Q&A Hero

Q: Define derived demand and provide an example NOT included in the text.

Q: Services can be classified according to whether they are delivered by people or equipment, __________, or government agencies. A. national or global B. use independent contractors C. privately owned or publicly owned D. owned by individuals or corporations E. for profit or nonprofit organizations

Q: The movie The Hunger Games opened originally in a select number of theaters before opening nationwide. After its theater run, it was shown on pay-per-view channels and then on premium movie channels. The movie also was made widely available in video stores, via Netflix, and on DVD/Blue-ray. What type(s) of consumer product is this movie? Explain your answer.

Q: Services can be classified according to whether they are __________, for-profit or nonprofit organizations, or government agencies. A. national or global B. use independent contractors C. privately owned or publicly owned D. delivered by people or equipment E. owned by individuals or corporations

Q: Explain what an unsought product is and give some examples.

Q: Services can be classified by A. their method of delivery. B. their use of idle capacity time. C. the nature of their ownership. D. their location on perceptual maps. E. organizational reach.

Q: Explain the differences in promotion between convenience, shopping, specialty, and unsought products.

Q: A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain purchased which kind of business products? A. accessory equipment B. industrial services C. supply materials D. component parts E. installations

Q: What are the four types of consumer products? How do they differ?

Q: Among business products, legal counsel for patent information for a firm's R&D department would most likely be classified as which type of support product? A. ancillary services B. contractual services C. specialty services D. accessory services E. industrial services

Q: Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a consumer product, and a product that is difficult to categorize.

Q: When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n) __________. A. ancillary service B. industrial service C. specialty service D. accessory service E. contractual service

Q: Briefly define what is meant by a product. Explain the characteristics that would define a product, good, service, and an idea. Give an example of each.

Q: Among business products, which of the following would most likely be considered an industrial service? A. tractor B. phosphoric acid C. photocopier maintenance D. athletic training facility E. syringes

Q: The best segmentation approach is the one that A. makes it easiest to reach the segment. B. maximizes the opportunity for future profit and ROI. C. recognizes different needs of buyers among different segments. D. recognizes similarities of needs of potential buyers within a segment. E. is simplest and least costly in assigning potential buyers to segments.

Q: Which of the following is a criterion used in forming market segments? A. similarity of segments to competitors' segments B. differences between potential suppliers or distributors C. differences of needs of buyers within a segment D. market size of the segment E. simplicity and cost-effectiveness of assigning potential buyers to segments

Q: All of the following are criteria used for forming market segments EXCEPT: A. difference of needs of buyers among segments. B. potential for increased profit. C. cost of reaching the segment. D. potential of a marketing action to reach a segment. E. simplicity and cost-effectiveness of assigning potential buyers to segments.

Q: A marketing manager goes through several steps to put a market segmentation plan into effect. This includes being able to form market segments and then __________ without encountering excessive costs. A. eliminate potential non-buyers B. identify segmentation variables C. select the market segment(s) to target D. redirect their purchase behaviors E. ignore any and all similarities

Q: There are five steps involved in segmenting and targeting markets. What should a marketer do after he or she has grouped products to be sold into categories? A. create product groupings B. identify market needs C. take marketing actions to reach target markets D. develop a market-product grid and estimate size of markets E. form prospective buyers into market segments

Q: The fifth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. A. take marketing actions to reach target markets B. group potential buyers into segments C. select target markets D. group products to be sold into categories E. develop a market-product grid and estimate size of the overall market

Q: The fourth step in segmenting and targeting markets that link customer needs to marketing actions is to __________. A. group potential buyers into segments B. select target markets C. group products to be sold into categories D. develop a market-product grid and estimate size of the overall market E. take marketing actions to reach target markets

Q: The third step in segmenting and targeting markets that link customer needs to marketing actions is to __________. A. group potential buyers into segments B. group products to be sold into categories C. select target markets D. develop a market-product grid and estimate size of markets E. take marketing actions to reach target markets

Q: The second step in segmenting and targeting markets that link customer needs to marketing actions is to A. group potential buyers into segments. B. develop a market-product grid and estimate size of the overall market. C. select target markets. D. take marketing actions to reach target markets. E. group products to be sold into categories.

Q: The first step in segmenting and targeting markets that links customer needs to marketing actions is to A. group potential buyers into segments. B. group products to be sold into categories. C. develop a market-product grid and estimate size of the overall market. D. select target markets. E. take marketing actions to reach target markets.

Q: The purpose of the five key steps in segmenting and targeting markets is to A. identify competitors that provide similar products that satisfy a firm's customers' needs. B. provide guidance to reposition a firm's products. C. generate new products ideas for firms that are not growing in market share. D. link market needs of customers to the organization's marketing program. E. correlate directly to each of the five environmental forces.

Q: You can go to your nearest Hallmark card store and buy a birthday greeting card for a friend and pay $4.50. Or, you can buy a Hallmark card from its new $0.99 line of greeting cards, made with lesser-quality materials but just as sentimental, that are sold at Barnes and Noble bookstores. This is an example of A. mass customization. B. organizational synergy. C. one product and multiple market segments. D. price discrimination. E. a Tiffany/Walmart strategy.

Q: The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure on fine china sold at Nordstrom and the other is a cartoon-like Pooh on polyester bed sheets sold at Target. This is an example of A. mass customization. B. a Tiffany/Walmart strategy. C. one product and multiple market segments. D. price discrimination. E. psychographic market segmentation.

Q: Which of the following is an example of a Tiffany/Walmart strategy? A. College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S. B. A new movie used several different movie trailers; one showed the action scenes in order to attract one audience and the other showed romantic scenes to attract another audience. C. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. D. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. E. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Q: Today, marketers are increasingly emphasizing a Tiffany/Walmart strategy, which is to offer A. a low-priced product to a high-income or high net worth segment. B. a high-priced product to a low-income or low net worth segment. C. different variations of the same basic offering to high-end and low-end segments. D. a high-priced and a low-priced offering to a single market segment. E. different offerings to high-end and low-end segments.

Q: Cannibalization would mostly likely occur if A. Dell adds high-end speaker systems to its line. B. General Mills launches Caramel Crunch Cheerios. C. General Motors markets a motorcycle similar to the Can-Am Spyder Roadster 3-wheel bike. D. Pillsbury adds boxed sugar to its product mix. E. Procter & Gamble adds a new line of baby clothing to its Pamper's stable of products.

Q: Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies? A. "Will our new products steal customers or sales from our older ones?" B. "Will the products compete head-to-head with those of a competitor?" C. "Can this action successfully draw customers away from competitors?" D. "Are there enough similarities within the market segment to warrant such high costs?" E. "Will this action eliminate the need for individualized advertising and promotion?"

Q: When Ann Taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own LOFT outlets that feature moderately priced casual clothes, Ann Taylor was dealing with the marketing phenomenon known as __________. A. amortization B. guerrilla marketing C. shrinkage D. marketing Darwinism E. cannibalization

Q: When a new product or a new retail chain steals customers and sales from older existing ones of an organization, it is referred to as A. cannibalization. B. amortization. C. product appropriation. D. product pilfering. E. marketing Darwinism.

Q: All of the following are examples of increased customer value from organizational synergy EXCEPT: A. lower prices B. increased brand awareness C. more products D. improved distribution E. improved quality of existing products

Q: The ultimate criterion for an organization's marketing success is that __________ as a result of increased synergies. A. costs decrease B. market share increases C. product deficiencies decrease D. customers should be better off E. new products flourish

Q: The increased customer value achieved through performing organizational functions like marketing or manufacturing more efficiently is referred to as __________. A. aggregation B. organizational synergy C. segmentation D. amalgamation E. valuation

Q: Organizational synergy is the increased customer value achieved through A. performing organizational functions more efficiently. B. more discounts or larger rebates at the point of sale. C. involvement of the ultimate consumer in product design. D. an increase in the knowledge of competitors. E. shared ownership of the organization through publicly traded stock.

Q: Model E is a new type of car manufacturer that relies on the Internet ordering. "Think of Model E as the Dell of the auto industry. We design just a few products that consumers truly want, leveraging best-in-class components and micro-factory approaches for rapid design, launch, and direct delivery," said William Santana Li, president and CEO of Model E. Model E manufactures each car when a customer chooses from a limited number of options and orders. Model E relies on A. order customization. B. a one product one market segment strategy. C. build-to-order. D. specialty customization. E. mass customization.

Q: Manufacturing a product only when there is an order from a customer is referred to as A. order customization. B. a one product one market segment strategy. C. synergistic marketing. D. build-to-order. E. specialty customization.

Q: Name Maker is an online company that sells high-end gift wrapping that can have custom slogans or names printed on it, such as the name of a person celebrating a birthday or a couple who is getting married. This made-to-order gift-wrapping is priced from $24.95 to $32.95 per 12-foot roll. This is an example of A. family branding. B. mass customization. C. synergistic marketing. D. "Tiffany/Walmart" marketing. E. specialty customization.

Q: Chip-N-Dough Cookie Company will let you select cookies and put a photo of yourself on the tin. This is an example of A. mass customization. B. multiple marketing. C. target marketing. D. product clustering. E. repositioning.

Q: Nike employs a __________ strategy at its website, nikeid.com, which allows customers design a sneaker to their own personal specifications. A. product sampling B. product clustering C. mass customization D. usage segmentation E. psychographic segmentation

Q: Lands' End will custom fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example of A. family branding. B. mass customization. C. "Tiffany/Walmart" marketing. D. market melding. E. specialty customization.

Q: MyTwinn makes dolls that look like young girls. For $119, the firm will make a doll that looks just like a photograph. So, if you send in the money and a photo of your young niece, she could have a doll that is her twin! This is an example of A. family branding. B. production marketing. C. multiple products and multiple market segments. D. mass customization. E. specialty customization.

Q: ChoiceShirts is an online company that makes made-to-order T-shirts. Its online customers can order their shirts using any downloaded photo inserted into 600 templates or even design a shirt from scratch. This is an example of A. family branding. B. mass customization. C. multiple products and multiple market segments. D. one product and multiple market segments. E. specialty customization.

Q: Custom Foot operates six retail locations. At first glance, none looks different from a typical boot store. But here the only boots on hand are display models, there is no inventory for sale and customers go home empty-handed, awaiting their orders. Customers browse the store, choosing style, color, and leather type, with about 100 displays to provide style guidelines. Custom Foot guarantees your boots will be ready within three weeks. This is an example of A. mass customization. B. specialty customization. C. virtual merchandising. D. one product and multiple market segments. E. multiple products and multiple market segments.

Q: Tailoring products or services to the tastes of individual customers on a high-volume scale is referred to as A. family branding. B. mass customization. C. product differentiation. D. economies of scale marketing. E. build-to-order.

Q: Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and A. conforms to all FDA guidelines. B. adds to the manufacturer's sales revenues and profits. C. creates economy of scale. D. decreases the cost of the physical plant. E. stabilizes the sales revenues and profits.

Q: Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it adds to the manufacturer's sales revenues and profits, serves customers' needs better, and A. conforms to all FDA guidelines. B. creates economy of scale. C. doesn't reduce quality or increase price. D. decreases the cost of the physical plant. E. stabilizes the sales revenues and profits.

Q: Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and A. conforms to all FDA guidelines. B. uses the same promotion and packaging for all segments. C. decreases the cost of the physical plant. D. stabilizes competition. E. better serves customers' needs.

Q: Which of the following is an example of a multiple products and multiple market segments strategy? A. College Football magazine selects different covers for essentially the same magazine in order to appeal to different geographic markets in the U.S. B. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. C. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and litter boxes. D. Betty Crocker carries one line of cake mixes for people with conventional ovens and another line of cake mixes for people with microwave ovens. E. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Q: Which of the following is an example of a multiple products and multiple market segments strategy? A. College Football magazine selects different covers for essentially the same written content in order to appeal to different geographic markets in the U.S. B. A new movie used several different movie trailers. One set of previews showed the action scenes in order to attract one audience and the other set showed romantic scenes to attract another audience. C. Ford manufactures SUVs for those who wish to carry lots of people and pickup trucks for those who wish to carry lots of cargo. D. Arm and Hammer Baking Soda can be used for baking and to remove odors from refrigerators and cat litter boxes. E. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup remover for women.

Q: Which of the following is a disadvantage of employing a multiple products, multiple market segments strategy if NOT implemented well? A. higher sales but lower profits B. reduced quality and higher prices C. meeting customer needs but at the expense of higher prices D. lower prices but with higher production costs E. higher quality but lower prices

Q: Harry Potter books Photo In the United States, the Harry Potter series of books were often at the top of The New York Times fiction bestseller list. These books have been marketed by turns to preteen, teen, and adult readers around the world with creative marketing, including different book covers. Scholastic Press, the publisher of the Harry Potter books in the U.S., is using which of the following segmentation strategies? A. multiple products with one segment B. one product with one channel of distribution C. one product with multiple market segments D. one product with changes based on customer behavior E. multiple products with multiple segments

Q: The annual Sporting News Baseball Yearbook had exactly the same stories but with 17 different covers to appeal to baseball fans in 17 different regions of the U.S. What is the basis of its market segmentation strategy? A. psychographic segmentation B. retail outlet segmentation C. demographic segmentation D. behavioral segmentation E. geographic segmentation

Q: One marketing action that can be taken to sell a single product or service to multiple market segments is to A. develop and produce another version of the product. B. manufacture products that appeal to different markets. C. develop separate promotional campaigns. D. purchase another firm that has additional products that would appeal to multiple markets. E. issue stock to fund additional research and development for new products.

Q: When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy A. is a much more effective means of meeting consumers' individual needs. B. creates greater savings in production costs. C. is a more effective way of meeting organizational objectives. D. has significantly higher distribution costs. E. is more profitable since a firm can charge the new segments higher prices without changing the product.

Q: When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________. A. the extra cost of developing and producing additional versions of the product B. creating a customer service gap C. indirect distribution and logistics problems D. restructuring the firm's strategic planning E. amortization costs of product enhancements

Q: All of the following are market segmentation strategies EXCEPT: A. build-to-order. B. multiple products, multiple market segments. C. one product, multiple market segments. D. multiple products, one segment. E. mass customization.

Q: When expenses are greater than the potential increased sales from market segmentation, a firm should A. not consider market segmentation at this time. B. combine departments within the company to make the process more streamlined. C. reduce production costs or increase prices to facilitate the segmentation process. D. seek alternate channels of distribution, including Internet sales. E. discontinue manufacturing any products that are not in the mature stage of their product life cycle.

Q: Which of the following statements regarding when and how to segment markets is most accurate? A. Even if a firm finds only one potential market segment, it should take advantage of the method to appear cutting-edge to its competitors and customers. B. Market segmentation only works for large corporations; small businesses don't have the resources to engage in the process. C. Governments should not attempt market segmentation because the strategy is only applicable for consumer and organizational markets. D. If a business firm goes to the trouble and expense of segmenting its markets, it expects to increase its sales, profits, and return on investment. E. Market segmentation strategies work less than 10 percent of the time.

Q: The purpose of market segmentation is to respond more effectively to the wants of groups of potential buyers in order to A. maintain market share. B. increase sales and profits. C. assume social responsibility. D. use the firm's resources most efficiently. E. provide the best quality products on the market.

Q: Figure 8-2Consider Figure 8-2 above. My Pillow uses infomercials and product demonstrations at events such as state fairs to market its line of pillows that are guaranteed to be "the most comfortable pillow you'll ever own!" Based on the market research above, which market-product combination should My Pillow target?A. stomach sleeper-firm pillowB. back sleeper-medium pillowC. side sleeper-firm pillowD. stomach sleeper-soft pillowE. side sleeper-soft pillow

Q: An analysis of the pillow market using a market-product grid suggests that the most important segment to target is A. side sleepers. B. sleepers with sleep disorders, such as sleep apnea. C. sleepers with annual incomes of $50,000 and over. D. back sleepers. E. stomach sleepers.

Q: To create a market-product grid for bed pillows, the most effective way to segment the market would be using A. the age of the sleeper: less than 18 years of age, 18 to 44 years of age, or 45 years and older. B. the sleeper's annual income: less than $25,000, $25,000 to $49,999, or $50,000 and over. C. the sleeper's gender: male or female. D. the time of sleep: day or night. E. how the sleeper sleeps: side, back, or stomach.

Q: A market-product grid is a framework to relate A. total estimated expenses for each product sold to each market segment. B. total anticipated revenue for each product-market segment combination. C. total anticipated profit for each product sold to each market segment. D. the market segments of potential buyers to relative market share compared to the largest competitor. E. the market segments of potential buyers to products offered or potential marketing actions by an organization.

Q: A market-product grid refers to A. a visual representation of all products offered within a specific product class. B. a framework used to compare the relative market share of one firm's product offerings to those of its competitors. C. a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. D. a framework used to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. E. a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Q: A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization is referred to as a __________. A. payoff table B. cross-tabulation C. market-product grid D. growth-share matrix E. product differentiation table

Q: Zappos' original target market customers consisted of people who wanted all of the following EXCEPT: A. to receive quick delivery of their merchandise. B. to buy sustainable shoes, accessories, and clothing. C. to shop online in the convenience of their own homes. D. to allow for free returns of goods if dissatisfied. E. to have a wide selection of shoes.

Q: Figure 8-1 In Figure 8-1 above, C represents which stage of the market segmentation process? A. link needs to actions B. identify market needs C. establish a marketing protocol D. execute marketing program actions E. segment and select the target markets

Q: Figure 8-1 In Figure 8-1 above, B represents which stage of the market segmentation process? A. link needs to actions B. identify market needs C. establish a marketing protocol D. execute marketing program actions E. segment and select the target markets

Q: Figure 8-1 In Figure 8-1 above, Box A represents which stage of the market segmentation process? A. link needs to actions B. identify market needs C. establish a marketing protocol D. execute marketing program actions E. segment and select the target markets

Q: The process of segmenting a market and selecting specific segments as targets is the link between the various buyers' or market needs and A. industry standards. B. government regulations. C. top-level management. D. controllable environmental factors. E. the organization's marketing program.

Q: The process of segmenting a market and selecting specific segments as targets is the link between __________ and the organization's marketing program. A. self-regulatory industry standards B. government regulations C. top-level management D. buyers' or market needs E. controllable environmental factors

Q: Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today, you can buy Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. Each Alka-Seltzer product has a unique formulation to relieve a specific malady that makes them more specialized than competing products. The maker of Alka-Seltzer is using A. product variation. B. product differentiation. C. market sectioning. D. product segmentation. E. product base development.

Q: Recently Colgate-Palmolive introduced Colgate Enamel Health toothpaste, one that claims to replenish and polish tooth enamel, the hard outer layer of the tooth that provides a protective barrier to inner layers. This new formula helps to separate the Colgate product from its top competitors, such as Crest. What marketing strategy did Colgate-Palmolive use here? A. product differentiation B. product segmentation C. market expansion D. usage segmentation E. psychographic segmentation

Q: Apple's iPhone has a feature known as Apple Pay that lets you use your phone to pay for credit purchases, meaning you could leave your wallet at home. This feature sets the smartphone apart from its competitors and is part of Apple's strategy for A. product segmentation. B. market expansion. C. product differentiation. D. usage segmentation. E. psychographic segmentation.

Q: Product differentiation refers to A. a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs. B. the unique combination of product benefits received by targeted buyers. C. those characteristics of a product that make it superior to competitive substitutes. D. a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products. E. the legal requirement that requires a specified degree of distinction between products to ensure an organization's intellectual property rights.

Q: A marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products is referred to as __________. A. market penetration B. points of difference C. market differentiation D. product positioning E. product differentiation

Q: In marketing, each __________ consists of people who are relatively similar to each other in terms of their consumption behavior. A. demographic cluster B. organizational buyer group C. market segment D. ultimate consumer group E. qualified prospect group