BADM 3401
Which of the following is a business-to-business market transaction
A grocery store buying cereal from Kellogg's
Which of the following best describes brand equity
A measure of the brand's ability to capture consumer preference and loyalty
In which type of buying situation will a buyer usually go through all eight stages of the business buying process
A new task buying situation
Which of the following correctly defines a product
A product is anything offered to a market that might satisfy a need or want.
What is positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Which of the following statements regarding American sub cultural groups is correct
Asian Americans are the most affluent us demographic segment
What is the first thing marketers must do when using value-based pricing
Assess customer needs and value perceptions.
Which of the following statements is true regarding costs
Average cost tends to decrease with accumulated production experience.
___ is the first stage in the product adoption process
Awareness
Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent?
By-product pricing
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
Carefully consider the degree of competition and ease of entry into the segment.
When consumers engage in __ buying behavior they go through a learning process, so it is most important that marketers understand information gathering and evaluation behavior
Complex
Which of the following statements regarding concentrated marketing is correct
Concentrated marketing involves higher-than-normal risks
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law
Consumer Product Safety Commission (CPSC)
Which of the following statements is correct regarding consumer buying decisions
Consumers are often unaware of what influences their purchases.
Which of the following statements is correct regarding the influence of personal factors on buyer behavior
Consumers tend to buy brands whose personality matches their own.
Charles Revson who stated we sell hope is defining
Core customer value
One recent development in generating new product ideas is for a company to invite broad communities of people such as employees, customers, and even the public at large-into the innovation process this is known as
Crowdsourcing
Which of the following statements regarding managing brands is correct
Customers' engagement with brands and customers' brand experiences are the key elements in maintaining a brand's position
Which of the following statements is true regarding iniating price cuts
Cutting prices in an industry with excess capacity may lead to price wars
___ occurs when retailers set an artificially high "regular price" and then advertise a "sale price" which is actually close to their everyday price
Deceptive pricing
Which of the following statements about segmentation is true
Different segments might require different marketing strategies or mixes.
According to the text, one result of technology is that the new space for engaging business customer is
Digital and social media
Which of the following statements regarding dynamic pricing is correct
Dynamic pricing could cause consumer resentment and damage customer relationships.
Which of the following statements is true concerning new product pricing strategies
For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
During concept testing, who is the product concept actually tested on
Groups of target customers
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is know as
Harvesting the product
Which of the following statements regarding habitual buying behavior is correct
In these types of purchases marketers often use price and sales promotion as incentives for purchase
A University is buying new overhead projectors for its classrooms. The University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the University's buying center?
Influencer
Which of the following statements about new product development strategy is correct
Innovation can be very expensive and very risky.
People can be classified into adopter categories. Which two categories are the first to adopt a new product idea?
Innovators and early adopters
Which of the following statements regarding the institutional market is correct
Institutional markets have captive patrons.
What four special service characteristics marketers must consider when designing marketing programs
Intangibility, inseparability, variability, and perishability
Which of the following statements concerning new products is correct
Modified and improved products are considered new.
Which of the following is a personal factor that influences a customers buying behavior
Occupatiion
Which of the following statements regarding positioning is correct
Positions must adapt over time to meet changing consumer needs.
The number of items in a product line represents the ___ and the total number of product lines a company carries represents the ___
Product line length; product mix width
When dr.footbare developed and launched a revolutionary new walking shoe, he knew during the introductory stage of the product life cycle
Sales would be slow and profits nonexistent
Furniture, major appliances, clothing and hotel services are classified as
Shopping products
Madd advertising is considered
Social marketing
Which of the following statements is true regarding standardizing products for international markets
Standardization decreases product design, manufacturing, and marketing costs
In a b to b market, one strategy is to offer a complete solution to a buyer's problems this is called
Systems selling
Which of the following statements regarding standard test marketing is correct
Test marketing can be costly and delay commercialization of the product.
What are the two major components of a b to b marketers buying activity
The buying center and the buying decision process
Product planners think of products on three levels. Which of the following correctly identifies the three levels?
The core customer value, the actual product, and the augmented product
Which of the following statements regarding socially responsible product decisions is correct
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
How is price determined using cost-plus pricing?
The price is set by adding a standard mark-up to the cost of the product
What determines if a buyer is satisfied or dissatisfied with a purchase
The relationship between consumer expectations and perceived product performance
According to the text, the most successful new products satisfy three criteria. What is this criteria?
They solve a major customer problem, are differentiated, and offer a compelling customer value proposition
According to the simple model of buyer behavior, what is in a buyer's black box?
The buyer's characteristics and the buyer's decision process
What is the overall purpose of differentiation
To create superior customer value
What is the purpose of the Robinson-Patman act
To prevent unfair price discrimination
What are perceptual positioning maps used for
To show consumer perceptions of different brands on important product dimensions
Which of the following statements about service marketing is correct
Training current employees better and hiring new ones with more skills can increase service productivity.
Now, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing
Value-added pricing
Which of the following is a concern when using optional-product pricing
Which products to include in the base price and which to offer as options
Which of the following is a concern when using optional-product pricing?
Which products to include in the base price and which to offer as options
What is a product concept
a detailed version of the new product idea stated in meaningful consumer terms
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as
an indicator of quality
On a break-even chart, the break-even volume is located
at the intersection of total revenue and total costs
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
benefits sought
Which of the following is a cost-based pricing approach
break-even pricing
The __ consists of all the people who are involved in an organizational buying decision
buying center
One problem with business to business e-procurement is that it ___
can erode long-standing customer-supplier relationships
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
During the idea generation stage of the new product development process, it is important that __________.
companies create a large number of ideas
Which of the five characteristics identified in the text has an inverse relationship with an innovation's rate of adoption? As this characteristic increases, the rate of adoption is slower.
complexity
Which of the following statements regarding the buyer decision process is correct
consumers may, in some situations, skip steps in the buyer decision process
Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as __________ products.
convenience
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors.
cultural
What are the three cultural factors that influence consumer buyer behavior
culture, subculture, social class
Which of the following correctly identifies the three major pricing strategies used by marketers
customer value-based pricing, cost-based pricing, and competition-based pricing
One form of __________ is when movie theaters charge one price for adults and a different price for senior citizens.
customer-segment pricing
Unlike marketers in the consumer market, business-to-business marketers __________.
deal with far fewer but far larger buyers
Business to business marketers will sometimes promote their goods directly to consumers this is because business demand is
derived
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________.
differentiable
Which adopter category consists of opinion leaders who adopt new ideas early but carefully?
early adopters
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a
fad
The strategy of ___ means that the firm attempts to offer the right combination of quality and good service at a fair price
good-value pricing
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?
growth
Dissonance reducing buying behavior would result from which of the following conditions
high involvement, few differences between brands
Retailers such as Kohl's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________.
high/low pricing
What is the first step of the new product development process
idea generation
Which of the following is true regarding the price-demand relationship?
if demand is elastic, sellers will consider lowering their price
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as an
indicator of quality
materials and parts, capital items, supplies and services
industrial products
Services cannot be seen, tasted, felt, heard, or smelled before they are bought. In other words, services are __________.
intangible
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called __________.
intermarket segmentation
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________.
it can increase costs
Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include __________.
launch a low-price fighter brand
Psychographic segmentation divides buyers into different segments based on
lifestyle and personality
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
line extension
Which targeting strategy focuses on common consumer needs, as opposed to different needs?
mass marketing
Most products today are in which stage of their product life cycle?
maturity
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
monopolistic competition
Which value proposition is the most difficult to sustain in the long run?
more for less
What are the four major psychological factors that influence consumer buyer behavior
motivation, perception, learning, beliefs and attitudes
For which service characteristic do marketers need to pay close attention to fluctuations in demand?
perishability
What tends to be the most effective source of information when consumers make a buying decision
personal sources
Recently, Amazon.com has been accused of __________, which is the practice of selling products below cost to harm competitors.
predatory pricing
What is target costing?
pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using?
private brand
Price is the only part of the marketing mix that __________.
produces revenue
Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of __________ pricing.
product allowances
Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of __________ pricing.
product bundle
Which factor sets the floor on setting a product's price?
product costs
At which stage of the new product development process is a physical product first developed?
product development
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent?
product differentiation
Whirlpool washers and dryers are offered in many different models. Whirlpool will use __________ pricing to determine the price steps between the different models.
product line
a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
product line
Product value analysis is an approach to cost reduction that is used at which stage of the buying decision process?
product specification
A soda pop company offers a discount to a grocer. In exchange, the grocer agrees to provide in-store advertising for the soda pop and additional sales-support. This is an example of __________.
promotional allowances
Which stage of the business buying decision process occurs between supplier search and supplier selection?
proposal solicitation
Which type of market does no buyer or seller have much impact on setting the going market price?
pure competition
A purse company's ads feature the cast of a popular reality show. Product sales increase significantly among the fans. From the fans' viewpoint, the cast is a(n) __________.
reference group
One form of e-procurement is __________ in which companies put their purchasing requests online and invite bids.
reverse auctions
Which of the following correctly identifies the social factors that influence consumer buyer behavior?
small groups, social networks, family, and social roles and status
The us government normally awards contracts to
the lowest bidder
Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called __________.
two-part pricing
Two things can come between the intention to make a purchase and the actual purchase: the first is the attitudes of others and the second is __________.
unexpected situational factors
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.
value proposition
One major objective of a market-penetration pricing strategy is to ________.
win a large market share
One major objective of a market-penetration pricing strategy is to __________.
win a large market share
Which factor sets the ceiling on setting a product's price?
Customer's value perceptions
