Marketing Helping Buyers Buy Complete Test Bank Chapter 13

Understanding Business, 12e (Nickels)

Chapter 13 Marketing: Helping Buyers Buy

1) Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have a value for customers, clients, partners, and society at large.

2) The activities of marketers depend on what needs to be done to satisfy consumer wants and needs, in other words, helping the buyer buy.

3) In the evolution of marketing, the production era assumed an unlimited market.

4) The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising, and (4) stakeholder relationships.

5) The focus of the production era was on distribution and advertising.

6) The tremendous demand for consumer goods and services after World War II helped launch the production era of marketing.

7) In the production era the greatest marketing need was for distribution and storage.

8) During the selling era, businesses turned from an emphasis on production to an emphasis on selling.

9) The marketing concept has three parts: (1) a consumer orientation, (2) a service orientation, and (3) an advertising orientation.

10) In the evolution of marketing, the marketing concept era emphasized selling and advertising in an effort to persuade consumers to buy existing products.

11) The marketing concept emphasizes that everyone from the president of the firm to the delivery people should be customer oriented.

12) The marketing concept was used heavily by business when it was first suggested in the 1950s.

13) Customer relationship management (CRM) is the process of learning as much as possible about customers and doing everything you can to satisfy them.

14) The idea behind customer relationship management is to enhance customer satisfaction and stimulate long-term customer loyalty.

15) Because the marketing concept emphasizes a profit orientation, marketing has not been used successfully by nonprofit organizations.

16) The primary focus of marketing today is on selling and advertising.

17) During the early 1900s, businesses emphasized as much as possible about their customers and doing everything to satisfy them.

18) Outstanding service after the sale was a primary focus of businesses during the selling era.

19) After World War II, the tremendous demand for goods and services among the returning veterans allowed businesses to sell whatever they produced without having to worry about what the competition was doing.

20) It is the job of marketers today to persuade consumers to buy the goods and services those marketers have available to sell.

21) Social media is having a minimal effect on the emerging era of mobile/on-demand marketing.

22) The Connecting Through Social Media box shows marketers are increasing their customer reach through creative ways, like Snapchat filters.

23) The marketing team at Classic Creatives emphasizes marketing the goods that will earn the company a profit. This focus on profit orientation shows that Classic Creatives has not yet adopted the marketing concept that emphasizes a customer orientation rather than a profit orientation.

24) The sales team at the Good Life Appliances works hard to develop a close relationship with their customers and to provide satisfaction even after the sale. These efforts by Good Life's sales employees are part of the marketing process.

25) Muffie's Muffler Repair finds out what customers want and then determines how to best meet their needs. Based on feedback from her customers, Muffie provides a written estimate before any work is done, offers a more comprehensive guarantee than her competitors, and calls customers after completion to make sure they are satisfied. These efforts suggest she is applying the concepts of customer relationship management.

26) The Fairness Foundation is a nonprofit organization that helps underprivileged children. As a nonprofit organization, it does not perform marketing functions, since these functions are designed to help organizations earn a profit.

27) The main concern of the marketing mix is to please firm's stockholders.

28) Placing a product in a location where people will buy it is part of the marketing mix.

29) Designing a want-satisfying product is part of the marketing mix.

30) Setting a price for the product or service is one element of the marketing mix.

31) The primary factors involved in the marketing mix are sometimes called the 5 intangibles of marketing.

32) The marketing manager's job is to design a program that effectively combines the ingredients of the marketing mix.

33) The four elements of the marketing mix are product, production, price, and predictability.

34) Providing people with a description of a potential new good or service and asking if the idea appeals to them are key parts of the marketing process.

35) Concept testing involves placing a product in a place where consumers will buy it.

36) A test market refers to the people in a market that will be least likely to use the product or service the marketer is offering.

37) A brand name is generally thought of as part of the product.

38) Test marketing involves developing an accurate description of the product and asking people if the proposed product appeals to them.

39) The marketing process includes decisions about the best way to get the product to the consumer.

40) Intermediaries are firms in the middle of a series of organizations that distribute goods from producers to consumers.

41) Promotion includes personal selling, publicity, and word-of-mouth efforts to persuade people to buy a firm's goods or services.

42) Unlike advertising, which is part of the promotional component of the marketing mix, personal selling is considered to be part of the distribution function.

43) The last step in the marketing process often includes building a continuing relationship with customers.

44) Marketers are concerned with selling goods and services, and therefore are not involved in designing the products their firm will sell.

45) Marketing involves developing and promoting a firm's products and allowing the firm's purchasing department to make all distribution and transportation decisions.

46) The most important component of the marketing mix is the actual design and production of the product.

47) Getting the product from the producer to the consumer is a production-related process and not related to the marketing mix.

48) Marketing focuses on the pricing and distribution of want-satisfying products, as well as determining the best way to promote the products to consumers.

49) Marketing is a limited activity, performed when a business is first established and when it introduces a new product to the market. Once a firm has fine-tuned its marketing activities, it can turn its attention elsewhere.

50) For safety's sake, Marshall Metals produces as many products as possible since customers are not a good source of informing the organization what they want to buy.

51) Mobile apps, like Rewards4You, engage users by combining the most basic elements of social media. These apps are a great benefit to both customers and businesses. Customers get a special deal while businesses are able to get their names out to the friends of users. This is an effective form of promotion.

52) The marketing mix provides a detailed market analysis to determine opportunities and challenges as well as information needed to make good decisions.

53) Marketing research helps determine what customers have purchased in the past, what situational changes have occurred to change consumer preferences, and what consumers are likely to want in the future.

54) Effective marketing research involves listening to customers, employees, shareholders, and other stakeholders.

55) The first step in the marketing research process is to collect relevant data.

56) Secondary data should be gathered first because this type of information is less expensive to obtain.

57) Secondary data consists of information that has already been compiled by others and is published in journals and books or made available online.

58) A phone or online survey is an example of primary data collection.

59) A focus group consists of a small group of people who meet, under the direction of a discussion leader, to communicate their opinions about an organization, its products, or other issues.

60) Marketers use very detailed surveys to gather secondary data.

61) The final step of the marketing research process involves selecting from several alternative strategies, and performing follow-up research to see if results were as expected.

62) Marketing research is a process that most firms complete once a year, in order to gather information for the firm's budgeting process.

63) In the marketing research process, marketers should examine alternative solutions before making a recommendation.

64) Marketing research needs to be an ongoing process at a firm since changes in the marketplace and among consumers is a continuous process.

65) Government publications, such as the Statistical Abstract of the United States Survey of Current Business Census of Retail Trade, are sources of detailed primary data.

66) The secondary data collected in the research process does not need to be carefully evaluated since it's always collected from reliable secondary sources.

67) Because accurate and timely market information is vital to a firm's success, businesses should budget whatever it takes to get the best data available.

68) Marketing research usually begins with secondary data because it is more accurate and more relevant than primary data.

69) Whenever available, marketers should rely exclusively on primary data because it is much more accurate than secondary data.

70) Overheard Communications just wrapped up a phone survey of several of their current customers. In addition, they also plan to hold detailed personal interviews with about 15 additional customers. Both the phone survey and the interviews are sources of primary data for Overheard.

71) As a personal trainer at a local gym, Marie has been invited by a publisher to meet with nine other people to discuss a new concept for a health and fitness magazine. A member of the publisher's marketing staff will be at the meeting to guide the discussion and to record the participants' comments and suggestions. If Marie accepts the invitation, she will be participating in a focus group.

72) Environmental scanning is a green concept that involves the tracking of pollution generated by a firm and its impact on society.

73) The process of identifying the factors that can affect marketing success is called environmental scanning.

74) Population growth and changing demographics are two elements of a firm's sociocultural environment.

75) Consumer databases, blogs, and social network sites are some of the technological factors that are used by marketers to develop goods and services.

76) Successful marketers adjust their product offerings as the level of economic activity changes.

77) The two major types of markets in business are the consumer market and the government market.

78) The business-to-business (B2B) market involves the marketing of goods and services to institutions that sell, rent, produce, or supply goods to others.

79) When classifying a product as a consumer product or a B2B product, the primary factor to consider is the financial status of the buyer.

80) Price is the determining factor as to whether a good is classified as a consumer product or a B2B product.

81) The purchase of a cash register is likely a B2B product.

82) The consumer market consists of all the individuals or organizations that want goods and services in order to produce other goods and services to sell, rent, or supply to others.

83) A cup of yogurt is an example of a product that is always classified as a consumer good.

84) Products such as computers, tablets, telecommunication equipment, smartphones, and other manufactured or mass-produced items are always classified as B2B products.

85) Susan, a manager for Metallic Masters Manufacturing, spends much of her time reviewing the global, technological, sociocultural, competitive, and economic factors that can influence the success of her company's marketing efforts. Susan's efforts indicate that she is involved with environmental scanning.

86) Market segmentation is the process of dividing a market into several groups whose members have dissimilar characteristics.

87) Selecting which groups an organization can serve profitably is called target marketing.

88) With careful attention to controlling costs and quality, businesses can successfully satisfy consumers with a standardized product for different markets.

89) Target marketing is a business strategy that focuses a firm's marketing efforts toward a potentially profitable segment of a larger market.

90) Because consumers differ in age, education, income, and tastes, companies will be more likely to succeed if they target a segment of a market and develop goods and services specially tailored to that group.

91) Firms developing products for a narrow segment of a market are less likely to profitably satisfy that group's needs.

92) Demographic segmentation divides a market into segments based on the customer's location.

93) Psychographic segmentation involves dividing a market into segments based on lifestyle, values, attitudes, or interests.

94) Separating a market by the amount of the product consumed is known as volume segmentation.

95) The strategy of focusing on small but profitable market segments is called micro marketing.

96) One-to-one marketing refers to developing a unique mix of goods and services for each individual customer.

97) Travel agencies demonstrate a one-to-one marketing strategy when they develop unique vacation packages for individual customers.

98) One-to-one marketing is seldom used in B2B markets.

99) Mass marketing means developing products and promotions using little segmentation.

100) A basic principle of relationship marketing is that firms should concentrate on producing and promoting products that appeal to large groups of people.

101) Relationship marketing makes heavy use of media such as television, radio, and newspapers, to convince large groups of customers to buy a standardized product.

102) Relationship marketing moves away from mass production and toward custom-made goods and services.

103) Relationship marketing is rather easy to implement in the B2B market but almost impossible to use in the consumer market due to the sheer size of the consumer market.

104) Firms adopting a relationship marketing strategy often establish an online presence to communicate with customers.

105) Relationship marketing depends on understanding individual consumers and responding quickly to their wants and needs.

106) Consumer behavior is influenced by the attitudes, values, and ways of doing things that are passed from one generation to the next.

107) The set of values, attitudes, and ways of doing things that result from belonging to a certain ethnic, religious, or racial group is called that group's cognitive dissonance.

108) Learning involves changes in an individual's behavior resulting from previous experiences and information.

109) A reference group is society's accepted values, attitudes, and ways of doing things that consumers have to learn.

110) Cognitive dissonance refers to the confusion and frustration people experience when they compare different products they rarely use before making a purchase.

111) In order to be successful, marketers avoid small market segments in favor of larger targets.

112) The purpose of market segmentation is to identify the features of a product that will appeal to as many customers as possible.

113) Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketing than it is for those firms using relationship marketing.

114) In general, the broader the market a firm tries to serve, the better its chances of success.

115) Elodie is a sales representative for a textbook publisher. She spends a great deal of time visiting college professors who have already adopted one of her books for use in her classes. She makes sure they have all the supplements to the book they need and are informed about when new editions will be available. Elodie's emphasis on keeping her existing customers satisfied is consistent with the philosophy of relationship marketing.

116) The management at Slick Automotive has replaced their outdated marketing approach with an approach that emphasizes relationship marketing. Under this new approach, Slick's salespeople will be expected to devote less time to current customers and a larger share of their time searching for new customers.

117) The company website for SharpSmart Computers is a place for customers to get the latest information about new products, special offers, and technical support. The company has also added a chat function that allows customers to communicate with representatives immediately. SharpSmart's approach indicates that it is trying to utilize relationship marketing.

118) Kaden bought an expensive sports car last week. Immediately after the purchase, he worried that he paid too much, and that a less expensive model with better gas mileage would have been a wiser choice. Marketers refer to the doubts Kaden is experiencing as post-purchase stress syndrome.

119) Mallory wants the celebrity life. She often changes her dress, speech, and mannerisms in response to the latest trends. She even supports the same social causes her favorite stars support. Mallory's behavior suggests that people in show business are an important reference group for her.

120) B2B marketers include manufacturers, retailers, hospitals, and the government.

121) The B2B market involves fewer trades and fewer dollars spent than the consumer market because there are so many more consumers than there are businesses.

122) Marketing strategies used effectively in the business-to-business markets are exactly the same as strategies used by marketers in consumer markets.

123) In B2B markets, sellers rely on wholesalers and retailers to efficiently distribute their products.

124) The number of customers in B2B markets is quite large compared to the number of customers in the consumer market.

125) Buyers in the B2B market tend to make more rational decisions than buyers in the consumer market.

126) There is much more emphasis on personal selling in the consumer markets than in the B2B markets.

127) B2B markets tend to be geographically concentrated.

128) Marketing goods and services to the B2B market relies more heavily on advertising than marketing efforts aimed toward the consumer market.

129) While most students find marketing an interesting and meaningful subject, one drawback of majoring in marketing is that it prepares students for only a narrow range of career options.

130) Romeo accepted a sales position at SharpSmart Computers. Before joining SharpSmart, Romeo worked in the electronics department of a retail store and sold personal computers and tablets to consumers. In his new job, Romeo will sell personal computers and tablets to businesses. Despite the fact that the products sold to these two customer groups are quite similar, Romeo is likely to find that purchasing decisions by buyers in the two markets will be influenced by different factors.

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

A) Selling

B) Advertising

C) Marketing

D) Mixing markets

132) Which of the following marketing eras refers to the time period from our country's first settlers through the early 1900s?

A) production era

B) selling era

C) marketing era

D) customer relationship era

133) The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the following marketing eras?

A) production era

B) selling era

C) marketing era

D) customer relationship era

134) Which of the following describes the marketing era immediately after the development of mass-production assembly lines?

A) production era

B) selling era

C) marketing era

D) customer relationship era

135) During the ________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling.

A) prefabrication

B) selling

C) mass communication

D) customer relationship

136) The significant increase in consumer demand following World War II marked the beginning of the

A) production era.

B) selling era.

C) marketing concept era.

D) customer relationship era.

137) The ________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

A) mercantile philosophy

B) hierarchy of needs

C) relationship approach to marketing

D) marketing concept

138) According to the ________ concept, a firm must (1) find out what customers want and provide it, (2) make sure everyone in the organization has customer satisfaction as an objective, and (3) provide goods and services that will earn a profit.

A) stakeholder relationship

B) consumerism

C) marketing

D) demand-side

139) Firms that have adopted ________ seek to do more than simply sell a product; they seek to learn as much as possible about their customers in order to satisfy them with goods and services over time.

A) nonprofit marketing

B) customer relationship management

C) management by objectives

D) the marketing mix

140) A ________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations.

A) market

B) profit

C) customer

D) production

141) Which of the following is a part of the marketing concept?

A) a consumer orientation

B) avoidance of risk

C) financial return orientation

D) emphasis on efficient production

142) Which of the following statements is most consistent with today's views on effective marketing?

A) "There's a sucker born every minute."

B) "Find out what your competition does and do it better."

C) "A good promotional campaign can sell anything."

D) "Learn about your customers and exceed their expectations."

143) Comparing the business practices of the 1950s to those of today indicates that today's marketing managers

A) have a more ambitious goal of not just satisfying customers, but of exceeding their expectations.

B) are much more focused on production and mass marketing.

C) put less emphasis on earning a profit, since doing so makes it harder to satisfy the needs of the firm's stakeholders.

D) operate essentially the same as their predecessors.

144) Which of the following statements about marketing is the most accurate?

A) Because nonprofit organizations are not motivated by profit, marketing activities are not consistent with their goals.

B) To be successful, marketers must be able to persuade consumers to purchase goods they don't really need.

C) Once a product is sold, focus on the next customer.

D) Marketers recognize the need to learn as much as possible about customers and do everything possible to satisfy them.

145) A key element of customer relationship management is to

A) keep the price of goods as low as possible.

B) develop a strategy to achieve the largest possible market share.

C) allow customers to participate in the management decisions of the firm.

D) learn as much as possible about customers.

146) A comparison of the marketing concept and customer relationship management indicates that customer relationship management

A) and the marketing concept are in fact identical.

B) attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix.

C) turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function.

D) extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.

147) Betty's Blossoms Nursery's social media presence has taken the company a step in the right direction toward building relationships with its customers. Betty posts her weekly recommendations to followers and even provides supplier sources for all kinds of rare and hard to find plants and shrubs. Customers provide other customers with reviews and comments about various plants they purchased through Betty's Blossoms and can message Betty's team with any questions or comments. As an extension of customer relationship management, this company is practicing

A) production management (PM).

B) processing customer relationships (PCR).

C) customer-management relationship (CMR).

D) psychological-managed relationship (PMR).

148) Malcolm works as the campaign manager for a candidate for the U.S. Senate. He needs to learn as much as possible about the candidate's potential voters. With the information he digs up, he hopes to focus the campaign on the issues most important to voters. What does this best represent?

A) the use of marketing by a nonprofit organization

B) a nonprofit application of the production era strategy

C) the use of public service advertising to sell a political candidate

D) an extension of the profit orientation to a nonprofit organization

149) The Southside Sweetery has a loyal following. When it recently moved from its longtime storefront to a famous resort area, it took a big risk. However, the owners were confident that its unique candies, cookies, and pastries would win customer raves. Fortunately, one of the members of the family business was convinced the sweet shop needed to stay in touch with its customers. Southside collects names and email addresses of its customers and maintains a presence on a few social media sites in order to send messages about promotions and coupons to valued customers. Marketing professionals refer to this strategy as

A) niche marketing.

B) production management.

C) customer relationship management.

D) sales management.

150) Which of the following strategies provides an example of the most current era whose principles today's businesses are embracing?

A) At TapTops International, a smart phone manufacturer, the production line is a 24-hour operation, even if demand is low.

B) Five Star Car Sales always maintains a large stock of pre-owned cars at great prices. You can almost always get a car for about 30–40% cheaper than at another car sales company, but you buy it "as is," without any warranties.

C) Corner Bookstore is known for stocking the top ten books on the monthly best sellers list. These books are almost always available at a reasonable cost to the bookstore, and they usually fly off the shelves. Corner Bookstore sees this as a win-win situation for themselves and their customers.

D) Comfy Corner Hotels is all about the experience. Their goal is to make certain that every guest leaves their properties with a better feeling than when they first arrived. The CEO of Comfy Corner says, "We want you to think of our brand first when you make a hotel reservation."

151) While the four Ps help us remember the basics components of the ________, they don't have significant relevance in the marketing process.

A) production operation

B) marketing mix

C) product development process

D) competitive benchmarking process

152) A firm's marketing mix consists of 4 major components, which are generally referred to as the four

A) Ps.

B) keys to success.

C) intangibles of marketing.

D) persuaders.

153) A firm's marketing mix refers to the combination of

A) goods the firm offers to different market segments.

B) advertising media the firm utilizes to promote its products.

C) strategies regarding product, price, place, and promotion.

D) people directly involved in making marketing decisions.

154) Marketers define a ________ as any physical good, service, or idea that satisfies a want or need.

A) product

B) copyright

C) prototype

D) concept

155) Which of the following describes a process in which marketers present an accurate description of a new product to potential customers and ask if they find the idea appealing?

A) prototype testing

B) concept testing

C) test marketing

D) competitive benchmarking

156) ________ is a process used to test consumer reactions about a product among potential users.

A) Pro forma branding

B) Virtual design

C) Prototype

D) Test marketing

157) Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?

A) brand name

B) product designation

C) prototype name

D) generic name

158) The last step in the marketing process often includes

A) collecting the cash from sales to consumers.

B) developing a written report to summarize the results of the period's marketing activities.

C) deciding the best way to distribute the product.

D) building relationships with customers.

159) ________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.

A) Advertising

B) Promotion

C) Pre-selling

D) Closing

160) Which of the following would be considered part of a firm's marketing mix?

A) Identifying the best source of funds to finance a firm's marketing activities

B) Determining the best pricing strategy for a product

C) Establishing a production schedule that enables the firm to meet forecasted sales

D) Designing the most efficient production plan

161) Which of the following tasks would be included in the marketing mix?

A) evaluating various distribution alternatives to determine the best way to get the product to the consumer

B) examining various sources of funds to determine the best way to finance an expansion of the organization's production facilities

C) assigning tasks to specific workers on specialty product assembly lines

D) developing financial statements based on the sales transactions of the firm during a specific time period

162) Which of the following is part of the marketing process?

A) developing an understanding of company finances available for new products

B) determining an appropriate brand name for a new product

C) designing the most efficient method of production of a new product

D) contacting suppliers after a purchase to ensure producer satisfaction

163) Luna, a marketing manager for a retailer of lighting products, will likely be involved in which of the following?

A) setting a price for the light fixtures her firm produces

B) deciding the best way to hire new employees to produce the lights

C) developing ideas for new ways to produce the lights

D) determining the best way to finance the purchase of new production equipment

164) Brad is a real estate agent. He recently had an idea for a program to help perform appraisals more quickly and more accurately. He has a buddy who is a programmer that has helped him develop a detailed description of what the program will do and how it differs from existing apps. Now, Brad has taken this description and shown it to a number of fellow real estate agents to see if his idea appeals to them. What is Brad engaging in?

A) prototype outsourcing.

B) test marketing.

C) concept testing.

D) word-of-mouth promotion.

165) Several years ago, Canadian Sam Holman realized there may be a need for a stronger, more durable wood baseball bat. He went through the process of developing the SamBat, a maple bat of precise dimensions. He set a price with a reasonable margin, he decided to take special orders and sell bats directly from his garage, and he promoted the bat with sales calls to professional baseball camps, where ball players could sample the bat. In marketing terms, we recognize that Mr. Holman designed the

A) marketing process.

B) marketing mix.

C) marketing equity.

D) marketing distribution.

166) H2 O'Yeah has designed a water purification device that is drastically different and far superior to any product currently on the market. Although consumer response was positive to the idea of the new product, management wants to find out more before committing to full-scale production. The next step H2 O'Yeah's marketing department is likely to take is to:

A) locate a low-cost production site.

B) seek a joint venture with a larger competitor.

C) test market the product among potential users.

D) develop an advertising campaign to persuade consumers of the value of the new water purifier system.

167) Engineers at Epic Electronics have designed a new smartphone ready to rival iPhone. The marketing department wants to find a way to identify the new phone in the minds of current smartphone consumers and differentiate it from products made by Epic's competitors. An important part of this effort is likely to be the selection of a ________ for the new phone.

A) merchandiser

B) brand name

C) copyright

D) prototype

168) Which of the following terms involves the analysis of markets to identify opportunities and challenges?

A) market analysis

B) marketing research

C) opportunity identification

D) market prospecting

169) Successful marketing researchers

A) focus their efforts on determining historical needs of customers, since the core value of marketing is that the customer needs don't change.

B) develop as much information as possible from primary sources.

C) listen to customers and other stakeholders.

D) rely on their experience and personal opinions when making decisions.

170) The first step in the marketing research process is to

A) define the problem and determine the present situation.

B) collect relevant data from primary and secondary sources.

C) analyze the research data.

D) decide upon the best ethical solution.

171) A firm gathers ________ data by conducting surveys, interviewing customers, or mailing out questionnaires.

A) primary

B) secondary

C) non-referenced

D) unbiased

172) ________ consists of information that has already been researched by others and is published in journals or books, or has been made available online.

A) Primary data

B) Secondary data

C) Pre-coded information

D) Technical data

173) Exploring ________ data first helps marketers minimize marketing research costs.

A) focus group

B) personal interview

C) primary

D) secondary

174) A widely used technique commonly used for collecting primary data is

A) collecting relevant articles in trade journals.

B) benchmarking.

C) conducting a survey.

D) reviewing government reports.

175) Which of the following represents a technique used to obtain primary data?

A) gaining access to an unpublished government report from the Federal Trade Commission (FTC)

B) conducting personal interviews with potential customers

C) establishing a database to store and cross-index articles from leading academics and researchers

D) reviewing the best-selling trade books and textbooks that present marketing principles

176) A ________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues.

A) concept

B) focus

C) peer

D) consumer interest

177) Which of the following is considered a step in the marketing research process?

A) designing a product to meet the need based on research

B) defining the question and determining the present situation

C) planning for product modifications and test advertising

D) setting the price for a product

178) In the past, companies have designed intricate products that markets did not perceive any need for. They have aired promotional campaigns that have offended audiences. They have priced products out of reach of the target market. Marketing experts defend the importance of ________, the process of gathering all sorts of information about customers and products in order to make informed decisions about the product, price, place, and promotion.

A) target marketing

B) marketing research

C) market segmentation

D) global trekking

179) Pequeno Pesos Restaurants, Inc. is a chain of restaurants featuring authentic, affordable Mexican cuisine around the United States. The company is looking to expand its reach and to improve its menu. Which of the following is an example of secondary data the owners of Mucho Tacos might find useful?

A) Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population

B) Telephone survey by the marketing department of Pequeno Pesos asking for opinions about the quality of the food at the restaurants

C) Focus group of teenagers who like Mexican food who are asked about their reactions to new food dishes the restaurant may offer

D) E-mail responses the chain receives to a series of customer satisfaction questions posted on its website

180) Enrollment at Mountain Top Community College has been in decline for five years. In the past the college has relied strictly on enrollment from newly graduated high school students. In order to identify other potential markets, the school would benefit from

A) test marketing.

B) sales promotions.

C) marketing research.

D) a stakeholder audit.

181) Elise has completed a review of data her department has collected. The team contacted potential customers through phone interviews, online surveys, and focus groups. Elise is disappointed because the results strongly indicate the product idea she helped develop is unlikely to be popular. What should Elise do?

A) Proceed with product development because the opinions of experienced marketing managers often turn out to be more accurate than marketing research.

B) Accept the research results and reevaluate the proposed product.

C) Continue developing the product, but try to find ways to reduce production costs.

D) Put the product on temporary hold, throw out the results of the research, and design and conduct a new study.

182) Worlds of Fun is preparing to open its newest theme park in Shanghai. Once open, the marketing department will be collecting lots of information on what customers want while they are at the park. The marketing research team for Worlds of Fun will create original surveys with targeted questions to help collect reliable information. This type of research is described by marketing professionals as the collection of

A) sequential data.

B) formative data.

C) primary data.

D) secondary data.

183) ________ is the process of identifying factors that can affect marketing success.

A) Environmental scanning

B) Target marketing

C) Niche marketing

D) Segmentation analysis

184) The most important technological change likely to affect the marketing success of many firms is the

A) growth of consumer databases, blogs, and social networking sites.

B) speed of service from faster check-outs.

C) level of computer literacy of the target market.

D) number of computers in use in the home.

185) One of the social trends that marketers must monitor to maintain their close relationship with customers is the

A) increase in the number of competitors servicing the target market.

B) amount of unemployment in the target market.

C) number of people who can use computers with proficiency.

D) increase in the number of older Americans.

186) People with unsatisfied wants and needs who have both the ability and the willingness to buy are

A) a market.

B) stockholders.

C) a profit center.

D) a marketing mix.

187) The two major types of markets are the

A) primary market and the secondary market.

B) B2B market and the C2C market.

C) consumer market and the B2B market.

D) target market and the niche market.

188) Which of the following describes individuals that want goods and services for personal consumption and have the resources to buy them?

A) secondary market

B) business-to-business market

C) market segmentation

D) consumer market

189) The ________ market consists of individuals and organizations that want goods and services in order to produce goods and services or to sell, rent, or supply those goods to others.

A) consumer

B) B2B

C) target

D) super

190) The factor that determines whether a product is classified as a consumer product or an industrial product is

A) the end use of the product.

B) the decision-making process used to purchase the good or service.

C) who the buyer represents.

D) whether the good is new or used.

191) Which of the following statements about the distinction between consumer goods and B2B goods is the most accurate?

A) The same product can be classified as either a consumer good or an industrial good, depending upon its end use.

B) Industrial goods tend to have a useful life of several years and can be depreciated while consumer goods typically last less than a year.

C) Consumer goods are typically more expensive than industrial goods.

D) Industrial goods are custom-made to the specifications of the buyer, while the all consumer goods are mass-produced.

192) Which of the following is the best example of a market?

A) group of high school students who are tired of cafeteria food and would like to eat lunch at an expensive restaurant located a few blocks from their campus

B) physical facility large enough to accommodate all the people who want to buy or sell a good

C) senior citizens willing and able to cruise to the Bahamas

D) geographic region targeted by a firm for new promotional efforts

193) According to the Spotlight on Small Business box, small businesses can make big money by

A) participating in mass production.

B) jumping on board with technological advances as they evolve.

C) shipping products to consumers faster than competitors.

D) opening online stores to accompany the already established brick-and-mortar shops.

194) Marco is a marketing manager for Securities Services. He has been looking at a variety of factors, such as technological, sociocultural, and economic trends as well as competitive conditions. Marco is confident that these factors will impact Securities' future marketing success. What are his efforts an example of?

A) target marketing

B) competitive benchmarking

C) relationship marketing

D) environmental scanning

195) Green Goddess Lawncare, Inc., has enjoyed growing profits for 10 years. When new-product development made it feasible for underground sprinkling systems to be installed at a reasonable price, business soared. Recently, through ________ the owner of Green Goddess learned about a seed that only needs to be watered two times each year. This innovation could have serious consequences on healthy revenues and profits. The owner is analyzing the ________ environment in order to remain knowledgeable about new trends that may affect his business.

A) environmental scanning; economic

B) environmental scanning; technological

C) continuous processing; economic

D) continuous processing; technological

196) Which of the following refers to the process of dividing the total market into several groups with similar characteristics?

A) market segmentation

B) market differentiation

C) market determinants

D) market partitioning

197) ________ marketing is the marketing of products to groups of customers a firm decides it can serve profitably.

A) Objective

B) Departmentalized

C) Target

D) Subjective

198) A firm that uses ________ segmentation divides a market into groups based on values, attitudes, or interests.

A) demographic

B) benefit

C) psychographic

D) normative

199) A firm that uses ________ segmentation divides a market into groups based on age, income, or level of education.

A) demographic

B) psychographic

C) perceived value

D) econometric

200) A firm that uses ________ segmentation divides a market into groups based on life stage, race, or profession.

A) benefit

B) demographic

C) value

D) target

201) ________ marketing involves developing a unique mix of goods and services for each individual customer.

A) B2B

B) Volume

C) Usage

D) One-to-one

202) Which of the following refers to a marketing strategy in which the focus is on small but profitable market segments?

A) micro targeting

B) narrowcast marketing

C) focused marketing

D) niche marketing

203) A ________ marketing strategy develops products and promotions designed to please large groups of people.

A) volume

B) mass

C) relationship

D) value

204) The goal of ________ is to keep individual customers over time by offering them new products that exactly meet their requirements.

A) niche marketing

B) mass marketing

C) relationship marketing

D) segment marketing

205) Understanding consumers in marketing is considered so important that a whole area of marketing called ________ emerged.

A) customer programming

B) consumer behavior

C) individual benchmarking

D) customers competency

206) One factor that influences the consumer decision-making process is ________, referring to the set of values, attitudes, and ways of doing things passed from one generation to another in a given society.

A) cognitive dissonance

B) the legal environment

C) group behavior

D) culture

207) A consumer's decision-making process is influenced by his/her ________, consisting of those people who help shape the consumer's beliefs, attitudes, values, or behavior.

A) reference group

B) focus group

C) target audience

D) social class

208) Which of the following correctly identifies why companies would use a market segmentation strategy?

A) They can avoid antitrust laws by selecting a small slice of a larger market.

B) This strategy enables a firm to identify common traits in different consumer groups.

C) With limited resources, firms can better satisfy the wants and needs of a smaller target market.

D) Government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.

209) "Selling to everybody and listening to nobody" might be the result of a firm that uses a ________ marketing strategy.

A) niche

B) mass

C) target

D) relationship

210) Firms that adopt a relationship marketing strategy attempt to

A) develop products that meet the specific requirements of individual customers.

B) maximize their market share by designing products that appeal to large numbers of customers.

C) develop their promotional efforts utilizing mass media such as television, newspapers, and radio in order to relate to a large audience.

D) maximize market share by controlling production costs and maintaining low prices.

211) Which of the following is consistent with relationship marketing?

A) maintaining transactional relationships with customers

B) working with buyers to determine their individual needs

C) developing market share through mass media advertising

D) focusing more on obtaining new customers than on retaining existing customers

212) Firms adopting a relationship marketing strategy view technology and social media as a(n)

A) promising technique to expand to a mass market.

B) threat to the effective and efficient implementation of their strategy.

C) tool with limited value because many people are reluctant to place orders or send information electronically.

D) increased opportunity to personalize marketing campaigns to meet customer needs.

213) Contacting customers after a sale to reassure them that they made the right decision is intended to offset

A) reverse satisfaction.

B) cognitive dissonance.

C) doubt resolution.

D) relationship conflict.

214) Consumer decisions regarding the products they buy are often influenced by their nationality, religion, or ethnic origin. Marketers realize that the consumer decision-making process is impacted by the consumers'

A) subcultures.

B) four Ps.

C) cognitive behaviors.

D) market position.

215) Which of the following is most consistent with a relationship marketing strategy?

A) developing a website that seeks customer feedback and allows customers to communicate with the company

B) creating a national advertising campaign using radio and television to increase market share

C) designing a promotional campaign to increase cooperation among the firm's suppliers

D) distributing goods through limited service discount stores

216) According to the Adapting to Change box, while companies are utilizing social media and garnering a ton of "likes" and interactions, what are they struggling with?

A) becoming household names

B) getting clicks to their websites

C) turning "likes" into followers

D) turning "likes" into product subscriptions

217) Outdoor Adventure, a company that designs and manufactures sportswear, focuses their marketing efforts on people who participate in strenuous outdoor activities such as running, hiking, and climbing. For example, the firm advertises heavily in Runner's World and Women's Running. Outdoor Adventure is using ________ factors to segment its market.

A) demographic

B) value

C) volume

D) psychographic

218) Fast Fine Foods markets some of its products to consumers looking for simple, quick meals. Fast Fine Foods also offers another line of products targeted to people interested in low-fat, high-nutrition foods. The company's strategy of dividing the market into groups that want similar things from the products they buy is an example of

A) benefit segmentation.

B) demographic segmentation.

C) volume segmentation.

D) target segmentation.

219) Jet Magazine focuses its marketing efforts on reaching young African Americans. The firm believes that they are positioned to profitably serve this group of consumers. Jet utilizes the strategy of:

A) narrowcasting.

B) target marketing.

C) primary marketing.

D) focus group selection.

220) Which of the following best represents an example of demographic segmentation?

A) A recreational equipment company divides its market into groups by region of the country, designing different products for people in different parts of the country.

B) A car manufacturer offers different types of cars designed to appeal to different age groups and income levels.

C) An entertainment company divides its market according to the attitudes and interests of its customers, marketing some films to people who enjoy action movies and targeting other movies to people who prefer romantic comedies.

D) A food company has designed a special line of easy-to-prepare microwavable meals that are low fat and high in fiber to attract people interested in the health benefits of the foods they eat.

221) Which of the following would best benefit the development of niche marketing?

A) decline in the cost of advertising on radio and newspapers enabling firms to more efficiently reach a wide audience

B) Supreme Court ruling that limits the market share individual firms in a market are allowed to serve

C) growing acceptance of free-trade agreements such as NAFTA

D) manufacturing improvement enabling firms to more efficiently design and produce specialized products for small groups of consumers

222) Keepsake Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. Keepsake's approach is an example of:

A) competitive benchmarking.

B) niche marketing.

C) relationship targeting.

D) target positioning.

223) In an effort to increase profits, Hunan Kitchen is attempting to appeal to a specific segment of the market by offering an all-you-can-eat buffet. These efforts, designed to identify specific groups that can be profitably served, represent an example of

A) target marketing.

B) a reference group strategy.

C) benefit segmentation.

D) B2B marketing.

224) After years of using a mass marketing strategy, Precision Print Shop has responded to new competition from larger companies by focusing on small market segments that have been ignored by these competitors. Precision believes that by offering these market segments personalized customer service it can attract a loyal group of customers willing to pay premium prices. What is Precision's strategy known as?

A) environmental scanning

B) niche marketing

C) micro-marketing

D) respondent change

225) Rick, a marketing manager for Fix-It Tools, is discouraged with the way his organization markets its products. Currently Fix-It-Tools utilizes a strategy aimed toward the largest possible number of people. The company also relies heavily on television and online advertising. Rick protests to management that the company is not listening to its customers and is in danger of losing many of them to firms that create a personal dialogue with their buyers. What does Fix-It currently practice?

A) a constant change strategy

B) relationship marketing

C) mass marketing

D) market segmentation

226) Liberty Autos recognizes that it has some customers who like roomy SUVs, while others like more compact versions. Liberty designs and manufactures several models to satisfy the different tastes and lifestyles of its customers. Customers who want traditional SUV luxury and seldom settle for anything other than leather interiors, would prefer the Regal model. Rapido customers might be described as sportier and typically women. Fans of the Cowboy model may include a group that is seldom over 30 years of age, typically male, and have often served in the U.S. military. By recognizing differences in its customers and using different characteristics to define its customers, Liberty Autos is

A) segmenting the market.

B) practicing one-to-one marketing.

C) grouping the markets.

D) modeling.

227) Looking to increase its customer loyalty, management at Epic International has worked to create a personal dialogue with their customers. This dialogue will enable Epic to offer products that exactly meet their customers' needs and provide personalized service before and after the sale. What strategy does Epic International illustrate?

A) production orientation

B) relationship marketing

C) personalized promotion

D) niche marketing

228) Sarah found success as an entrepreneur by employing a relationship marketing strategy. The goal of this strategy is to

A) use radio and television advertising to attract new customers.

B) work closely with existing customers to better satisfy their wants and needs.

C) target large market segments of potential customers by working closely with a variety of suppliers.

D) communicate to buyers the advantages offered by your firm's low prices and standardized products.

229) Khloe only purchases designer jeans and high-priced stilettos endorsed by her favorite entertainers. On top of that, her attitudes and values are shaped by specific statements made by these celebrities. She also supports causes and charities the celebrities endorse. This illustrates how consumer decision making is influenced by

A) marketing mix variables.

B) cognitive dissonance.

C) a reference group.

D) primary group identification.

230) Which of the following is the best example of cognitive dissonance?

A) Phillip has been shopping for a new flat screen, but has not yet made a purchase because he is having trouble deciding which brand to buy.

B) Lorelai decided to eat at a restaurant she previously avoided after learning several celebrities endorse the restaurant.

C) Braylon is torn between going to the movies with friends or staying home and studying for an exam tomorrow.

D) Drake just bought an expensive tablet and is already worried that he could have found a better deal if he had shopped more carefully.

231) ________ marketers include manufacturers, intermediaries, institutions, and the government.

A) Profit seeking

B) Undifferentiated

C) Institutional

D) B2B

232) In terms of the number and dollar volume of transactions, the B2B market is ________ the consumer market.

A) larger than

B) smaller than

C) the same size as

D) unrelated to

233) B2B markets tend to be

A) dominated by marketing intermediaries.

B) geographically concentrated.

C) characterized by the presence of a large number of small buyers.

D) more emotional than consumer markets.

234) The number of buyers in B2B markets is

A) roughly the same as the number of buyers in the consumer market.

B) much larger than the number in the consumer market.

C) relatively small compared to the consumer market.

D) controlled by government regulation.

235) Compared to consumer markets, B2B markets

A) demand more promotional emphasis on radio and television in order to stimulate sales.

B) rely less on relationship marketing.

C) rely less on marketing intermediaries.

D) are characterized by buyers who behave less rationally.

236) Which of the following statements about the B2B market is true?

A) The markets are often geographically dispersed.

B) Industrial buyers are usually large.

C) Industrial buyers tend to be more emotional in their purchasing decisions.

D) The size of the market is smaller than the consumer market.

237) Jessica, a sophomore in college, is contemplating majoring in marketing. She has asked several friends for advice and their comments are listed below. Which of these comments is the most accurate and likely to help Jessica?

A) Marketing offers business students a wide array of career options.

B) Majoring in marketing rules out a meaningful career with a nonprofit organization.

C) You should major in marketing only if you want to work in advertising or personal selling.

D) Marketing is a career that offers stability, good pay, and ample employment opportunities. Marketing activities today are essentially the same as they were several decades ago.

238) Pham, after years working with the consumer market, has just been transferred into a new job dealing with buyers in the B2B market. Which of the following correctly identifies a key difference Pham will likely notice between consumer markets and B2B markets?

A) Businesses focus on developing wants and needs in consumer markets, while firms work to satisfy the existing needs of the B2B market.

B) Relationship marketing tends to be much more important in consumer markets than in the business-to-business markets.

C) Buyers in the business-to-business markets tend to be more rational than buyers in consumer markets.

D) Business-to-business markets make greater use of marketing intermediaries such as wholesalers and retailers than do consumer markets.

239) Lennox just moved from a position where he dealt with the consumer market to working as a salesperson in the B2B market. As he considers his new responsibilities, it's likely that he will

A) find little difference between buyers in the consumer market and those in the business-to-business market.

B) discover that decision making in the B2B market requires salespeople to be little more than order takers.

C) learn that industrial buyers generally require more personal service than buyers in the consumer market.

D) find that B2B buyers tend to purchase more on impulse than consumer buyers.

240) Describe the steps involved in the marketing process.

241) Why is market segmentation important? Describe three ways firms can segment consumer markets.

242) Marketing is different in B2B markets than in consumer markets. Identify and explain three differences between the business-to-business market and the consumer market.

243) Explain how mass marketing and relationship marketing differ.

244) Describe the steps involved in conducting marketing research.

245) Identify and discuss the four eras of the evolution of marketing.

Mini-Case

Briana, a successful executive, is also a cardio queen. For years she worked out at Forever Fitness Gym, the only gym in her small hometown. However, she felt that the environment at Forever Fitness was too masculine, and discovered that her female friends agreed. They disliked the small, smelly locker room, and the limited selection of cardio equipment. Most of them eventually quit going to Forever Fitness. Briana talked to Jim Nasium, the owner of Forever Fitness, about things he could do to attract more women, but he had little interest in making any changes. "I've got all the business I can handle," he told Briana. "Why should I spend a bunch of money to redecorate and add extra equipment? Besides, lots of the guys who work out here tell me they like the simple, no-frills atmosphere."

Frustrated by Jim's indifference, Briana began looking into the possibility of starting a gym to appeal to young, well-educated women. After visiting gyms in other towns and talking to several friends to get ideas, she came up with a detailed plan for her gym. She then described her ideas to women in the community to see how much interest there was in this type of facility. The extremely positive response encouraged her to go ahead with her plans. It took a while, but she ultimately obtained the financial backing to go into business.

Briana calls her new health club ShapeUP. It offers a spacious and attractive locker room, better cardio equipment, a child care area so young mothers can have someone watch their toddlers while they work out, and exercise classes designed to appeal to young women. When a woman joins her club, Briana schedules a free session with a personal trainer who works with the new member to design a personalized workout program. Briana tries hard to keep close to her customers by maintaining a social media presence, sending them a monthly e-mail newsletter, and routinely sending surveys asking what they like and don't like about ShapeUP. She wants to please her existing customers and keep them coming back. In fact, now that ShapeUP has a strong membership base, Briana believes it is more important to keep existing customers loyal than to attract new customers. In addition to the comments from her own customers, Briana also spends a lot of time tracking economic, social, and competitive trends in the fitness industry, trying to identify factors that can affect the marketing success of her club. She subscribes to several journals and magazines that cover trends and report on research findings related to the business. She has found that these publications provide her with an inexpensive source of useful information.

246) When Briana wants to obtain information to research changes in her market or determine what her customers are likely to want in the future, she relies on the articles and data available in trade journals, feedback from surveys, and personal interviews of her customers. Which of the following statements about Briana's sources of information is most accurate?

A) Briana is relying entirely on primary data for her research needs.

B) Briana is relying entirely on secondary data for her research.

C) The surveys and personal observations provide primary data, while the journals provide secondary data.

D) The surveys and personal observations provide secondary data, while the journals provide primary data.

247) The fact that ShapeUP is designed to appeal to women of a certain age, education, and income level means that Briana is using

A) demographic segmentation.

B) psychographic segmentation.

C) volume segmentation.

D) geographic segmentation.

248) When Briana developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she was engaging in

A) test marketing.

B) psychographic segmentation.

C) concept testing.

D) prototype analysis.

249) Which of the following statements about Briana's marketing approach is most accurate?

A) Briana is basing her marketing approach on a variation of the mass marketing strategy.

B) Briana's marketing strategy appears to be consistent with several key aspects of relationship marketing.

C) Many recent studies suggest that Briana will be unable to earn a reasonable profit because she is serving too small a segment of the market rather than the entire market.

D) Briana's marketing efforts put too much emphasis on retaining existing customers and not enough on obtaining new customers.

250) When Briana attempts to identify economic, social, and competitive factors that could affect her success in the fitness market, she is engaging in

A) positioning analysis.

B) concept testing.

C) target marketing.

D) environmental scanning.