Question 1

All of the following are elements of the marketing mix EXCEPT _____.

Accepted Answer

Planning is not typically considered an element of the marketing mix, which consists of product, price, promotion, and distribution. However, planning may be an underlying factor in the development and execution of the marketing mix.

Question 2

A company that views itself in a product business, rather than in a value, or benefits producing business runs the risk of developing _____, which could cause the company to go out of business if technology makes the product obsolete.

Accepted Answer

Marketing myopia occurs when a company becomes too focused on its product and does not consider the broader value or benefits it provides to consumers. This narrow focus can lead to the company missing out on opportunities or failing to adapt to changes in the market, potentially leading to obsolescence and failure.

Question 3

All of the following are examples of marketing tactics EXCEPT _____.

Accepted Answer

Setting the company sales goal is a strategic decision, not a marketing tactic. Marketing tactics are specific actions taken to achieve marketing objectives, such as pricing, advertising, and distribution.

Question 4

Which strategy deals with how the firm will be defined and sets general goals?

Accepted Answer

Corporate strategy is the high-level plan that defines the scope of the firm and sets the overall objectives that guide decision-making at lower levels. It concerns large-scale strategic decisions that affect the entire organization, such as mergers and acquisitions, divestitures, and vertical or horizontal integration. By contrast, marketing strategy deals with how to promote and sell the firm's products or services, tactical strategy focuses on short-term actions to achieve specific objectives, and top-level strategy may refer to any strategic decision made at the highest levels of the organization, but it is not as specific as corporate strategy. Meta-strategy is not a commonly used term in strategic management.

Question 5

_____ value is the immediate gratification that comes from experiencing some activity.

Accepted Answer

Hedonic value is the immediate pleasure or enjoyment that a consumer experiences from consuming a product or participating in an activity. It is primarily related to emotions and feelings of happiness, enjoyment, or joy.

Question 6

A company has formed a team to decide the direction the organization should take over the next five years. The focus of this team is to come up with a plan that will better position the company to take advantage of opportunities and avoid threats in the changing environment. This team is involved in developing the _____ for the organization.

Accepted Answer

The team is focused on developing a plan to position the company for success in the changing environment, which is the definition of a strategy. A mission statement outlines the company's purpose, while tactics are specific actions taken to achieve goals within a strategy. Focus is a broad term that could apply to any aspect of the team's work, and blueprint implies a more detailed plan than what is suggested in the scenario.

Question 7

Community Trust Bank is analyzing its customer data to determine if groups other than simply consumer and business customers can be identified. It is looking at the frequency of branch visits, use of ATMs, online banking activity, loan activity, and account balances for each customer. The bank has identified three groups of customers based on these factors and is considering offering different products to better meet the needs of each group. What marketing concept do these different groups of customers represent?

Accepted Answer

The analysis and identification of different groups of customers based on factors such as frequency of branch visits, use of ATMs, online banking activity, loan activity, and account balances represents market segmentation. This allows the bank to offer different products and services to each group based on their specific needs and behaviors.

Question 8

Kyle purchased a Macbook Pro and an extended warranty. He also purchased one-on-one training to learn how to use the computer. This is an example of a(n) _____.

Accepted Answer

An augmented product includes additional services or benefits such as warranties and training, which enhance the core product.

Question 9

Vann's is a company that manufactures and markets shoes for serious skateboarders. These consumers are predominantly males, 10-25 years old. This market segment that Vann's serves with a specific marketing mix is called its _____.

Accepted Answer

The market segment that Vann's serves with a specific marketing mix is called its target market. This segment consists of serious skateboarders who are predominantly males and between the ages of 10-25. Vann's has likely conducted market research to identify this specific group as their target market and has tailored their marketing mix (product, price, promotion, and place) to meet the needs and wants of this segment.

Question 10

A planned way of doing something is known as a(n) _____.

Accepted Answer

A strategy is a planned way of doing something, which can involve a series of actions or steps designed to achieve a particular goal or objective. While goals and objectives are important components of strategy, they do not necessarily encompass the full scope of a strategic plan. A mission is a statement that describes an organization's overall purpose or reason for existence, while utilization refers to the degree to which resources are being used effectively. Therefore, the best choice is E) strategy.

Question 11

The degree to which a consumer is sensitive to changes in some product characteristic is known as _____.

Accepted Answer

The degree to which a consumer is sensitive to changes in some product characteristic is known as elasticity. It refers to the responsiveness of demand for a product or service to changes in its price or some other attribute, such as quality or features.

Question 12

The business practice wherein companies operate with the understanding that products provide value in multiple ways is called the _____.

Accepted Answer

The total value concept is the business practice wherein companies operate with the understanding that products provide value in multiple ways, such as through their features, durability, reputation, and other intangible benefits. This concept emphasizes the importance of understanding the entire customer experience and tailoring products to meet their needs and preferences beyond just the physical attributes of the product itself.

Question 13

The market segment a company will serve with a specific marketing mix is referred to as the _____.

Accepted Answer

The term "target market" specifically refers to the group of consumers that a company has identified as its primary audience for its products or services. This group is selected based on various factors such as demographics, psychographics, and behavior, and the company then tailors its marketing mix (product, price, place, and promotion) to best appeal to this target market. The other choices are not as accurate as "target market" in describing this concept.

Question 14

The actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits is called the _____.

Accepted Answer

The augmented product refers to the actual physical product purchased along with any additional services or features necessary to use the product and obtain its benefits. This includes things like installation, warranties, and customer support.

Question 15

Black & Decker is well known for power tools. However, if the company thinks of itself merely as a power tool company instead of a company that delivers the benefits users want, such as cut materials or holes in materials, it could be taking a short-sighted focus of its business. If a technologically-advanced device is developed that could replace the need for power tools to deliver those benefits, this company could go out of business. That is, Black & Decker could suffer from _____.

Accepted Answer

The scenario in the question is an example of marketing myopia, where a company focuses on its products instead of addressing the needs and wants of its customers. Black & Decker may miss an opportunity to develop or adapt to a new technology that could replace power tools and ultimately put them out of business.

Question 16

A university realizes it needs to increase revenue in the face of severe budget cuts due to the weak economy. The school decides to pursue students who have some college but have not completed their degrees. To do this, the university is offering online degree programs, charges extra fees for these students, offers a wide selection of online courses each semester, and advertises on billboards, on radio, on television, and in newspapers throughout the state. The school also sends direct mail letters to students who were previously enrolled at the school but did not complete their degree. The courses, the tuition, online delivery, and promotion are examples of _____.

Accepted Answer

The courses, tuition, online delivery, and promotion tactics (advertising on billboards, radio, television, newspapers, and direct mail letters) are examples of marketing tactics. The university is using various methods to attract and retain students who have some college but have not completed their degrees, in order to increase revenue.

Question 17

Melanie and her daughter enjoy shopping together even if they do not purchase anything. For them, shopping is an end in and of itself, not just a means to an end. Which type of value are they experiencing?

Accepted Answer

Melanie and her daughter are experiencing hedonic value, which refers to the emotional enjoyment and pleasure that people derive from a certain experience, in this case shopping together. They are not primarily concerned with the practical or functional benefits of shopping (utilitarian value) or seeking out pleasure in the form of material goods (pleasure-seeking value). The term experiential value refers to the overall worth or benefit that consumers expect to gain from participating in an activity or consuming a product, while augmented value is a concept related to product quality that includes additional features or services beyond what is expected. Neither of these concepts fully captures the value that Melanie and her daughter are deriving from their shopping trips.

Question 18

_____ is the separation of a market into groups based on the different demand curves associated with each group.

Accepted Answer

Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This allows marketers to tailor their marketing efforts to more specific groups, rather than trying to appeal to the entire market with a one-size-fits-all approach.

Question 19

How do hedonic and utilitarian value differ?

Accepted Answer

Hedonic value is focused on the emotional and subjective experience of consuming a product or service, while utilitarian value is focused on the functional benefits and usefulness of a product or service.

Question 20

The realization that a consumer is necessary and must play a part in order to produce value is the major premise underlying the concept of _____.

Accepted Answer

The concept of value co-creation emphasizes that value is not solely produced by the company or the consumer, but rather through their collaboration and joint efforts. This means that consumers must play an active role in creating value, for example by providing feedback, contributing ideas, or participating in the design of products or services. Therefore, choice D (value co-creation) best reflects the idea that consumers are necessary and must participate in order to produce value.

Quiz 2: Value and the Consumer Behavior Value Framework