Deck 11: Marketing Processes and Consumer Behavior

Question 1

Product differentiation is selecting the best price at which to sell a product.

Answer 1

False
Explanation:Product differentiation is the creation of a feature or image that makes a product differ enough from existing products to attract consumers.

Question 2

Packaging can serve as an in-store advertisement that makes the product attractive, displays the brand name, and identifies features and benefits.

Answer 2

True
Explanation:In addition, advances in materials have created added uses-such as the use of the paper-based material that doubles as a cooking container for Budget Gourmet dinners.

Question 3

The B2B market includes industrial, reseller, and government/institutional markets.

Answer 3

True
Explanation:Taken together, these markets do about $27 trillion in business annually-more than two times the amount done in the U.S. consumer market.

Question 4

Sears' Craftsman Tools is an example of a private brand.

Question 5

The institutional market is made up of businesses that buy goods to be converted into other products or that are used up during production.

Question 6

Buzz marketing relies on television advertising to increase brand awareness.

Question 7

Time utility is created by a sales agreement that stipulates where products will be delivered to customers.

Question 8

A description such as single, aged 20-34, earning $30,000 a year, is an example of a psychographic variable.

Question 9

Marketing consists primarily of advertising a product or service.

Question 10

A private brand is a brand name developed by a wholesaler or retailer for their product.

Question 11

The reseller market includes farmers, manufacturers, and some retailers.

Question 12

Target marketing requires dividing a market into categories of customer types or "segments."

Question 13

Companies with an existing distribution network are at a disadvantage in the global context.

Question 14

Geographic variables describe populations by identifying traits, such as age, income, gender, ethnic background, marital status, race, religion, and social class.

Question 15

The formula for value is benefits divided by costs.

Question 16

Rational motives involve nonobjective factors and include sociability, imitation of others, and aesthetics.

Question 17

B2B sellers rarely have long-term relationships with buyers.

Question 18

Economic conditions greatly influence marketing plans for product offerings.

Question 19

Psychographics cannot be changed by marketing efforts.

Question 20

Marketing concepts can be extended to the promotion of ideas.

Question 21

What is the term for the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders?

A) financial planning
B) controlling
C) operations management
D) marketing
E) demographic profiling

Question 22

Which of the following identifies products that are dissimilar from those of competitors but can fulfill the same need?

A) brand competition
B) international competition
C) the marketing mix
D) product shift
E) substitute products

Question 23

What is the decision process by which customers come to purchase and consume products?

A) marketing
B) segmentation
C) resource management
D) consumer behavior
E) acculturation

Question 24

What do marketers call groups of people with similar wants and needs?

A) price points
B) target markets
C) distribution points
D) target points
E) product positioning

Question 25

A product's benefits include all of the following EXCEPT which?

A) the emotional satisfaction associated with owning the product
B) the satisfaction associated with experiencing the product
C) the time required to purchase the product
D) the functions of the product
E) the acceptance by a peer group

Question 26

Benefits add value by providing features that increase the customer's satisfaction.

Question 27

What is selling the rights to place a brand name on products such as t-shirts referred to as?

A) international branding
B) national branding
C) private branding
D) regional branding
E) licensed branding

Question 28

What is the term for intangible products, such as time, expertise, or an activity that can be purchased?

A) industrial goods
B) personal goods
C) risky assets
D) services
E) ideas

Question 29

What type of variables are lifestyles, opinions, interests, and attitudes referred to as?

A) geographic variables
B) demographic variables
C) psychographic variables
D) product use variables
E) labor market variables

Question 30

What is data warehousing?

A) a marketing strategy that creates sales agreements that stipulate product delivery
B) the process of dividing a market into categories of customer types
C) the study of consumer needs and wants and the way in which sellers can best meet them
D) the process of collecting, storing, and retrieving data in electronic files
E) a customer identification strategy that targets potential buyers

Question 31

What type of goods include raw materials and integrated circuits?

A) substitute products
B) industrial goods
C) consumer goods
D) marketing goods
E) disposable goods

Question 32

While watching your favorite sitcom, you see an actor holding a particular brand of beer. This is an example of product placement.

Question 33

What is the term that encompasses a good, a service, or an idea designed to fill a consumer need?

A) product
B) firm
C) want
D) utility
E) condition

Question 34

What type of marketing do insurance companies, airlines, investment counselors, health clinics, and public accountants typically engage in?

A) personal selling
B) service marketing
C) industrial selling
D) consumer marketing
E) wholesale selling

Question 35

What are the tangible and intangible qualities that a company builds into its products?

A) features
B) requirements
C) benefits
D) safety devices
E) guarantees

Question 36

What is the term for the type of competition based on buyers' perceptions of the benefits of products offered by particular companies?

A) institutional competition
B) monopolistic competition
C) forced competition
D) perfect competition
E) brand competition

Question 37

What type of marketing is a "loyalty banking" program an example of?

A) industrial marketing
B) relationship marketing
C) social marketing
D) economic marketing
E) consumer marketing

Question 38

What type of behavior do consumers exhibit by regularly purchasing products because they are satisfied with their performance?

A) psychological influences
B) need recognition
C) brand loyalty
D) emotional motives
E) consumer activism

Question 39

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?

A) national brand
B) private brand
C) luxury brand
D) licensed brand
E) manufacturer brand

Question 40

What is the term for a detailed strategy for focusing marketing efforts on consumers' needs and wants?

A) marketing mix
B) marketing manager
C) product differentiation
D) product development
E) marketing plan

Question 41

During the product life cycle, when do sales begin to climb and the product begin to show profit?

A) ascending
B) mature
C) initial
D) growth
E) accelerated

Question 42

Bill is looking for an insurance policy at an affordable price. What type of good or service is he looking for?

A) shopping good
B) shopping service
C) specialty good
D) specialty service
E) convenience good

Question 43

What are fitness programs and drug regimens to lower cholesterol levels both an example of?

A) brand competition
B) marketing targets
C) substitute products
D) social trends
E) brand extension

Question 44

What kind of factor in the business environment are cell phones considered an example of?

A) economic
B) technological
C) global
D) competitive
E) sociocultural

Question 45

What do consumers exhibit when they regularly purchase products because they are satisfied with the products' performance?

A) aspirations
B) cultural influence
C) social influence
D) brand loyalty
E) expectations

Question 46

A company decides to introduce a line of golf gear designed specifically for women. What environmental trend is the company responding to?

A) competitive
B) sociocultural
C) political-legal
D) economic
E) technological

Question 47

Which of the following is the LEAST important influence on consumer behavior?

A) psychological factors
B) personal factors
C) social factors
D) technological factors
E) corporate factors

Question 48

Burberry is repositioning itself as a global luxury brand, such as Gucci and Louis Vuitton, and calls for luring a different type of customer. This is an example of what type of market segmentation?

A) geographic
B) demographic
C) psychographic
D) product-use
E) strategic

Question 49

What results when companies extend their horizons and identify opportunities outside existing product lines?

A) disconnected product lines
B) multiple product lines
C) uniform product lines
D) universal product lines
E) tailored product lines

Question 50

What part of the marketing mix includes communicating information about products?

A) product
B) promotion
C) price
D) place
E) publicity

Question 51

A firm makes bookcases, bicycles, soft drinks, armored cars, and novelty dishes. What do these items make up?

A) product line
B) product variety
C) product assortment
D) product mix
E) product inventory

Question 52

Congress has conducted hearings on the use of cell phones while driving. What factors would this constitute in a company's external environment?

A) political-legal
B) sociocultural
C) technological
D) competitive
E) demographic

Question 53

Marketing does not stop with the sale of a product. What is the term that describes what happens after the sale?

A) postpurchase evaluation
B) prepurchase evaluation
C) rational motives
D) emotional motives
E) evoked set

Question 54

What type of good is a custom-made wedding gown classified as?

A) convenience good
B) shopping good
C) ceremonial good
D) luxury good
E) specialty good

Question 55

Marketing managers often support the activities of political action committees (PACs). In doing this, which environment are they attempting to influence?

A) competitive
B) economic
C) technological
D) political-legal
E) geo-demographic

Question 56

The satellite dish and home television shopping provide examples of changes to which of the following external environmental factors that affect marketing?

A) economic
B) technological
C) legal
D) political
E) competitive

Question 57

Reading the relevant issues of Consumer Reports prior to purchasing a product is an example of what part of the consumer buying process?

A) problem recognition
B) information seeking
C) selecting substitutes
D) need recognition
E) consideration setting

Question 58

Which is usually the first step in the marketing strategy?

A) distribution
B) product differentiation
C) target markets
D) pricing
E) integration

Question 59

What do B2B buyer-seller situations often involve?

A) frequent and enduring buyer-seller relationships
B) incidental buyer-seller interactions
C) buyers and sellers with limited training
D) short term buyer-seller relationships
E) commercial buyer-seller networks

Question 60

In consumer behavior, what is the name for the influences that include the "way of living" that distinguishes one large group from another and one ethnic group from another?

A) psychological
B) personal
C) social
D) domestic
E) cultural

Question 61

Garrett is in the business of selling baseball bats. He decides to employ focus groups to determine which bats will likely be bestsellers. Which of the following groups will he be LEAST likely to invite as participants?

A) players from the state's professional baseball team
B) local college and high school coaches
C) administrators of the local Little League baseball program
D) spectators at a baseball tournament
E) junior high players from the surrounding counties

Question 62

Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer buying process?

A) post-purchase evaluation
B) problem-solving
C) information seeking
D) purchasing the product
E) recognizing a need

Question 63

Little Earth Productions is a company that makes fashion accessories such as handbags. After examining shopping habits, what should they focus on for better visibility of the product for customers?

A) better shipping techniques
B) better in-store displays
C) zero response time
D) lower pricing
E) distribution

Question 64

What would be the best target market for waterproof fragrances?

A) male lifeguards
B) college fraternity members
C) Olympic ice skaters
D) school-aged children who live in warm climates
E) female swimmers and divers

Question 65

LiveLong Company provides volunteer participants with new products to try and then asks them to share the information with their friends, family, coworkers, and others in their social network. What is this type of marketing called?

A) share marketing
B) buzz marketing
C) viral marketing
D) placement marketing
E) target marketing

Question 66

During the product life cycle, when do sales begin to slow down while profit levels are high?

A) decline
B) maturity
C) introduction
D) growth
E) promotion

Question 67

Tamika starts a business making teddy bears and elects to use focus groups to determine whether customized bears would be well received in a hospital setting. The focus groups prove to be unhelpful in answering this question. Which of the following could NOT be a valid explanation?

A) Not enough focus groups were used.
B) Focus groups are not a recommended method for obtaining people's opinions.
C) The people in the focus groups could not relate to a hospitalized child's experience.
D) Responses from focus group members were not recorded accurately.
E) The questions asked were not designed to reveal the information being sought.

Question 68

Which of the following occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies?

A) international competition
B) substitute competition
C) brand competition
D) benefit competition
E) placement competition

Question 69

Tamika starts a business making teddy bears and is excited to deliver the first batch to young patients. When Tamika arrives at the hospital, she learns that she has more bears than she needs. Which of the following would likely explain this?

A) Tamika failed to collect primary data.
B) Tamika did not interview all of the children.
C) Tamika was not told that five more children had been admitted.
D) Tamika conducted too much market research.
E) Tamika received incorrect secondary data from the hospital.

Question 70

Leif designs and sells surfboards. Although his sales are declining, he decides to keep his prices constant. The marketing professionals with whom Leif consults all support his decision. Which of the following statements is LEAST likely to be True?

A) Surfboards at the other shops are priced much higher.
B) Leif's shop is more strategically located than the other stores are.
C) The other shops' promotional materials are far superior to Leif's.
D) Leif offers a much wider variety of surfboards than his competitors do.
E) Leif and the marketing professionals believe that low demand will continue.

Question 71

Why is product development a long and expensive process?

Question 72

What does the process of "positioning" involve?

A) hiring only employees who have the strongest credentials
B) designing a company's products to appeal to target customers
C) focusing on only one component of the marketing mix
D) disregarding customers' reactions to a company's products
E) reorganizing employees according to seniority

Question 73

Which of the following is the best example of a B2B market transaction?

A) A college student buys dorm furniture from an on-campus store.
B) A group of teenage girls buy new clothes for the upcoming school year.
C) A high-school coach borrows sports equipment from a neighboring school.
D) A dentist provides free toothbrushes to patients.
E) A chain of ice cream parlors regularly purchases napkins from the same supplier.

Question 74

Noxzema, Prudential, and Minute Maid would be examples of which kind of brand name?

A) licensed
B) private
C) national
D) international
E) convenience

Question 75

What type of brands are Sears Craftsman tools and Kenmore appliances examples of?

A) national
B) licensed
C) private
D) global
E) social

Question 76

Which of the following is the best example of an emotional motive in consumer purchasing?

A) A major shoe company purchases the latest designer styles in order to please customers.
B) A leather shop provides goods to local handbag makers.
C) A businesswoman buys a new suit for an important presentation.
D) A housewife donates unworn dresses to a resale shop.
E) A group of neighborhood moms holds a free childcare seminar for new mothers.

Question 77

Which defining word or phrase below best captures the meaning of capital items?

A) bulk loads
B) directly used in the production process
C) to the consumer within a year
D) permanent
E) stable

Question 78

Quinn Clothes is a successful business selling fashionable and athletic swimwear. The marketing staff has said that the company's plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field. Which of the following is the BEST response to that weakness?

A) Hire a chemist to develop the fragrances.
B) Seek product ideas from existing staff.
C) Employ new graphic designers to develop a new logo.
D) Ensure that the perfume can be sold in the same retail stores as the swimwear.
E) Rethink the company's promotional approach to selling products.

Question 79

Explain the difference between demographic variables and psychographic variables.

Question 80

Some products can be sold abroad with virtually no changes. Which of the following is an example of such a product?

A) Coca-Cola
B) electric razors
C) Gerber baby food
D) Apple computers
E) fruit juices