The most effective Marketers focus their efforts inside the company

28 Jun The most effective Marketers focus their efforts inside the company

Question
Indicate whether the statement is True or False. If False, explain why.

1. The most effective Marketers focus their efforts inside the company. Their most important task is to sell products that will meet their company’s profit goals.

a. True b. False

2. Selective Attention occurs when consumers only remember information that does not conflict with their existing feelings or beliefs.

True b. False
3. Freezies Ice Cream developed a new line of “drip-free” ice creams. They didn’t conduct market research, but are confident the product meets a real consumer need, and expect very strong demand. Freezies is clearly a customer-oriented company.

True b. False
4. In a primary market research study that utilizes focus groups or customer one-on-one interviews, “demand effect” often creates measurement error.

True b. False
5. Consumers often show routine response behavior when buying laptop computers.

True b. False
6. “Framing” shows that how a choice is presented to a decision maker can sometimes have as much impact on their decision as the factual content of the choice itself.

True b. False
7. The Prospect Theory Curve shows that as firms produce more units of a product, they become better at making it more efficiently, so cost per unit decreases.

a. True b. False

8. Fine Image Stores sell arts & crafts supplies to consumers who are highly creative, intelligent, and imaginative. They enjoy activities like painting and writing. Fine Image should use demographics as their primary means of market segmentation.

True b. False
9. The ‘central route to persuasion’ is most effective when potential customers are highly involved in the product category and willing to put forth the effort to cognitively process detailed information.

True b. False
10. Jen’s car is ten years old, and she’s afraid it will break down soon. She’s visited www.buyingacar.com and found some great tips on what to look for when buying a car. Jen is in the “evaluation of alternatives” stage of decision making.

True b. False
11. Fine Image Stores sell arts & crafts supplies to consumers who are highly creative, intelligent, and imaginative. They enjoy activities like painting and writing. Fine Image should use demographics as their primary means of market segmentation.

True b. False
12. Erik is buying a new dishwasher for his apartment. He’s decided not to consider any dishwashers that cost more than $400, because that’s too expensive for his budget. This is a good example compensatory processing.

True b. False

Zack bought a pair of Ray-Ban sunglasses. The next day he began to feel that he made the wrong choice – maybe the Oakleys were better. Zeke is experiencing:
a. self-actualization

b. cognitive dissonance

c. the accelerator effect

d. selective distortion

e. brand loyalty

f. selective retention

The “Marketing Concept” refers to the idea that:
almost any product can be sold to people, if the marketers selling it are clever enough to find a way
marketing is a very high-level, intellectual activity while the activities of sales people are not as highly valued by the firm
companies will thrive if they use their resources to produce goods and services that best meet the needs of their customers
companies should develop products based on BASES prediction models, not on competitor’s strategic moves
the marketing department should lead all functions in the firm
Arm & Hammer baking soda, used in cooking, also has the ability to remove odors from the air. Arm & Hammer promoted this fact and convinced many consumers to place open boxes of baking soda in their refrigerators to reduce odors from strong smelling foods. This is a good example of:
a. the peripheral route to persuasion

b. an integrated marketing mix

c. routine response behavior

d. the decoy effect

e. lateral marketing

In consumer purchases, extensive external information search is important when:
the cost of the item is low
the consumer’s purchase confidence is high
there are few substitute products
the consumer has frequently purchased the item in the past
there is a high downside risk of making an incorrect decision
In 2014, Ace T-shirts manufactured 10,000 more shirts than in 2013. Its cost to make each individual T-shirt decreased significantly. This effect is described by:
a. the BCG matrix

b. the decoy effect

c. the law of large numbers

d. the experience curve

e. quantitative research

You’re moving to a new city and need to buy a new house. Which of these would be the best example of “non-compensatory” processing in your decision making?
a. realizing that the exterior color of the house is not important, since it can be painted after the purchase

b. being willing to give up some yard space, in order to be in a more urban area closer to shopping and restaurants

c. investigating the background and credibility of your real estate agency

d. searching among different banks for a low mortgage rate, balanced with good customer service

e. setting a strict upper limit on the purchase price of the houses you consider, based on your income level

ForEyes, Inc. sells reading glasses to senior citizens over age 65. To find out more about this market, the company designed a market research study for which subjects were randomly chosen from a database of over 1 million users of twitter.com. What is the most likely source of error in this study?
a. frame error

b. measurement error

c. user error

d. random error

e. demand effect error

Why do some marketing professionals reject the Product Life Cycle model?
a. it makes product introductions seem too easy to accomplish

b. it does not lead to Pareto-optimal solutions for society as a whole

c. it implies that sales of all products inevitably have to mature and decline

d. it lacks enough detail to be truly useful to marketers

e. it lacks the ability to forecast financial returns in an accurate way

“Gaps” in a perceptual map can represent:
a. a potential market opportunity for a new product

b. a combination of features for which there is no significant market

c. a lack of complete data about all competitors in the market

d. all of the above

e. none of the above

In order to maximize a decision makers’ utility, the “silver lining” principle encourages marketers to communicate offerings in a way that perceptually:
a. segregates gains

b. separates small gains from larger losses

c. aggregates losses

d. integrates small losses with larger gains

e. underlines brand names with silver, to heighten value perceptions

Which of these is NOT part of the “5-step model” of consumer decision making?
a. post-purchase behavior

b. need awareness

c. information gathering

d. peripheral processing

e. evaluation of alternatives

A market researcher finds subjects to participate in a study solely on the basis of references from other past participants in the study. This is an example of:
a. snowball sampling

b. in-store sampling

c. random sampling

d. probability sampling

e. judgment sampling

When the moderator of a focus group “leads” the participants in a particular direction during a discussion, he or she is creating what type of error in the study?
demand effects
non-compensatory effects
random effects
frame error
sampling error

Arm & Hammer baking soda, used in cooking, also has the ability to remove odors from the air. Arm & Hammer promoted this fact and convinced many consumers to place open boxes of baking soda in their refrigerators to reduce odors from strong smelling foods. This is a good example of:
a. the peripheral route to persuasion

b. an integrated marketing mix

c. routine response behavior

d. the decoy effect

e. lateral marketing

In consumer purchases, extensive external information search is important when:
the cost of the item is low
the consumer’s purchase confidence is high
there are few substitute products
the consumer has frequently purchased the item in the past
there is a high downside risk of making an incorrect decision
In 2014, Ace T-shirts manufactured 10,000 more shirts than in 2013. Its cost to make each individual T-shirt decreased significantly. This effect is described by:
a. the BCG matrix

b. the decoy effect

c. the law of large numbers

d. the experience curve

e. quantitative research

You’re moving to a new city and need to buy a new house. Which of these would be the best example of “non-compensatory” processing in your decision making?
a. realizing that the exterior color of the house is not important, since it can be painted after the purchase

b. being willing to give up some yard space, in order to be in a more urban area closer to shopping and restaurants

c. investigating the background and credibility of your real estate agency

d. searching among different banks for a low mortgage rate, balanced with good customer service

e. setting a strict upper limit on the purchase price of the houses you consider, based on your income level

ForEyes, Inc. sells reading glasses to senior citizens over age 65. To find out more about this market, the company designed a market research study for which subjects were randomly chosen from a database of over 1 million users of twitter.com. What is the most likely source of error in this study?
a. frame error

b. measurement error

c. user error

d. random error

e. demand effect error

Why do some marketing professionals reject the Product Life Cycle model?
a. it makes product introductions seem too easy to accomplish

b. it does not lead to Pareto-optimal solutions for society as a whole

c. it implies that sales of all products inevitably have to mature and decline

d. it lacks enough detail to be truly useful to marketers

e. it lacks the ability to forecast financial returns in an accurate way

“Gaps” in a perceptual map can represent:
a. a potential market opportunity for a new product

b. a combination of features for which there is no significant market

c. a lack of complete data about all competitors in the market

d. all of the above

e. none of the above

In order to maximize a decision makers’ utility, the “silver lining” principle encourages marketers to communicate offerings in a way that perceptually:
a. segregates gains

b. separates small gains from larger losses

c. aggregates losses

d. integrates small losses with larger gains

e. underlines brand names with silver, to heighten value perceptions

Which of these is NOT part of the “5-step model” of consumer decision making?
a. post-purchase behavior

b. need awareness

c. information gathering

d. peripheral processing

e. evaluation of alternatives

A market researcher finds subjects to participate in a study solely on the basis of references from other past participants in the study. This is an example of:
a. snowball sampling

b. in-store sampling

c. random sampling

d. probability sampling

e. judgment sampling

When the moderator of a focus group “leads” the participants in a particular direction during a discussion, he or she is creating what type of error in the study?
demand effects
non-compensatory effects
random effects
frame error
sampling error