Marketing 1110 Exam 1

A Consideration Set refers to…
the group of brands a consumer world consider acceptable from among all the brands in the product class.
In Figure 1-1 above, the marketing department of an organization is responsible for facilitating _________.
relationships, partnerships, and alliances with the organization’s customers, shareholders, suppliers, and other organizations
Derived demand refers to
the demand for industrial products and services that is driven by demand for consumer products and services.
Redbox places vending machines at local convenience stores and grocery stores that allow customers to rent and return popular DVDs 24 hours a day. This creates both __________ and __________ utility.
place and time
A consideration set refers to
the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class.
The agent for John Grisham’s newest novel has sold its rights to a British publisher for sales in the United Kingdom and Ireland, to a U.S. publisher for the United States and Canada, and to an Australian publisher for Australia and New Zealand. This is an example of
an exclusive territorial distributorship.
The __________ can require a company to spend money on corrective advertising to correct previous misleading ads.
Federal Trade Commission
Organizational buyers can be divided into three different markets. They are
industrial, reseller, and government markets.
All of the following are true about marketing EXCEPT:
Marketing persuade people to buy the “wrong” things.
In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to ___________; (2) to be informed; (3) to choose; and (4) to be heard.
to safety
Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better. As part of their budgeting process, Carl and Nancy prepared the following list:
Picture
After totaling necessary expenses, Carl and Nancy subtracted that figure ($1,700) from their monthly income of $4,500. The Johnsons were happy to realize that after paying bills each month, they had $2,800 left over. The money that was left after paying necessary expenses and taxes is their __________ income
discretionary
Which of the following statements is an example of form utility?
a gourmet shop that offers a home delivery service
The __________ makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.
Robinson-Patman Act
A factor that might kill a product in the marketplace and stop the consumer from purchasing it is referred to as a(n) _________.
showstopper
Brand loyalty refers to
a favorable attitude toward and consistent purchase of a single brand over time
Possible barriers to entry include…
capital requirements
In Figure 1-4 above, “A” represents which era in U.S. business history?
production era
The __________ provides for registration of a company’s trademark such as the Nike swoosh and the Coca-Cola dynamic ribbon device.
Lanham Act
A trademark is a device that can take almost any form, as long as it is capable of identifying and distinguishing specific goods or services. Owens-Corning Fiberglas Corporation’s and NutraSweet packages trademark are an example of a product that is protected by
color.
Emily wants to purchase a new computer. She is unsure about what hardware and software she will need. As a result, she has begun asking for advice from friends and relatives. In addition, she has talked to several computer salespeople at Apple and Best Buy and has looked at some Web sites. Emily is engaging in
response feedback:
Emily is externally searching for information about computers. An external search is especially important when the cost of gathering information is low, when past experience is insufficient, and when the risk of making a wrong decision is high.
The uncontrollable forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces are referred to as _________.
environmental forces
Reciprocity refers to
an industrial buying practice in which two organizations agree to purchase each other’s products and services
The factors that drive competition include
entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilities.
A buying center refers to
the group of people within an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
Dutch tulip growers have developed pre-sprouted bulbs, which will bloom in consumers’ gardens just a few weeks after spring planting so people who didn’t or couldn’t plant bulbs in the fall will have spring flowers. Nurseries plan to promote the pre-sprouted tulips to people who appreciate “finer things” and will pay the premium price. Which of the following VALS segments would be most suitable for this product?
Innovators
Laws refer to
the trade of things of value between buyer and seller so that each is better off after the trade
Exchange refers to
the trade of things of value between buyer and seller so that each is better off after the trade
Customer value refers to
the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
In Figure 5-3 above, column “C” represents which of the following?
routine response behavior
In an inflationary economy, the cost to produce and buy products and services __________ as prices _________.
escalates; increase
Congressional legislation requiring online retailers to collect state sales taxes from customers in all 50 states would affect online sellers such as Virtual Vineyards, which now only collects state sales taxes from customers who reside in California. This would be an example of which environmental force?
regulatory
According to Figure 5-5 above, “B” defines what level in the hierarchy of needs?
personal
Independent e-marketplaces act as a neutral third party and provide an Internet technology trading platform and a __________ that enable exchanges between buyers and sellers.
centralized market
ISO 9000 refers to
standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization.
In marketing, “doppelgangers” refer to
parodies of existing well-known trademarks that have been created through digital technology
Barriers to entry include capital requirements, switching costs, advertising expenditures, and
distribution access.
The manufacturers of several of the products in Figure 3-4 above are concerned that the product names will become generic. The legislation most likely to address this issue is the _________.
Lanham Act
Since ___________ is regulated by the state or federal government, marketing plays a relatively small role in this setting
a pure monopoly
Although not strictly illegal, the U.S. Justice Department frowns on reciprocity because it
restricts the normal operation of the free market
North American Industry Classification System (NAICS) refers to
the system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).
Consumer behavior refers to
the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
Arrowhead® Brand Mountain Spring Water recently changed its bottle by reducing the size of its label by one-third, using 30% less plastic, and making the bottle more flexible for easier recycling. These efforts are part of the company’s goal to engage in _________.
sustainable development
A market refers to _________.
people with the desire and ability to buy a specific offering
Another name for an e-marketplace is a(n)
e-hub
The social forces of the environment include the ____________ of the population and its values.
demographic characteristics
In 1988, the Trademark Law Revision Act resulted in a major change to the Lanham Act. The change allows
a company to secure rights to a name before actual use by declaring an intent to use the name
Showstoppers refer to
factors that might kill a product in the marketplace
The system that provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA) is referred to as the
North American Industry Classification System (NAICS).
Which generational cohort is the Hyatt Place ad in Figure 3-2 above trying to reach?
Generation X
The first major federal legislation passed to encourage competition in the United States was the
Sherman Antitrust Act
Coca-Cola hired brand police to make sure that the Coca-Cola brand name and logo are not used without written permission. Why is Coca-Cola so rigorous in protecting its trademark?
In order to maintain the use of its widely recognizable trademark, Coca-Cola must prevent the name from becoming generic.
A disadvantage of the North American Industry Classification System (NAICS) systems is that
five-digit national industry codes are not always available for all three countries
There are three concepts of social responsibility, each relating to particular constituencies. According to Figure 4-2 above, constituency “C” represents __________ responsibility.
profit
In marketing, the form of competition that occurs when only one firm sells the product is referred to as _________.
pure monopoly
In the hierarchy of needs water, food, and oxygen would be considered __________ needs.
personal
Caveat emptor refers to
The legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960’s
AT&T, MCI, Verizon, and Sprint control approximately 80 percent of the international long distance telephone market, which can be characterized as a(n) _________.
oligopoly
E-Marketplaces go by the names of…
B2B exchanges and e-hubs
A reverse auction refers to an online auction
in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. More buyers may enter the process as the auction goes on. Prices often are reduced along the way.
VALS creates profiles of people based on their primary motivation and resources. In the Figure 5-6 above, “A” refers to
Innovators
Generation X is the label often given to
persons born between 1965 and 1976
In an attempt to sell more soft drinks and popcorn, a theater owner embedded very brief messages during the movie trailers before the feature film. The messages, which flashed on the screen for such a short time that moviegoers were not consciously aware of the messages, urged consumers to “Drink Coke” and to “Eat Popcorn.” Research showed the messages were largely ineffective. This example suggests that
subliminal messages may have limited effects on behavior.
A target market refers to
one or more specific groups of potential consumers toward which an organization directs/targets its marketing program.
A global undertaking to further green marketing efforts is the
ISO 14000 initiative
Which of the following acts as a barrier to the development of relationship marketing?
in some way reprocesses a good or service it buys before selling the product again to the next buyer
An industrial firm is a firm that
in some way reprocesses a good or service it buys before selling the product again to the next buyer
Four factors are required for marketing to occur: (1) two or more parties (individuals or organizations) with unsatisfied needs; (2) a desire and ability on their part to be satisfied; (3) ___________; and (4) something to exchange.
a way for the parties to communicate
A consumer’s purchases are often influenced by the views, opinions, or behavior of others. Two important aspects of personal influence to marketing are
opinion leadership and word-of-mouth activity.
In Monopolistic Competition, coupons and sales are frequently used marketing tactics for…
short term impact on sales
Considerable research has documented that in many product categories, consumers are unable to distinguish among brands when given blind tests (i.e. taste or use of the products without labels). Such products include soft drinks, coffee, and cosmetics. Nonetheless, even when prices are similar, consumers have strong preferences for specific brands of these products. This strong brand preference is the result of
routine problem solving
A statistical area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration is referred to as a
micropolitan statistical area
A make-buy decision refers to
an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the firm itself.
The Trademark Law Revision Act (1988) addresses the right of a company to
secure rights to a name before the product is even in use
In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as _________.
culture
Cognitive dissonance refers to
the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives
The Lanham Act (1946)
provides for registration of a company’s trademarks
The element of the marketing mix demonstrated when a company places an ad in the Yellow Pages is _________.
promotion
Barriers to entry refer to
business practices or conditions that make it difficult for new firms to enter the market
Making counterfeit copies of Gucci purses, Hilfiger sportswear, and other international brands is pervasive in China because it is so easy to get away with it. Laws protecting intellectual property are unclear and sporadically enforced. Even when they are applied, sanctions are minimal, typically consisting of confiscation, a warning, a public apology, and perhaps a fine (negotiated, of course). Moreover, copying enjoys a long tradition in China and does not carry a stigma. Copying a masterpiece was historically considered an art form in its own right, and Chinese students have been taught for centuries to copy their teachers as accurately as possible before attempting to create. A business introducing a product into China needs to know that __________ may lead to trademark infringements.
societal culture and norms
In marketing, the four basic forms of competition are
pure competition, monopolistic competition, oligopoly, and pure monopoly.