Deck 13: The Art and Science of Marketing

Question 1

The purchasing behavior of organizations is easier to understand than the purchasing behavior of consumers because it's more clearly driven by economics and influenced less by subconscious and emotional factors.

Answer 1

True
Explanation: The purchasing behavior of organizations is easier to understand than the purchasing behavior of consumers because it's more clearly driven by economics and influenced less by subconscious and emotional factors.

Question 2

The organizational market consists of individuals and families who buy goods and services for personal or household use.

Answer 2

False
Explanation: The organizational market is composed of companies and a variety of noncommercial institutions, from local school districts to the federal government.

Question 3

Consumers make all kinds of decisions that are hard to explain by any rational means.

Answer 3

True
Explanation: Consumers make all kinds of decisions that are hard to explain by any rational means.

Question 4

Strategic marketing planning refers to the process of examining an organization's current marketing situation,assessing opportunities and setting objectives,and then developing a marketing strategy to reach those objectives.

Question 5

At one time or another,all consumers suffer from cognitive dissonance.

Question 6

Many Web sites use stealth marketing,letting visitors sign up for specific content streams with the promise that they won't be bombarded with information they don't care about.

Question 7

A developing country markets itself as a good destination of foreign investment.This would be an example of place marketing.

Question 8

The sales concept is an approach to business management that stresses customer needs and wants,seeks long-term profitability,and integrates marketing with other functional units within the organization.

Question 9

Customer loyalty is one of the most significant goals of relationship marketing.

Question 10

According to the concept of the network effect,the value of a product increases with the number of customers who use it.

Question 11

Producers do not create needs,but they do try to shape your wants by exposing you to attractive choices.

Question 12

Ethnographic research refers to research that measures brain activity while customers are viewing or interacting with product,Web site,or other elements.

Question 13

Aspirational reference groups are those to which consumers actually belong,such as families,networks of friends,clubs,and work groups.

Question 14

Close relationships between buyers and sellers are not common in organizational purchasing.

Question 15

The U.S.Federal Trade Commission (FTC)and the Word of Mouth Marketing Association assert that stealth-marketing techniques are deceptive because they don't give their targets the opportunity to raise their instinctive defenses against the persuasive powers of marketing messages.

Question 16

Social commerce refers to a type of information system that captures,organizes,and capitalizes on all the interactions that a company has with its customers.

Question 17

When a supermarket provides fresh,ready-to-eat dishes as an alternative to buying all of the ingredients needed to make dinner,it is creating place utility.

Question 18

Successful marketers try to identify sources of competitive advantage and areas that need improvement.

Question 19

The launch of a product under real-world conditions but on a limited scale (such as in a single city),is a form of neuromarketing studies.

Question 20

A central element in the marketing concept is involving the customer as a partner in a mutually beneficial relationship rather than treating the customer as a passive recipient of products and promotional messages.

Question 21

Wants differ from needs in that wants ________.

A) are more specific
B) are independent of culture
C) create demand for products
D) are the focus of marketing efforts
E) are independent of a person's experiences

Question 22

KLM Inc.,a textile-manufacturing firm,has been supplying mesh fabric to Clarence Furnitures for one year.KLM Inc.is delayed by two days in delivering a scheduled batch of mesh fabric to Clarence Furnitures.The firm had met all its previous supply dates,and adhered to all the required quality standards.KLM Inc.follows a relationship marketing strategy.In keeping with this strategy,KLM Inc.is most likely to ________.

A) give Clarence Furnitures a 20% discount on the material supplied
B) send an email to Clarence Furnitures informing them about the delay
C) ask Clarence Furnitures for an extension on future supplies as well
D) take disciplinary action against employees who were responsible for the delay
E) make structural changes to enable the firm to detect and prevent such delays

Question 23

A research technique that measures the brain activity of customers while they are viewing or interacting with your company's products or brands is known as ________.

A) neuromarketing studies
B) experiments
C) psychoanalysis
D) transactional analysis
E) focus groups

Question 24

________ refers to the creation and sharing of product-related information among customers and potential customers.

A) Guerrilla marketing
B) Cause-related marketing
C) Vertical integration
D) Social commerce
E) Diversification

Question 25

Which of the following statements is TRUE about the marketing concept?

A) It views the customer only as a target to be sold to.
B) It views the primary purpose of a business as making things.
C) It believes in building short-term relationships with customers.
D) It refers to the view that companies should respond to customers' needs.
E) It counts on customers to figure out which products they need and take the steps to find and purchase them.

Question 26

________ utility is the benefit provided by making the company's products available where customers want to purchase them.

A) Form
B) Possession
C) Value
D) Place
E) Time

Question 27

A firm's marketing mix consists of product,price,distribution,and customer communication.

Question 28

Eight women,with children within the age range of 3 to 7 years,participated in a panel discussion conducted by the marketing department of Ecospace Beach Resorts,based in California.The facilitator asked the women what amenities they wanted in a resort when they go on a vacation.They were also asked to discuss which facilities made a resort more convenient for people with young children.In this example,Ecospace Beach Resorts uses which of the following methods?

A) survey
B) ethnographic research study
C) focus group
D) process data collection
E) neuromarketing study

Question 29

ACZ Pharmaceuticals,an American multinational pharmaceutical corporation,conducts "HIV/AIDS Awareness" camps in various cities across the United States.The firm also uses this campaign to promote its latest range of drugs.In this example,ACZ Pharmaceuticals uses ________.

A) place marketing
B) social commerce
C) stealth marketing
D) cause-related marketing
E) diversification

Question 30

Chicago Music Academy,a private music school,uses online advertisement as a large part of its advertising campaign.The firm uses Google Analytics to measure the effectiveness of specific search-term keywords and track the behavior of website visitors.The firm uses this information to focus on the most productive marketing efforts.In this example,Chicago Music Academy uses ________.

A) stealth marketing
B) product development
C) marketing research
D) market development
E) diversification

Question 31

The basic distinction between wholesalers and retailers is that retailers sell to other companies whereas wholesalers sell to individual consumers.

Question 32

Just Read,an online retailer of books,encourages users to write reviews of the books they purchase and rate them.This allows potential customers to know more about the books offered for sale.In this example,Just Read uses which of the following strategies?

A) diversification
B) product development
C) social commerce
D) market segmentation
E) vertical integration

Question 33

The process of collecting,analyzing,and interpreting information about customers,competitors,and other related marketing issues is known as ________.

A) social commerce
B) product development
C) market development
D) data mining
E) marketing research

Question 34

The exchange of value between parties is referred to as a(n)________.

A) emolument
B) sale
C) purchase
D) transition
E) transaction

Question 35

Differences between a person's actual state and his or her ideal state is termed as ________.

A) cognition
B) utility
C) needs
D) perception
E) drive

Question 36

Concentrated marketing is the narrowest strategy of all market-coverage strategies,in which firms target a single location or even a single customer.

Question 37

When a manufacturer combines fabric,buttons,and zippers to create clothing,it creates ________.

A) time utility
B) form utility
C) place utility
D) value utility
E) possession utility

Question 38

Customer lifetime value refers to the total potential revenue from each customer over a certain time span minus the cost of attracting and keeping that customer.

Question 39

The advertising campaign for Fort Wayne,Indiana,is based on the slogan "Room for Dreams." The city uses this logo to attract businesses and visitors to the city; it also encourages Fort Wayne businesses to incorporate "Room for Dreams" into their marketing campaigns.This would be an example of ________ marketing.

A) cause-related
B) guerrilla
C) place
D) ambush
E) stealth

Question 40

Market share can be defined by either number of units sold or by sales revenue.

Question 41

________ refers to the increase in the value of a product with the number of customers who use it.

A) Cognitive dissonance
B) Possession utility
C) Network effect
D) Positioning
E) Form utility

Question 42

Studying people in their daily lives to learn about their needs,wants,and behaviors in real-life settings is called ________.

A) neuromarketing studies
B) ethnographic research
C) experiments
D) focus groups
E) process data collection

Question 43

Tension that exists when a person's beliefs don't match his or her behaviors is called ________.

A) cognitive dissonance
B) anchoring
C) hindsight bias
D) self-serving bias
E) fundamental attribution error

Question 44

Quick Bite is a hugely popular U.S.chain of drive-in fast food restaurants.After assessing the current marketing situation,the firm opens a coffeehouse in Japan.The coffeehouse has a classic style and relaxed atmosphere,which is completely different from the firm's Quick Bite outlets.In this example,the firm uses which of the following marketing strategies?

A) market penetration
B) diversification
C) vertical integration
D) horizontal integration
E) decentralization

Question 45

Bell & Rubio,a camera manufacturing company,hires actors in different cities to approach strangers and ask them to take their picture with a Bell & Rubio camera.The actors strike up conversations with people,tell them about the advantages of the camera,and encourage them to buy one for themselves,without informing them that it's an advertising campaign.In this example,Bell & Rubio uses which of the following strategies?

A) social commerce
B) data mining
C) permission-based marketing
D) stealth marketing
E) projective techniques

Question 46

Creating new products for new markets is called ________.

A) market penetration
B) vertical integration
C) diversification
D) horizontal integration
E) decentralization

Question 47

Sterling Fashions,an apparel manufacturer,sells women's clothes and fashion apparel in its stores across the U.S.and Canada.Following extensive market research,the firm decides to manufacture and sell women's footwear and designer handbags in its existing markets.In this example,Sterling Fashions uses which of the following strategies?

A) market penetration
B) decentralization
C) market development
D) diversification
E) product development

Question 48

An e-commerce website allows visitors to sign up for specific content streams with the promise that they won't be bombarded with information they don't care about.This is an example of ________.

A) stealth marketing
B) social commerce
C) permission-based marketing
D) market development
E) cause-related marketing

Question 49

Selling existing products to new markets is called ________.

A) market development
B) product development
C) market segmentation
D) market penetration
E) vertical integration

Question 50

Before you decide to purchase a new laptop,you ask some friends and coworkers which model they have purchased and how pleased they are with its performance.This influence factor is known as ________.

A) socioeconomic level
B) situational factors
C) self-image
D) culture
E) reference groups

Question 51

Creating new goods and services for a firm's current markets is called ________.

A) market penetration
B) product development
C) market development
D) diversification
E) pure play

Question 52

Erikson Manufacturers,a firm that designs and manufactures fire,carbon monoxide,and heat detection and notification devices,has been selling its products to U.S.corporate firms for several years.After examining its current marketing condition,the firm decides to open sales offices in Italy and Germany to sell its existing products.The firm aims to gain market share in Europe.This strategy is known as ________.

A) product development
B) market segmentation
C) market penetration
D) market development
E) vertical integration

Question 53

Organizational purchasing differs from consumer purchasing in that organizational purchasing ________.

A) is influenced more by subconscious and emotional factors
B) usually involves closer relationships between buyers and sellers
C) has lower complexity in product usage
D) lacks a formal buying process
E) is less clearly driven by economics

Question 54

Consumer purchasing differs from organizational purchasing in that consumer purchasing ________.

A) is influenced more by subconscious and emotional factors
B) follows a formal buying process
C) has greater complexity in product usage
D) involves a closer relationship between buyers and sellers
E) has a greater emphasis on economic payback

Question 55

________ involves selling more of your existing products into the markets you already serve.

A) Product development
B) Market development
C) Diversification
D) Market penetration
E) Benchmarking

Question 56

Which of the following statements is TRUE about the consumer decision process?

A) Behavioral economics suggests that consumer behavior follows a completely rational process.
B) Cognitive dissonance refers to the delivery of marketing messages to people who are not aware that they are being marketed to.
C) Companies, government agencies, and other organizations that buy goods and services are a part of the consumer market.
D) Many consumers tend to believe that "you are what you buy," so they make or avoid choices that support their desired self-images.
E) Aspirational reference groups are those to which consumers actually belong, such as families, networks of friends, clubs, and work groups.

Question 57

The process of examining an organization's current marketing situation,assessing opportunities and setting objectives,and then developing a marketing strategy to reach those objectives is called ________.

A) stealth marketing
B) strategic marketing planning
C) marketing research
D) social commerce
E) marketing concept

Question 58

Yummy Times,a canned soup manufacturing firm,uses advertisements that highlight new ways in which their customers can use Yummy Times canned soups,such as in casseroles or as sauces.The firm aims to get its existing customers to buy more of its products.This strategy is known as ________.

A) product development
B) market development
C) diversification
D) benchmarking
E) market penetration

Question 59

Unlike surveys,focus groups ________.

A) require knowledge of statistical techniques
B) are not designed to collect statistics that represent a larger group
C) fail to uncover issues that might require further study
D) are not used to probe deeper into issues
E) study people in their daily lives to learn about their needs, wants, and behaviors in real-life settings

Question 60

Buyer's remorse,in which one makes a purchase and then regrets doing so,is an example of ________.

A) anchoring
B) hindsight bias
C) self-serving bias
D) fundamental attribution error
E) cognitive dissonance

Question 61

Which of the following can be cited as an example of geographic segmentation?

A) Affinity Bank, an international bank, issues Golden Eagle cards by invitation only to customers who spend more than $250,000 a year on their Affinity credit cards.
B) A luxury car company creates a hybrid line for consumers who are concerned about the environment.
C) Harley-Davidson offers a wide variety of motorcycles, and each model attempts to cater to a particular lifestyle.
D) P&G acquires the list of parents-to-be and showers them with samples of Pampers and other baby products to capture a share of their future purchases.
E) A toy manufacturing company launches a special line of Hispanic books, dolls, puppets, and toys for areas with high Hispanic habitation.

Question 62

When you segment a market using psychographics,you subdivide your customers according to characteristics such as their ________.

A) gender
B) ethnic group
C) self-concept
D) counties
E) occupation

Question 63

Mass marketing differs from differentiated marketing in that mass marketing ________.

A) has one marketing mix for the entire market
B) focuses on only a single market segment
C) requires substantial resources
D) sells a variety of products to several target customer groups
E) targets a single location or even a single customer

Question 64

________ refers to the categorization of customers according to their relationship with products or response to product characteristics.

A) Demographic segmentation
B) Geographic segmentation
C) Ethnographic segmentation
D) Psychographic segmentation
E) Behavioral segmentation

Question 65

Which of the following is TRUE about concentrated marketing?

A) It ignores differences among buyers.
B) It has the advantages of simplicity and economies of scale.
C) It allows a firm to focus all its time and resources on a single type of customer.
D) It refers to firms that use a different marketing mix for each marketing segment.
E) It refers to firms that use the same marketing mix for the entire market.

Question 66

Micromarketing differs from undifferentiated marketing in that micromarketing ________.

A) ignores differences among buyers
B) focuses on only a single market segment
C) has one marketing mix for the entire market
D) sells a variety of products to several target customer groups
E) targets a single location or even a single customer

Question 67

Marks,Inc.,a company that manufactures carbonated soft drinks called Quick Drinks,classifies its target market based on the occasions that prompt customers to buy Quick Drinks,their frequency of purchasing the drinks,and their preference for the Quick Drinks brand.This data enables the firm to better market its products.In this example,Marks,Inc.uses which of the following targeting strategies?

A) geographic segmentation
B) demographic segmentation
C) behavioral segmentation
D) horizontal integration
E) cause-related marketing

Question 68

Woodworks Inc.,an American furniture manufacturing company,has stores across America that sell furniture.The firm offers the Fine Furnishings collection of residential furniture designed for the middle-income and upper-middle-income group segments.It offers a Platinum Collection of luxury furniture for high-income groups.The firm also has a range of corporate office furniture that includes desks,chairs,filing cabinets,cubicles,and other office furniture.Woodworks Inc.uses which of the following targeting strategies?

A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individualized marketing
E) niche marketing

Question 69

Majestic Shoes Inc.,an international shoes and footwear manufacturing firm,groups its customers according to the region in which they live.The firm markets its range of waterproof,cold-weather footwear in mountainous regions.In this example,Majestic Shoes Inc.uses which of the following targeting strategies?

A) demographic segmentation
B) psychographic segmentation
C) horizontal integration
D) cause-related marketing
E) geographic segmentation

Question 70

A company ignores differences among buyers.In addition,it offers only one product line and presents it with the same communication,pricing,and distribution strategies to all potential buyers.This company is most likely to be using which of the following targeting strategies?

A) mass marketing
B) cause-related marketing
C) individualized marketing
D) micromarketing
E) differentiated marketing

Question 71

The study of the statistical characteristics of a population is called ________.

A) demographics
B) psychographics
C) behavioral segmentation
D) anthropology
E) ethnographic research

Question 72

Lifestyle Apparels Inc.,an international fashion and apparel manufacturing and selling company,divides its target market segment into groups based on the climatic conditions of the locations where the customers reside.This enables the firm to offer products that are suited to the climatic conditions of the place where the customers reside.In this example,Lifestyle Apparels Inc.uses which of the following strategies?

A) market development
B) vertical integration
C) market segmentation
D) horizontal integration
E) cause-related marketing

Question 73

Grouping customers with similar characteristics,behaviors,and needs is known as ________.

A) a marketing mix
B) market development
C) social commerce
D) market segmentation
E) market penetration

Question 74

When you segment a market using demographics,you subdivide your customers according to characteristics such as their ________.

A) attitudes
B) lifestyles
C) neighborhoods
D) habits
E) ethnic group

Question 75

Solitaire Jewelers of New York sells custom-made jewelry.Customers are involved in the design process and can order one-of-a-kind jewels made of platinum,gold,and silver,as well as precious (diamonds,rubies,sapphires,emeralds)and semi-precious (tanzanite,etc.)gemstones.Every customer can order jewelry that is different from the friends of previous and future customers,and made to match their tastes.Solitaire Jewelers uses which of the following targeting strategies?

A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) micromarketing
E) undifferentiated marketing

Question 76

High Fashion,a firm that manufactures and sells ready-to-wear fashion apparel in Chicago,becomes a very popular brand within a few years of its launch.After examining the current market situation,Fernanda Rhone,the owner of the firm,decides to pursue market opportunities through market development.Which of the following actions is she most likely to take based on this decision?

A) She offers discount coupons to her current market through a popular lifestyle magazine.
B) She opens another store in Cincinnati, which stocks the same ready-to-wear fashion apparel that she sells in Chicago.
C) She starts selling new home decor products such as quilts, wall hangings, and tablecloths at her current fashion outlet in Chicago.
D) She opens a new home-furnishing outlet in Cincinnati, which sells home furnishings and home decor items at affordable prices.
E) She changes the layout and decor of her current fashion outlet in Chicago, to make it more attractive and customer friendly.

Question 77

Market penetration differs from diversification in that market penetration ________.

A) involves division of a diverse market into smaller, relatively homogeneous groups
B) involves selling more of the existing products in current target markets
C) involves selling new products in existing markets
D) involves a higher amount of risk
E) involves selling existing products to new markets

Question 78

Demographics differs from psychographics in that demographics ________.

A) involves analyzing customers' self-concept and behavior
B) involves segmenting the market into geographic units
C) involves grouping customers according to characteristics such as age, gender, and income
D) involves grouping customers according to their relationship with products
E) involves grouping customers according to their response to product characteristics

Question 79

Businesses use ________ to classify people by focusing on why they behave the way they do by examining such issues as brand preferences,media preferences,values,attitudes,self-concept,and opinions.

A) social commerce
B) demographics
C) geographic segmentation
D) psychographics
E) market penetration

Question 80

Concentrated marketing differs from micromarketing in that concentrated marketing ________.

A) targets a single location or even a single customer
B) focuses on only a single market segment
C) ignores differences among buyers
D) involves crafting entire marketing programs of products for an individual customer
E) sells a variety of products to several target customer groups