Archive for February 2018

____ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand to develop marketing actions to move its product or brand into an ideal position.

____ is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands, as well as its own product or brand to develop marketing actions to move its product or brand into an ideal position.




Answer: perceptual map

What is the five-step marketing research approach?

What is the five-step marketing research approach?



(1) define the problem
(2) develop the research plan
(3) collect relevant information (data)
(4) develop findings
(5) take marketing actions.

A _______ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

A _______ exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.



Answer: supply partnership

What are e-marketplaces?

What are e-marketplaces?



Answer: E-marketplaces are online trading communities that bring together buyers and supplier organizations to make possible the realtime exchange of information, money, products, and services.

What is a bidder's list?

What is a bidder's list?



Answer: A bidder's list is a list of firms believed to be qualified to supply a given item.

What is a make-buy decision?

What is a make-buy decision?



Answer: A make-buy decision is an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.

What is the North American Industry Classification System (NAICS)?

What is the North American Industry Classification System (NAICS)?



Answer: The NAICS 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 NAFTA.

Five stages of the purchase decision process:

Five stages of the purchase decision process:



(1) problem recognition
(2) information search
(3) alternative evaluation
(4) purchase decision
(5) postpurchase behavior.

What three attitude-change approaches are most common?

What three attitude-change approaches are most common?



(1) Change beliefs about the extent to which a brand has certain attributes.
(2) Change the perceived importance of the attributes.
(3) Add new attributes to the product.

What are four possible reasons for the present state of ethical conduct in the United States?

What are four possible reasons for the present state of ethical conduct in the United States?



(1) Pressure on businesspeople to make decisions in a society with diverse value systems.
(2) Business decisions being judged publicly by groups with different values and interests.
(3) The public's expectations of ethical business behavior have increased.
(4) Ethical business conduct may have declined.

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method?

In an effort to forecast his firm's sales for the coming year, Henry Thompson takes sales for the last three years and calculates a growth trend. Henry is employing which forecasting method?



a. Time series analysis
b. Executive judgment
c. Surveys
d. Regression analysis
e. Market tests



Answer: A

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?

The Sara Lee Company is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Sara Lee places the product in Atlanta supermarkets for a period of four months. In this instance, Sara Lee is using which forecasting method?



a. Time series analysis
b. Market test
c. Executive judgment
d. Regression analysis
e. Survey


Answer: B

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?

Katy Ramirez is a marketer for a golf equipment manufacturer. When forecasting company sales, she finds a direct association between past sales and per capita income. Which sales forecasting technique is Katy using?



a. Surveys
b. Executive judgment
c. Time series analysis
d. Market tests
e. Regression analysis



Answer: E

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique?

While developing a company sales forecast at Safeway, Barb Herrington discovered a pattern in sales volume over the past five years. She likely used which sales forecasting technique?



a. Surveys
b. Executive judgment
c. Time series analysis
d. Market tests
e. Regression analysis


Answer: C

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to

Often, the Delphi technique is used in conjunction with an expert forecasting survey. The major objective is to



a. allow an opportunity to obtain diverse expert opinions.
b. allow experts to work separately to reach a consensus as to their forecasts.
c. reach an accurate sales forecast through the use of multiple sales forecasting techniques.
d. determine if the expert forecasting survey is superior to regression analysis.
e. assess the extent to which this year's sales forecast is more accurate than that of previous years.



Answer: B

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is



a. salespeople are generally optimistic about the future and will provide excellent forecast targets.
b. most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast.
c. this tends to be the fastest way to determine a good sales forecast for the upcoming period.
d. the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers.
e. the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.



Answer: E

Company sales forecasts are least likely to be based on

Company sales forecasts are least likely to be based on



a. executive judgment.
b. customer surveys or sales force surveys.
c. time series analysis.
d. market tests.
e. single-variable segmentation.



Answer: E

Relying on executive judgment for forecasting may be adequate when

Relying on executive judgment for forecasting may be adequate when



a. levels of marketing efforts put forth by competitors vary considerably.
b. recent events give the executive specific impressions of product demand.
c. product demand is erratic.
d. the executive conducts surveys.
e. the executive has considerable experience and product demand is relatively stable.




Answer: E

In the context of marketing, cannibalization means

In the context of marketing, cannibalization means





a. one company eating up another company's market share.
b. sales of a new product hurts sales of the company's existing products.
c. a product is past its prime and should be deleted from the product mix.
d. a company illegally uses copyrights and patents from another company.
e. sales of a new product may exceed sales of an older, more established product.




Answer: B

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be

If a company extends a line of products by introducing a new product to the market, and the firm does not distinctly position this product (i.e., separately from the other products in the line), the result could be




a. poor product positioning.
b. product deletion.
c. product repositioning.
d. cannibalization.
e. new-product development.



Answer: D

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used?

When a company is introducing a new brand in a market where it already has one or more brands, which type of product positioning is most likely to be used?



a. Positioning to avoid competition
b. Head-to-head competition
c. Parallel positioning
d. Segmented positioning
e. Counter positioning


Answer: A

Positioning a product to avoid competition may be best when the

Positioning a product to avoid competition may be best when the



a. competing products are priced higher than or at least equal to the new product.
b. the company has an established reputation with the consumers of that particular market.
c. market is characterized by consumers who are not sensitive to price or value.
d. market is characterized by consumers who are price conscious and brand specific.
e. product's performance characteristics are not significantly different from those of competing brands.



Answer: E

Input-output analysis is most likely to yield what type of information?

Input-output analysis is most likely to yield what type of information?



a. Number of employees that a firm has
b. Industries that purchase the major portion of an industry's output
c. Kinds of returns a firm is getting on its equipment investments
d. Type of inventory turnover that is characteristic of a firm
e. Kinds of variables that would be used to segment the target market



Answer: B

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process.

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ___________ influence on the business buying decision process.



a. environmental
b. organizational
c. interpersonal
d. individual
e. demographic



Answer: B

Individual influencing factors refer to

Individual influencing factors refer to



a. relationships among those in the firm's buying center.
b. uncontrollable environmental forces.
c. the power an individual controls in the buying center.
d. personal characteristics of individuals in the buying center.
e. activities of suppliers.




Answer: D

What are the four major categories of factors that influence business buying decisions?

What are the four major categories of factors that influence business buying decisions?



a. Environmental, organizational, interpersonal, and individual
b. Environmental, organizational, psychological, and individual
c. Environmental, psychological, individual, and technological
d. Technological, organizational, environmental, and interpersonal
e. Environmental, organizational, technological, and individual




Answer: A

__________ analysis is a systematic evaluation of current and potential suppliers that focus on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.

__________ analysis is a systematic evaluation of current and potential suppliers that focus on many dimensions including price, product quality, delivery service, product dependability, and overall company reliability.



a. Value
b. Vendor
c. Buying center
d. Strategic
e. Cost


Answer: B

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

During the search for products and evaluating possible suppliers stage of the business buying decision process, marketers sometimes use _________ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.



a. cost
b. value
c. profit
d. strategic
e. SWOT



Answer: B

The third stage in the business buying decision process is to

The third stage in the business buying decision process is to




a. evaluate product specifications to solve the problem.
b. evaluate products relative to specifications.
c. select and order the most appropriate product.
d. evaluate product and supplier performance.
e. search for products and suppliers.




Answer: E

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?




a. Problem recognition
b. Product specification
c. Product-supplier search and evaluation
d. Product-supplier selection
e. Product-supplier post-evaluation




Answer: C

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 2.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?

In its purchase of desktop business computers, Albertson's asked that potential suppliers provide information only on units with 2.0 gigabytes of memory. As Albertson's management evaluates this purchase, it finds that 2.0 gigabytes are inadequate for many of the software programs used at Albertson's. In this instance, the firm would need to modify which aspect of the purchase process?




a. Searching
b. Specification development
c. Alternative evaluation
d. Selection
e. Performance evaluation





Answer: B

The second stage in the business buying decision process is to

The second stage in the business buying decision process is to



a. search for products and suppliers.
b. select the most appropriate product.
c. develop product specifications.
d. evaluate product and supplier performance.
e. recognize the problem.



Answer: C

The stages of the business buying decision process, in order, are

The stages of the business buying decision process, in order, are



a. recognizing the problem, establishing product specifications, searching for products and evaluating possible suppliers, selecting suppliers and products, and evaluating performance.
b. recognizing the problem, searching for products and evaluating possible suppliers, selecting suppliers and products, establishing product specifications, and evaluating performance.
c. recognizing the problem, selecting suppliers and products, evaluating performance, establishing product specifications, and searching for substitute products.
d. establishing product specifications, recognizing the problem, searching for products, evaluating possible products and suppliers, selecting suppliers and products, and evaluating performance.
e. establishing product specifications, searching for products, selecting suppliers and products, evaluating performance, recognizing the problem, and evaluating possible products and suppliers.





Answer: A

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision.

Barry Gluckman of WP International, a major marketer of word-processing software, calls the secretary of Renee Dorchette, director of purchasing for MMK, Inc. He sets up an appointment to discuss an upcoming purchase of software. The secretary plays the role of ___________ in this purchase decision.




a. gatekeeper
b. buyer
c. decider
d. buying center captain
e. order giver



Answer: A

Most business buying decisions are made by

Most business buying decisions are made by



a. one person.
b. a team of purchasing agents.
c. a firm's buying center.
d. inventory control personnel.
e. the sales force.




Answer: C

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand.

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes _____ demand.



a. joint
b. inelastic
c. consumer
d. fluctuating
e. derived




Answer: D

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and be balancing weights for the truck tires. Such business products are characterized as having ____________ demand.

As it places its order for truck tires with Michelin, South Side Industrial Supply realizes that it must also place an order for valve stems and be balancing weights for the truck tires. Such business products are characterized as having ____________ demand.




a. derived
b. inelastic
c. joint
d. fluctuating
e. higher




Answer: C

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand.

In placing a tire order with Michelin, South Side Industrial Supply finds that the truck tires it is ordering have increased $37.50 in price since the last order. South Side proceeds with the order, confident that it can pass on the price increase to future customers. This is an example of business products having ___________ demand.




a. derived
b. inelastic
c. joint
d. fluctuating
e. higher




Answer: B

Inelastic demand simply means that

Inelastic demand simply means that





a. buyers will not make a modified rebuy purchase.
b. demand depends on how many items are purchased.
c. a price increase or decrease will not significantly change the demand for an item.
d. when price goes up, demand goes down.
e. when supply is reduced, the price will increase.



Answer: C

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______ since it depends on the demand for new cars.

Goodyear is a manufacturer and marketer of tires for new passenger cars. In recent years, the company's business has declined because of the overall decrease in consumer demand for new cars. In this case, the demand for Goodyear's tire products is said to be _______ since it depends on the demand for new cars.



a. inelastic
b. fluctuating
c. derived
d. elastic
e. nonderived





Answer: C

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is

The fact that business customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for business products is




a. joint.
b. economically stable.
c. derived.
d. inelastic.
e. more fluctuating.



Answer: C

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?

A representative from Coca-Cola stops by at a local fast-food restaurant once a month to inquire how much soft drink syrup the store will need. The restaurant's orders are an example of which type of business purchase?



a. New-task
b. Modified rebuy
c. Straight rebuy
d. Bid
e. Negotiated




Answer: C

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase.

Anderson Distribution Company has purchased 15 forklifts over the past two years. As it plans to place its next order for another five machines, management wonders if additional features may be needed in order to handle changes in the product lines it carries. For Anderson, these new forklifts represent a ___________ purchase.




a. new-task
b. repetitive
c. straight rebuy
d. repetitive order
e. modified rebuy




Answer: E

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase.

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____________ purchase.



a. modified rebuy
b. straight rebuy
c. new-task
d. reevaluated
e. repetitive



Answer: C

Most business purchases can be classified as belonging to one of three types:

Most business purchases can be classified as belonging to one of three types:



a. delinquent, repetitive, or delivered.
b. repetitive, new-task, or modified rebuy.
c. modified rebuy, new-task, or straight rebuy.
d. delinquent, new-task, or reciprocal.
e. rebuy, reciprocal, or delayed.



Answer: C

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations?

Johnson's Industrial Pest Control Service wants to meet its customers' expectations with regard to the quality of service it provides. How should Johnson's identify these expectations?



a. Conduct market research.
b. Use management judgment.
c. Trace existing service levels.
d. Stress quality service with employees.
e. Train employees better.




Answer: A

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called

Volkswagen purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of characteristics that is expressed by Volkswagen. This set is called



a. descriptions.
b. product features.
c. criterion.
d. purchase requests.
e. specifications.




Answer: E

All of the following are important concerns of business customers except

All of the following are important concerns of business customers except



a. achieving a specific level of quality in the products offered to target markets.
b. obtaining a level of quality that meets specifications.
c. obtaining products that exceed specifications to ensure the best possible product performance.
d. obtaining products for which the quality level is consistent.
e. supporting customers with services they expect.





Answer: C

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals.

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for _____ in order to achieve their quality goals.



a. how many different suppliers they use
b. how many parts can fail
c. controlling when shipments will arrive
d. the percentage of defects allowed
e. how long the parts should last





Answer: D

Product specifications are

Product specifications are




a. physical characteristics and level of quality.
b. types of services that are provided with the product.
c. financing available for the product.
d. types of competitors offering similar products.
e. product return policies.




Answer: A

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n)

Raython Hardware and Thames Industrial Supplier have worked closely for many years and have a mutually beneficial relationship in which Raython provides all of Thames's hardware needs in a timely manner. Raython and Thames's relationship could be best characterized as a(n)




a. reciprocity agreement.
b. partnership.
c. intra-organizational group.
d. alliance.
e. tying arrangement.



Answer: B

A disadvantage of reciprocity is that it can lead to

A disadvantage of reciprocity is that it can lead to



a. a price war.
b. higher promotional costs.
c. more competitive firms entering the industry.
d. less-than-optimal purchases for the buyer.
e. longer periods of negotiation.




Answer: D

What is a primary difference between business and consumer buyers?

What is a primary difference between business and consumer buyers?




a. Consumer buyers require more product information than business buyers.
b. Business purchases are made by one individual whereas families make consumer purchases together.
c. Repeat sales are more common with consumer buyers than business buyers.
d. Consumers primarily buy inexpensive items; businesses only buy expensive items.
e. Business buyers generally make larger orders than consumer buyers.



Answer: E

Institutional markets are

Institutional markets are



a. intermediaries who resell goods to make a profit.
b. federal and state government units.
c. state or local government units.
d. consumers who buy products for their own use.
e. organizations that seek nonbusiness goals.



Answer: E

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to

The state of Montana is preparing to buy a large quantity of frozen orange juice for use in a large school district. Citrus Sweet, Inc. is in the citrus juice business but has never sold to the government market. To have a chance at getting this order, Citrus Sweet's first step must be to get her firm to



a. make a presentation appointment with the state.
b. quote prices to the purchasing department.
c. advertise in the capital city.
d. negotiate with the state.
e. secure a slot on the list of qualified bidders.




Answer: E

Reseller markets consist mainly of

Reseller markets consist mainly of





a. consumers.
b. retailers.
c. wholesalers and retailers.
d. manufacturers.
e. industrial users.




Answer: C

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?

Snappy Tools, Inc., purchases hammers, bolts, and other hardware items from a variety of manufacturers and sells them to hardware stores at a price that includes a profit for Snappy Tools, Inc. The company would be part of what type of business market?



a. Reseller
b. Producer
c. Consumer
d. Government
e. Supply





Answer: A

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets.

Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ___________ markets.




a. consumer
b. institutional
c. producer
d. government
e. reseller



Answer: E

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets.

Individuals and business organizations that purchase products for the purpose of making a profit either by using the products to produce other products or by using them in their operations are classified as ___________ markets.



a. consumer
b. institutional
c. producer
d. government
e. reseller




Answer: C

Business markets are typically divided into four categories. These categories are

Business markets are typically divided into four categories. These categories are




a. retailers, wholesalers, services, and nonprofit firms.
b. producer, manufacturer, reseller, and government.
c. producer, reseller, government, and institutional.
d. manufacturer, wholesaler, retailer, and services.
e. reseller, retailer, government, and institutional.



Answer: C

In business markets, individuals or groups purchase products for one of three purposes. These purposes are

In business markets, individuals or groups purchase products for one of three purposes. These purposes are



a. resale, wholesale, and direct use.
b. wholesale, direct use, and use in producing other products.
c. producing other products.
d. resale, direct use in producing other products, and use in general daily operations.
e. use in general daily operations, wholesale, and resale.




Answer: D

The three purposes for which individuals or groups can use products in order for it to be considered a business market are

The three purposes for which individuals or groups can use products in order for it to be considered a business market are



a. use in daily operations, end consumption, and resale.
b. direct use in producing other products, company travel, and end consumption.
c. resale, use in daily operations, and direct use in producing other products.
d. governmental, institutional, and reseller purposes.
e. making other products, selling to other businesses, making component parts.




Answer: C

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position.

Pepsi wants to know where its Sierra Mist soft drink fits in with other drinks in the mind of the consumer. Marketers question a sample of consumers about Sierra Mist and other drinks on two different dimensions. They will most likely put this information into a _____ to show Sierra Mist's position.



a. perceptual map
b. ideal cluster
c. product position chart
d. market graph
e. product matrix


Answer: A

All of the following statements about product positioning are true except

All of the following statements about product positioning are true except



a. product positioning decisions are not only for new products.
b. product positioning is the customer's absolute perception of a product's attributes.
c. effective product positioning helps serve a specific market segment by creating an appropriate concept in the minds of customers in that market segment.
d. product positioning is concerned with creating and maintaining a certain concept of the firm's product in customers' minds.
e. when marketers position a product, they try to position it so that it seems to possess the characteristics the target market desires.



Answer: B

Product positioning refers to

Product positioning refers to



a. the area in retail stores in which the manufacturer strives to position its products.
b. product price but not to product image.
c. product image but not to product price.
d. the decisions and activities intended to create and maintain a certain concept of the firm's product in customers' minds.
e. the length of time a product has survived in the market.


Answer: D

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called

Soft Shave is a shaving cream aimed primarily at women. The activities and decisions involved in developing and maintaining Soft Shave's product concept in buyers' minds are called




a. the product mix.
b. the product life cycle.
c. product positioning.
d. product promotion.
e. product development.



Answer: C

When selecting specific target markets, a firm should

When selecting specific target markets, a firm should




a. revert to an undifferentiated approach if the market is deemed heterogeneous.
b. choose the segments most in line with the firm's objectives and long-term growth.
c. choose all segments that are determined to be profitable for the organization.
d. choose the minimum number of segments necessary to achieve company sales potential.
e. pick the segments with the best sales forecasts for the upcoming period of time.



Answer: B

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to

When a marketer is engaged in the target market selection process and has assessed relevant market segments by considering such factors as sales estimates, competition, and estimated costs, the marketer is ready for the next step, which is to



a. identify the appropriate targeting strategy.
b. determine which segmentation variables to use.
c. develop market segment profiles.
d. evaluate relevant market segments.
e. select specific target markets.



Answer: E

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to



a. determine which segmentation variables to use.
b. develop market segment profiles.
c. identify the appropriate targeting strategy.
d. select specific target markets.
e. develop sales forecasts.


Answer: D

The final step in the target market selection process is

The final step in the target market selection process is



a. implementing the appropriate marketing mix for the target market.
b. evaluating relative market segments.
c. eliminating market segments that are cost prohibitive.
d. selecting specific target markets.
e. revising the final segmentation variables based on target selection.




Answer: D

Estimating the cost of entering a market and focusing on a specific target segment is important because

Estimating the cost of entering a market and focusing on a specific target segment is important because



a. cost estimates are crucial to estimating sales potential accurately.
b. higher costs will keep other potential competitors from entering that particular segment.
c. customers are more likely to be attracted to marketers that invest heavily in the target segment.
d. the organization's marketers need to know if they can reach the segment at costs equal to or below competitors' costs.
e. higher cost generally ensures long-term success.




Answer: D

When evaluating market segments, assessment of competitors is important because

When evaluating market segments, assessment of competitors is important because




a. it is difficult to segment a market when it has multiple competitors.
b. an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
c. sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
d. a competitive analysis may lead to confusion as to who are the key competitors.
e. competition is generally not a major problem as long as a marketer is aware of it.



Answer: C

The buildup approach measure of sales potential

The buildup approach measure of sales potential




a. starts with broad estimates of general economic activity.
b. ends with an estimate of a single firm's sales of a specific product.
c. starts with forecasts about demand for a specific product within a relatively small area.
d. does not use sales estimates.
e. is seldom employed by industrial firms.



Answer: C

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.

Alex Wren of Owens Corning Fiberglass talks to Terry Jones, a home builder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Albert then multiplies that number by the total number of builders in the territory. He is using a ___________ approach to measure sales potential.



a.multivariable
b. use of product
c. breakdown
d. regression
e. buildup



Answer: E

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.

The manager at a local recreational vehicle store, Off-Road Rage, believes the next two  years will be difficult because of an economic recession. Using this forecast, he determines the effect on the industry's market potential and then estimates how his company's potential sales will look based on this outlook. This manager is using a _________ approach to estimating sales potential.



a. breakdown
b. recessionary
c. buildup
d. pyramid
e. dimensional



Answer: A

Using the breakdown approach to sales potential, estimates are made

Using the breakdown approach to sales potential, estimates are made



a. by referring to specific geographic factors.
b. by establishing levels of marketing effort that will be required to achieve specific levels of sales.
c. without reference to industry marketing efforts.
d. without reference to general economic conditions.
e. by starting with general economic conditions.



Answer: E

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's

If Baskin-Robbins calculates that it could sell up to 25 percent of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's



a. target growth rate.
b. sales forecast.
c. sales objective.
d. company sales potential.
e. market potential.



Answer: D

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's

General Electric calculates that the total number of light bulbs sold to consumers in the next year by all light bulb producers is 1 billion, given anticipated marketing efforts by the firms involved. This figure represents the industry's



a. sales potential.
b. market potential.
c. target growth rate.
d. sales forecast.
e. sales objective.




Answer: B

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the

The total volume of a product, for all firms in an industry, that would be purchased by specific customer groups within a specified time period at a given level of industry-wide marketing activity, is the




a. competitor sales potential.
b. sales objective.
c. forecasted sales.
d. company sales potential.
e. market potential.



Answer: E

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at

Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs. This information deals with demographic characteristics, product benefits sought, lifestyles, geographic factors, brand preferences, and usage rates. They are most likely looking at



a. the sales force survey results.
b. the results of sales forecasting.
c. a market trend analysis.
d. a market segmentation discrimination analysis.
e. a market segment profile.



Answer: E

_______ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.

_______ describe the similarities among potential customers within a market segment and explain the differences among people in different market segments.





a. Market segmentation variables
b. Market segment profiles
c. Segmentation grids
d. Market differentiation indexes
e. Market concentrations



Answer: B

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is

After an organization has determined which of the many segmentation variables it will use, the next step in the target market selection process is



a. evaluating each of the relevant market segments.
b. selecting the specific target markets.
c. reviewing the appropriate marketing strategy.
d. analyzing the interaction between segmentation variables.
e. developing market segment profiles.




Answer: E

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is

Bethlehem Steel provides steel for a variety of uses to its various customers. Customers have different needs for the steel and thus Bethlehem has to prepare the raw steel differently depending on how customers will use it in their production processes. The primary business segmentation variable in this example is



a. geographic location.
b. customer size.
c. product use.
d. customer importance.
e. organization classification.


Answer: C

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is

Dell segments its business markets into small business, corporate, government agencies, K-12 schools, and higher education institutions. The primary segmentation variable used in this example is



a. geographic location.
b. type of organization.
c. secondary product use.
d. customer size.
e. market potential.



Answer: B

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those who need all day long appetite suppression, and those who want appetite control and more energy. This is an example of market segmentation based on variables of



a. demographics.
b. lifestyles.
c. psychographics.
d. behavior.
e. personality characteristics.





Answer: D

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation.

Demographic variables such as income and occupation, as well as how people spend their time and the importance of things in their surroundings, are all factors considered in ______ segmentation.



a. psychographic
b. social class
c. lifestyle
d. personality
e. family life cycle




Answer: C

When using personality characteristics as a market segmentation variable, marketers generally

When using personality characteristics as a market segmentation variable, marketers generally



a. conduct personality assessments of their potential target market to determine which personality characteristics they possess.
b. use research developed by clinical psychologists to determine which personality characteristics consumers using their products are most likely to have.
c. use generic characteristics that all members of the population have.
d. use a positively viewed characteristic they assume much of their target market has or would like to have.
e. conduct a series of focus groups to determine both the positive and negative characteristics members of their target market are perceived to have.



Answer: D

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using?

When research indicated that Bluetooth's products were not reaching the correct target market, marketers of Bluetooth decided to change from demographic segmentation to psychographic segmentation. Which group of new segmentation variables will Bluetooth now be using?



a. Geographic location of customers
b. Age, sex, and socioeconomic characteristics
c. Social class variables
d. Personality characteristics, motives, and lifestyles
e. Family life cycle, social class, and religion


Answer: D

The three most commonly used psychographic segmentation variables are

The three most commonly used psychographic segmentation variables are



a. personality, perception, and learning.
b. personality, perception, and behavior.
c. motives, attitudes, and lifestyles.
d. attitudes, personality, and perception.
e. personality, motives, and lifestyles.



Answer: E

Which of the following is the biggest drawback to using psychographic variables?

Which of the following is the biggest drawback to using psychographic variables?



a. They are not strongly reflective of consumer behavior.
b. They are difficult to measure.
c. They give poor information about consumer needs.
d. They do not reflect socioeconomic characteristics of consumers.
e. The resulting segments are difficult to be reached.


Answer: B

Micromarketing is

Micromarketing is



a. a market segmentation approach in which firms focus precise marketing efforts on very small geographic markets.
b. developing a very specific marketing mix that will effectively meet the needs of only a small segment of the market.
c. marketing efforts that are tightly controlled by high-level executives in the organization.
d. a way to segment the market to meet the needs of individuals with the same motives and personality attributes.
e. creating advertising that is so specific to a certain type of individual that few people outside that micromarket will respond to the message.



Answer: A

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through

Justin Franklin's company is interested in locating areas where the average income is high, the average age range is 25-35 years, and the lifestyles of the people involve extreme adventures and dangerous leisure activities. His company would most likely find possible markets through



a. U.S. Census Bureau information.
b. geographic segmentation variables.
c. geodemographic segmentation.
d. climate information.
e. psychographic segmentation.



Answer: C

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid

Systems such as PRIZM and Acorn provide companies with lifestyle and demographic information about neighborhoods throughout the United States. This information is used to aid



a. behavioristic segmentation.
b. geodemographic segmentation.
c. market density analysis.
d. demographic segmentation.
e. geographic segmentation.


Answer: B

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?

Many marketers are concerned about the number of potential customers within a certain area of land because of the different requirements to serve dissimilar areas. What is this segmentation variable called?



a. Micromarketing
b. Population
c. Market density
d. MSA
e. PMSA


Answer: C

Family life cycle is most typically based on

Family life cycle is most typically based on



a. income.
b. geographic location.
c. marital status and age of children.
d. occupation.
e. buying power.




Answer: C

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market.

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using _____ variables to segment its market.



a. demographic
b. psychographic
c. sociographic
d. behavioristic
e. geographic



Answer: A

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables.

With its Venus razor, Gillette was the first marketer to offer a triple blade razor specifically designed for women. This is an example of market segmentation using ___________ variables.



a. demographic
b. psychographic
c. geographic
d. family life cycle
e. product use



Answer: A

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using?

McDonald's uses a segmentation strategy for its sandwiches based on market characteristics such as age, gender, or income. Which of the following segmentation variables is McDonald's using?




a. Demographic
b. Geographic
c. Psychographic
d. Product-related
e. Education



Answer: A

Segmentation variables are usually grouped into four categories:

Segmentation variables are usually grouped into four categories:



a. demographic, geographic, religion, and income.
b. geopolitical, income, behavioristic, and psychographic.
c. attitudes, lifestyles, behaviors, and gender.
d. geographic, demographic, psychographic, and attitudes.
e. demographic, geographic, psychographic, and behavioristic.



Answer: E

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is

After a firm has identified an appropriate targeting strategy, the next step in the target market selection process is



a. determining the demographic variables of the target maret.
b. developing market segment profiles.
c. determining which segmentation variables to use.
d. selecting specific target markets.
e. evaluating relevant market segments.




Answer: C
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