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Differentiation means developing different value offerings for different targeted
segments.
According to the consumer product adoption process, the early majority refers to a
group of people who are the prime candidates for beta testing.
Buzz is limited to current and potential customers.
The NAICS codes list all of a particular companies business sectors. A company can be
listed in several different categories.
Bloggers are a highly reputable source of determining an unbiased value of the product.
Business products experience fairly elastic demand.
Segmentation is required only for the consumer market.
Sales people drive interactive marketing, controlling when, where, and how they
interact.
Dividing a market into meaningful smaller markets or submarkets based on common
characteristics is called market segmentation.
Sales promotion is one-to-one personal communication with a customer by a
salesperson, either in person or electronically in some way that provides two-way
dialogue.
A person who acts as an influencer in the buying center cannot be a decider.
While it is important to be a good listener, it is more important that salespeople are
skillful communicators.
Companies like Apple that are constantly developing the next new thing employ a
strategy called service leadership.
Financing, market research, risk-taking, and other services are considered to be
_______________.
A.Inventory management functions
B.Transaction and communication functions,
C.Transportation and storage functions
D.Facilitating functions
E.Disintermediation functions
Facilitating functions help fulfill completed transactions and also maintain the viability
of the channel relationships. Financing, market research, risk-taking, and other services
are considered to be facilitating functions.
Business-to-business markets are:
A.Identical to business-to-consumer markets
B.Similar in most ways to business-to-consumer markets
C.Different in several ways to business-to-consumer markets
D.Different in every way from business-to-consumer markets
E.None of the above
B2B markets differ in many ways from B2C markets. For example, B2B markets need
personal relationships with the customers whereas B2C markets have impersonal
relationships with the customers. The B2C supply chain is more complex.
____________ allow(s) retailers to differentiate their pricing to different target markets
by charging a higher price to less price-sensitive consumers and lower prices to more
price-sensitive shoppers.
A.High/low pricing
B.Everyday low pricing
C.Variety
D.Assortment
E.Market penetration
High/low pricing offers frequent discounts primarily through sales promotions to stated
regular prices. It allows retailers to differentiate their pricing to different target markets
by charging a higher price to less price-sensitive consumers and lower prices to more
price-sensitive shoppers.
USAA's high regard for customer privacy is evidenced through _____________.
A.The company asking permission to share information with outside companies
B.The company asking permission to share information with companies in the USAA
family
C.The company requiring customer to use access codes and identity verification
D.A and B
E.B and C
USAA takes great care to protect the information stored about its customers. Whenever
a member contacts USAA, access codes and verifications of identity are required for
any interaction. Also USAA takes permission from the customers before sharing their
information even with its internal divisions.
_______ is defined as learned predisposition to respond to an object or class of objects
in a consistently favorable or unfavorable way.
A.Perception
B.Motivation
C.Attitude
D.Values
E.Expectations
An attitude is defined as a "learned predisposition to respond to an object or class of
objects in a consistently favorable or unfavorable way." They are learned or at least
influenced by new information.
Financial criteria in the purchase of a complex product for the business market include
__________________.
A.All costs evaluated against the stated life of the product
B.All costs evaluated for one year
C.Value, which is the relationship between price and quality
D.The service requirements of a product
E.None of the above
The actual purchase price is just one consideration in determining the real cost of a
purchase. Maintenance and operating costs, repair charges, and supplies are all costs
associated with ownership. These costs are then evaluated against the stated life of the
product.
Judy works at XYZ Pizza shop. She is a single mom and makes minimum wage. She
recently purchased a BMW. This is an example of a(n) ____.
A.Irresponsible purchase
B.Irrational choice
C.Aspirational purchase
D.Addictive behavior
E.Compulsive shopping behavior
Aspirational purchases are products bought outside the individual's social standing.
Since Judy makes minimum wage, she can not afford a BMW but still she has
purchased it.
A customer can't really experience a service until it is actually consumed. This
characteristic represents the ___________ of a service.
A.Perishability
B.Intangibility
C.Inseparability
D.Variability
E.Scalability
A service is produced and consumed at the same time and cannot be separated from its
provider.
The innovation diffusion process __________.
A.Is how long it takes a product to move from introduction to growth
B.Is how long it takes to move from awareness to interest
C.Is how long it takes to move from trial to adoption
D.Is how long it takes a product to move from first purchase to last purchase
E.Is how long it takes to move from interest to trial
The innovation diffusion process is defined as a study of how long it takes to move
from first to last purchase.
When targeted to customers of a product, _____________ can be an important element
of a pull strategy to gain product trial or rekindle interest.
A.Consumer advertising
B.Public relations
C.Personal selling
D.Sales promotion
E.Institutional advertising
When a firm is looking to gain product trial, spike distribution, shore up sagging
quarterly sales, or rekindle interest in a waning brand, sales promotion can be an
appropriate choice for investment of promotion dollars.
The fastest growing minority group in the United States is ______.
A.Asians
B.African Americans
C.Hispanics
D.American Indians
E.None of the above
Hispanics have become the fastest growing minority group in the United States. They
represented 15.1% of US population in 2008.
______________ also often arises because a significant personal selling effort is
required with the consumer before product purchase.
A.Selective distribution
B.Exclusive distribution
C.Push strategies
D.Pull strategies
E.Intensive distribution
Exclusive distribution often arises because a significant personal selling effort is
required with the consumer before product purchase.
The traditional division between goods and services is outdated. The shift in focus to
services is a shift from the means and the producer perspective to the
__________________ perspective.
A.Necessity and income
B.Utilization and customer
C.Time and union
D.Customer and employee
E.Society and nature
As per the new dominant logic for marketing, the traditional division between goods
and services is long outdated. The shift in focus to services is a shift from the means
and the producer perspective to the utilization and the customer perspective.
________________ may take the form of sharing important product knowledge.
A.Coercive power
B.Reward power
C.Expert power
D.Referent power
E.Legitimate power
Sometimes members of the channel can offer information that they possess but others
don't. This leads to expert power.
Kenny is the leading salesperson for Polymer Sci., a supplier specializing in polymers
used in manufacturing processes. He wants to find new customers so he has started to
research how to approach a buying center. What are some challenges that he will face?
Describe and give examples of three different consumer sales promotion options.
Why is a new purchase the most difficult buying situation?
Describe the various ways a sales person is compensated.
Describe how USAA product offerings, the customers it serves and how it uses
touchpoints. How do customers view the way USAA treats their information? How do
they rate it in terms of customer satisfaction?
Light-Tech creates highly technological lighting systems for theaters and entertainment
venues. They have just hired a company to handle most of their supply-chain functions.
Light-Tech is demonstrating which approach?
Lovella and Curtis both work in the marketing department at a car dealership. They
have been asked to determine the best pricing strategy for some of the service
department offerings. Curtis is in favor of a price bundling strategy, while Lovella
wants to steer clear of price bundling. Lovella says that some customers can view price
bundling as a negative. Why might Lovella think this? What can she and Curtis do to
overcome this?
Evan is working at a home store and is pricing new items in its home d©cor section. He
has come to the plug-in home fragrance products and has decided to price the actual
plug-in gadget at a very reasonable price because he knows that customers will have to
continually buy the fragrance pods. What pricing strategy is Evan demonstrating?
Three months ago, Jacques took over the space of a casual restaurant and a separate bar.
His French fare is aimed at a more upscale, older market but the separate bar attracts the
same happy hour and late night crowd as before. He would like to remodel the bar and
create a wine and martini menu. However, the beer crowd continues to be very
profitable during these first few months of operation. He faces the dilemma of wanting
the offerings of the bar to parallel that of the restaurant but he is worried that he will not
get the same revenue from the wine and martini bar that is earned from the €beer and a
shot' crowd. Should he try to "fire" the bar crowd? Why or why not?
Define the two ways to collect observational data and give an example of each.
