BA317 Exam 2

If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through

Specialty stores

Which of the following statements regarding brand loyalty is not true?

The marketing costs of reaching loyal customers are typically very high.

The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence.

assurance

If a manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company be least likely to choose as a retailing partner?

convenience store

are combating competitive pressures by increasing the amount of exclusive and private-label merchandise they sell and expanding their online presence.

department stores

Which of the following is least likely to be a source of ideas for new products?

geodemographic segmentation

By owning its brands like Tide and Crest, P&G

has greater control over its marketing strategy.

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products.

income effect

Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to

increase the share of wallet from their best customers.

By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.

maturity

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.

maximizing profits

Cross-price elasticity is the

percentage change in quantity demanded of product A compared to the percentage change in price of product B.

For which of the following is demand likely to be least sensitive to price increases?

prescription drugs

Because services like cruises and car rentals are perishable, many marketers use

pricing strategies to match supply with demand

Bullseye

probable, possible, working

Personal selling is particularly important for retailers selling

products that are complicated or expensive.

Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it

provides a way for a firm to differentiate its product offerings from competitors.

traction

quantitative evidence of real customer demand; more sales, more users, more demand

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

reduce inventories needed to satisfy retailers' demand.

For David, the variable costs associated with staying open longer hours will include all of the following except

rent

In vendor-managed inventory systems,

retailers send sales information to the manufacturer.

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

reverse innovation

channels

targeting blogs, unconventional PR, publicity, SEM, offline advertising, content marketing, Social and Display ads, email marketing, business development, sales, affiliate programs, existing platforms, trade shows, speaking engagement, community building

Which of the following was not a new-to-the-world product or service when it was introduced?

the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs

Retailers can gain valuable knowledge about their customers from the transaction process and from

the insights of store personnel

lead time

the time between the decision to place an order and the receipt of the merchandise.

Shorter lead times allow retailers

to reduce the needed level of inventories.

As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product.

trialability

Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle

until a superior product comes along and replaces it

Generally, the larger and more sophisticated the channel member, the less likely that it will

use supply chain intermediaries

Dawn works for a

wholesaler