Marketing Fundamentals Midterm Answer Key Part 4

Q: Two important advantages of secondary data are that they are - Highly credible and up-to-date - Inexpensive and up-to-date - Inexpensive or free and save time Up-to date and supply all relevant categories of information Tailor-made to specifications and relatively inexpensive Q: Nielsen collects national TV ratings by using a “people meter.” This is a box that is attached to televisions, DVRs, cable boxes, and satellite dishes in about 30,000 households across the country; has a remote control that is used to indicate when a viewer begins and finishes watching a TV program; and stores and then transmits the viewing information to Nielsen each night. The information Neilsen is collecting is referred to as - External secondary data - Internal secondary data - Interactive industry data - Observational data - Sensitivity data Q: Fisher-Price watches young children play with its toys to determine if and how various products should be changed or improved. Fisher-Price is collecting _____data. - Observational - Interview - Focus group - Questionnaire - On-site Q: Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct text screening and tracking studies. Often 300 to 400 prospective moviegoers are recruited to attend a sneak preview of a film before its release. After viewing the movie, the audience completes a survey to - Critique the title, plot, and characters - Rate the performance of the individual actors and actresses - Recall specific details of the plot and dialogue - Evaluate the quality of directing and producing - Compare the final film with the original script Q: Figure 7-2 shows that primary data may be divided into three related parts. If C represents data collected from mechanical, personal, or neuromarketing methods, which type of data is C? - Internal secondary data External secondary data Observational data Sensitivity data Q: After defining the problem and developing the research plan, the next step in the five-step marketing research approach is to - Collect relevant information Identify the constraints on the process Take marketing actions Develop findings and recommendations Plan the research budget Q: There are three key elements when developing the research plan. One of these is - Set the research objectives Specify the measures of success Determine how to report the findings Evaluate previous research results Specify the constraints Q: Making recommendations, implementing those recommendations, and evaluating the results would take place during which step of the five-step marketing research approach? - Take marketing actions Define the problem Collect relevant information Develop findings Develop the research plan Q: Observing people and asking them questions are the two principal ways to obtain - Internal secondary data Experimental independent variables External secondary data Primary data Nonprobability data Q: Sampling and statistical inference are special ____, which are vital in marketing research to solve all or part of a problem. - Constraints Modes Methods Styles Systems Q: Two key elements in deciding how to collect marketing data are - Concepts and values Terms and constraints Terms and hypotheses Constraints and hypotheses Concepts and methods Q: The primary purpose of a sneak preview of a film before its release is to - Rate the work of the director and producer for possible Oscar nominations Evaluate the effectiveness of product placements within the film Rate the performances of the individual actors and actresses for possible Oscar nominations Compare the final film to the original screenplay Identify necessary changes before final editing CHAPTER 8 QUESTIONS: Q: The first step in segmenting and targeting markets that links customer needs to marketing actions is to - Group potential buyers into segments - Develop a market-product grid and estimate the size of each market - Select target markets Group products to be sold into categories Take marketing actions to reach target markets Q: The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on find china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of - A Tiffany/Walmart strategy - One product and multiple market segments - Psychographic market segmentation - Price discrimination - Mass customization Q: Two key types of synergies related to segmentation and targeting are - Product and production synergies - Marketing and product synergies - Consumer and market synergies - Industry-dominated and consumer-dominated - Supplier and distributor synergies Q: All of these are criteria used for selecting target market segments except which? - Simplicity and cost of assigning potential buyers to segments - Market size - Cost of reaching the segment - Compatibility with the organization's objectives and resources - Competitive position Q: Kellogg’s has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing this different cereals is clearly more expensive that producing only one but worthwhile if it adds to the manufacturer’s profits and - Uses the same promotion and packaging for all segments - Cannibalizes the earlier products - Meets standards for new product testing - Better serves customer’s needs - Stabilizes competition Q: Figure 8-6 shows the market product grid for a Wendy’s restaurant next to a large urban university campus, Assume a large market (shown by a 3) is three times the size of a small market (shown by a 1) and a medium market (shown by a 2) is twice the size of a small market. The meal occasion (product grouping) that comprises the largest product grouping is - After-dinner snack Dinner Lunch Breakfast Between-meal snack Q: The 80/20 rule is most closely related to which basis of segmentation? - Psychographic - Opportunistic - Behavioral - Geographic - Demographic Q: Land’s End will custom-fit a Mariac Jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of - Mass customization - Market melding - Specialty customization - Tiffany/Walmart marketing Q: Samsung sells a variety of TV’s from simple and small ones to large smart TV’s with Internet connectivity and 3D technology. Customers prefer different options so Samsung uses which type of segmentation variable based on their viewing preferences? - Psychographic segmentation - Geographic segmentation - Behavioral segmentation - Socioeconomic segmentation - Demographic segmentation Q: Differentiation positioning requires a product to - Develop marketing actions to move a product or brand to an ideal position - Seek a less-competitive, smaller market niche in which to locate a brand - Compete directly with competitors on similar product attributes in the same target market - Compete with competitors on similar product attributes but in a different target market - Emphasize unique product attributes to compete directly with competitors Q: Carmaker Kia has used its 10-year/100,000 mile warranty program to improve consumer perceptions of the reliability of its vehicles. This would be considered a _____ strategy - Perceptual mapping - Psychographic - Product repositioning - Product positioning - Product differentiation Q: Small athletic shoe manufacturers such as Vans target niche markets like street culture or action sports enthusiasts making shoes designed to satisfy the needs of these different specific groups of customers. This strategy is an example of - Market specific selection - Market segmentation - Single chain marketing - Mass customization - Customized manufacturing Q: Jeni owns a company that makes Triangle BBQ Sauce. She wants to target local people who like the special blend of flavors found only in North Carolina BBQ Sauce. In developing a marketing strategy to sell the sauce, Jeni decided to join Goodness Grows in North Carolina, a specialty food association that advertises local products and distributes them to local supermarkets and gourmet shops. Jeni has just - Formed prospective buyers into segments - Taken a marketing action to reach a target market segment - Developed a market-product grid and estimated the size of markets - Formed a market segment using critical product features - Formed product to be sold into groups Q: The annual Street & Smith’s Baseball magazine uses 15 different covers featuring a baseball star from each of its regions in the United States, yet each regional issue has the same magazine content. The publisher is using which of these segmentation strategies? - Multiple products with one segment - One product with multiple marketing segments - One product with one channel of distribution - Multiple products with multiple segments - One product with changes based on customer behavior Q: Head-to-head positioning requires a product to compete - Against a single competitor with an identical offering - Against very similar products from its own company - With competitors on a similar product attributes in the same market - With products from competitors of the same size and country or origin - With competitors on similar product attributes but in a different market Q: Which of these is included in an ideal positioning statement? - The competitors with similar offerings - The identification of the target market - The anticipated or actual retail price of the product - The retail location of distribution - The promotional efforts used to persuade potential buyers Q: _____ links market needs to an organization’s marketing program. - Product design - Marketing mix development - Market segmentation - Marketing protocol - Product selection Q: Each cell of the complete market-product-grid shows the - Estimated market size - Estimated profit - Relative market share - Market growth rate - Investment required to reach the market Q: In the athletic shoe market, Adidas AG and Nike, Inc. practice _____ positioning since both companies vie for the same customers with technologically advanced products. - Psychological Perceptual Head-to-head Market Differentiation Q: In its early years, Apple was often called “Camp Runamok” because - There were no coherent product lines targetic at identifiable market segments - Every employee was encouraged to do his or her own thing - It was concentrating on laptops while everyone else was concentrating on personal computers - All of the employees were so young, so they often played more than they worked - Its personal computers were running amok with viruses, spyware, and other problems Q: All of these are market segmentation strategies except which? - Build-to-order Multiple products, one segment Multiple products, multiple market segments Mass customization One product, multiple market segments Q: Cannibalization would most likely occur if - General Mills launches Caramel Crunch Cheerios Dell adds high-end speaker systems to its line Procter & Gamble adds a new line of baby clothing to its Pampers stable of products General Motors markets a motorcycle similar to the Can-Am Spyder Roadster threewheel bike Pillsbury adds boxed sugar to its product mix Q: One advantage of a market-product grid is that it can be used to - Determine which target market segments to select and which product groupings to offer Make cost-cutting decisions under conditions of uncertainty Relate the product life cycle to consumer demand Screen many new-product ideas in order to select the one with the best long-run market potential Select representative samples of consumers for marketing research studies Q: Figure 8-8 shows is a deception of a _____ for beverages in the minds of adults. - Growth-share matrix Hierarchy of needs Perception matrix Perceptual map Marketing matrix CHAPTER 9 QUESTIONS: Q: Fifty percent or more of American adults have not had their teeth checked by a dentist within the past five years. For these people, dental services would most likely be classified as a(n) - Shopping product - Convenience Product - Specialty Product - Unsought Product Q: During a recent shopping trip to Target, Carson noticed that the store offered many Glad products, including many different types of trash bags and a variety of food storage containers. For Glad, each of these two product groupings is an example of a - Product line - Product item - Product industry - Product mix - Product class Q: You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? - Shopping product Specialty product Unsought product Convenience product Q: There are seven stages of the new-product development process. The stage of the newproduct development process that defines the role for a new product in terms of the firm’s overall objectives is the _____ stage - New-product strategy development - Idea generation - Product development - Business analysis Q: The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine’s Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called a(n) - NAICS stock code - QR code - Stock keeping unit - Stock ID Code Q: According to Figure 9-1, column C would represent which type of product? - Shopping - Convenience - Unsought - Specialty Q: One reason new products fail is that although most major corporations use a formal decisionmaking process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a _____ to ensure that problems are corrected before proceeding to the next stage - Stage-Gate process - Written protocol - Prototype test - Cross-functional team - Test market Q: The intangibility element of a service refers to the fact that it - Can maintain or accumulate goodwill with customers Has value that can only be determined by using subjective criteria Can be objectively evaluated Can't be held, touched, or even seen before the purchase Q: Delta Airlines operates a daily flight between Houston Portland using a Boeing 737, which has a capacity of 120 passengers. During the past month, the flight has averaged 112 passengers. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? - Intangibility - Inconsistency - Idle production capacity - Inseparability - Incongruity Q: GoPro uses all of these sources to generate new-product ideas except which? - R&D lab IDEO - A team of professional and amateur athletes - Employees - Consumer shared content - Retailers Q: The Federal Trade Commission (FTC) advises that products should be labeled as “new” only - For a period of 17 years at which time patent rights are returned to the public domain - For a period of six months after it enters regular distribution - If it is functionally different from a competitor's product - For a period of one year after it enters widespread distribution - Until ann improved version of the same product is produced Q: As Apple’s CEO, the late Steve Jobs orchestrated innovations that revolutionized all of these industries except which? - Music - Digital publishing - Tablet computing - Smartphones - Cable television Q: The Macintosh, iPod, iPhone, AirPods, and AirTags are all examples of Apple’s commitment to - New product development Sustainable procurement Social responsibility Respecting its workforce Using renewable resources Q: It is common now for new laptops and tablets to utilize multitouch functions, such as “pinch to zoom,” either on the screen interface or with the tracking mouse. When the multitouch interface was first introduced, it was an example of which type of innovation? - Discontinuous innovation - Continuous innovation - Evolutionary innovation - Dynamically continuous innovation Q: Procter & Gamble has a large _____ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent, and Pampers diapers). - Product line - Product class - Product mix - Marketing mix Q: Betsy has 15 tax accountants on her staff. During the months of February, March, and April, her staff is overworked and she may even hire more employees to meet the tax preparation needs of her clients. Betsy is not currently experiencing_____. In fact, all of her employees and equipment are being fully used. - Capacity marketing - Off-peak pricing - Idle production capacity - Capacity inventory - Static demand Q: Wrigley’s new Alert Caffeine Gum “offers a portable solution that lets adults control their caffeine intake.” This new gum is most likely which type of innovation? - Discontinuous innovation - Dynamically continuous innovation - Continuous innovation - Insignificant innovation Q: An American Airlines ad shows the airline’s new seats and emphasizes their comfort and ability to recline to overcome the _____ of it service. - Incongruity - Inventory costs - Inconsistency - Inseparability - Intangibility Q: There are seven stages of the new-product development process. Following the new-product strategy development stage is the second step, known as - Idea generation - Product assessment - Screening and evaluation - Screening and analysis Q: GoPro did an environmental scan that uncovered a social trend toward sharing experiences during which stage of the new product development process? - Idea generation - New-product strategy development - Commercialization - Screening and evaluation - Business analysis Q: According to Figure 9-1, column C would represent which type of product? - Shopping Convenience Specialty Unsought Prestige Q: Google’s driverless cars had completed over three million miles of autonomous driving with a Google engineer in the passenger seat. The Google driverless car initiative is at which stage of the new-product process? - Development - Screening and evaluation - Market testing - Idea generation - Business analysis Q: The inventory costs of services include - Salary of service provider and equipment costs - Management and material costs - Service delivery and spoilage costs - Equipment and training costs - Service provider wages and training costs Q: Which firm uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources? - Kickstarter.com - Unfundable.com - IDEO - The Industrial Design Group - Warren Buffet’s Berkshire Hathaway