Question 1

occurs when a product provides more value to each customer when more overall customers own or use the product.

Accepted Answer

The network effect occurs when a product or service becomes more valuable as more people use it, enhancing its utility for each user.

Question 2

A marketer who is conducting a broad exploration of customer insights and emerging market trends is most likely involved with .

Accepted Answer

D

Question 3

A supply side approach to market definition focuses on the .

Accepted Answer

A supply side approach to market definition focuses on the primary industry.

Question 4

In the marketing process,which of the following is NOT one of the four Cs considered essential during a situation assessment?

Accepted Answer

Conversions are not one of the four Cs in a situation assessment; the four Cs typically refer to context, competition, customers, and company.

Question 5

Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence .

Accepted Answer

These forces are part of Porter's Five Forces framework, which is used to analyze the competitive environment of an industry and its impact on profitability.

Question 6

PIMS data shows a strong correlation between _ and _ .

Accepted Answer

PIMS (Profit Impact of Market Strategy) data has historically shown a strong correlation between market share and profitability, indicating that companies with larger market shares tend to be more profitable.

Question 7

Demographics,norms,and lifestyles are factors in the context that marketers must always consider.

Accepted Answer

Demographics, norms, and lifestyles are part of the social context that marketers must consider, as they relate to the characteristics and behaviors of people in a society.

Question 8

In a concentric market,which of the following is the core?

Accepted Answer

The core of a concentric market is the product form, which refers to the specific type of product that fulfills the same need or function.

Question 9

Producing more than one product and lowering the cost of production of all products is best known as .

Accepted Answer

Economies of scope refer to the cost advantages that a business obtains by producing a variety of products, leading to a reduction in the average cost of production for each product.

Question 10

Which term refers to increases in unit costs as production increases?

Accepted Answer

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase.

Question 11

Which of the following best describes a situation in which more people are buying a product,more retailers are wanting to stock the product,and sales of the product are increasing?

Accepted Answer

A virtuous circle describes a situation where positive feedback leads to a self-reinforcing cycle of growth, such as increased demand leading to more retailers stocking a product, which in turn boosts sales.

Question 12

Major strategic gains and losses will most likely occur at which stage of the product life cycle?

Accepted Answer

During the growth stage, the market expands rapidly, and companies can gain significant market share, establish brand loyalty, and achieve economies of scale, leading to major strategic gains or losses.

Question 13

Which of the following would most likely lower unit costs while increasing reliability and conformance quality?

Accepted Answer

Learning curve effects refer to the reduction in per-unit costs as a company gains experience in production, leading to increased efficiency and improved quality over time.

Question 14

Economies of scale are primarily increased by .

Accepted Answer

Economies of scale are primarily increased by higher units of production. As the number of units produced increases, the fixed costs of production are spread over a larger number of units, resulting in a lower cost per unit.

Question 15

In which stage of the product life cycle would share building most likely be difficult and lead to price competition?

Accepted Answer

In the maturity stage, the market is saturated, growth slows, and competition is intense, leading to price competition as companies try to maintain or increase their market share.

Question 16

Which of the following would most likely occur during an assessment of the external marketing environment?

Accepted Answer

Analyzing the specific industry is a key component of assessing the external marketing environment, as it involves understanding the market conditions, competition, and external factors that can impact the business.

Question 17

Which of the following is most likely to result from higher market share?

Accepted Answer

Higher market share often leads to higher profits due to economies of scale, increased bargaining power, and greater brand recognition.

Question 18

What is the broadest level of a concentric market?

Accepted Answer

The answer of What is the broadest level of a...

Question 19

Marketers should be aware of tax codes,operating rules,and guidelines that affect business and industry in a given society. This is the context.

Accepted Answer

Marketers need to understand the political context, which includes tax codes, operating rules, and guidelines, as these are influenced by government policies and regulations.

Question 20

Which of the following is NOT a challenge presented to marketers by the product life cycle?

Accepted Answer

The challenge is not about plotting the life cycle stages, but rather adapting strategies and managing changes in sales, profits, tastes, and technologies.

Quiz 2: Situation Assessment: the External Environment