________ at IKEA include cost-consciousness, constant desire for renewal, and accepting and delegating responsibility.

Core values

________ often triggers a business model change, as it has for Netflix and Uber.

Technology innovation

For-profit organizations pursue several different types of goals such as profit, sales, market share, and quality, among others. Which statement is most accurate?

If profits are acceptable, a company may elect to maintain or increase its sales even though profits may not be maximized.

The outdoor brand The North Face intends to capture some of its competitors’ business in Europe in the next few years, even amid the stagnant economic conditions there. The firm cites the active lifestyles there and the relatively low cost of entry for its backpacking and hiking sports gear, which attracts those planning a low-budget “staycation.” The North Face most likely has a ________ goal.

market share

The ________ phase of the strategic marketing process usually results in a(n) ________ that sets the direction for the marketing activities of an organization.

planning; marketing plan

Choosing which ________ to display on a marketing dashboard is critical for a busy manager, who can be overwhelmed with irrelevant data.

marketing metrics

A ________ is a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation.

competitive advantage

In BCG’s business portfolio analysis, ________ require large injections of cash just to maintain their market share, much less increase it. Thus, managers must choose the right ones to invest in and phase out the rest.

question marks

When its beer sales were flat, Budweiser became interested in entering the premixed cocktail segment by providing a product that would appeal to those who don’t enjoy traditional beer. It launched Bud Light Lime-A-Rita, a margarita-flavored, beer-based cocktail, sold in cans and bottles and best served over ice. This is an example of

diversification.

The second phase of the strategic marketing process is known as

implementation.

Brick-and-mortar retailers are noticing a change in how many consumers shop. Sometimes they visit a store and scan an item on their smartphones, only to find the same product at a less expensive online retailer like Amazon.com. This turns the store into nothing more than a showroom for products. A SWOT analysis of Best Buy’s marketing environment should consider this change in consumer shopping behavior a(n)

threat.

The marketing program part of the planning phase of the strategic marketing process includes which of these?

developing the budget

An important ________ for Medtronic’s Micra pacemaker is its unmatched small size, about the size of a vitamin capsule, which allows it to be implanted directly into the heart without invasive surgery or the need for electrical leads.

point of difference

Decisions about channels and transportation for a product are a part of ________ in a marketing program.

place

Gantt charts are useful for implementation of a marketing plan in that they

distinguish tasks that must be done sequentially from those that can be done concurrently.

Identifying a target market and a program to reach it would be considered a(n)

marketing strategy.

Comparing the results of the marketing program with the goals in the written plans to identify and act on deviations occurs during the

evaluation phase.

Marketers can identify key trends such as the popularity of personalized marketing, the increasing emphasis on reuse rather than disposal of products and resources, and the importance of visual search, artificial intelligence, and blockchain technologies by conducting ________ of the marketplace.

an environmental scan

A population explosion is happening is some parts of the world, including which country?

India

Members of which generational cohort are retiring at a rate of 10,000 every 24 hours and will all be 65 or older by 2030?

baby boomers

A notable cultural change in the United States in the past 30 years is towards

gender neutrality.

The College Board reports that since 2000, college tuition and fees have increased 190 percent (from $3,510 to $10,230) while family incomes have increased by just 2 percent, making college unaffordable for many. This is an example of a(n) ________ relationship.

inflationary

When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $600 in rent, have a $300 car payment, and spend $300 on food and $200 on clothes. The remaining $1,100 would be considered your

discretionary income.

Google Nest Protect, an alarm system that sends alerts of smoke or carbon monoxide to your phone, is easily muted and has a “heads-up” warning before triggering its siren. It also self-tests and has a motion-activated path light. These innovations are an example of a(n) ________ force that could impact other industries.

technological

Analytical insights discovered and used by Netflix, Google, Amazon, Dell, and eBay may have fueled their growth in

the marketspace.

An Iowa corn farmer operates in which form of competition?

pure competition

________ consists of restrictions state and federal laws place on business with regard to the conduct of its activities.

Regulation

Not only do businesses see benefits from the protections of ________, consumers do as well; they allow consumers to correctly identify the products they want to purchase.

trademarks

________ serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

Ethics

Instances of insider trading in the financial industry, deceptive sales practices in insurance and banking, and bribery in defense industries are examples of ________ that have gone awry.

business cultures

According to ________, consumers have the right to choose and the right to be heard, among others.

the Consumer Bill of Rights

Electronic hacking and illegal trespassing for the purposes of acquiring a competitor’s proprietary information is considered

economic espionage.

All of these statements are true of corruption except which?

Stealing trades secrets is a form of corruption.

________ often assist companies and their employees with ethical issues by formally addressing contributions to government officials and political parties, customer and supplier relations, conflicts of interest, and accurate recordkeeping.

Codes of ethics

A manager is assessing whether a business decision is ethical. She believes that if the benefits of a choice exceed the costs, then the behavior is ethical. If not, then the behavior is unethical. Which personal moral philosophy is being used here?

utilitarianism

________ responsibility can be broken into three categories: profit, societal, and stakeholder.

Social

Which of these is an example of green marketing?

Xerox designed equipment that can be refurbished or recycled.

The behavioral sciences inform the study of consumer ________, helping marketers understand customer choices and how to provide value to them.

behavior

Mohammed cracked the glass on his smartphone. He had hoped it was just the screen protector, but he saw that he really could not do much with his phone in that condition. Mohammed knew he’d need to get a new one; he had just begun the

purchase decision process.

Sophia used the Consumer Reports website to research an economical choice for a new washer and dryer for her apartment, and she trusted the information because the website was not affiliated with the sellers of these products. This is an example of which type of information source in the purchase decision process?

public source

For the purchase of an airline ticket, a consumer may use ________ like time of day, percentage of on-time departure, brand, and price to choose between offerings.

evaluative criteria

When a consumer has evaluated alternatives in the purchase decision process and selected one, he still must determine when to buy and

from whom he will buy.

The furniture company delivered her new couch on Thursday and Jialin used it all weekend. Although she really liked the color and style, she didn’t think it was very comfortable. At which stage of the purchase decision process is Jialin?

postpurchase behavior

In routine problem solving, the number of external information sources used is typically which of these?

none

For the purchase of which item would extended problem solving most likely be used?

a study abroad program

As a situational influence, antecedent states include

the consumer’s debit card balance.

________ are a marketer’s product, service, or brand points of contact with a consumer from start to finish in the purchase decision process.

Consumer touchpoints

Which of these is a psychological influence on the consumer behavior decision process?

learning

Henri sees a public service announcement from the CDC reminding everyone to get a flu shot this fall, and he goes to the student health center to get one. The CDC is attempting to appeal to consumers’ ________ needs according to the Maslow hierarchy.

safety

Selective ________ occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them.

exposure

Colgate-Palmolive secured the endorsements of dentists to make the claim that Colgate Total toothpaste is the number-one recommended toothpaste by most dentists, a tactic that is most effective at

decreasing perceived risk.

Cici started to use a tutor to improve her grades, and her exam scores increased markedly. Her improvements on tests resulted in her satisfaction with the tutor and would be considered which variable of the behavioral learning process?

reinforcement

Using the same brand name for different products is an application of which concept from behavioral learning theory?

stimulus generalization

To reduce mothers’ concerns about ingredients in its mayonnaise, Hellmann’s successfully communicated the product’s high Omega 3 content, which is known to be essential to human health. This is an example of using which attitude change strategy?

changing beliefs about the extent to which a brand has certain attributes

The VALS system is a(n) ________ measure of consumers.

psychographic

Important variables in the family life cycle are age, marital status, and

presence of children.

Though similarities outweigh differences in many shopping behaviors, ________ spend far more than Caucasians on boys’ clothing, rental goods, smartphones, and audio equipment.

African Americans

________ buyers include all buyers in a nation except ultimate consumers.

Organizational

Within the industrial market, ________ companies make up about 75 percent of all firms.

service

Mining companies and legal firms are examples of

industrial markets.

The mission of the U.S. Department of Energy is to ensure America's security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. It is an example of which type of organizational buyer?

government agency

An advantage of the North American Industry Classification System (NAICS) is that

it groups economic activity to permit studies of market share, demand, and import competition.

Wix is a company that helps other businesses develop their ecommerce websites. Because Wix relies indirectly on consumers wishing to make purchases online, demand for its website design services is considered ________ demand.

derived

One benefit associated with selling to organizations is that

purchases in a single transaction are typically much larger than in consumer buying.

One way that marketing mix characteristics differ for organizational buying compared to consumer buying is that for organizational buying

advertising and other promotions are technical in nature.

Kroger, a supermarket chain, has committed to source 100 percent of wild-caught seafood in its seafood departments from fisheries that are Marine Stewardship Council (MSC)–certified or certified by other globally recognized programs by 2020. Here, Kroger has which buying objective?

environmental sustainability

Which of these is a commonly used organizational buying criterion?

ability to meet schedules

________ involves the deliberate effort by organizational buyers to build relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s needs and those of its customers.

Supplier development

Although not strictly illegal, the U.S. Justice Department disapproves of reciprocity because it

restricts the normal operation of the free market.

Purchasing and engineering personnel visit suppliers to assess their facilities, capacity, and quality control during which stage in the organizational buying process?

alternative evaluation

During the postpurchase behavior stage of the organizational buying process, which of these is most likely to occur?

A supplier’s performance is formally evaluated.

Large multistore chain resellers like Target, 7-Eleven convenience stores, and Safeway use a buying committee that differs from the typical buying center in that it is

highly formalized.

In the buying center, ________ have formal authority and responsibility to select the supplier and negotiate the terms of the contract.

buyers

Susie co-owns a coin-operated laundry downtown with her two brothers, but she does most of the day-to-day management. Which of these would most likely be a straight rebuy for Susie?

reordering single-use detergent packets for his vending machine

Which of these is a reason that online buying is so prominent in organizational markets?

It can broaden a firm’s potential customer base for many types of products and services.

Independent e-marketplaces act as a ________ and provide an Internet technology trading platform and a centralized market that enable exchanges between buyers and sellers.

neutral third party

Reverse auctions

result in a downward pressure on bid prices.