Test 3 Flashcards
What is the term for the process of creating, communicating, and delivering value to customers while managing customer relationships in ways that benefit the organization and its stakeholders?
Marketing
Which of the following occurs between similar products and is based on buyers’ perceptions of the benefits of products offered by particular companies?
Brand competition
What are the tangible and intangible qualities that a company builds into its products?
Features
What type of marketing is used to build long-term relationships with customers?
Relationship marketing
What is data warehousing?
The process of collecting, storing, and retrieving data in electronic files
Companies who use ad campaigns to raise public awareness of important issues such as texting while driving are working with what type of environment?
Political-legal
A company decides to introduce a line of crackers made with organically grown grains and vegetables. What environmental trend is the company responding to?
Sociocultural
Which of the following is used to automate the analysis of customer information and how might they be influenced by marketers?
Data mining
What type of utility is practiced by those companies who allow marketers to have a voice in product design and identifying features customers want?
Form utility
What is created when the ownership of a product, including the setting of selling prices, terms of credit, and ownership documentation is transferred to a customer?
Possession utility
What is used to guide the detailed activities of the marketing plan ensuring the goals of the plan are accomplished?
Marketing objectives
Why does a marketing strategy utilize the marketing mix, which includes product, price, place, and promotion?
To satisfy customers in target markets
Which of the following represents a feature or image that makes one product different from its competitors?
Product differentiation
How do companies offer one-time direct inducements to buyers when promoting goods or services?
Premiums
When selling industrial goods and services, using representatives who are trained to understand the needs of each customer is a key component of
Personal selling
For marketers, what type of variables are lifestyles, opinions, interests, and attitudes?
Psychographic variables
Which of the following describe(s) measurable traits about a consumer, such as income, gender, or marital status?
Demographics
What type of segmentation is more effective because of the greater number of variables and has consequently become the most common segmentation tool?
Geo-demographic segmentation
What is the goal of market research?
To increase competitiveness by clarifying relationships that affect the marketing decisions
Which type of market research allows for an electronic history of consumers?
Observation
When gathering opinions about consumer decisions, what type of research tool would be most beneficial if the issue is not overly complex?
Surveys
What type of behavior do consumers exhibit by regularly purchasing products because they are satisfied with the performance of the product?
Brand loyalty
Which of the following is the LEAST important influence on consumer behavior?
Technological factors
Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer buying process?
Information seeking
How do consumers develop opinions and beliefs about a set of products they will consider buying?
Through information seeking
What happens when companies extend their horizons and identify opportunities outside existing product lines?
Multiple product lines
Which defining word or phrase below BEST captures the meaning of capital items?
Longer lasting
What are the benefits and features associated with a product called?
Value package
What type of consumer good is more expensive and therefore receives more evaluation of alternatives before the purchase is made?
Shopping goods
What is the grouping of products available for sale by a company called?
Product mix
What can a company do to offset the consequences of slow sales in a product line?
Diversify the product line
Which of the following activities describes the development stage of commercialization?
Beginning full-scale production and marketing
In which of the following ways is product development different for services than for physical goods?
Instead of creating a prototype, the company develops a service process design
What is frequently the most time-consuming stage of product development?
Testing
How can a company establish market leadership for a product?
Introduce the product before competitors
During which step of the product development stage does a company conduct market research on benefits and prices?
Concept testing
Which of the following best describes production items?
Goods used in the conversion process
When a consumer knows what they want to buy and is not willing to accept a substitute, what type of consumer product is being sought?
Specialty goods
During the product life cycle, when do sales begin to climb and the product begin to show profit?
Growth
What is one of the key benefits to successful branding?
Brand loyalty
Which of the following best describes product placement?
Placing products in movies and television shows
Which of the following terms refers to the monetary amount added to a product’s cost to the seller in order to sell it at a target profit?
Markup
Companies who price their product low enough to attract a large number of buyers are most likely pursuing which of the following objectives?
High market share
Which of the following gives the correct formula for calculating markup percentage?
Markup/sales price
How do companies achieve continuous sales of more units and higher profits, even with lower unit prices?
Market domination
Odd-even pricing falls under the category of which of the following?
Psychological pricing
Which of the following strategies is involved with price skimming?
Setting an initial high price to cover new product costs and still generate a profit
Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?
Dynamic pricing
What is the practice of selling products in a foreign market for less than in its home country?
Dumping
If a company offers several products that are similar in nature, how could the company increase sales while saving the consumer money?
Use a bundling strategy
Which distribution channel is used by companies that distribute their goods through their own system of outlets?
Retail distribution
Which of the following intermediaries matches numerous sellers and buyers as needed, often without knowing in advance who they will be?
Broker
Choosing a distribution network is a strategic decision in that the decision determines the amount and cost of what?
Market coverage
Which of the following helps producers distribute goods from sellers to customers?
Intermediaries
Which of the following is an advantage to nondirect distribution?
They provide added value by saving buyers time.
When getting a good or service to market, who is most powerful in determining the roles and rewards of others in the system?
Channel captain
What type of intermediary buys the product from the manufacturer then resells it to other businesses?
Merchant wholesalers
What type of intermediary act as a storage firm allowing small operations to pick up the goods desired?
Limited-function merchant wholesalers
What is the advantage of using agents and brokers when a firm does not have its own sales force?
Agents and brokers have extensive knowledge of the markets and merchandise.
Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions?
Discount houses
What are the three major classifications of retail outlets in the United States?
Product-based retailers, bargain-based retailers, convenience-based retailers
Which of the following describes the function of search engines that act as collections of business Web sites representing diverse products?
Cybermalls
Which of the following allows firms to contact customers directly to inform them about products that can be purchased immediately?
Direct-response retailing
Which of the following is an advantage for a retailer who is using e-catalogs?
The cost to maintain and access the catalog is minimal.
When would a manufacturer use an exclusive distribution strategy to market a product?
When the item is a high-cost or prestige product
Which of the following terms refers specifically to the activities needed to move products efficiently from manufacturer to consumer?
Physical distribution
Which of the following will a large firm utilize when it needs temporary storage space for a large amount of products in immediate demand?
Public warehouses
Which of the following is MOST directly related to differences in transportation cost from mode to mode?
Delivery speed
In addition to being one of the fastest modes of transportation for physical goods, what is the advantage of using air-freight?
There are lower inventory costs because items do not need storage.
Which of the following terms refers to finding the most effective techniques for communicating information about and selling a product?
Promotion
Which of the following BEST characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm?
Advertising is nonpersonal in its communication about a product, whereas personal selling is highly individualized.
Which of the following is involved in the final stage in the buyer decision process?
After the buyer has purchased the product, the marketer reminds the buyer that he or she made a wise purchase.
The process of developing and establishing an easily identifiable product image and the nature of the product in the minds of consumers is done through what process?
Positioning
Which of the following are examples of premiums?
Reduced-price items available upon purchase of a product
What type of selling should be used if a buyer is unaware they need or want a product, and the product is high-priced?
Creative selling
Which of the following BEST describes enterprise resource planning?
An information system for organizing and managing a firm’s activities across product lines, departments, and geographic locations
Which of the following allows companies to produce in large volumes, but customers to purchase based on unique feature options?
Through mass-customization
How can e-commerce help businesses with scattered geographical locations better compete?
By coordinating remote deliveries
Which of the following allow(s) businesses to save time and travel expenses by enabling employees and suppliers to communicate from any location?
The use of mobile offices
How do IT communications support leaner, more efficient organizations?
By providing better use of employee skills and greater efficiency instead of resources
Which of the following is an essential element in coordinating design and testing while minimizing costs?
Web collaboration on a massive scale
Flexible production and speedy delivery found in mass customization are dependent on which of the following?
Integrated networks
What type of system allows customers electronic access to a supplier’s delivery times, increasing sales, profits, customer service, and loyalty?
Extranet
What does a company need to operate so that it has total control over its communications without dependence on other companies?
Its own VSAT system
What is the most common type of network used in businesses?
Client-server
What is the major limitation of Wi-Fi?
Short range of distance
What system allows outsiders limited access to a firm’s internal information systems?
Extranets
In client-server networks, who or what is the usual client?
The computer through which users make requests for information
Which type of communication technology is attractive to businesses because it eliminates travel expenses by allowing simultaneous communication globally?
Electronic conferencing
“Hotspots” in places such as coffee shops and airports access wireless Internet connections using
Wireless local area networks
What is used to provide privacy protection on a wireless wide area network?
Firewalls
What is the term used for searching, sifting, and reorganizing pools of data to uncover useful information?
Data mining
Which of the following supports an organization’s managers by providing daily reports, schedules, plans, and budgets?
Management information systems
Which of the following BEST describes a decision support system?
An interactive system that creates virtual business models for a particular kind of decision and tests them with different data to see how they respond
What is the electronic collection, storage, and retrieval of data referred to as?
Data warehousing
