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Chap 01_20e Indicate whether the statement is true or false. 1. Changes in the marketing environment always hurt marketing efforts. a. True b. False 2. Relationship marketing focuses on satisfying customers to generate the most profit. a. True b. False 3. For an exchange to occur, at least one of the parties must be willing to give up his or her "something of value." a. True b. False 4. Marketing activities can occur even when an exchange doesn't take place. a. True b. False 5. The distribution variable in a marketing mix is directed toward making products available in the quantities desired to as many target market customers as possible and keeping the total inventory, transportation, and storage costs as low as possible. a. True b. False 6. It is a good idea to consider parents as part of the target market when marketing new children's lunchboxes that stay colder longer. a. True b. False 7. Marketing costs consume about one-quarter of a buyer's dollar. a. True b. False 8. Marketing consists primarily of selling and advertising. a. True b. False 9. Value = customer costs − customer benefits. a. True b. False 10. The marketing environment is a set of static, unchanging surroundings. a. True b. False

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Chap 01_20e 11. Achievement of the firm's overall goals is part of the marketing concept. a. True b. False 12. In marketing, a product can be a good or a service but not an idea. a. True b. False 13. The marketing concept stresses that a business organization can best achieve its goal by providing customer satisfaction through coordinated activities. a. True b. False 14. When assessing value, customers consider nonmonetary costs such as time and effort. a. True b. False 15. A target market is a specific group of customers on whom an organization focuses its marketing efforts. a. True b. False 16. The actual physical production of goods is a marketing activity. a. True b. False 17. For a business organization to remain healthy and to survive, it must sell products and make profits. a. True b. False 18. The marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while achieving the overall goals of the organization. a. True b. False 19. Profit, even at the expense of customers' satisfaction, is the major thrust of the marketing concept. a. True b. False 20. The market concept developed out of a sequence of three eras: the production orientation, the marketing orientation, and the industrial orientation. a. True b. False 21. Marketing efforts do not involve the design and development of products. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 22. Price is seldom used as a competitive tool. a. True b. False 23. The marketing concept is a philanthropic philosophy aimed at helping customers at the expense of the business organization. a. True b. False 24. Customer benefits include time and effort. a. True b. False 25. Customer relationship management is the use of information about customers to create marketing strategies that develop and sustain desirable customer relationships. a. True b. False 26. During the market orientation, businesspeople realized that products, which by this time could be made relatively efficiently, would have to be promoted through much personal selling and advertising. a. True b. False 27. Marketing costs consume about one-half of a buyer's dollar. a. True b. False 28. Products can be goods, services, or ideas. a. True b. False 29. Customers are the focal point of all marketing activities. a. True b. False 30. The process people use to determine the value of a product is not highly scientific. a. True b. False 31. To satisfy customers' objectives as well as its own, a company must coordinate all its activities. a. True b. False 32. Organizations have to define their products as what they make or produce. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 33. The impact of environmental forces on value can be extensive as market changes can easily influence how stakeholders perceive certain products. a. True b. False 34. Knowing about marketing can help you evaluate the types of corrective measures needed to stop questionable marketing practices. a. True b. False 35. The ability to identify individual customers allows marketers to shift their focus from increasing their share of an individual customer’s purchases to targeting groups of similar customers. a. True b. False 36. The marketing mix consists of three major variables: product, price, and distribution. a. True b. False 37. The marketing concept directly affects marketing activities but should have negligible impact on other organizational activities. a. True b. False 38. To implement the marketing concept, an organization must first establish an information system to discover customers' real needs and then use the information to create products to satisfy those needs. a. True b. False 39. Promotion can help sustain interest in established products that have long been available. a. True b. False 40. There are four conditions that must be met before an exchange can take place. Once these conditions are met, an exchange will always take place. a. True b. False 41. At the most basic level, profits can be obtained through relationships by acquiring new customers, enhancing the profitability of existing customers, and extending the duration of customer relationships. a. True b. False

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Chap 01_20e 42. During the market orientation, businesspeople realized that if they could produce products efficiently, customers would buy them. a. True b. False 43. Services are provided by applying human and mechanical efforts to people or objects to provide intangible benefits to customer. a. True b. False 44. Basic and extended warranties can reduce risk, a major customer cost. a. True b. False 45. Customers are interested in a product's price because they are concerned about the value obtained in an exchange. a. True b. False 46. The marketing concept is a management philosophy, not a second definition of marketing. a. True b. False 47. The broadest and simplest definition of marketing states that it is the development and efficient distribution of products for consumer segments. a. True b. False 48. The market concept stresses that an organization can best achieve its objectives by being customer-oriented. a. True b. False 49. The outcomes of a marketer's decisions and actions may be affected by the variables in the marketing environment. a. True b. False 50. To reduce customer costs and thereby increase their sense of value, companies can increase product availability. a. True b. False

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Chap 01_20e 51. Payton is a salsa dancer who wants to become a professional. Every time she has a performance, she places a flyer in the local community center and encourages her friends to tell others about the performance. Payton is engaging in marketing activities. a. True b. False 52. The reason the marketing concept is named this way is that it pertains solely to marketing. a. True b. False 53. A market orientation requires the organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. a. True b. False Indicate the answer choice that best completes the statement or answers the question. 54. Organizations should define themselves not according to the products they produce but according to a. how profitable they are. b. the price of their stock. c. the abundance of their product selection. d. how they treat employees. e. how they satisfy customers. 55. Businesses that view sales as the major means of increasing profits are operating with a _____ orientation. a. production b. market c. disruptive d. sales e. green 56. The marketing concept a. is a definition of marketing to attract customers. b. focuses on selling and advertising to achieve organizational goals. c. focuses on production and selling to achieve organizational goals. d. is a strategy for achieving organizational goals by following management intuition. e. is a management philosophy that affects all organizational activities.

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Chap 01_20e 57. The marketing concept affects a. just the marketing department. b. all organizational activities. c. only marketing and finance. d. only production and marketing. e. few decisions in an organization. 58. The product variable of the marketing mix can include all of the following except a. creation of brand names. b. consumer perception of the product price. c. development of product packaging. d. warranty issues e. repair services. 59. Which of the following about marketing is true? a. Marketing knowledge enhances consumer awareness. b. Marketing is only used by for-profit and government organizations. c. Marketing is more likely to lead to a more just government. d. Marketing activities are declining due to new technology. e. The marketing profession is the highest-paying profession.

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Chap 01_20e Scenario 1.3 Use the following the answer the questions. A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers’ needs as well as the ability to provide quality products through its retail channel. The executive discussed the firm’s capabilities regarding the ability to produce products that are “built-to-order” and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers’ stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to overthe-road trucking, which enabled it to cut costs in some areas. As HP shifted from a “build-to-order” manufacturer to a “make-to-stock” manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP’s ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals. 60. Refer to Scenario 1.3. Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a “build-to-order” computer and led HP to modify its business model to become a “make-to-stock” manufacturer? a. Economic b. Competitive c. Legal d. Sociocultural e. Regulatory 61. A marketing manager for a small laptop manufacturer is analyzing the potential effects of political, legal, sociocultural, and economic forces on the firm's operations. The marketing manager is examining the ____ that influence(s) the firm's strategy. a. operating situation b. marketing environment c. surroundings d. economic conditions e. trends 62. To fulfill customer expectations about a seller’s future behavior, marketers must a. deliver on promises made. b. advertise and sell products. c. create, distribute, promote, and price products. d. maintain favorable relationships with stakeholders. e. tell the truth on social media.

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Chap 01_20e 63. The public is becoming more aware of how marketers' activities affect the welfare of consumers and society. As a result, more firms are working to a. raise prices in order to increase their profits so that they can contribute to philanthropic causes. b. reduce the quality of their products in order to save money and provide less expensive products to their consumers. c. reduce their profits by donating more time and money to improve social welfare and environmental conditions. d. enact laws requiring companies to work toward the welfare of customers and society. e. create a responsible approach to developing long-term relationships with customers and society. 64. You will give the keynote address at the annual meeting of the American Cereal Makers Association. You realize most of the attendees think marketing is just advertising. So, you decide to start your keynote address by defining what marketing is in order to set the proper context for your speech. You define marketing as: a. the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers. b. the process of persuading or seeking to persuade a customer or organization to take a preferred course of action. c. the process of speaking or writing in support or defense of a firm’s products or services. d. the process or practice of calling public attention to a firm’s goods and services through communications in print media, social media or other forms of information distribution. e. the process of proving that a product or service offered by an organization meets or exceeds customers’ expectations. 65. H&M conducted marketing research to identify explanations for the sales declines its retail stores are experiencing across the United States. The research focused on understanding the shopping habits and desires of a key target market—the Millennial generation. The results indicate that Millennials are more interested in supporting organizations that stand for something—or support a cause or contribute to providing social justice. The information can assist H&M in reorganizing the company, developing new products and communicating with its target audiences to be more effective. Based on this information, which orientation best applies to H&M? a. Sales orientation b. Target market orientation c. Market orientation d. Production orientation e. Stakeholder orientation 66. The marketing concept focuses on a. achieving the goals of top executives. b. creating maximum visibility for the firm. c. maximizing sales in a way that helps to achieve organizational objectives. d. maximizing market share in a way that helps to achieve organizational objectives. e. satisfying customers' needs in a way that helps to achieve organizational objectives. Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 67. Which one of the following statements by a company president best reflects the marketing concept? a. We have organized our business to make certain that customers get what they want. b. We believe that the marketing department must organize to sell what we produce. c. We have organized an aggressive sales force in our company to promote our products. d. We try to produce only high-quality, technically efficient products. e. We try to encourage company growth. 68. You believe one of the most effective ways to remind your staff about key marketing concepts and objectives is to give them desk plaques with simple phrases. You want to create a phrase that reminds them that their primary focus should be creating customer value. Which of the following phrases best tells the story of what customer value is? a. “Customer Benefits = Customer Value – Customer Costs” b. “ Customer Value = Customer Benefits + Customer Costs” c. “ Customer Costs > Customer Benefits = Customer Value” d. “Customer Value = Customer Benefits – Customer Costs” e. “ Customer Value = Customer Benefits = Customer Costs” 69. Target's tagline "Expect More, Pay Less" emphasizes which marketing mix variable? a. Promotion b. Pricing c. Exchange d. Product e. Distribution 70. Higher prices can be used competitively to a. achieve higher market share. b. achieve greater profits. c. start a price war. d. establish a product’s premium image. e. convey value.

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Chap 01_20e Scenario 1.1 Use the following to answer the questions. Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. 71. Refer to Scenario 1.1. A new website has helped Green Hills' pre-planned funeral business grow. This would come under which of the following marketing mix variables? a. Product b. Price c. Distribution d. Promotion e. Promotion and price 72. A market orientation is an organization-wide effort that includes all of the following activities except a. researching customers' needs. b. focusing just on the marketing department. c. generating marketing intelligence for use in the organization. d. being responsive to customers' ever-changing wants and needs. e. disseminating marketing intelligence across departments within the organization. 73. Which of the following is most likely to be an idea marketer? a. Car salesperson b. Airline pilot c. Attorney d. Abuse counselor e. Orthodontist 74. The marketing concept is a. a management philosophy. b. synonymous with exchange. c. a component of the marketing mix. d. a function of the marketing environment. e. focused solely on satisfying customer objectives.

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Chap 01_20e 75. The United Methodist Church has used advertising for many years, airing TV commercials that show children answering questions. The church is using marketing to promote its a. goods. b. services. c. experiences. d. production. e. ideas. 76. F or most firms, the costs of marketing activities consume approximately what portion of the consumer's dollar? a. One-half b. One-fifth c. One-fourth d. One-third e. One-sixth 77. Which of the following is NOT a condition for an exchange to occur? a. Two or more parties must participate, and each must possess something of value. b. The exchange must meet expectations. c. Each party must have confidence in the something of value held by the other. d. The exchange should provide a benefit or satisfaction to only the buyer. e. The exchange should provide a benefit or satisfaction to both parties. 78. Which of the following relates to activities used to inform and persuade or create a desired response? a. Promotion b. Pricing c. Distribution d. Research and development e. Product development 79. The forces of the marketing environment include a. political, legal and regulatory, sociocultural, technological, economic, and competitive. b. sociocultural, legal, regulatory, economic, pricing strategies, and competitive. c. legal, regulatory, political, sociocultural, pricing strategies, and technological. d. legal and regulatory, competitive and noncompetitive forces that affect most lifestyles. e. political, legal and regulatory, pricing strategies,fairly static components.

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Chap 01_20e Scenario 1.1 Use the following to answer the questions. Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. 80. Refer to Scenario 1.1. Green Hills' competitors, the traditional cemeteries, focus on advertising and personal selling of their services. This indicates a(n) ____ orientation. a. environmental b. marketing c. production d. sales e. marketing concept 81. Changing the hours of operation for a service business involves the ____ component of the marketing mix. a. product b. price c. distribution d. promotion e. marketing concept 82. A target market a. involves a large number of customers. b. is a specific group of customers on whom an organization focuses its marketing efforts. c. already has several competitors vying for customers' business. d. is the same as a salesperson's prospective client list. e. is a customer group classified as people with similar demographic characteristics. 83. United Airlines introduced a new “basic economy” seat category to better compete with discount airlines like Southwest and Spirit. Which of the following aspects of the marketing mix is United likely altering? a. Price b. Promotion c. Distribution d. Product e. Target market Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 84. Marketing facilitates exchange relationships between buyers and sellers. What is marketing's intended outcome for this relationship? a. Profits for the seller b. A good bargain on the product for the buyer c. Reducing the seller's inventory d. One party having to compromise in the exchange e. Satisfaction for both the buyer and seller 85. Advances in technology, along with falling political and economic barriers and the universal desire for a higher standard of living, have made a. it harder to compete. b. implementing the marketing concept easier. c. marketing online challenging. d. marketing across national borders rare. e. marketing across national borders commonplace. 86. Which of the following can help sustain interest in a product that has been around for a long time? a. Product b. Price c. Promotion d. Distribution e. Marketing concept 87. Distribution, price, promotion, and product are all elements of a. marketing strategy. b. the marketing mix. c. a target market. d. a consumer good. e. a business strategy. 88. The successful marketer understands that the key to her success is the relationships her firm is able to develop with current customers and potential customers. Moreover, her goal is to achieve the full potential of each of these relationships for the benefit of the firm. This marketer clearly understands a. that the only way for the firm to increase profits is to constantly acquire new customers. b. that customers’ needs, desires and habits are homogeneous. c. that customer loyalty leads to increasing long-term profitability for the firm. d. that data is of limited use in helping the firm understand the needs of customers. e. that customer lifetime value includes only the value of what customers purchase from the firm.

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Chap 01_20e 89. Which of the following is true about the marketing environment? a. Competitive marketing environment forces are the hardest to understand. b. Changing marketing environment forces are always advantageous for marketers. c. The effects of marketing environment forces can be difficult to predict. d. Marketing environment forces usually do not impact one another. e. Good marketers are able to anticipate all marketing environment forces before they arise. 90. Ace Manufacturing Company is not attracting sufficient customers. It has long defined itself as being a maker of shelving products. To improve its sales and long-term viability, it should perhaps consider redefining itself as a. an employer of shelving makers. b. helping potential customers satisfy their needs with Ace shelving products. c. helping the environment with shelving products. d. housing the homeless with shelving products. e. selling shelving products. 91. A junior marketing executive at HealthyStart Cereals suggests increasing the package size and price of its bestselling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because HealthyStart's long-term survival, like most companies, depends on a. cost-cutting measures. b. continually selling to new customers and markets. c. creating and maintaining satisfying exchange relationships. d. high-volume, low-margin sales. e. increasing shelf space for their brands. 92. T-Mobile implemented a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations? a. Production b. Sales c. Market d. Social e. Development 93. Which of the following would NOT be a customer cost considered in the determination of product value? a. Product's purchase price b. Time spent purchasing the product c. Effort spent purchasing the product d. Benefits received in the exchange for the products e. Risk of purchasing the product

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Chap 01_20e 94. The marketing environment is best described as being a. composed of controllable variables. b. composed of variables independent of one another. c. an indirect influence on the performance of marketing activities. d. dynamic and changing. e. slow, with infrequent fluctuations. 95. In today's market environment, you might pay $16 for a vinyl LP record by your favorite musical artist. Approximately how much of that price goes to activities related to marketing (promotion, distribution, profit margins)? a. $10.25 b. $4.00 c. $5.10 d. $8.00 e. $12.75 96. Apple’s CEO Tim Cook has a public email address and encourages customers to contact him if they have problems that have not been resolved. Apple seems to embrace a ___________ orientation. a. value b. sales c. production d. stakeholder e. market 97. A New York-based brand and customer loyalty and engagement research consulting firm called Brand Keys conducts research annually to identify the top 100 brands with the highest levels of customer loyalty. Amazon, Google, Apple, and Netflix lead the pack and demonstrate that consumers are enjoying long-term engagement with these companies. The top companies' ability to generate high levels of customer loyalty demonstrates these firms are engaging in ________ marketing. a. relationship marketing b. competitive marketing c. production marketing d. sales-oriented marketing e. strategic marketing

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Chap 01_20e Scenario 1.2 Use the following to answer the questions. Stay and Play Hotel is a full-service pet salon and boarding kennel. Stay and Play has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Stay and Play has several unexpected services, such as a 600-square-foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Stay and Play has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Stay and Play is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. The cost for an overnight stay at Stay and Play averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Stay and Play' competitors don't offer the day care service, and require a two-day minimum for overnight stays. Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Stay and Play was more interested in competing based on its prices. 98. Refer to Scenario 1.2. The fact that Stay and Play is open 24 hours each day is part of the _______ marketing mix variable while the swimming pool is part of the _______ variable. a. product; distribution b. price; product c. distribution; promotion d. distribution; product e. distribution; environment

99. Honda conducts extensive consumer research and discovered that Latinos are reportedly 15% more likely to

buy a Japanese auto brand, like Nissan, Honda, or Toyota, than any other group ethnic group. Honda is interested in the Latino market since it represents 20% to 30% of the brands’ overall consumers. Due to its extensive use of research and customer insight, Honda has been the top-selling brand for Latinos for over 10 years thanks to effective marketing, like its partnership with the “La Reina de la Cancion” singing competition and an advertising campaign on Spanish-language TV. Based on this information, which orientation best applies to Honda? a. Environmental orientation b. Target market orientation c. Sales orientation d. Production orientation e. Market orientation

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Chap 01_20e 100. The three basic forms that a product can take are a. markets, products, and images. b. goods, ideas, and intangibles. c. brands, services, and tangibles. d. services, ideas, and goods. e. ideas, services, and things. 101. Sara Lee introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Sara Lee was most likely following the ________. a. selling concept b. production concept c. marketing concept d. customer concept e. retailing concept 102. Creating long-term relationships with customers is a key component to surviving and thriving in today’s competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Best Western encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Best Western offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Best Western is utilizing a. marketing mix deployment. b. customer relationship management. c. marketing technology. d. competitive insight. e. the marketing concept. 103. A company’s customers, employees, shareholders, suppliers, governments, communities, and competitors comprise its a. stakeholders. b. stockholders. c. public. d. marketing mix. e. target market. 104. Long-term relationships with profitable customers is the key objective of a. personal selling. b. customer relationship management. c. production oriented firms. d. e-marketing. e. distribution channels. Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 105. Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as a. marketing synthesis. b. relationship marketing. c. a marketing orientation. d. the marketing concept. e. strategic marketing. 106. Clive Lilywhite is in the process of creating, pricing, distributing, and promoting a new app to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. Clive is engaging in a. advertising. b. selling. c. marketing. d. target marketing. e. disruption. Scenario 1.2 Use the following to answer the questions. Stay and Play Hotel is a full-service pet salon and boarding kennel. Stay and Play has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Stay and Play has several unexpected services, such as a 600-square-foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Stay and Play has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Stay and Play is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. The cost for an overnight stay at Stay and Play averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Stay and Play' competitors don't offer the day care service, and require a two-day minimum for overnight stays. Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Stay and Play was more interested in competing based on its prices. 107. Refer to Scenario 1.2. If Stay and Play employs the philosophy of building a relationship with its dog and cat customers, and their owners, it will be implementing the a. environment. b. marketing mix. c. sales concept. d. production concept. e. marketing concept.

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Chap 01_20e 108. To fully appreciate what an effective marketing concept means to the firm, the marketer must first understand that _______________ is the major focus of the marketing concept. This in turn should enable the firm to _______________. Ultimately, this all leads to _________________. a. customer satisfaction; earn long-term profits; increased shareholder value b. securing management; earn long-term profits; management continuity c. employee satisfaction; earn long-term profits; positive labor relations d. selling products; earn long-term profits; organizational stability e. regulatory compliance; earn long-term profits; reduced regulatory costs 109. Without _____, businesses would find it difficult, if not impossible, to buy more raw materials, hire more employees, attract more capital, and create additional products that, in turn, make more profits. a. marketing b. distribution c. promotion d. profits e. production 110. Businesses that strive to determine what customers need or want and then develop products to satisfy those needs and wants are operating in a(n) ____ orientation. a. production b. disruptive c. sales d. evolutionary e. market 111. To build long-term customer relationships, marketers are turning to a. stakeholder analytics. b. marketing research. c. data analytics. d. marketing research and data analytics. e. the marketing environment and a sales orientation. 112. You work in the marketing department of a company that sells computers directly to customers. Recently, your CEO decided he wants to expand and begin selling through popular retailers. You have been given the task of identifying retailers that reach a significant portion of the target market but that also fit with the quality of your company's brand. Once these retailers are selected, you are to work with these retailers to negotiate shelf placement. Your job deals mainly with which marketing mix element? a. Promotion b. Distribution c. Packaging d. Pricing e. Product

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Chap 01_20e 113. Coca-Cola has in recent years developed or acquired new non-cola products to appeal to changing consumer preferences for less sugar in their products. The most likely factor in this change is changes in a. the sociocultural forces of the marketing environment. b. the economic forces of the marketing environment. c. the technological forces of the marketing environment. d. the marketing mix. e. the marketing concept. Scenario 1.3 Use the following the answer the questions. A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers’ needs as well as the ability to provide quality products through its retail channel. The executive discussed the firm’s capabilities regarding the ability to produce products that are “built-to-order” and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers’ stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to overthe-road trucking, which enabled it to cut costs in some areas. As HP shifted from a “build-to-order” manufacturer to a “make-to-stock” manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP’s ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals. 114. Refer to Scenario 1.3. Based on the information provided regarding HP, which orientation would best describe its approach to marketing? a. Marketing concept b. Sales orientation c. Competitive orientation d. Production orientation e. Market orientation

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Chap 01_20e Scenario 1.1 Use the following to answer the questions. Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. 115. Refer to Scenario 1.1. The customers of Green Hills Cemeteries are most likely choosing the Green Hills business because of its _______, which is evidence of a ______. a. pricing; sales orientation b. environmental consciousness; market orientation c. novelty; production orientation d. environmental consciousness; business orientation e. pricing; profit orientation 116. Before marketers can develop an appropriate marketing mix, they must a. adopt a sales orientation. b. determine the customer lifetime value. c. build relationships with stakeholders. d. practice the marketing concept. e. collect in-depth, up-to-date information about customer needs. 117. ____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product. a. Marketing orientation b. Monetary price c. Product assessment d. Price assessment e. Value 118. What percent of all civilian workers in the United States perform marketing activities? a. 100% b. 50% c. 25 - 49% d. 51 - 75% e. 25 - 33%

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Chap 01_20e 119. The focal point of all marketing activities a. are products. b. is the marketing mix. c. are profits. d. are sales. e. are customers. 120. During the 1920s, competition increased and businesspeople realized they had to do more than just focus on manufacturing, which led to the ____ orientation. a. production b. market c. revolutionary d. sales e. reduction 121. The primary value that a marketer expects to receive from a customer in an exchange relationship is a. the price charged for the product. b. customer satisfaction. c. references to other potential customers. d. quality merchandise that meets expectations. e. few returns of the merchandise purchased. 122. The definition of marketing implies that ____ should receive benefits from exchange relationships. a. only customers b. only businesses c. company management d. both customers and businesses e. only the most important customers 123. Marketing activities are a. used by all sizes of organizations including for-profit, nonprofit, and government agencies. b. limited to use by larger for-profit and nonprofit organizations. c. implemented only to increase profits for the organization and to expand the scope of its customer base. d. used by all types and sizes of businesses but are not used by nonprofit organizations. e. used by small businesses and small nonprofit organizations the most. 124. Which of the following scenarios involves the distribution element of the marketing mix? a. Deciding whether or not a certain product should continue to be sold b. Determining whether an advertising message would be more effective on television or in magazines c. Choosing between a company jet or the airlines for executive travel d. Deciding whether or not to have retail outlets in addition to a website e. Developing a new warranty policy for an existing product Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 125. Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike. a. price b. good c. product d. promotion e. distribution 126. During the Industrial Revolution, most firms operated using a(n) ____ orientation. a. market b. societal c. sales d. evolutionary e. production 127. The primary value that a customer expects to receive from a marketer in an exchange relationship is a. a reward or benefit greater than the costs incurred in the transaction. b. the price charged for the product. c. customer satisfaction. d. quality merchandise that meets expectations. e. a discounted price. 128. Which of the following companies is the best example of a service marketer? a. UPS b. Sony c. American Eagle Outfitters d. The Democratic Party e. General Electric 129. Initiatives intended to improve an organization's positive impact on society and the natural environment are called a. environmental marketing. b. green marketing. c. socially-responsible marketing. d. energy-conscious marketing. e. socially-conscious marketing.

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Chap 01_20e 130. The marketing concept is a philosophy that states that an organization should try to satisfy customers' needs and also a. increase market share. b. increase sales. c. achieve the organization's goals. d. produce high-quality products. e. coordinate its activities to increase production. 131. The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n) a. issue. b. experience c. idea. d. good. e. service. Scenario 1.3 Use the following the answer the questions. A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers’ needs as well as the ability to provide quality products through its retail channel. The executive discussed the firm’s capabilities regarding the ability to produce products that are “built-to-order” and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers’ stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to overthe-road trucking, which enabled it to cut costs in some areas. As HP shifted from a “build-to-order” manufacturer to a “make-to-stock” manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP’s ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals. 132. Refer to Scenario 1.3. Which variable of the marketing mix is most affected by Dell’s decision to become a “make-to-stock” manufacturer? a. Product variable b. Pricing variable c. Distribution variable d. Promotion variable e. Strategic variable

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Chap 01_20e 133. Issues of inventory levels and storage costs are both concerns relating to the ____ variable of the marketing mix. a. distribution b. product c. exchange d. price e. promotion 134. Kraft made the announcement that it was eliminating artificial food additives. Which of the following most likely influenced Kraft’s decision? a. Marketing costs b. Regulatory variables c. Marketing environment d. Marketing task e. Marketing mix 135. The marketing concept is best defined as a. a second definition of marketing. b. a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals. c. the performance of business activities that direct the flow of goods and services from producer to customer or user. d. a philosophy stating that an organization should attempt to accomplish its goals with no regard for the needs of customers. e. the inclusion of marketing activities in the activities of an organization. 136. Dunkin’ is introducing some of its products into supermarkets, vending machines, college campuses, and other locations to increase its product availability and convenience. One reason Dunkin’ is doing so is to a. decrease customer benefits. b. increase customer costs. c. increase customer value. d. increase distribution expenses. e. decrease promotion expenses. 137. Making modifications to packaging or brand names involves the ____ component of the marketing mix. a. price b. promotion c. market d. distribution e. product

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Chap 01_20e 138. Special K cereal is aimed at people concerned about their weight. These people represent the Special K a. marketing mix. b. marketing strategy. c. target market. d. marketing tactic. e. consumer advocates. 139. If a family spends $2,000 a month on goods and services, how much of that $2,000 goes for marketing activities? a. $2,000 b. $1,500 c. $1,000 d. $500 e. $0 140. Which of the following statements about marketing environment forces is NOT true? a. They do not influence customers' reactions to a firm's marketing mix. b. They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products. c. They fluctuate quickly and thereby create threats to a firm's marketing mix. d. They may create opportunities as well as threats. e. They influence whether and how a marketing manager performs certain marketing activities. 141. During the Industrial Revolution demand for manufactured goods was a. weak. b. nonexistent. c. declining. d. strong. e. mediocre. 142. According to the marketing concept, an organization should try to a. consider short-run objectives and cash flow needs before developing new products. b. define its business as "making a product." c. provide products that satisfy customers' needs and allow the organization to achieve its goals. d. put most of its emphasis on marketing activities and be less concerned with finance, accounting, and personnel. e. view selling activities as the major means of increasing profits.

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Chap 01_20e 143. Amazon Prime has one of the highest customer loyalty ratings in the entertainment industry with a significant percentage of current video streaming subscribers continuing to renew their subscription with Amazon on a yearly or month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Amazon Prime and Netflix for their entertainment. Amazon Prime video streaming is available as part of Amazon’s $99/year Amazon Prime suite of offerings that includes free 2-day shipping on many Amazon.com orders. Customers can also choose to pay by the month for $12.99/month. If a significant percentage of subscribers continue their service on an annual basis, Amazon is able to build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to Prime for five years and generated over $700 in revenue to Amazon. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Amazon? a. Customer impact score b. Customer retail calculation c. Customer patronage value d. Customer profitability value e. Customer lifetime value 144. Customer costs include anything the buyer must give up in order to obtain the benefits the product provides. The most obvious customer cost is a. risk. b. time. c. monetary price. d. effort. e. availability. 145. The element of the marketing mix used to increase awareness of a product or company is a. information. b. product. c. price. d. distribution. e. promotion. 146. Organizations try to retain and increase long-term profitability through customer loyalty, which results from increasing a. production. b. market share. c. sales. d. market value. e. customer value.

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Chap 01_20e 147. When companies offer basic or extended warranties, they are ______ for customers. a. reducing benefits b. reducing costs c. reducing value d. increasing effort e. increasing risk 148. Holden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of the following would NOT be a customer benefit considered in his determination of this product's value? a. Speed of delivery b. Ease of installation c. Availability of technical support d. Availability of training assistance e. Monetary price Scenario 1.2 Use the following to answer the questions. Stay and Play Hotel is a full-service pet salon and boarding kennel. Stay and Play has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. Stay and Play has several unexpected services, such as a 600-square-foot swimming pool, complete with slide and dog-friendly graduated steps to help them exit the pool. Customers can also drop their dog or cat off each morning for pet day care. Stay and Play has a pick-up and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet "furniture" so that the cats and dogs can lie on sofas just like at home. Stay and Play is also open 24 hours a day, 365 days each year so that customers can pick up their pet at any time. The cost for an overnight stay at Stay and Play averages $50, compared to competing kennels at about $30. The day care costs are $25 for either a dog or cat. The majority of Stay and Play' competitors don't offer the day care service, and require a two-day minimum for overnight stays. Informal discussions with customers led to the addition of pet day care and 24-hour hours of operation. Previously, Stay and Play was more interested in competing based on its prices. 149. Refer to Scenario 1.2. Previously, Stay and Play was most likely using a ____ orientation, while now it is now in the process of employing the _______. a. sales; marketing concept. b. sales; marketing mix. c. promotion; marketing concept. d. sales; promotion orientation. e. sales; product orientation.

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Chap 01_20e 150. The marketing mix is built around the a. product. b. company. c. customer. d. employee. e. retail outlet. 151. The equation a buyer applies to assess a product's value is a. value = monetary price − customer benefits. b. value = customer costs − customer benefits. c. value = customer benefits − customer costs. d. value = customer benefits − monetary price. e. value = customer benefits − time and effort. 152. Which of the following best describes the acceptance of the marketing concept by all organizations? a. The marketing concept has yet to be fully accepted by all organizations. b. All organizations fully utilize the marketing concept to run their businesses. c. Nearly half of all organizations are still in the sales orientation and have not implemented the marketing concept. d. Most organizations have really not accepted the marketing concept because of its many costs and problems. e. Although American organizations fully accept the marketing concept, many foreign companies do not. 153. Marketing knowledge and skills a. are not necessary for a nonprofit organization. b. are valuable personal and professional assets. c. constitute the marketing mix. d. were most important during the production era. e. are most valuable for advertising executives but less important for wholesalers and distributors. 154. Naomi owns a company that sells snowboards. During the winter, she sells so many snowboards that she constantly has to restock. However, Naomi always seems to have dozens of snowboards left in inventory once spring hits and demand falls rapidly. To try and sell these excess snowboards, Naomi offers steep discounts on her products, invests heavily in advertising to make consumers aware of the discounts, and instructs her in-store salespeople to use strong persuasion tactics to convince them to purchase the remaining snowboards. During this period of time, what type of orientation is Naomi embracing? a. Production b. Sales c. Market d. Promotion e. Marketing concept

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Chap 01_20e 155. Recent years have seen the introduction of Uber and Lyft, which enable customers to find a ride using an app on their smartphone. In many cities, the two services undercut traditional taxi fares, leading to phenomenal growth. Uber and Lyft are best described as the a. environmental marketing model. b. sustainable marketing model. c. marketing concept. d. sharing economy economic model. e. customer lifetime value model. 156. The essence of marketing is a. to select a target market big enough to make marketing efforts worthwhile. b. to collect market information and use it to develop long-lasting customer relationships. c. to develop satisfying exchanges from which both customers and marketers benefit. d. to modify marketing mix variables so as to secure the highest market share. e. to provide customers with the greatest amount of value. Scenario 1.1 Use the following to answer the questions. Green Hills Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Green Hills' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Green Hills' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Green Hills is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first, Green Hills is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Green Hills were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. 157. Refer to Scenario 1.1. Green Hills' main competitive advantage over traditional cemeteries comes from its attention to which element in the marketing mix? a. Product b. Packaging c. Promotion d. Distribution e. Marketing research

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Chap 01_20e 158. Consumers buying products online have dramatically affected the ____ variable of the marketing mix. a. product b. price c. distribution d. research e. promotion 159. When Shaw Industries develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables? a. Price b. Promotion c. Distribution d. Product e. Packaging 160. Which of the following is the least uncontrollable factor in developing a marketing mix? a. Product adaptations b. Pricing strategies c. Government regulations d. Advertising campaigns e. Retail locations 161. HealthCare Guardian Insurance rolls out an innovative nurse-on-call information system available online. The product is not widely accepted because patients don't see the need for such a service. This situation represents a failure in which aspect of implementing the marketing concept? a. An information system to determine customer needs b. The organizational structure c. Top-management commitment d. Technological advancement e. Scanning corporate capabilities 162. Amos Holden runs a successful wholesale business that sells equipment to restaurants throughout the Southwest. He is considering purchasing his own fleet of trucks to deliver the equipment instead of relying on a shipper as he is currently doing. This most closely represents a decision about a. which market he should target. b. the best way to distribute his products. c. how to effectively promote his business. d. the product he provides to his customer. e. which supplier he should use.

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Chap 01_20e 163. Which of the following is NOT an example of the implementation of the marketing concept? a. Jimmy Dean's Sausage introduces turkey sausage patties for a healthier alternative to pork. b. Ford asks customers to vote online for a new color for next year’s Ford Focus. c. McDonald's reduces the labor costs to produce its sausage-egg biscuits. d. Linx offers rewards for users who can find flaws in its new software. e. Volkswagen introduces pop-up rollover bars in its convertibles to protect its consumers in the event of a serious collision. 164. The majority of the heads of marketing for most multinational corporations would likely describe marketing as a very complex discipline. They will give a long list of variables and factors that influence a company’s marketing success. Most of these variables and factors are part of what is called the marketing environment. The U.S. unemployment rate would fall under which set of forces in the marketing environment? a. Sociocultural forces b. Political forces c. Economic forces d. Competitive forces e. International trade forces 165. Your competition is beating you on price in your most important product market. In response, you decide to launch a new ad campaign focusing your customers on the price attribute of your marketing mix. You need a catchy slogan that conveys the attractiveness of your product’s pricing. Which of the following slogans should you use to convey this message most effectively? a. “Every Day You Get Our Best” b. “Growing and Protecting Your Wealth” c. “Expect More. Pay Less” d. “There Is No Substitute” e. “Always On Time . . . Or You Don’t Pay A Dime” 166. Which of the following is NOT one of the ways in which a firm can obtain profit through customer relationships? a. Shortening the duration of customer relationships b. Acquiring new customers c. Enhancing the profitability of existing customers d. Regaining and managing relationships with customers who have stopped doing business with the firm. e. Extending the duration of customer relationships

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Chap 01_20e 167. When Smartsheet, a producer of software, delayed the introduction of its new app to modify the package, its scheduled TV advertisements announcing the new product needed to be revised. In this case, a change in the ____ variable caused changes in the ____ variable of the marketing mix. a. distribution; promotion b. distribution; product c. product; price d. product; promotion e. promotion; price 168. Never Again MSD is a group that works to change attitudes and laws about gun control. Never Again MSD primarily markets a. goods. b. ideas. c. services. d. political figures. e. applications. 169. The marketing concept is a management philosophy that affects a. only marketing activities. b. all efforts of the organization. c. mainly the efforts of sales personnel. d. mainly customer relations. e. only business organizations. 170. Marketing is the process of a. promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders. b. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. c. delivering a standard of living to a society. d. creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm's objectives. e. focusing on customers' needs. 171. A physical product you can touch is a(n) a. service. b. good. c. idea. d. concept. e. philosophy.

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Chap 01_20e 172. Your company provides oil exploration services to major oil companies in Russia. The United States government just announced it is imposing economic sanctions on Russia because of the military actions it has taken in Ukraine. This situation is an example of which of the following types of forces that constantly impact a company’s dynamic marketing environment? a. Technological force b. Sociocultural force c. Political force d. Legal and regulatory force e. Economic force 173. A marketing manager decides what combination of variables is needed to satisfy customers' needs for a general type of product. What are the essential variables that the marketing manager combines? a. Product, price, distribution, and promotion variables b. Marketing environment variables c. Product and promotion variables d. Product, price, and customer variables e. Product, price, customer, and promotion variables 174. Define the term target market and provide an example for a product of your choice.

175. Explain why marketing efforts should be oriented toward creating and sustaining satisfying exchange relationships.

176. Explain why a knowledge of marketing is beneficial for all students.

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Chap 01_20e 177. Describe the three different types of products.

178. Describe several activities encompassed by the distribution variable.

179. Why is marketing important to businesses and to the economy?

180. Discuss the concept of green marketing and why it is important to marketers.

181. Define the term value, and explain how people determine a product's value.

182. What is meant by the term marketing concept, and what departments of a company does it affect?

183. What is meant by the term relationship marketing? How does relationship marketing affect the customer?

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Chap 01_20e 184. Discuss the evolution of the marketing concept through the various types of orientation.

185. What are the three ways that marketing environment forces affect a marketer's ability to create satisfying exchange relationships?

186. Suppose you are a marketing manager at SC Johnson for a new, all-purpose cleaning product. List four marketing mix variables and describe the decisions and activities associated with each.

187. What does it mean for a company to be marketing-oriented? What are the most important factors involved in being marketing-oriented?

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Chap 01_20e Answer Key 1. False 2. False 3. False 4. True 5. True 6. True 7. False 8. False 9. False 10. False 11. True 12. False 13. True 14. True 15. True 16. False 17. True 18. True 19. False 20. False 21. False 22. False 23. False 24. False 25. True 26. False

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Chap 01_20e 27. True 28. True 29. True 30. True 31. True 32. False 33. True 34. True 35. False 36. False 37. False 38. True 39. True 40. False 41. True 42. False 43. True 44. True 45. True 46. True 47. False 48. True 49. True 50. True 51. True 52. False 53. True 54. e Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 55. d 56. e 57. b 58. b 59. a 60. d 61. b 62. a 63. e 64. a 65. c 66. e 67. a 68. d 69. b 70. d 71. d 72. b 73. d 74. a 75. e 76. a 77. d 78. a 79. a 80. d 81. c 82. b Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 83. a 84. e 85. e 86. c 87. b 88. c 89. c 90. b 91. c 92. c 93. d 94. d 95. d 96. e 97. a 98. d 99. e 100. d 101. c 102. b 103. a 104. b 105. b 106. c 107. e 108. a 109. d 110. e Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 111. d 112. b 113. a 114. e 115. b 116. e 117. e 118. e 119. e 120. d 121. a 122. d 123. a 124. d 125. c 126. e 127. a 128. a 129. b 130. c 131. e 132. a 133. a 134. c 135. b 136. c 137. e

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Chap 01_20e 138. c 139. c 140. a 141. d 142. c 143. e 144. c 145. e 146. e 147. b 148. e 149. a 150. c 151. c 152. a 153. b 154. b 155. d 156. c 157. a 158. c 159. b 160. c 161. a 162. b 163. c 164. c 165. c Copyright Cengage Learning. Powered by Cognero.

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Chap 01_20e 166. a 167. d 168. b 169. b 170. b 171. b 172. c 173. a 174. Organizations generally focus their marketing efforts on a specific group of customers called a target market. A target market is the group of customers toward which a company directs a set of marketing efforts. 175. The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. The customer expects to gain a reward or benefit greater than the costs incurred in a marketing transaction. The marketer expects to gain something of value in return, generally the price charged for the product. To fulfill these expectations, the marketer must deliver on promises made. Over time, this interaction results in relationships between the two parties. 176. Studying marketing allows us to understand the importance of marketing to customers, organizations, and our economy. Thus, we can analyze marketing efforts that need improvement and how to attain that goal. As a consumer becomes more aware it is possible to improve purchasing decisions. Understanding marketing enables people to evaluate corrective measures (such as laws, regulations, and industry guidelines) that could stop unfair, damaging, or unethical marketing practices. 177. A product can be a good, a service, or an idea. A good is a physical entity you can touch. A branded pair of spectacles or a branded pair of jeans is an example of a good. A service is the application of human and mechanical efforts to people or objects to provide intangible benefits to customers. Air travel, education, and child day care are examples of services. Ideas include concepts, philosophies, images, and issues. For instance, a marriage counselor, for a fee, gives spouses ideas to help improve their relationship. 178. When considering the distribution variable, a marketing manager makes products available in the quantities desired to as many target-market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. A marketing manager also may select and motivate intermediaries (wholesalers and retailers), establish and maintain inventory control procedures, and develop and manage transportation and storage systems. The advent of the Internet and electronic commerce also has dramatically influenced the distribution variable. Companies now can make their products available throughout the world without maintaining facilities in each country. 179. Businesses must engage in marketing to survive and grow, and marketing activities are needed to reach customers and provide products. Financial resources generated from sales are necessary for the operations of a firm and to provide financial returns to investors. Innovation in operations and products drive business success and customer loyalty. Marketing activities help to produce the profits that are essential to the survival of individual businesses. Without profits, businesses would find it difficult, if not impossible, to buy more raw materials, hire more employees, attract more capital, and create additional products that, in turn, make more profits. Therefore, marketing helps create a successful economy and contributes to the well-being of society. Copyright Cengage Learning. Powered by Cognero.

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Chap 05_20e 190. Marketing managers and other professionals increasingly rely on marketing research, marketing information systems, and new technologies to make better decisions. Therefore, it is essential that professional standards be established by which to judge the reliability of marketing research. Such standards are necessary because of the ethical and legal issues that can develop in gathering marketing research data. For example, many consumers are wary of how their personal information collected by marketers will be used, especially whether it will be sold to third parties. It is important that marketers remain ethical at all times, to retain consumer and stakeholder trust and a positive reputation. To provide standards and guidelines, organizations such as the Marketing Research Association have developed codes of conduct and guidelines that promote ethical marketing research. 191. The final step in the marketing research process is to report the research findings. Before preparing the report, the marketer must objectively analyze the findings to determine whether the research is as complete as it can be and how well the data answer the research question and support or negate the hypothesis. Most research will not have answered the research question completely. Thus, the researcher must point out deficiencies and their causes in the report. While writing, researchers must keep the report’s audience in mind and ensure that findings are relevant to the firm. They should also determine before writing how much detail and supporting data to include. Research is not useful unless it supports the organization’s overall strategy and objectives. If an outside research agency was contracted, it is important that it fully understand the client’s business. Those responsible for preparing the report must facilitate adjusting the findings to the environment, as it can change over time. The report must be helpful to marketers and managers on an ongoing basis. 192. In designing research, marketing researchers must ensure that research techniques are both reliable and valid. A research technique has reliability if it produces almost identical results in repeated trials. To have validity, the research method must measure what it is supposed to measure, not something else. This means that not all reliable research findings are valid. For example, although a group of customers may express the same level of satisfaction based on a rating scale, as individuals they may not exhibit the same repurchase behavior because of different personal characteristics. If the purpose of rating satisfaction was to estimate potential repurchase behavior, this result may cause the researcher to question the validity of the satisfaction scale. A study to measure the effect of advertising on sales is valid if advertising can be isolated from other factors and from variables that affect sales. Research projects should be replicable as well; otherwise it is impossible to establish reliability. 193. There are two basic types of sampling: probability sampling and nonprobability sampling. With probability sampling, every element in the population being studied has a known chance of being selected for study. Random sampling is a form of probability sampling. When marketers employ random sampling, all the units in a population have an equal chance of appearing in the sample. Another type of probability sampling is stratified sampling, in which the population of interest is divided into groups according to a common attribute, and a random sample is then chosen within each subgroup. A stratified sample may reduce some of the error that is a risk of a completely random sample, ensuring that a group is not accidentally overrepresented. By segmenting a population into groups, the researcher makes sure that each segment receives its proportionate share of sample units and helps investigators avoid including too many or too few sample units from each subgroup. Samples are usually stratified when researchers believe there may be variations among different types of respondents. The second type of sampling, nonprobability sampling, is more subjective than probability sampling because there is no way to calculate the probability that a specific element of the population being studied will be chosen. Quota sampling, for example, is highly judgmental because the final choice of participants is left to the researchers. In quota sampling, researchers divide the population into groups and then arbitrarily choose participants from each segment. In quota sampling, researchers impose some controls—usually limited to two or three variables, such as age, gender, or race—over the selection of participants to ensure that representative categories of respondents are included.

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Chap 05_20e 194. A carefully constructed questionnaire is essential to the success of any survey. Questions must be clear, easy to understand, and directed toward a specific objective, meaning they must be designed to elicit information that meets the study’s data requirements. Defining the objective of a questionnaire before construction will provide a guide to the substance of the questions and ensure that they yield useful information that contributes to the research project. The most important rule in composing questions is to maintain impartiality. The questions are usually of three kinds: open-ended, dichotomous, and multiple-choice. Open-ended questions should be used carefully, as it is very difficult to code the responses in such a way as to easily analyze the data later. Problems may develop in the analysis of dichotomous or multiple-choice questions when responses for one outcome outnumber others. For example, a dichotomous question that asks respondents to choose between “buy” or “not buy” might require additional sampling from the disproportionately smaller group if there were not enough responses to analyze. Researchers must also be very careful about questions that a respondent might consider too personal or that might require an admission of activities that other people are likely to condemn. Researchers must word questions carefully so as not to offend respondents. 195. The four basic survey methods include mail surveys, telephone surveys, online surveys, and personal interview surveys. A mail survey is less expensive than a telephone or personal interview survey as long as the response rate is high enough to produce reliable results. A major disadvantage of this method is the possibility of a low response rate. One method of improving response rates involves attaching a brief personal message on a Post-it note to the survey packet. Premiums or incentives that encourage respondents to return questionnaires have been effective in developing panels of respondents who are interviewed regularly by mail. A telephone survey has some advantages over a mail survey. The rate of response is higher because it takes less effort to answer the telephone and talk than to fill out and return a questionnaire. If enough interviewers are available, a telephone survey can be conducted very quickly. However, only a small proportion of the population likes to participate in telephone surveys or interviews. This can significantly limit participation and distort representation. Many households are excluded from telephone directories by choice (unlisted numbers) or because the residents moved after the directory was published. Potential respondents often use telephone answering machines, voice mail, or caller ID to screen or block calls; additionally, millions have signed up for “Do Not Call Lists.” Moreover, an increasing number of Americans are giving up their fixed telephone lines in favor of cellular or wireless phones. These issues have serious implications for the use of telephone samples in conducting surveys or interviews. In an online survey, questionnaires can be transmitted to respondents either through e-mail or through a website. Marketing researchers often send these surveys to online panel samples purchased from professional brokers or put together by the company. The potential advantages of online surveys are quick response and lower cost than traditional mail, telephone, and personal interview surveys if the response rate is adequate. Marketers can use digital media forums such as chat rooms, blogs, newsgroups, social networks, and research communities to identify trends in interests and consumption patterns. In a personal interview survey, participants respond to questions face to face. Respondents can be selected more carefully, and reasons for nonresponse can be explored. Today, many personal interviews are conducted in shopping malls. Shopping mall intercept interviews involve interviewing a percentage of individuals who pass by an “intercept” point in a mall. Like any face-to-face interviewing method, mall intercept interviewing has many advantages. 196. A marketing information system (MIS) is a framework for the day-to-day management and structuring of information gathered regularly from sources both inside and outside the organization. As such, an MIS provides a continuous flow of information about prices, advertising expenditures, sales, competition, and distribution expenses and can be an important asset for developing effective marketing strategies. The main focuses of an MIS are on data storage and retrieval, as well as on computer capabilities and management’s information requirements. MIS can help with producing regular sales reports by product or market categories, data on inventory levels, and records of salespeople’s activities, which can all help in marketing decision making.

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Chap 05_20e 197. Technology and the internet have made the information required for marketing decisions more accessible than ever. Marketers can easily track customer buying behavior, obtain detailed demographic profiles, and anticipate what buyers want—making it possible to fine-tune marketing mixes to satisfy customers. Information technology permits for easy internal research and quick information gathering to help marketers better understand and satisfy customers. CRM has been enhanced by the ability to integrate and access data from all customer contacts. Many firms use marketing information systems, CRM technologies, and cloud computing to network technologies and organize the marketing data available to them. Improvements in information technology have made it possible for firms to develop databases that are vastly enhanced in their speed and storage capacity to guide strategic planning and improve customer service. 198. Conclusive research is designed to verify insights through an objective procedure to help marketers make decisions. It is used in the final stages of decision making, when the marketer has narrowed his or her decision down to a few alternatives. When marketers need more information about a problem or want to make a tentative hypothesis more specific, they conduct exploratory research. The main purpose of exploratory research is to better understand a problem or situation and/or to help identify additional data needs or decision alternatives. Exploratory research can help marketers better understand how consumers view a topic or a product, which can assist a firm as it develops better products and more targeted marketing mixes. 199. Sociocultural, economic, political, legal, and technological forces vary in different regions of the world. These variations create challenges for the organizations that are attempting to understand foreign customers through marketing research. While the marketing research process is generally the same around the world, some regional differences exist. To make certain that firms are sufficiently aware of global and regional differences, many companies retain a research firm, or at least a researcher, with experience in the country of interest. Most of the largest marketing research firms derive a significant share of their revenues from research conducted outside the United States. For example, the Nielsen Company, the largest marketing research firm in the world, is a U.S. company but has a market presence in over 100 different countries.

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Chap 06_20e Indicate whether the statement is true or false. 1. Coca-Cola would be able to use a customer forecasting survey to forecast future sales effectively. a. True b. False 2. Sellers of farm produce would be likely to use an undifferentiated targeting strategy. a. True b. False 3. The first step of the target market selection process is identifying the appropriate targeting strategy; the last step is evaluating relevant market segments. a. True b. False 4. A company sales forecast is the amount of a product that a company expects to sell during a specific time period at a specified level of marketing activities. a. True b. False 5. Lifestyle analysis focuses on people's activities, interests, and opinions. a. True b. False 6. The ways in which customers use a particular product may be a basis for segmenting the market. a. True b. False 7. When selecting the specific target market, the firm must consider the possibility that the requirements of some market segments are at odds with the firm's overall objectives. a. True b. False 8. A marketer can use regression analysis techniques to predict the sales of new products. a. True b. False 9. In developing a company sales forecast, the forecasting methods are limited to surveys and correlation methods. a. True b. False 10. If a company spends twice as much as any of its competitors on marketing efforts, and if each dollar spent is more efficient in generating sales, the firm’s sales potential will be low relative to competitors’ sales potential. a. True b. False

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Chap 06_20e 11. The magnitude of industry-wide marketing activities has a direct impact on the company’s sales potential. a. True b. False 12. The types of surveys used to forecast sales are customer, executive, and competitor surveys. a. True b. False 13. Psychographic variables are aggregate population characteristics such as the distribution of age and gender, fertility rates, migration patterns, and mortality rates. a. True b. False 14. Through market tests, a forecaster gains data regarding consumers' intended purchases. a. True b. False 15. The size of the market potential places limits on the size of the company sales potential. a. True b. False 16. In a customer forecasting survey, a marketer would question customers about the types and quantities of products they intend to buy during a specific time period. a. True b. False 17. An undifferentiated targeting strategy does not target a single market with one marketing mix. a. True b. False 18. The concentrated targeting strategy is one in which an organization directs its marketing efforts toward a single market segment through one marketing mix. a. True b. False 19. A firm ordinarily uses the same sales forecasting method for determining short-range and long-range sales forecasts. a. True b. False 20. Sales forecasts are always long-range in nature. a. True b. False

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Chap 06_20e 21. Market segment profiles help a marketer determine which segments are most attractive relative to a firm's strengths, weaknesses, objectives, and resources. a. True b. False 22. Lena is an award-winning fiction writer. She works out of her apartment. She recently purchased a new desk in which to store her manuscripts and for use when typing up stories for publication. Lena is part of the business market for the desk manufacturer. a. True b. False 23. Lifestyle is a product-related variable. a. True b. False 24. A market segment profile describes the similarities among potential customers within a segment and explains the differences among people across market segments. a. True b. False 25. There are only two basic strategies for selecting target markets: the undifferentiated targeting strategy and the concentrated targeting strategy. a. True b. False 26. Demographic characteristics are commonly used to segment a market because they are closely related to consumers' product needs and purchasing behavior. a. True b. False 27. A market segment profile provides customers with an understanding of how a business can use its capabilities. a. True b. False 28. One way marketers can segment business markets is according to their geographic location. a. True b. False 29. Trend analysis is a sales forecasting technique that focuses on aggregate sales data over a period of many years to determine general trends in annual sales. a. True b. False 30. The sum of firms' marketing efforts equals industry marketing efforts. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 31. The two general approaches to measuring company sales potential are the breakdown and the buildup approach. a. True b. False 32. The four requirements of a market are that the individuals in the market must have a need for the product and the ability, willingness, and authority to buy it. a. True b. False 33. A segmentation variable is used to group smaller markets into one larger market. a. True b. False 34. A market segment profile may cover such aspects as demographic characteristics, geographic factors, product benefits sought, lifestyles, brand preferences, and usage rates. a. True b. False 35. Marketers use market segment profiles to assess whether customers will buy their products. a. True b. False 36. The executive judgment method of sales forecasting is very accurate in predicting future sales. a. True b. False 37. One condition for effective segmentation is that at least one segment must have substantial profit potential. a. True b. False 38. A company sometimes defines a total market as its target market. a. True b. False 39. Only one variable can be used to segment a market. a. True b. False 40. Company sales potential is the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product. a. True b. False

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Chap 06_20e 41. The information yielded by market segment profiles usually is not very useful later in the marketing process. a. True b. False 42. Segmentation variables are characteristics of individuals, groups, or organizations in a total market. a. True b. False 43. When a firm's management is making the final selection of specific target markets to enter, it should consider whether the organization has the financial resources, managerial skills, expertise, and facilities needed to effectively compete in the selected segments. a. True b. False 44. When evaluating relevant market segments, cost estimates are important to determine if an organization entering a particular segment can operate at costs equal to or below those of competitors. a. True b. False 45. Consideration of the firm's overall objectives usually does not influence the final selection of a target market segment. a. True b. False 46. A differentiated targeting strategy is when the organization targets two or more markets by developing a single marketing mix. a. True b. False 47. Family life cycle is a psychological dimension used for segmenting markets. a. True b. False 48. The term market density refers to the number of potential customers per unit of land area, such as per square mile. a. True b. False 49. Products can be part of only the business or consumer market, depending on their end use. a. True b. False 50. One problem with using personality traits for segmentation purposes is that they are difficult to measure accurately. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 51. A competitive assessment may reveal that a market segment that initially seemed attractive may not be worth pursuing. a. True b. False 52. Surveys are sometimes used to forecast sales. a. True b. False 53. In the breakdown approach, the marketing manager measures company sales potential by estimating how much of a product a potential buyer in a specific geographic area will purchase in a given period, multiplying the estimate by the number of potential buyers, and adding the totals of all the geographic areas considered. a. True b. False 54. A market is a group of people who, as individuals, have needs for products in a product class and have the ability, willingness, and authority to purchase such products. a. True b. False 55. If market segmentation analysis shows customer needs to be homogeneous, the firm’s management should decide to use the differentiated approach. a. True b. False 56. Motives can be used to segment markets. a. True b. False Indicate the answer choice that best completes the statement or answers the question. 57. The Sound Emporium is a music superstore selling instruments, sound equipment, lighting, as well as DJ, band, and orchestra products. The Sound Emporium plans to continue its growth across the country by opening 5 to 10 new stores each year. The Sound Emporium has recognized that it has several market segments, including professional musicians, DJ businesses, and consumers who purchase instruments for school band and orchestra. The company has developed a detailed description of these various customer segments. These detailed descriptions include information such as demographic characteristics—age, income, and education level—as well as an individual’s preferences regarding what brands of instruments they purchase, how frequently they visit the store to make a purchase, how much time they spend in the store, and the percent of time they select The Sound Emporium to make a purchase. What step in the target market selection process has The Sound Emporium completed by describing their target market customers? a. Step 4: Evaluate Relevant Market Segments b. Step 2: Determine Which Segmentation Variables to Use c. Step 3: Develop Market Segment Profiles d. Step 5: Select Specific Target Markets e. Step 1: Identify the Appropriate Targeting Strategy Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 58. The forecasting techniques that assume past sales patterns will continue into the future are all variations of a. regression analysis. b. random factor analysis. c. seasonal analysis. d. time series analysis. e. past sales forecasting surveys. 59. A targeting strategy in which an organization targets a single market segment using one marketing mix is called a(n) ____ strategy. a. selective b. focused c. differentiated d. concentrated e. undifferentiated 60. The problem with using an undifferentiated strategy to market a “universal car” is that a. car buyers have homogeneous needs. b. car buyers have heterogeneous needs. c. the technology to produce a universal car does not yet exist. d. car buyers cannot be segmented. e. other car makers are already using an undifferentiated strategy. 61. Population density and city size are ____ variables used for market segmentation. a. geographic b. demographic c. psychographic d. environmental e. geodemographic 62. If White Mountain Group saw all sugar customers as pretty much alike and thus offered only one marketing mix, it would be using the ____ strategy. a. directed b. undifferentiated c. segmented d. differentiated e. product-use 63. Which of the following variables would most likely be used to segment a business market? a. An attitude of the company's CEO b. The geographic location of the company c. The lifestyle of the company's buying agent d. Net income generated by the company e. Common opinions of the company's employees Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 64. Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called ____ variables. a. marketing b. classification c. segmentation d. stratification e. division 65. Publix is attempting to forecast sales for a new ice cream cake. To come up with an accurate forecast, Publix places the product in Atlanta supermarkets for a period of four months. In this instance, Publix is using which forecasting method? a. Time series analysis b. Market test c. Executive judgment d. Regression analysis e. Survey 66. Which of the following is NOT one of the major categories of consumer market segmentation variables? a. Demographic characteristics b. Geographic variables c. Psychographic dimensions d. Situational variables e. Behavioristic characteristics 67. The sales forecast differs from the company sales potential in that it focuses on a. the maximum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. b. the minimum percentage share of a market that an individual firm within an industry can expect to capture for a specific product. c. what actual sales will be at a certain level of company marketing effort. d. what executives believe sales will be at a certain level of company marketing effort. e. what competitors’ sales will be at a certain level of company marketing effort. 68. Age, rate of product use, location, and gender are all examples of common a. demographic variables. b. geographic characteristics. c. targeting strategies. d. psychographic variables. e. segmentation variables.

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Chap 06_20e 69. If Woody's Inc., a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy. a. undifferentiated; undifferentiated b. undifferentiated; differentiated c. differentiated; multisegmented d. concentrated; differentiated e. concentrated; concentrated 70. A disadvantage of the concentrated targeting strategy is that a. the firm's financial condition is tied to a single and specialized marketing mix. b. large sales volumes cannot be generated. c. production costs may be higher than with other strategies. d. marketing personnel may become dissatisfied with the limited opportunities provided by this approach. e. marketing costs are often higher than for other strategies. 71. Shondra's team is analyzing target markets for the company's new product idea. Her group is currently considering the different factors it should adopt to divide the market. A major part of this decision involves the customers' needs for, uses of, or behavior toward the product. At which stage of the target market selection process are Shondra and her team currently? a. Step 1: Identify the appropriate targeting strategy b. Step 2: Determine which segmentation variables to use c. Step 3: Develop market segment profiles d. Step 4: Evaluate relevant market segments e. Step 5: Select specific target markets 72. Bentley targets a very exclusive high-income market. Toyota, on the other hand, targets economy markets (Yaris), the environmentally-conscious market (Prius), and the higher-income market (Lexus). Bentley has adopted a ___________ targeting strategy. Toyota has adopted a ______________ targeting strategy. a. differentiated; differentiated b. undifferentiated; differentiated c. undifferentiated; concentrated d. concentrated; undifferentiated e. concentrated; differentiated 73. Which of these statements is NOT true about business markets? a. The purchase may be made to resell the item. b. The purchase is always made by more than one individual. c. The purchase may be made to use in general daily operations. d. The purchase may be made to use in production of another product. e. They can also be referred to as organizational markets.

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Chap 06_20e 74. Benjamin Moore Company provides paint and supplies to businesses and individuals through its network of company-owned retail outlets. Benjamin Moore employs outside sales representatives who make personal calls with prospects and customers in order to gain insight about their needs and persuade them to utilize Benjamin Moore for their painting projects. Typically, a Benjamin Moore sales representative will focus his or her efforts on specific customers such as hospital facility managers, apartment complex managers, painting contractors, or education institution facility managers. Benjamin Moore is utilizing the ______ variable for segmenting business markets. a. customer size b. type of organization c. geographic location d. product use e. number of employees 75. Which of the following products is most likely to be marketed using an undifferentiated approach? a. Bicycle b. Computer c. Notebook d. Table salt e. Oscillating fan 76. Any group of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to buy such products is a(n) a. business market. b. market. c. undifferentiated market. d. segmented market. e. market variable. 77. 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. 78. The psychographic variable that includes numerous characteristics related to people's activities, interests, and opinion is a. motive. b. social class. c. personality. d. stage of family life cycle. e. lifestyle. Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 79. Several conditions must exist for market segmentation to be successful. These conditions include all of the following except a. the total market should be divided so that segments can be compared on sales potential, costs, and profits. b. customers' needs for the product must be homogeneous. c. the company must be able to reach the chosen segment with a particular marketing mix. d. segments must be identifiable and divisible. e. at least one segment must have enough profit potential to justify developing and maintaining a special marketing mix for that segment. 80. The maximum percentage of market potential that an individual firm can expect to obtain for a specific product is the a. sales forecast. b. market potential. c. company sales potential. d. company sales objective. e. market share goal. 81. Which of the following is the biggest drawback to using psychographic variables? a. They are very costly to collect. 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. 82. The process of dividing a total market into market groups because people within each group have relatively similar product needs is called a. segmentation. b. diversification. c. target marketing. d. concentration. e. customization. 83. 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 market. b. developing market segment profiles. c. determining which segmentation variables to use. d. selecting specific target markets. e. evaluating relevant market segments.

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Chap 06_20e 84. In order for the marketer to achieve effective market segmentation, which of the following conditions must exist? a. The segments must be small enough to manage effectively. b. It must be possible to do a regression analysis on potential segments. c. Consumers’ needs for the product must be homogeneous. d. The firm must be able to sell effectively to the chosen segment with a specific sales price. e. The segment must have enough profit potential to justify the development of a separate marketing mix for the segment. 85. With its Venus razor, Gillette was the first marketer to offer a five-blade razor specifically designed for women. This is an example of market segmentation using ____ variables. a. demographic b. psychographic c. geographic d. behavioristic e. product-us 86. Graff's markets its exclusive jewelry and gifts to high-income individuals interested in high-quality products and a well-known brand name. It uses the same marketing mix to reach this market. Graff's uses a(n) ____ strategy. a. undifferentiated b. differentiated targeting c. exclusive targeting d. heterogeneous e. concentrated targeting 87. The marketing manager for Schick razors is attempting to determine a sales estimate for the line of products that allows men to maintain their facial hair using a traditional razor or an electric razor. The marketing manager estimates that Schick has a strong level of loyalty and brand name appeal and will garner 20% of the overall market. This amount is known as the _______. In addition, the marketing manager believes the total sales for the category will be $30 million annually for razors and razor blades for men. This is known as the ______________. a. company sales potential; market potential b. market share; category sale c. industry share; company forecast d. demand; supply e. company sales forecast; market potential

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Chap 06_20e 88. Generally speaking, individuals who are unemployed would NOT be considered a target market for lawn care services because a. they would not desire such products. b. they would not be willing to purchase such products. c. they would not have the ability to purchase such products. d. such markets are narrowly defined geographically. e. they would not be authorized to purchase such products. 89. Kettle Brand is currently conducting market segmentation studies. For several segments, it has completed competitive assessments and cost estimates. The next major step it 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. 90. Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product? a. Executive judgment b. Customer surveys c. Time series analysis d. Market tests e. Regression methods 91. Coors may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on a. behavioristic variables. b. benefits. c. lifestyles. d. psychographic variables. e. demographic variables. 92. Alex works for a manufacturer of sports equipment and is currently developing a company sales forecast for golf clubs. While reviewing data, he discovered a pattern in sales volume over the past ten years that peaked during two months of each year. Alex likely used which sales forecasting technique? a. The Delphi technique b. Executive judgment c. Time series analysis d. Market tests e. Regression analysis

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Chap 06_20e 93. When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n) a. expert forecasting survey. b. Delphi technique. c. random factor analysis. d. external judgment survey. e. market test. 94. 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. 95. When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy. a. concentrated targeting b. differentiated c. heterogeneous market d. undifferentiated e. single mix 96. Phillips 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. 97. The purpose of market segmentation is to a. differentiate products. b. divide a total market to enable a marketer to develop a more precise marketing mix. c. reduce the overall cost of marketing activities. d. identify a single marketing mix that will be satisfactory for the general market. e. meet the needs of homogeneous markets.

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Chap 06_20e 98. If Progresso were to offer single-serving packages of soup, it would be using segmentation based on a. income. b. age. c. preferences. d. geographic considerations. e. family life cycle. 99. Micromarketing is a. focusing 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. 100. Malik has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. Malik looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, Malik looks at the correlation between the sales trend data and the various combinations of demographic data. Malik is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation. a. time series analysis; regression analysis b. executive judgment; regression analysis c. market tests; regression analysis d. regression analysis; time series analysis e. market tests; time series analysis 101. Comcast uses a segmentation strategy for its cable TV packages based on market characteristics such as age, gender, or income. Which of the following category of segmentation variables is Comcast using? a. Demographic b. Geographic c. Psychographic d. Product-related e. Behavioristic

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Chap 06_20e 102. What is the main problem with using a market test as a forecasting tool? a. Difficult to interpret b. Expensive c. Inaccurate d. Unacceptable to consumers e. Overused 103. Most markets for products are made up of individuals or groups with diverse needs for products and are called ____ markets. a. undifferentiated b. concentrated c. homogeneous d. differentiated e. heterogeneous 104. When markets are comprised of people with differing product needs, the marketing manager should use a(n) ____ strategy. a. concentrated or differentiated targeting b. market-intensive c. integrated d. product-oriented e. undifferentiated 105. A business advantage of the concentrated targeting strategy for any company is that it a. requires less market research and information. b. requires less intensive analysis of customers' characteristics and needs. c. allows a firm to utilize all of its production capacity. d. maintains the firm's flexibility in moving into other market segments. e. allows a firm to develop a special marketing mix for a single market segment. 106. 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

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Chap 06_20e 107. Bose is a leading audio brand founded in 1964 by Amar Bose. Bose has become a favorite brand among consumers who enjoy listening to music. It is also somewhat of a status brand. The company markets a variety of products including headphones, earphones, speakers, and accessories. The product managers for the Bose product groups are involved in the sales forecast processes for their products, which is important to ensuring strong support for retailers and customers as well as to achieve sales objectives. The product managers hire experts who create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts. The procedure may be repeated several times until the experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast. What type of sales forecasting method do the product managers of Bose use? a. Expert forecasting survey b. Trend analysis c. Delphi technique d. Executive judgment e. Customer survey 108. Which of the following requires hiring professionals to create initial forecasts, submit them to the company for averaging, and then use those results to make individual refined forecasts? a. Expert forecasting survey b. Customer forecasting survey c. Sales force forecasting survey d. Delphi technique e. Professional judgment 109. Which of the following forecasting methods is least dependent on historical sales data? a. Regression analysis b. Trend analysis c. Time series analysis d. Cycle analysis e. A market test 110. A marketer that targets customers based on marital status and the presence and age of children is using a. behavioristic segmentation. b. lifestyle variables. c. psychographic variables. d. family life cycle. e. phase of life segmentation.

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Chap 06_20e 111. If a large proportion of customers in a total market have similar product needs and the company has the resources to develop a marketing mix to satisfy them, which targeting strategy would be effective? a. Segmented strategy b. Concentrated strategy c. Undifferentiated strategy d. Differentiated strategy e. Positioning strategy 112. You are shopping for a laptop or tablet to use for taking notes, research, and studying. In this case, you belong to a(n) a. concentrated market. b. business market. c. B2B market. d. industrial market. e. consumer market. 113. The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purchase response is a. a market test. b. regression analysis. c. trend analysis. d. a survey. e. the Delphi technique. 114. Gwyn loves to look at real estate listings for mansions in her city and often fantasizes about buying and living in one. As a teacher, however, Gwyn is not part of the market for expensive real estate because she a. lacks the willingness to purchase such products. b. lacks the authority to purchase such products. c. lacks the ability to purchase such products. d. is a business. e. is not part of the right demographic set. 115. Variables such as geographic location, type of organization, customer size, and type of product usage are used to segment ____ markets. a. consumer b. business c. government d. international e. institutional

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Chap 06_20e 116. Jim is developing a market forecast. After reviewing years of sales, he noticed there seems to be a clear association between past sales and households with children. The more families with children locate to the area, the more sales seem to increase. Jim believes he can use this relationship and the information he has on households in the area to predict future sales. This is an example of what type of forecasting method? a. Delphi technique b. Executive judgment c. Time series analysis d. Regression analysis e. Market test 117. To find a target market, a firm can use one of these targeting strategies. a. Total market strategy and the undifferentiated strategy b. Product differentiation strategy and the customer differentiation strategy c. Demographic strategy and the psychographic strategy d. Socioeconomic strategy and the psychological strategy e. Undifferentiated strategy, the concentrated strategy, and the differentiated strategy 118. The amount of product a company expects to sell during a specific period at a specified level of marketing activity is called the a. company sales potential. b. revenue estimate. c. company sales prediction. d. market potential. e. sales forecast. 119. Which of the following is NOT a characteristic of a consumer market? a. It consists of purchasers who intend to consume or benefit from the purchased products. b. They do not buy products for the main purpose of making a profit. c. They are sometimes referred to as B2C markets. d. Their purchasing decisions are always made by only one individual. e. They may buy the product, but not use it themselves. 120. If your firm uses a(n) __________ targeting strategy, you can expect to need __________ production processes to support the strategy. a. concentrated; more b. differentiated; more c. undifferentiated; similar d. differentiated; less e. undifferentiated; more

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Chap 06_20e 121. Segmentation variables for consumer markets 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. 122. When a business has a relatively small number of customers, a preferred method of forecasting is a. regression analysis. b. trend analysis. c. the Delphi technique. d. a market test. e. a customer forecasting survey. 123. Positive Trends Co 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. behavioristic. e. personality characteristics. 124. Scenario 6.2 Use the following to answer the questions. GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 6.2. GE Transportation is most likely using a(n) ______ targeting strategy, segmenting by ________ variables. a. undifferentiated; benefit expectations b. differentiated; end use c. differentiated; volume usage d. concentrated; volume usage e. concentrated; geographic location

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Chap 06_20e 125. When the needs of individual consumers in a target market for a specific product are similar, and the organization can satisfy most customers with a single marketing mix, the best approach to use may be the ____ strategy. a. undifferentiated b. differentiated c. segmented d. concentrated e. heterogeneous 126. Which of the following statements about the undifferentiated targeting strategy is false? a. The undifferentiated targeting strategy should be used when the needs of individual customers are similar. b. The undifferentiated targeting strategy uses one promotional program aimed at everyone in the target market. c. The undifferentiated targeting strategy is good for use with staple items, such as sugar and salt. d. The undifferentiated targeting strategy uses multiple distribution systems to best reach individuals in the target market. e. The opposite of the undifferentiated targeting strategy is the differentiated targeting strategy. 127. Monarch Mountain Coffee is a shop in a small Idaho town with a very loyal following. It has become well known in the town as well as in many of the towns surrounding it. Consumers seem to love the homey, local feel of Monarch Mountain. As a result, Monarch Mountain Coffee would like to open a new store in one of the towns close by. It has identified a region it thinks could be profitable. It has many loyal customers who live in that town. However, the town is also home to a Starbucks store. The town is growing, and Monarch Mountain has heard rumors that a Dunkin' Donuts may open. The owner is currently evaluating the relevant market segments in the area. He has the following questions he wants to answer: 1. Do we have enough of a loyal following as a local shop that we can attract customers away from Starbucks? 2. With the town growing as fast as it is, will other coffee shops decide to locate there? The owner is conducting a _____________ to evaluate relevant market segments. a. sales estimate b. SWOT analysis c. cost estimate d. competitive assessment e. market segmentation strategy 128. When a forecaster analyzes monthly sales figures for a three- to five-year period to ascertain whether sales fluctuate in a consistent, periodic manner, he or she is using a. regression analysis. b. executive judgment. c. seasonal analysis. d. cycle analysis. e. random factor analysis.

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Chap 06_20e 129. Systems such as Claritas and PRIZM 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. 130. 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. 131. Which of the following is an example of benefit segmentation? a. A cigarette manufacturer separates the market into heavy users who smoke at least one pack a day, moderate users who smoke less than a pack, and the occasional user who smokes cigarettes or cigars only for special occasions. b. Colgate-Palmolive markets three types of toothpaste: toothpaste with fluoride to strengthen tooth enamel, toothpaste with whitening properties, and toothpaste for sensitive gums. c. REI has one line of bikes geared toward active bicyclists who bike everywhere and a line geared toward those who bicycle simply for recreational purposes. d. Lego has certain lines of Legos geared toward children and other lines targeted toward adult collectors. e. Michelin develops a more durable type of tire for the Southwestern market due to the impact hotter climate conditions can have on tires. 132. The first step in the target market selection process is a. determining which segmentation variables to use. b. selecting specific target markets. c. identifying an appropriate targeting strategy. d. evaluating relevant market segments. e. developing market segment profiles. 133. Cube Company sells small refrigerators. It usually sells these refrigerators to hotels and offices. However, sometimes its customers choose to buy their refrigerators because they do not have a lot of room for a full-size refrigerator in their houses and apartments. Its primary market is a(n) _____________ market, but it also sells to a(n) _____________ market. a. consumer; business b. industrial; target c. business; industrial d. business; demographic e. business; consumer Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 134. 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. 135. 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. 136. The merchandise available at various Target stores—even ones separated by just a few miles—varies somewhat with products chosen to appeal to the customers drawn to each store. Targets in suburban areas are likely to a carry wider and deeper mix of toys, children’s apparel, and groceries, while those near colleges are more likely to focus on a small selection of adult clothing, apartment essentials, and beauty products. Target is practicing a. behavioristic segmenting. b. psychographic segmenting. c. profiling. d. macromarketing. e. micromarketing. 137. Rockabye Baby is a boutique that sells luxury baby items. It is located in Los Angeles. The owner has been highly successful over the years and has decided to open another store in San Diego. However, sales at this store have been low. The owner asked a marketing consultant for advice about what went wrong. The consultant says the location is not ideal for the market. The owner located his store in a high-income area, but most of the people in the area are singles or retired couples. Instead, the owner should have used ____________ to identify an area of the city with higher-income neighborhoods characterized by couples who want only the best for their newborn babies. a. demographic segmentation b. behavioristic segmentation c. benefit segmentation d. geodemographic segmentation e. family life cycle

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Chap 06_20e 138. Scenario 6.1 Use the following to answer the questions. Lil Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 6.1. Which of the following best describes Lil Angels' current approach to the market? a. It is segmenting the market according to demographic variables. b. It is segmenting the market according to product-related variables. c. It has chosen a segment that is not identifiable and divisible. d. Its market is impossible to reach because of legal constraints. e. It is not segmenting the market but is attempting to reach everyone with the product. 139. Chrysler is producing a new seven-passenger SUV with all-wheel drive. Which of the following would be the best variables for segmenting the market for this new model? a. Gender and age b. Geographic location and family life cycle c. Income and geographic location d. Family life cycle and gender e. Geographic location and gender 140. Which of the following is an example of a behavioristic segmentation variable? a. Family size b. Climate c. Age d. Usage rate e. Personality characteristics 141. The primary advantage of a concentrated targeting strategy is a. it meets the needs of a wide range of consumers. b. it allows a firm to specialize to meet specific customer needs. c. it is more flexible than any other approach. d. it is the least risky targeting approach. e. its customers are the most willing to repurchase the same brands.

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Chap 06_20e 142. Market segment profiles are used to describe _____________ members of a market segment, and to explain ______________members in separate market segments. a. differences between; similarities among b. differences between; differences between c. similarities among; similarities among d. preferences among; preferences among e. similarities among; differences between 143. Which of the following products is most likely to have its market segment based on age? a. Nike shoes b. Lipton Iced Tea c. Bic pens d. Legos e. Carpet 144. Although it may seem logical to target higher-income consumers, many marketers choose to target lowerincome segments because a. higher-income consumers are harder to reach. b. higher-income consumers require more company resources. c. higher-income consumers represent a much larger population globally. d. lower-income consumers require fewer company resources. e. lower-income consumers represent a much larger population globally. 145. Peet’s Coffee will spend $500,000 marketing its newest latte drink. It expects to sell 1 million of these lattes over the next year. These 1 million lattes are a _____________ for Peet’s Coffee. a. sales forecast b. regression analysis c. breakdown approach d. cycle analysis e. buildup approach 146. 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.

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Chap 06_20e 147. Howard Cooper of Owens Corning Fiberglass talks to David Weekley, a homebuilder, to find out how much fiberglass insulation he intends to use in building homes during the next year. Howard 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 148. Through marketing newsprint to newspaper publishers and glass manufacturers that use it in packing, International Paper segments its market based on a. customer size. b. psychographics. c. demographics. d. product use. e. geographic location. 149. 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 150. There are generally __________ steps in the target market selection process. The second step is ______________. a. five; determine which segmentation variables to use b. five; select specific target markets c. five; develop market segment profiles d. four; identify the appropriate targeting strategy e. four; determine which segmentation variables to use 151. Procter & Gamble markets Cheer detergent to young singles and couples and Dreft detergent to new parents. Procter & Gamble is using a(n) ____ targeting strategy for laundry detergents. a. multiuse b. differentiated c. stratified d. undifferentiated e. concentrated

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Chap 06_20e 152. Nucor provides steel for a variety of uses to its various customers. Customers have different needs for the steel, and thus Nucor 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. 153. ____________ is a useful sales forecasting method as long as a precise relationship between past sales figures and one or more variables can be established. Without these relationships, this method is useless in forecasting future sales. a. Trend analysis b. Random factor analysis c. Delphi technique d. Cycle analysis e. Regression analysis 154. The undifferentiated targeting strategy for finding a target market will likely NOT be successful if a. product positioning is needed. b. the firm defines the total market as its target market. c. people within the market have heterogeneous needs. d. people within the market have homogeneous needs. e. the firm is capable of developing a single marketing mix that satisfies all people's needs. 155. The marketer uses segmentation variables to divide a market into segments. All of the following statements are true about segmentation variables except: a. The variables should be related to the customer’s needs relative to the product being marketed. b. The variables must be measurable. c. The variables should be based primarily on demographic characteristics. d. The variables should be related to the customer’s behavior relative to the product being marketed. e. The variables should be related to the customer’s uses of the product being marketed.

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Chap 06_20e 156. Marketing managers have several choices in selecting a targeting strategy. Kristina Olivera is a marketing manager with Garrison Brothers Distillery, a craft bourbon distiller in Texas, and knows that there are many different types of bourbon drinkers. However, she concentrates her marketing on the enthusiast or high-involved bourbon drinker who often enjoys a bourbon beverage before or after dinner, reads magazines to keep up with the craft bourbon industry, and is a member of their e-mail list and subscriber to the company’s blog. Kristina knows that this segment of bourbon drinkers will consume more bourbon, be more likely to engage in positive word-of-mouth about the brand, and will also be more likely to purchase accessories such as glassware or Tshirts. Kristina is most likely utilizing the _____ targeting strategy, employing just one marketing mix and focusing on one target market segment. a. differentiated b. undifferentiated c. homogeneous d. concentrated e. focused target 157. The sales prediction technique based on the correlation between sales and other factors such as population density, per capita income, or family size is a. executive judgment. b. time series analysis. c. regression analysis. d. a market test. e. an expert survey. 158. Which of the following statements about market segment profiles is true? a. They can be used to calculate a lifetime value for each customer in a segment. b. They are used to describe differences among people in different market segments. c. They can only deal with demographic characteristics. d. They provide marketers with a cost estimate for serving potential customer groups. e. They cannot be used to describe similarities among potential customers. 159. Eighteen-year-old students do not form a market for alcoholic beverages because they a. lack sufficient buying power to form a market. b. lack the authority to purchase this type of product. c. do not want to purchase this type of product. d. do not have sufficient experience with this type of product. e. lack the money to purchase this type of product. 160. A forecasting method that predicts sales based on relationships between past sales and other variables is called a. regression analysis. b. customer forecasting surveys. c. the Delphi technique. d. random factor analysis. e. time series analysis. Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 161. 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. 162. Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs are classified as a. market segments. b. heterogeneous markets. c. concentrated markets. d. demographic segments. e. strategic segments. 163. Animal Crackers is a home-based business that sells high-quality children's clothing at premium prices using inhome parties. These in-home parties typically cater to families with small children and middle- to upper-middleclass income. Animal Crackers is using ____ variables to segment its market. a. demographic b. psychographic c. sociographic d. behavioristic e. geographic 164. Scenario 6.1 Use the following to answer the questions. Lil Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services. Refer to Scenario 6.1. Lil Angels Kids Spa is currently using a(n)____ targeting strategy. a. undifferentiated b. exclusive c. concentrated d. differentiated e. selective

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Chap 06_20e 165. In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of? a. B2C market b. Business market c. Consumer market d. Institutional market e. Reseller market 166. ____ 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 167. 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. 168. You have just been promoted to vice president of marketing for your firm. Unlike your predecessor, you believe the firm can increase its sales in a market by focusing on more than one segment of the market. You recognize that doing so means your firm will incur higher production costs. Based on this information, which of the following targeting strategies are you advocating? a. A concentrated targeting strategy b. An undifferentiated targeting strategy c. A broad-based targeting strategy d. A differentiated targeting strategy e. A heterogeneous targeting strategy 169. Which of the following is NOT a factor cited in the text that affects the strategy for selecting a target market? a. Target market characteristics b. Product attributes c. Organizational resources d. Organizational objectives e. Organizational structure Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 170. Scenario 6.2 Use the following to answer the questions. GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the a. company sales potential. b. breakdown approach. c. market potential. d. buildup approach. e. company sales forecast. 171. 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. 172. If Ben & Jerry’s calculates that it could sell up to 25% 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. 173. US Foods, a food services and facilities management company, distributes food to restaurants, health-care facilities, hotels, and schools, among other businesses. What type of targeting strategy would it most likely adopt? a. Differentiated b. Concentrated c. Multifaceted d. Undifferentiated e. Cluster

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Chap 06_20e 174. 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. 175. Volkswagen markets its Atlas SUV to large families, its CC to those wanting a sports coupe, and its Jetta to young singles. What targeting approach is Volkswagen using? a. Concentrated b. Strategic c. Differentiated d. Undifferentiated e. Multisegmented 176. Marketers use a variety of characteristics to segment markets that they are interested in pursuing. When segmenting consumer markets, demographic variables are normally used. All of the following are demographic characteristics used by marketers to segment markets except a. age. b. social class. c. family size. d. usage rate. e. marital status. 177. Which of the following is NOT a requirement or characteristic of a market? a. The ability to purchase a product b. A large number of people or organizations c. The authority to buy a product d. The willingness to use buying power e. The need for a specific product in a specific product category 178. Amos works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Amos was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Amos’s group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this? a. Regression analysis b. Random factor analysis c. Delphi technique d. Executive judgment e. Time series analysis Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 179. Scenario 6.2 Use the following to answer the questions. GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. Refer to Scenario 6.2. Suppose that GE Transportation decided to produce only locomotive engines for rail lines in the United States. The segmentation variable then would be a. geographic location. b. type of organization. c. market density. d. product use. e. customer size. 180. The manager at a local recreational vehicle store, Recreational Outfitters, 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 181. Mei is on the marketing team for a Gulf Coast drywall company. Her team is working to determine whether Hurricane Harvey had an effect on the firm’s erratic sales last year. What method would you recommend Mei’s team use to understand the situation? a. Regression analysis b. Cycle analysis c. Delphi technique d. Seasonal analysis e. Random factor analysis 182. Intuition and expediency are primary characteristics of which of the following sales forecasting methods? a. Surveys b. Executive judgment c. Cycle analysis d. Market tests e. Industry indicators Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 183. Method is a company producing products that limit the amount of negative impact on the environment. Its product line includes dishwashing liquid, cleaners, hand soap, and laundry detergent, to name a few. Method is exploring offering a line of environmentally friendly clothing, mostly T-shirts, shorts, and long pants for both men and women. Its research indicates that they should use psychographic segmentation in their marketing strategy. Which group of segmentation variables will Method likely be using? a. Geographic location b. Age, sex, and socioeconomic characteristics c. Social class variables d. Personality characteristics, motives, and lifestyles e. Family life cycle, social class, and religion 184. Sheldon is a marketing consultant recently retained by a small but fast-growing chain of boutique clothing stores. Sheldon is recommending the retailer shift to a differentiated strategy based on demographic variables because these are a. less controversial. b. commonly used. c. difficult to measure. d. visibly apparent. e. often closely linked to customers’ needs. 185. Common problems in failing companies are improper planning and unrealistic a. sales forecasts. b. company sales potential. c. segmentation. d. Delphi techniques. e. regression analyses. 186. Which of the following is the division of a market according to end results that consumers want from the product? a. Geodemographic segmentation b. Market density c. Benefit segmentation d. Concentrated segmentation e. Differentiated segmentation

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Chap 06_20e 187. Taco Bell has been very inventive in partnering with companies such as Frito-Lay to create new menu items. Recently Taco Bell developed the Nacho Cheese Doritos Locos Tacos, a Taco Supreme® made with premium seasoned beef, crisp lettuce, diced juicy red ripe tomatoes, real cheddar cheese, and topped with cool reducedfat sour cream, in a shell made from Nacho Cheese Doritos® Chips. Prior to the partnership and roll-out of the product throughout the Taco Bell system, a ________was conducted where several “test” stores carried the products for a limited time and Taco Bell and Frito-Lay could measure the actual sales to gauge the strength of the brand and opportunity for success. a. market test b. market analysis c. sales forecast d. company sales prediction e. regression analysis. 188. The forecasting method that utilizes a firm's historical sales data to find patterns in the firm's sales volume over time is a. the regression method. b. customer forecasting. c. a market test. d. sales force forecasting. e. time series analysis. 189. Jennifer’s Creations is a small New York City bakery that markets gluten-free cookies, muffins, breads, and more to people who have celiac disease. The firm is also launching a mail-order business to reach gluten-free customers outside of New York City. Jennifer’s Creations is using a(n) a. differentiated strategy. b. mass-market strategy. c. undifferentiated strategy. d. end-use strategy. e. concentrated strategy. 190. Why would a company use the undifferentiated strategy? a. The needs of individual consumers are dissimilar, and distinctive marketing mixes are required to satisfy them. b. The undifferentiated strategy is the one strategy that provides maximum satisfaction to the whole market. c. The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix. d. The undifferentiated strategy is expensive to implement but tends to produce the most sales. e. The market is made up of individuals or organizations with diverse need for products in a specific product class.

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Chap 06_20e 191. A furniture maker with excess production capacity may find a differentiated strategy advantageous because the sale of products to additional segments can a. cost more. b. require more materials and employees. c. help to absorb excess capacity. d. generate a large sales volume from the first segment. e. cost less. 192. 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. 193. Gotham Home Decor sells expensive custom-made draperies, bedding, and accessories through sales representatives who are also interior designers. It also has another, slightly less expensive line that it sells through stores such as Nordstrom’s and Saks Fifth Avenue. Gotham Home Decor is most likely using a(n) ____ targeting strategy. a. differentiated b. undifferentiated c. concentrated d. homogeneous e. heterogeneous 194. Describe the variables used to segment business markets, and provide at least one example of each.

195. What are the conditions under which an undifferentiated targeting strategy is effective? Why are these conditions essential?

196. Discuss the advantages and disadvantages of using executive judgment in forecasting company sales.

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Chap 06_20e 197. What are the major steps of the target market selection process?

198. Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?

199. Differentiate between sales forecasts and company sales potential. Why is it important for a marketer to be able to forecast sales?

200. Why do marketers rely heavily on demographic characteristics when segmenting consumer markets?

201. Why is it important for marketers to assess competitors before entering a market segment?

202. Describe the three areas marketers should examine when they evaluate relevant market segments.

203. Identify the four major categories of segmentation of variables for consumer products, and give three examples of each.

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Chap 06_20e 204. Compare and contrast the concentrated and differentiated targeting strategies of market segmentation.

205. Why is it important for marketers to estimate sales potential for the entire industry as well as for the individual company?

206. Why would a firm survey its sales force to forecast company sales? Why would a firm choose an expert forecasting survey instead?

207. How do business markets differ from consumer markets?

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Chap 06_20e Answer Key 1. False 2. True 3. False 4. True 5. True 6. True 7. True 8. False 9. False 10. False 11. False 12. False 13. False 14. False 15. True 16. True 17. False 18. True 19. False 20. False 21. True 22. True 23. False 24. True 25. False 26. True

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Chap 06_20e 27. False 28. True 29. True 30. True 31. True 32. True 33. False 34. True 35. False 36. False 37. True 38. True 39. False 40. True 41. False 42. True 43. True 44. True 45. False 46. False 47. False 48. True 49. False 50. True 51. True 52. True 53. False 54. True Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 55. False 56. True 57. c 58. d 59. d 60. b 61. a 62. b 63. b 64. c 65. b 66. d 67. c 68. e 69. d 70. a 71. b 72. e 73. b 74. b 75. d 76. b 77. e 78. e 79. b 80. c 81. b 82. a Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 83. c 84. e 85. a 86. e 87. a 88. c 89. d 90. d 91. a 92. c 93. a 94. d 95. d 96. b 97. b 98. e 99. a 100. a 101. a 102. b 103. e 104. a 105. e 106. c 107. c 108. d 109. e 110. d Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 111. c 112. e 113. a 114. c 115. b 116. d 117. e 118. e 119. d 120. b 121. e 122. e 123. d 124. b 125. a 126. d 127. d 128. d 129. b 130. c 131. b 132. c 133. e 134. e 135. d 136. a 137. d

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Chap 06_20e 138. a 139. b 140. d 141. b 142. e 143. d 144. e 145. a 146. e 147. e 148. d 149. c 150. a 151. b 152. c 153. e 154. c 155. c 156. d 157. c 158. b 159. b 160. a 161. c 162. a 163. a 164. c 165. b Copyright Cengage Learning. Powered by Cognero.

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Chap 06_20e 166. b 167. d 168. d 169. e 170. c 171. c 172. d 173. a 174. e 175. c 176. d 177. b 178. c 179. a 180. a 181. e 182. b 183. d 184. e 185. a 186. c 187. a 188. e 189. e 190. c 191. c 192. b 193. a Copyright Cengage Learning. Powered by Cognero.

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