Marketing 311 Exam #2

Differentiation

- Creating market offerings that best serve targeted customers. - Differentiating the firm's market offering to create superior customer value.

Style

A basic and distinctive mode of expression.

Fashion

A currently accepted or popular style in a given field.

Product planners think of products on three levels. Which of the following correctly identifies the three​ levels? A. The core customer​ value, the actual​ product, and the augmented product B. The core customer​ value, the actual​ product, and the​ product's position C. The core customer​ value, the actual​ product, and the quality level D. The​ branding, the quality​ level, and the design E. The​ branding, the​ packaging, and the core customer value

A. The core customer​ value, the actual​ product, and the augmented product

Cost-plus pricing (markup pricing)

Adding a standard markup to the cost of production.

A preemptive difference:

Competitors cannot easily copy the difference.

Marketing strategy development

Designing an initial marketing strategy for a new product based on the product concept.

Commercialization

Introducing a new product into the market.

Product Mix Depth

Number of versions offered for each product in the line

The experience curve is also known as?

learning curve

Product quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

A profitable difference:

The company can introduce the difference profitably.

Brand equity

The differential effect that knowing the brand name has on customer response to the product or its marketing.

Experience curve

The drop in the average per-unit production cost that comes with accumulated production experience.

Value Proposition

The full positioning of a brand - the full mix of benefits on which it is positioned.

If a company finds that a new product concept is acceptable and should be moved​ forward, what is the next step in the​ process? A. Business analysis B. Product development C. Marketing strategy development D. Commercialization E. Test marketing

C. Marketing strategy development

Most products today are in which stage of their product life​ cycle? A. Introduction B. Decline C. Maturity D. Growth E. Product development

C. Maturity

Which of the following would be an appropriate strategy during the maturity stage of the product​ lifecycle? A. Shift some advertising from building product awareness to building product conviction and purchase. B. Select products to​ maintain, harvest, or drop. C. Modify the​ market, product​ offering, or marketing mix. D. Produce basic versions of the product and focus on selling to those buyers who are most ready to buy. E. Use promotional spending to inform consumers and get them to try the product.

C. Modify the​ market, product​ offering, or marketing mix.

An example of economic factor segmentation is:

Countries might be grouped by population income levels or by their overall level of economic development.

Occasion segmentation

Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

Internal marketing

Orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction.

Reference Prices

Prices that buyers carry in their minds and refer to when they look at a given product.

Product Bundle Pricing

Pricing bundles of products sold together.

FOB-Origin Pricing

Pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.

Uniform-Delivered Pricing

Pricing in which the company charges the same price plus freight to all customers, regardless of their location.

Zone Pricing

Pricing in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price.

Freight-Absorption Pricing

Pricing in which the seller absorbs all or part of the freight charges in order to get the desired business.

Basing-Point Pricing

Pricing in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.

By-Product Pricing

Pricing low-value by-products to get rid of or make money on them.

Optional-Product Pricing

Pricing optional or accessory products sold with the main product.

Captive-Product Pricing

Pricing products that must be used with the main product.

Target costing

Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

Allowances

Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Discount and Allowance Pricing

Reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product.

Idea screening

Screening new product ideas to spot good ones and drop poor ones as soon as possible.

Service inseparability

Services are produced and consumed at the same time and cannot be separated from their providers.

Service intangibility

Services cannot be seen, tasted, felt, heard, or smelled before they are bought.

Service perishability

Services cannot be stored for later sale or use.

Market (Price) Skimming Pricing

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

Market-Penetration Pricing

Setting a low price for a new product in order to attract a large number of buyers and a large market share.

Customer value-based pricing

Setting price based on buyers' perceptions of value rather than on the seller's cost.

Break-even pricing

Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.

Competition-based pricing

Setting prices based on competitors' strategies, prices, costs, and market offerings.

Cost-based pricing

Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Product Line Pricing

Setting prices for an entire product line.

Even when competing offers look the same, buyers may perceive a difference based on company or brand _____ differentiation.

image

Product mix is also known as

product portfolio

With _______ differentiation, companies offer speedy and convenient service.

service

Differentiated or concentrated marketing targets very broadly, narrowly or somewhere in between?

somewhere in between

Break-even pricing is also known as?

target return pricing

Promotional Pricing

Temporarily reducing prices to spur short-run sales.

Concept testing

Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

Introduction Stage

The PLC stage in which a new product is first distributed and made available for purchase.

Maturity stage

The PLC stage in which a product's sales growth slows or levels off.

Growth stage

The PLC stage in which a product's sales start climbing quickly.

Packaging

The activities of designing and producing the container or wrapper for a product.

Price

The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.

Geographic Segmentation Examples:

Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate.

Behavioral Segmentation Examples:

Occasions, benefits, user status, usage rate, loyalty status.

Positioning statement

Summarizes a company or brands positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

Local marketing

Tailoring brands and marketing to the needs and wants of local customer.

Individual marketing

Tailoring products and marketing programs to the needs and preferences of individual customers.

An important difference:

The difference delivers a highly valued benefit to target buyers.

A communicable difference:

The difference is communicable and visible to buyers.

A superior difference:

The difference is superior to other ways that customers might obtain the same benefit.

User status segmentation

The process of determining the status as users of competitors' products, ex-users, potential users, first-time users, and regular users.

Social marketing

The use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being.

Product position

The way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products.

More for less positioning

The winning value proposition is to do this; this is a difficult position to sustain.

Undifferentiated marketing targets very broadly, narrowly or somewhere in between?

broadly

Firms that practice _______ differentiation gain competitive advantage through the way they design their channel's coverage, expertise, and performance.

channel

Intermarket segmentation is also called

cross-market segmentation

Cultural factors used for segmentation include:

grouping markets according to common languages, religions, values and attitudes, customs, and behavioral patterns.

Undifferentiated marketing is also known as

mass marketing

Micromarketing targets very broadly, narrowly or somewhere in between?

narrowly

Concentrated marketing is also called

niche marketing

Companies can gain a strong competitive advantage through _______ differentiation—hiring and training better people than their competitors do. _______ differentiation requires that a company select its customer-contact people carefully and train them well.

people

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

product

Differentiated marketing is also called

segmented marketing

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

Political and legal segmentation factors include:

the type and stability of government, receptivity to foreign firms, monetary regulations, and amount of bureaucracy.

Demographic factors are the most popular bases for segmenting customer groups. Why?

- Consumer needs, wants, and usage rates often vary closely with demographic variables. - Demographic variables are easier to measure than many other types of variables. Even when marketers first define segments using other bases, such as benefits sought or behavior, they must know a segment's demographic characteristics to assess the size of the target market and reach it efficiently.

Convenience Products Characteristics

- Frequent purchase; little planning, little comparison or shopping effort; low customer involvement. - Low Price - Widespread distribution; convenient locations. - Mass promotion by the producer. - Toothpaste, magazines, and laundry detergent.

Shopping Products Characteristics

- Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style. - Higher price. - Selective distribution in fewer outlets. - Advertising and personal selling by both the producer and resellers. - Major appliances, televisions, furniture, and clothing.

Unsought Products Characteristics

- Little product awareness or knowledge (or, if aware, little or even negative interest) - Price varies - Distribution varies - Aggressive advertising and personal selling by the producer and resellers. - Life insurance and Red Cross blood donations.

Specialty Products Characteristics

- Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity. - Highest price. - Exclusive distribution in only one or a few outlets per market area. - More carefully targeted promotion by both the producer and resellers. - Luxury goods, such as Rolex watches or fine crystal.

More for the Same Positioning Strategy

A company can attack a competitor's value proposition by positioning its brand as offering more for the same price.

Convenience products

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Unsought products

A consumer product that the consumer either does not know about or knows about but does not normally consider buying.

Shopping products

A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style.

Specialty products

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Undifferentiated marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Differentiated marketing

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentrated marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Consumer products

A product bought by final consumers for personal consumption.

Industrial products

A product bought by individuals and organizations for further processing or for use in conducting a business.

Target Market

A set of buyers sharing common needs or characteristics that the company decides to serve.

Which of the following descriptions best represents targeting a demographic​ segment? A. Marketing prepackaged lunches for children B. Promoting cranberry sauce for the Thanksgiving holiday C. Rewarding heavy users of a product D. Marketing athletic clothing for sports enthusiasts E. Promoting a smartphone with longer battery life

A. Marketing prepackaged lunches for children

What is the overall purpose of​ differentiation? A. To create superior customer value B. To select the segment or segments to enter C. To divide the market into smaller groups of buyers D. To allow a firm to offer the lowest prices E. To market high quality products

A. To create superior customer value

What are perceptual positioning maps used​ for? A. To show consumer perceptions of different brands on important buying dimensions B. To find the best retail locations for a brand C. To show consumer perceptions of different brands on a single product dimension D. To show consumer perceptions of an individual brand on important buying dimensions E. To compare a​ company's profitability with the profitability of competitors

A. To show consumer perceptions of different brands on important buying dimensions

Demographic Segmentation Examples:

Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation.

Services

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.

Competitive advantage

An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

On the My​ M&Ms website buyers can place custom orders for​ M&Ms. They can choose their own​ colors, put a personalized text message on the​ candies, and even upload a photo to be placed on each​ M&M. Which targeting strategy is​ M&M using for My​ M&Ms? A. Differentiated marketing B. Individual marketing C. Undifferentiated marketing D. Concentrated marketing E. Local marketing

B. Individual marketing

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​ __________. A. actionable B. differentiable C. measurable D. substantial E. accessible

B. differentiable

Choosing a differentiated targeting strategy has many​ benefits, but a potential downside is that​ __________. A. serving one or a few smaller segments can limit sales B. it can increase costs C. focusing on what is common in consumers can potentially appeal to the largest number of buyers D. the demand for customized products is decreasing E. offering one marketing mix can limit sales

B. it can increase costs

Psychographic segmentation divides buyers into different segments based on​ __________. A. age and​ life-cycle stage B. lifestyle and personality C. lifestyle and income D. personality and income E. lifestyle and geography

B. lifestyle and personality

The process of evaluating each market​ segment's attractiveness and selecting one or more market segments to enter is called​ __________. A. market segmentation B. market targeting C. a​ customer-driven marketing strategy D. differentiation E. positioning

B. market targeting

An affordable difference:

Buyers can afford to pay for the difference.

Loyalty status segmentation

Buyers can be divided into groups according to their degree of loyalty.

Which base of segmentation divides buyers into segments based on their​ knowledge, attitudes,​ uses, or responses to a​ product? A. Demographic B. Economic C. Behavioral D. Geographic E. Psychographic

C. Behavioral

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your​ colleague? A. Fast growing segments are always attractive. B. If a segment is larger than others it should always be targeted. C. Carefully consider the degree of competition and ease of entry into the segment. D. A segment is attractive if there are substitute products available. E. If there are powerful buyers in the segment it will drive prices up.

C. Carefully consider the degree of competition and ease of entry into the segment.

Which of the following statements regarding concentrated marketing is​ correct? A. Concentrated marketing is generally not a profitable strategy. B. Concentrated marketing is not feasible for small companies. C. Concentrated marketing involves​ higher-than-normal risks. D. Marketers cannot effectively​ fine-tune the marketing mix to the needs of a​ narrow, carefully designed segment. E. Concentrated marketing targets a small share of a large market.

C. Concentrated marketing involves​ higher-than-normal risks.

When segmenting international​ markets, markets can be grouped according to​ language, religion,​ customs, and values. This type of segmentation is based on​ __________ factors. A. economic B. psychographic C. cultural D. demographic E. geographic

C. cultural

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​ __________. A. ​intra-market segmentation B. global segmentation C. intermarket segmentation D. cultural segmentation E. geographic segmentation

C. intermarket segmentation

Same for less positioning

Can be a powerful value proposition—everyone likes a good deal.

A distinctive difference:

Competitors do not offer the difference, or the company can offer it in a more distinctive way.

Positioning

Consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. We discuss each of these steps in turn.

What is​ positioning? A. Developing profiles of market segments B. Selecting which segments to enter C. A part of a​ company-driven marketing strategy D. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers E. Dividing a market into smaller groups of buyers

D. Arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Which of the following statements regarding demographic segmentation is​ correct? A. Demographic variables are difficult to measure. B. Demographics segmentation uses lifestyle as the primary measure for segmentation. C. Demographics are rarely used anymore for market segmentation. D. Consumer​ needs, wants, and usage rates vary closely with demographic variables. E. Demographic segmentation divides a market based on​ age, personality, and benefits sought.

D. Consumer​ needs, wants, and usage rates vary closely with demographic variables.

Which of the following statements about segmentation is​ true? A. Most companies today mass market and do not segment their markets. B. Segmentation identifies individual buyers that can be targeted with a market offering. C. Market segmentation is part of a​ company's value proposition. D. Different segments might require different marketing strategies or mixes. E. Buyers within a market segment have different​ needs, characteristics, and behaviors.

D. Different segments might require different marketing strategies or mixes.

Which value proposition is the most difficult to sustain in the long​ run? A. Less for much less B. The same for less C. More for the same D. More for less E. More for more

D. More for less

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. A. personality B. ​life-cycle stage C. demographic D. benefits sought E. usage rate

D. benefits sought

The full mix of benefits on which a brand is differentiated and positioned is called​ a(n) __________. A. positioning statement B. image statement C. perceptual map D. value proposition E. mission statement

D. value proposition

Usage-rate segmentation

Dividing a market by the amount of product bought or consumed. Users are defined as light, medium, and heavy product users.

Age and life-cycle segmentation

Dividing a market into different age and life-cycle groups.

Income segmentation

Dividing a market into different income segments.

Gender segmentation

Dividing a market into different segments based on gender.

Psychographic segmentation

Dividing a market into different segments based on social class, lifestyle, or personality characteristics.

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments.

Behavioral segmentation

Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Geographic Segmentation calls for:

Dividing the market into different geographical units, such as nations, regions, states, counties, cities, or even neighborhood.

Benefit segmentation

Dividing the market into segments according to the different benefits that consumers seek from the product.

Demographic Segmentation calls for:

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Which of the following statements regarding segmentation is​ correct? A. Marketers typically use one variable to segment their markets. B. As gender roles have​ changed, gender is no longer a useful form of segmentation. C. The use of demographics to segment markets has declined in recent years. D. The business market is homogenous and is not segmented E. Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets.

E. Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets.

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base? A. Geography B. Age C. Usage rate D. Gender E. Lifestyle

E. Lifestyle

Which targeting strategy focuses on common consumer​ needs, as opposed to different​ needs? A. Local marketing B. Differentiated marketing C. Individual marketing D. Concentrated marketing E. Mass marketing

E. Mass marketing

What are the three broad targeting strategies used by​ marketers? A. Undifferentiated​ marketing, differentiated​ marketing, and concentrated marketing B. Differentiated​ marketing, concentrated​ marketing, and micromarketing C. Mass​ marketing, undifferentiated​ marketing, and micromarketing D. Mass​ marketing, differentiated​ marketing, and concentrated marketing E. Mass​ marketing, differentiated​ marketing, and micromarketing

E. Mass​ marketing, differentiated​ marketing, and micromarketing

Which of the following statements regarding positioning is​ correct? A. Establishing a position usually takes a very short amount of time. B. Once​ established, a strong position is never lost. C. Once a positioning strategy is​ identified, it is typically very easy to implement. D. Abruptly changing a position is an effective strategy when consumer needs change. E. Positions must adapt over time to meet changing consumer needs.

E. Positions must adapt over time to meet changing consumer needs.

BMW says their cars are​ "The Ultimate Driving​ Machine". Ford trucks are​ "Built Ford​ Tough". Which type of differentiation do these examples​ represent? A. Image differentiation B. Services differentiation C. Channel differentiation D. People differentiation E. Product differentiation

E. Product differentiation

Targeting

Evaluating each market segment's attractiveness and selecting one or more market segments to enter.

Intermarket segmentation

Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.

Less for much less positioning

Involves meeting consumers' lower performance or quality requirements at a much lower price.

More-for-more positioning

Involves providing the most upscale product or service and charging a higher price to cover the higher costs.

Geographic segmentation assumes that nations close to one anther will have many common traits and behaviors. Is this always the case?

It is not always the case. For example, some U.S. marketers lump all Central and South American countries together. However, the Dominican Republic is no more like Brazil than Italy is like Sweden. Many Central and South Americans don't even speak Spanish, including more than 200 million Portuguese-speaking Brazilians and the millions in other countries who speak a variety of indigenous languages.

Psychographic Segmentation Examples:

Lifestyle and personality.

Hyperlocal Social Marketing

Location-based targeting to consumers in local communities or neighborhoods using digital and social media.

Consumer Adoption Process

1. Unaware 2. Aware 3. Informed 4. Interested 5. Ready 6. Trial 7. Adoption or Rejection 8. Customer or No Customer

Demand curve

A curve that shows the number of units the market will buy in a given time period at different prices that might be charged.

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

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.

Price elasticity

A measure of the sensitivity of demand to changes in price.

Brand

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.

Business Analysis

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.

Discount

A straight reduction in price on purchases during a stated period of time or of larger quantities.

Fads

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.

Which of the following statements regarding dynamic pricing is​ correct? A. Dynamic pricing could cause consumer resentment and damage customer relationships. B. Dynamic pricing is only effective when used online. C. The dynamic pricing tactic of surge pricing is legally questionable. D. Because of dynamic​ pricing, online consumers no longer compare prices. E. Dynamic pricing benefits only consumers.

A. Dynamic pricing could cause consumer resentment and damage customer relationships.

Which of the following statements is true concerning new product pricing​ strategies? A. 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. B. If competitors can easily enter the​ market, a​ market-skimming strategy should be used. C. A​ market-penetration strategy should be used if the market is not highly price sensitive. D. When using a​ market-skimming strategy, marketers do not need to focus on the​ product's quality and image. E. For a​ market-penetration strategy to​ work, production and distribution costs must increase as sales volume increases.

A. 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.

Which of the following is true regarding the price-demand ​relationship? A. If demand is​ elastic, sellers will consider lowering their price. B. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. C. Demand and price are directly related—the higher the​ price, the greater the demand. D. If demand is​ inelastic, a small change in price will result in a large change in demand. E. Price elasticity measures how responsive price will be to a change in demand.

A. If demand is​ elastic, sellers will consider lowering their price.

In which type of market does no buyer or seller have much impact on setting the going market​ price? A. Pure competition B. B2B market C. Oligopolistic competition D. Monopolistic competition E. Pure monopoly

A. Pure competition

Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the​ law? A. The Consumer Product Safety Commission​ (CPSC) B. The Federal Trade Commission​ (FTC) C. The Food​ & Drug Administration​ (FDA) D. The Small Business Administration​ (SBA) E. The Environmental Protection Agency​ (EPA)

A. The Consumer Product Safety Commission​ (CPSC)

How is price determined using​ cost-plus pricing? A. The price is set by adding a standard markup to the cost of the product. B. The price is set by determining the​ customer's value perceptions. C. The price is set based on demand. D. The price is set based on​ competitor's prices. E. The price is set so that total revenue covers total costs.

A. The price is set by adding a standard markup to the cost of the product.

What must companies do to create successful new​ products? A. Understand its​ consumers, markets, and competitors and develop products that deliver superior value. B. Cut costs to keep the price of new products low. C. Focus their new product development efforts only on consumers. D. Spend more on​ R&D than its competitors. E. Obtain successful products through acquisitions instead of doing internal development.

A. Understand its​ consumers, markets, and competitors and develop products that deliver superior value.

A(n) __________ shows the number of units the market will buy in a given time period at different prices. A. demand curve B. supply curve C. production schedule D. perceptual map E. value curve

A. demand curve

Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include​ __________. A. launch a​ low-price fighter brand B. improve quality and decrease prices C. raising prices D. decrease quality and increase prices E. reducing perceived value

A. launch a​ low-price fighter brand

Price is the only part of the marketing mix that​ __________. A. produces revenue B. incurs costs C. is defined by the consumer D. does not play a role in creating customer value E. attracts buyers

A. produces revenue

Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of​ __________ pricing. A. product bundle B. product line C. ​two-part D. ​by-product E. ​captive-product

A. product bundle

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? A. ​By-product pricing B. Product line pricing C. ​Two-part pricing D. ​Product-bundle pricing E. ​Optional-product pricing

A. ​By-product pricing

Companies should take a holistic approach to new product development. This means that the process should be​ __________. A. ​customer-centered, team-based, and haphazard B. ​customer-centered, team-based, and systematic C. ​compartmentalized, sequential, and​ company-centered D. ​compartmentalized, team-based, and​ company-centered E. ​customer-centered, compartmentalized, and systematic

A. ​customer-centered, team-based, and haphazard

One form of​ __________ is when movie theaters charge one price for adults and a different price for senior citizens. A. ​customer-segment pricing B. product form pricing C. ​location-based pricing D. psychological pricing E. promotional allowances

A. ​customer-segment pricing

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​ __________. A. ​high-low pricing B. ​value-added pricing C. ​cost-plus pricing D. ​break-even pricing E. EDLP pricing

A. ​high-low pricing

Dynamic and Personalized Pricing

Adjusting prices continually to meet the characteristics and needs of individual customers and situations.

International Pricing

Adjusting prices for international markets.

Psychological Pricing

Adjusting prices for psychological effect.

Geographical Pricing

Adjusting prices to account for the geographic location of customers.

Segmented Pricing

Adjusting prices to allow for differences in customers, products, or locations.

Which of the following correctly identifies the three major pricing strategies used by​ marketers? A. Customer value-based ​pricing, cost-based​ pricing, and​ profit-based pricing B. Customer value-based ​pricing, cost-based​ pricing, and​ competition-based pricing C. Customer value-based ​pricing, revenue-based​ pricing, and​ competition-based pricing D. Customer value-based ​pricing, cost-based​ pricing, and​ revenue-based pricing E. Customer value-based ​pricing, revenue-based​ pricing, and​ profit-based pricing

B. Customer value-based ​pricing, cost-based​ pricing, and​ competition-based pricing

Which of the following statements is true regarding initiating price​ cuts? A. Cutting price has no effect on costs. B. Cutting prices in an industry with excess capacity may lead to price wars. C. If faced with excess capacity a firm should not cut its price. D. Firms never cut​ prices, they only raise them. E. When faced with falling​ demand, firms should not cut prices.

B. 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. A. Predatory pricing B. Deceptive pricing C. Price discrimination D. Price fixing E. Retail price maintenance

B. Deceptive pricing

During concept​ testing, who is the product concept actually tested​ on? A. Employees in the​ company's marketing department B. Groups of target customers C. Competitors D. Broad groups of consumers E. Internal​ R&D engineers

B. Groups of target customers

Which of the following statements about new product development strategy is​ correct? A. Developing new products is optional for companies with established brands. B. Innovation can be very expensive and very risky. C. A new product will succeed as long as it priced correctly. D. New products are usually successful because consumers like new things. E. New products are not a key source of growth for companies.

B. Innovation can be very expensive and very risky.

Which of the following statements regarding socially responsible product decisions is​ correct? A. Companies can safely ignore patent laws. B. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition. C. When companies drop​ products, they do not have any obligations to​ suppliers, dealers, and customers. D. Manufacturers are generally not concerned with product liability. E. Safety legislation has not yet been passed to regulate​ toys, automobiles, and fabrics.

B. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

What is the purpose of the​ Robinson-Patman Act? A. To prevent deceptive pricing B. To prevent unfair price discrimination C. To prevent scanner fraud D. To prevent predatory pricing E. To prevent price fixing

B. To prevent unfair price discrimination

During the idea generation stage of the new product development​ process, it is important that​ __________. A. companies avoid crowdsourcing as a source of new ideas B. companies create a large number of ideas C. companies realize that it is illegal to use competitors as a source of new ideas D. companies generate a small number of ideas that seem feasible E. companies limit their ideas to those that come from their internal​ R&D departments

B. companies create a large number of ideas

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​ __________. A. concept testing B. crowdsourcing C. test marketing D. crowdfunding E. intrapreneurial idea generation

B. crowdsourcing

When a company lengthens a product line by adding more items within that lines current​ range, they are​ __________. A. stretching the line upward B. filling the line C. increasing the width of their product mix D. stretching the line downward E. decreasing the depth of the line

B. filling the line

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about​ wine, she will likely use the price of the wines as​ a(n) __________. A. limited time offer B. indicator of quality C. indicator of the cost of production D. indicator of geographic pricing E. type of segmented pricing

B. indicator of quality

Service quality greatly depends on the quality of the buyer-seller interaction during the service encounter. This is known as​ __________. A. image differentiation B. interactive marketing C. internal marketing D. the service profit chain E. external marketing

B. interactive marketing

A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use? A. ​Captive-product pricing B. ​Market-penetration pricing C. Psychological pricing D. ​Market-skimming pricing E. Optional product pricing

B. ​Market-penetration pricing

Companies should take a holistic approach to new product development. This means that the process should be​ __________. A. ​compartmentalized, team-based, and​ company-centered B. ​customer-centered, team-based, and systematic C. ​customer-centered, compartmentalized, and systematic D. ​customer-centered, team-based, and haphazard E. ​compartmentalized, sequential, and​ company-centered

B. ​customer-centered, team-based, and systematic

When Apple introduced their​ iPhone, they priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple was pursuing​ a(n) __________ pricing strategy. A. ​optional-product B. ​market-skimming C. ​by-product D. ​captive-product E. ​market-penetration

B. ​market-skimming

What is a product​ concept? A. An idea for a new product B. A working model of a new product C. A detailed version of a new product idea stated in meaningful consumer terms D. The image of a new product in​ consumer's minds E. A new product which is ready to be test marketed

C. A detailed version of a new product idea stated in meaningful consumer terms

Which of the following correctly defines a​ product? A. A product consists of the actual product and the augmented product. The core customer value is not part of a product. B. Products are tangible goods only. C. A product is anything offered to a market that might satisfy a need or want. D. Products include tangible objects and services but not events or people. E. A product is the overall market offering.

C. A product is anything offered to a market that might satisfy a need or want.

What is the first thing marketers must do when using​ value-based pricing? A. Determine product costs. B. Set the target price to match customer perceived value. C. Assess customer needs and value perceptions. D. Design a quality product. E. Convince buyers that the​ product's value at a given price justifies the purchase.

C. Assess customer needs and value perceptions.

Which of the following statements is true regarding​ costs? A. Costs do not vary with different levels of production. B. Variable costs vary directly with the level of sales. C. Average cost tends to decrease with accumulated production experience. D. Totals costs are the sum of​ long-run average costs and​ short-run average costs. E. Experience curve pricing is a low risk strategy.

C. Average cost tends to decrease with accumulated production experience.

Which of the following statements regarding public policy and pricing is​ correct? A. Federal statutes apply to both interstate and intrastate commerce. B. It is legal in some industries for sellers to collude with competitors when setting prices. C. Companies​ can, under some​ circumstances, price items below cost. D. Companies are usually free to charge whatever prices they wish. E. Sellers are allowed to punish dealers who do not price a product at the​ manufacturer's suggested retail price.

C. Companies​ can, under some​ circumstances, price items below cost.

Which of the following statements about price is​ correct? A. Marketers do not a have lot of flexibility in setting and changing price. B. Prices have no impact on a​ firm's bottom line. C. Customers have put increased pricing pressure on many companies. D. Pricing is not a problem for marketing executives. E. Price is not an important competitive asset.

C. Customers have put increased pricing pressure on many companies.

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? A. Product development B. Maturity C. Growth D. Introduction E. Decline

C. Growth

What is the first step of the new product development​ process? A. Idea screening B. Business analysis C. Idea generation D. Marketing strategy development E. Concept development and testing

C. Idea generation

In determining product​ quality, what are the two dimensions of quality marketers must decide​ upon? A. Level and features B. Consistency and packaging C. Level and consistency D. Consistency and design E. Level and price

C. Level and consistency

Variable costs

Costs that vary directly with the level of production.

According to the​ text, what are the three levels on which brands can be​ positioned? A. Product​ attributes, price, and packaging B. Product​ attributes, desirable​ benefits, and brand equity C. Product​ attributes, desirable​ benefits, and beliefs and values D. ​Quality, features, and desirable benefits E. Brand​ equity, brand​ value, and brand sponsorship

C. Product​ attributes, desirable​ benefits, and beliefs and values

Which of the following statements is true regarding standardizing products for international​ markets? A. Standardization helps a company develop a different image in different countries. B. Standardization ensures that products will succeed in foreign markets. C. Standardization decreases product​ design, manufacturing, and marketing costs. D. Markets and consumers all over the world are​ alike, so a company should always standardize international products. E. Standardization means that marketers do not have to adapt their product offerings for different international markets.

C. Standardization decreases product​ design, manufacturing, and marketing costs.

When would a competitor most likely react to a​ firm's price​ change? A. When the product is differentiated B. When buyers are not well informed about the product C. When the number of firms involved is small D. When the number of firms involved is large E. When buyers are not well informed about prices

C. When the number of firms involved is small

Which of the following is a concern when using​ optional-product pricing? A. Whether to set a fixed fee or a variable usage rate B. How to determine the price steps between different products in a product line C. Which products to include in the base price and which to offer as options D. Which products should be bundled at a lower price E. How to price products that must be used with the main product

C. Which products to include in the base price and which to offer as options

On a​ break-even chart, the​ break-even volume is located​ __________. A. at the intersection of target profit and total costs B. at the intersection of total revenue and variable costs C. at the intersection of total revenue and total costs D. at the intersection of total revenue and fixed costs E. at the intersection of total revenue and target profit

C. at the intersection of total revenue and total costs

Services cannot be​ seen, tasted,​ felt, heard, or smelled before they are bought. In other​ words, services are​ __________. A. tangible B. variable C. intangible D. perishable E. inseparable

C. intangible

The amount of money charged for a product is its​ __________. A. cost B. profit C. price D. breakeven point E. revenue

C. price

Whirlpool washers and dryers are offered in many different models. Whirlpool will use​ __________ pricing to determine the price steps between the different models. A. ​captive-product B. ​two-part pricing C. product line D. ​optional-product E. ​product-bundle

C. product line

Furniture, major​ appliances, clothing, and hotel services are classified as​ __________ products. A. specialty B. unsought C. shopping D. convenience E. industrial

C. shopping

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents a​ __________ approach to new product development. A. haphazard B. sequential C. systematic D. ​customer-centered E. ​team-based

C. systematic

One major objective of a​ market-penetration pricing strategy is to​ __________. A. skim off small but profitable segments B. set a high price to gain profits C. win a large market share D. attract buyers willing to pay a higher price E. prevent customer dissatisfaction

C. win a large market share

Gillette charges a fairly low price for their razors​ (relative to​ costs) and a high price for razor blades. They are using a strategy of​ __________ pricing. A. ​product-bundle B. ​by-product C. ​captive-product D. product line E. ​two-part pricing

C. ​captive-product

Promotional pricing tactics include​ __________. A. ​discounts, geographical​ pricing, and​ special-event pricing B. functional​ discounts, limited time​ offers, and​ location-based pricing C. ​discounts, special-event​ pricing, and limited time offers D. ​customer-segment pricing,​ location-based pricing, and​ time-based pricing E. ​discounts, limited time​ offers, and reference prices

C. ​discounts, special-event​ pricing, and limited time offers

Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other​ in-park features. This is called​ __________. A. ​by-product pricing B. ​product-bundle pricing C. ​two-part pricing D. product line pricing E. ​optional-product pricing

C. ​two-part pricing

Fixed costs (overhead)

Costs that do not vary with production or sales level.

Which of the following best describes brand​ equity? A. That the brand is legally protected from imitation B. The total financial value of a brand C. The return on investment a firm receives from a brand D. A measure of the​ brand's ability to capture consumer preference and loyalty E. The extent to which two different brands in the same product category are similar

D. A measure of the​ brand's ability to capture consumer preference and loyalty

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? A. A​ co-brand B. A licensed brand C. A national brand D. A private brand E. A​ manufacturer's brand

D. A private brand

Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell​ Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this​ example? A. Licensing B. Multibrand C. New brand D. Brand extension E. Line extension

D. Brand extension

For which service characteristic do marketers need to pay close attention to fluctuations in​ demand? A. Tangibility B. Inseparability C. Variability D. Perishability E. Intangibility

D. Perishability

Which factor sets the floor on setting a​ product's price? A. Revenue B. Demand C. ​Customer's value perceptions D. Product costs E. Competitors

D. Product costs

One characteristic of services is their variability. What is the main reason for services being​ variable? A. Services cannot be​ seen, tasted, or felt before they are bought. B. Services cannot be stored for later use. C. Services are​ tangible, and defects are impossible to prevent. D. Service quality depends on who provides​ them, as well as​ when, where, and how they are provided. E. Services cannot be separated from their providers.

D. Service quality depends on who provides​ them, as well as​ when, where, and how they are provided.

Which of the following statements regarding initiating price increases is​ correct? A. Cost inflation is not a factor in price increases. B. Prices should be increased when there is a lack of demand. C. Companies do not need to communicate reasons for price increases. D. The company should consider ways to meet higher costs or demand without raising prices. E. Price increases do not impact profits.

D. The company should consider ways to meet higher costs or demand without raising prices.

Charles​ Revson, who started​ Revlon, once said​ "We sell​ hope." Revson was defining the​ __________ of Revlon cosmetics. A. design B. branding C. augmented product D. core customer value E. quality level

D. core customer value

Two external factors which must be considered in pricing decisions are​ __________. A. the marketing mix and demand B. the marketing mix and the economy C. the marketing mix and the nature of the market D. demand and the nature of the market E. company objectives and the marketing mix

D. demand and the nature of the market

Basic price​ adjustments, known as​ __________, are used to reward customers for certain responses. A. psychological prices B. segmented prices C. ​location-based pricing D. discounts and allowances E. discounts and allocations

D. discounts and allowances

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 known as​ __________ the product. A. liquidating B. pruning C. dropping D. harvesting E. maintaining

D. harvesting

Recently, Amazon.com has been accused of​ __________, which is the practice of selling products below cost to harm competitors. A. price fixing B. retail price maintenance C. price discrimination D. predatory pricing E. deceptive pricing

D. predatory pricing

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 are called​ a(n) __________. A. product portfolio B. product level C. product mix D. product line E. product stretch

D. product line

If a company adds a new product line to its existing​ portfolio, it has increased its​ __________. A. product mix consistency B. product line length C. product support services D. product mix width E. product mix depth

D. product mix width

When Dr. Footcare developed and launched a revolutionary new walking​ shoe, he knew that during the introductory stage of the product life cycle​ (PLC) __________. A. sales would fall and profits would drop B. profits would rise quickly and there would be rapid market acceptance of the product C. sales would be high and profits would level off or decline D. sales would be slow and profits nonexistent E. sales would be slow but profits would be high

D. sales would be slow and profits nonexistent

To succeed in​ France, McDonalds had to​ __________. A. use local bakeries to supply their baguettes B. standardize their products C. use the same cheeses on their burgers that are used in the United States D. tailor their operations to local French preferences E. keep the same restaurant design as in the United States

D. tailor their operations to local French preferences

Which of the following is a​ cost-based pricing​ approach? A. ​Competition-based pricing B. ​High-low pricing C. EDLP pricing D. ​Break-even pricing E. ​Value-added pricing

D. ​Break-even pricing

Which of the following statements regarding managing brands is​ correct? A. Once a​ brand's position is firmly​ established, further communicating that position to consumers is a waste of resources. B. Brand audits are only necessary when launching a new brand. C. The only company departments that must truly embrace a brand are sales and marketing. D. ​Customers' engagement with brands and​ customers' brand experiences are the key elements in maintaining a​ brand's position. E. Successful branding is unrelated to managing customer touchpoints.

D. ​Customers' engagement with brands and​ customers' brand experiences are the key elements in maintaining a​ brand's position.

What are the four special service characteristics marketers must consider when designing marketing​ programs? A. ​Tangibility, substitutability,​ variability, and conformity B. ​Tangibility, inseparability,​ variability, and perishability C. ​Intangibility, inseparability,​ conformity, and perishability D. ​Intangibility, inseparability,​ variability, and perishability E. ​Intangibility, inseparability,​ variability, and substitutability

D. ​Intangibility, inseparability,​ variability, and perishability

Which of the following statements regarding the growth stage of the product life cycle is​ correct? A. The company will still be free of competition. B. Early adopters are not yet buying the product. C. Sales will be slow and profits will level off or decline. D. Sales begin to climb slowly. E. Companies face a​ trade-off between high market share and high profits.

E. Companies face a​ trade-off between high market share and high profits.

Which of the following statements regarding customer value-based pricing is​ correct? A. This strategy is seldom used because buyers rarely consider perceived value when evaluating a​ product's price. B. Using this​ strategy, marketers first design the product and marketing​ program, then set the price. C. Using this​ strategy, marketers must convince buyers that the​ product's value at that price justifies its purchase. D. Customer value-based strategy begins with determining product costs. E. In using this​ strategy, companies often find it hard to measure the value customers attach to their product.

E. In using this​ strategy, companies often find it hard to measure the value customers attach to their product.

When Doritos comes out with new flavors of their tortilla​ chips, what brand development strategy are they​ using? A. Licensing B. New brand C. Multibrand D. Brand extension E. Line extension

E. Line extension

Which of the following statements concerning new products is​ correct? A. Most new products succeed within two years of their introduction. B. To be considered​ new, the product must be something consumers have not seen before. C. A modified product is not considered a new product. D. Products that are merely improved in some way are not considered new. E. Modified and improved products are considered new.

E. Modified and improved products are considered new.

Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market​ price? A. Pure monopoly B. Oligopolistic competition C. Uniform commodities D. Pure competition E. Monopolistic competition

E. Monopolistic competition

Which of the following statements regarding segmented pricing is​ correct? A. For segmented pricing to be​ effective, the segments should have the same degree of demand. B. Perceived value does not have to be considered when using segmented pricing. C. Segmented pricing is not used to price different versions of a product. D. Different locations are not used as a basis for segmented pricing. E. Segmented pricing practices can cause consumer resentment.

E. Segmented pricing practices can cause consumer resentment.

What is target​ costing? A. Designing a​ product, then determining its cost and price B. Basing price on customer perceptions of cost C. Setting acceptable costs and then setting the price D. Pricing products without any consideration to costs E. Setting a price and then targeting costs that will ensure that the price is met

E. Setting a price and then targeting costs that will ensure that the price is met

Which of the following statements regarding standard test marketing is​ correct? A. Test marketing is conducted in a simulated market setting. B. New products are always test marketed. C. If test marketing is​ successful, the next step is to develop the product. D. A company usually tests only a small part of its marketing program in a test market. E. Test marketing can be costly and delay commercialization of the product.

E. Test marketing can be costly and delay commercialization of the product.

According to the​ text, the most successful new products satisfy three criteria. What are these​ criteria? A. They solve a major customer​ problem, are​ differentiated, and are priced low. B. They are something that has never been seen​ before, are priced​ low, and are offered on a limited basis. C. They are​ differentiated, copy successful competitor​ products, and are priced low. D. They appeal to a wide variety of​ consumers, are priced​ low, and can be mass marketed. E. They solve a major customer​ problem, are​ differentiated, and offer a compelling customer value proposition.

E. They solve a major customer​ problem, are​ differentiated, and offer a compelling customer value proposition.

Which of the following statements about service marketing is​ correct? A. Service marketers cannot differentiate their offerings. B. It is easier to define service quality than product quality. C. Social media is not useful to service marketers. D. Due to the variability of​ services, top service companies set modest​ service-quality standards. E. Training current employees better and hiring new ones with more skills can increase service productivity.

E. Training current employees better and hiring new ones with more skills can increase service productivity.

Which of the following statements is correct regarding different types of​ markets? A. Under pure competition sellers spend considerable time on marketing strategy and pricing decisions. B. Under oligopolistic​ competition, the market consists of many buyers and sellers trading in a uniform commodity and sellers do not spend much time on marketing strategy. C. In a pure​ monopoly, the market consists of many buyers and sellers trading over a range of prices. D. Under monopolistic competition the market is dominated by one seller. E. Under oligopolistic competition each seller is alert and responsive to​ competitors' pricing strategies and marketing moves.

E. Under oligopolistic competition each seller is alert and responsive to​ competitors' pricing strategies and marketing moves.

​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. A. unsought B. augmented C. specialty D. shopping E. convenience

E. convenience

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called​ a(n) __________. A. style B. trend C. fashion D. aberration E. fad

E. fad

Materials and​ parts, capital​ items, and supplies and services are groups of​ __________products. A. convenience B. shopping C. specialty D. unsought E. industrial

E. industrial

The number of items in a product line represents the​ __________ and the total number of product lines a company carries represents the​ __________. A. product mix​ length; product mix depth B. product mix​ depth; product line width C. product line​ width; product mix length D. product line​ length; product line width E. product line​ length; product mix width

E. product line​ length; product mix width

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​ __________. A. ​trade-in allowances B. segment discounts C. cash discounts D. discounts E. promotional allowances

E. promotional allowances

Mothers Against Drunk Driving​ (MADD) runs advertising campaigns aimed at stopping drunk driving and preventing underage drinking. This is an example of​ __________. A. person marketing B. place marketing C. corporate image marketing D. organization marketing E. social marketing

E. social marketing

Internal factors that affect pricing include​ __________. A. the​ company's overall marketing​ strategy, objectives, and demand B. the nature of the​ market, demand, and the economy. C. the​ company's overall marketing​ strategy, objectives, and the nature of the market D. the​ company's overall marketing​ strategy, the nature of the​ market, and demand. E. the​ company's overall marketing​ strategy, objectives, and marketing mix

E. the​ company's overall marketing​ strategy, objectives, and marketing mix

Which factor sets the ceiling on setting a​ product's price? A. Demand B. Revenue C. Company costs D. Competitors E. ​Customer-value perceptions

E. ​Customer-value perceptions

Beyond the nature of the​ market, demand, and the​ economy, what other factors in a​ firm's external environment must a company consider when setting​ prices? A. The​ company's overall marketing strategy and marketing mix B. The​ government, resellers, and profit objectives C. The​ company's overall marketing strategy and selecting target markets D. ​Resellers, the​ government, and the marketing mix E. ​Resellers, the​ government, and social concerns

E. ​Resellers, the​ government, and social concerns

​New, 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? A. ​Cost-plus pricing B. ​High-low pricing C. ​Break-even pricing D. EDLP pricing E. ​Value-added pricing

E. ​Value-added pricing

The strategy of​ __________ means that the firm attempts to offer the right combination of quality and good service at a fair price. A. ​customer-based pricing B. ​cost-based pricing C. ​value-added pricing D. everyday low pricing E. ​good-value pricing

E. ​good-value pricing

Luxury automobile manufacturers typically add​ quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of​ __________. A. ​cost-based pricing B. ​customer-based pricing C. everyday low pricing D. ​good-value pricing E. ​value-added pricing

E. ​value-added pricing

Line extensions

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.

Brand extension

Extending an existing brand name to new product categories.

Good-value pricing

Offering just the right combination of quality and good service at a fair price.

Product Mix Width

The number of product lines an organization offers

Service variability

The quality of services may vary greatly depending on who provides them and when, where, and how they are provided.

Product Mix

The set of all product lines and items that a particular seller offers for sale.

Test marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.

Total costs

The sum of the fixed and variable costs for any given level of production.

Brand value

The total financial value of a brand.

Interactive marketing

Training service employees in the fine art of interacting with customers to satisfy their needs.