Marketing 3310 - Ch. 11-14 - Video Questions

What is the break-even point for selling a new video game if fixed costs are $50,000, the variable costs are $20 per unit, and the contribution per unit is $40?

$1,250

What is the contribution per unit for selling a new style of tennis shoes if fixed costs are $100,000, the variable costs are $10 per unit, the target return is 20 percent, and the price is $35 per unit?

$25

What is the break-even point for selling a new style of tennis shoes if fixed costs are $100,000, the variable costs are $10 per unit, the target return is 20 percent, and the contribution per unit is $25?

$4,000

_______ shows how many units of a product or service consumers will demand during a specific period of time at different prices.

A demand curve

What takes place when two or more firms compete primarily by lowering their prices?

A price war

Which of the following is NOT a dimension of service quality measured by the zone of tolerance?

Accuracy

Which of the following would NOT be a product? Goods Ideas All of these are products. Services

All of these are products.

The knowledge of and courtesy by employees and their ability to convey trust and confidence describes which service quality dimension?

Assurance

_______ measures how many consumers in a market are familiar with a brand and what it stands for.

Brand awareness

Which of the following is NOT an objective of a market penetration pricing strategy?

Charge the highest price possible

Competitive parity and status quo pricing are examples of which type of pricing orientation?

Competitor orientation

________ is the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B.

Cross-price elasticity

________ pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss).

Distributive fairness

Which purchasing group represents about 13.5 percent of all buyers in the market and is crucial for bringing the other buyer categories to the market?

Early adopters

Few new products and services can be profitable until which large group of adopters buys them?

Early majority

If the same selection of books were always for sale, with no new titles, there would be no reason to buy more. This is an example of which reason firms must innovate?

Fashion cycles

A hair stylist who gives a bad haircut in the morning because he or she stayed out late the night before is an example of which core difference when marketing services?

Heterogeneity

_________ can create excitement and attract customers through the "get them while they last" atmosphere that occurs during a sale.

High/low pricing

__________ refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow.

Innovation

Firms can measure the success of a new product, by asking three questions. Which of the following is NOT one of these questions?

Is the product already offered by competing firms?

_______ tend to avoid change, rarely vary from traditional goods and services, and in some cases never attempt to adopt new types of products.

Laggards

_______ lowers the price of an item below the store's cost.

Loss leader pricing

Which pricing strategy is characterized by the setting of a low introductory price to help drive consumer awareness and create an incentive for the consumer to buy now?

Market penetration strategy

________ occurs when there are many firms competing for customers in a given market but their products are differentiated.

Monopolistic competition

In the utilities industry, there is generally only one provider of power in each region of the country. This is an example of which level of price competition?

Monopoly

________ is/are illegal under both the Sherman Act and the Federal Trade Commission Act because it constrains free trade and represents a form of unfair competition.

Predatory pricing

______ appeals to segments of consumers who are willing to pay the premium price to have the innovation first.

Price skimming

Instituting a company-wide policy that all products must provide for at least an 11 percent profit margin to reach a particular profit goal for the firm is an example of which pricing orientation?

Profit orientation

Brand equity is determined by four aspects of a brand. Which of the following is NOT one of the four aspects?

Quality level

A university that focuses its advertising on offering a sound curriculum with consistent course offerings, extensive placement services and internships is focused on which service quality dimension?

Reliability

_______ is the willingness to help customers and provide prompt service.

Responsiveness

_________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.

Reverse engineering

A university that promotes itself as a very traditional campus with an old-world look and feel, where the facilities are manicured and the dorm rooms are large is focusing on which service quality dimension?

Tangibles

_______ is defined in marketing terms as the basic problem-solving benefits consumers are seeking.

The core customer value

When a firm chooses to have a brand legally protected through trademarks and copyrights, the brand becomes _______.

an asset to the firm

Marisol bought a particular washing machine because of its warranty and the product support the store provided in terms of delivery and installation. Marisol's decision was based on _________.

associated services

Brand name, features, design, quality level, and packaging are all considered _______ of actual products.

attributes

The _________ tactic is a deceptive practice because the store lures customers in with a very low price on an item, only to aggressively pressure these customers into purchasing a higher-priced model by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item.

bait-and-switch

In theory, the contour of the product life cycle is _______ with regard to sales and profits.

bell-shaped

During _______ potential consumers examine a product prototype in a real-use setting to determine its functionality, potential problems, and other issues specific to its use.

beta testing

A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called ______.

break-even analysis

The point at which the number of units sold generates just enough revenue to equal the total costs is the _______.

break-even point

After Jennifer booked a hotel room she had seen advertised, she discovered that the price advertised was not available during the weekend, and a three-day minimum stay was required. This is an example of a _______ gap.

communication

Horizontal price fixing occurs when _______.

competitors that produce and sell competing products work together to control prices

Consumers invest the least amount of effort when considering the purchase of _______ products.

convenience

For most buyers, bread, soap, milk, and soda pop are _________ goods.

convenience

A candy bar might be a great tasting snack for some people or an energy boost for others. In either case, this describes the __________.

core customer value

A(n) _________ orientation explicitly invokes the concept of value such as when a firm uses a "no-haggle" price structure to make the purchase process simpler and easier.

customer

Firms with products in the _______ stage either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market.

decline

Without new products or services, the values of the firm will ultimately _________.

decline

If a firm deletes an entire product line, it has _______.

decreased its breadth

In the classic downward-sloping demand curve, as price increases, demand for the product or service _______.

decreases

When Sarah went to the hotel lobby for the free hot breakfast provided by the hotel, she found a poor selection of food that was not only stale, but also tasteless. This is an example of a ______ gap.

delivery

Colgate has a line of oral care products including toothpaste, toothbrushes and teeth whitening products. These products represent the ______ of the line.

depth

The process by which the use of an innovation—whether a product, a service, or a process—spreads throughout a market group, over time and across various categories of adopters, is referred to as _______.

diffusion of innovation

Through innovation, firms often create a broader portfolio of products, which help them _________ and enhance firm value better than a single product.

diversify their risk

By reducing consumers' search costs, _______ adds value; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores.

everyday low pricing

With a(n) _________strategy, companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer.

everyday low pricing

With the _________ effect, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price.

experience curve

The _______ stage of the product life cycle is marked by a growing number of product adopters, and increases in both the number of competitors and the number of available product versions.

growth

A(n) _______ strategy relies on limited-time offers and other promotions to encourage a temporary boost in sales.

high/low pricing

The first step in the product development process is _______.

idea generation

The _______ effect refers to the change in the quantity of a product demanded by consumers due to a change in their income

income

When relatively small changes in the price of a product do not generate large changes in the quantity demanded, it can be said that the market for the product is _______.

inelastic

Buyers who love to try out new goods and services before the general public accepts them are referred to as _______.

innovators

When getting a haircut, the customer not only is present, but also may participate in the service process. This is an example that the production and consumption of this service is_________.

inseparable

Because of the _______ of services, the images that marketers use must reinforce the benefit or value that a service provides.

intangibility

The ________ stage of the product life cycle is characterized by initial losses to the firm due to high start-up costs and low levels of sales revenue as the product begins to take off.

introduction

The ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

knowledge

Kellogg's has a long list of ready-to-eat cereals which consumers think of as a similar group of products. Kellogg's ready-to-eat cereals are a product ________.

line

In the United States, most consumer packaged goods found in grocery and discount stores are already in the _______ stage, which is characterized by the adoption of the product by the late majority and intense competition for market share among firms.

maturity

The complete set of all products offered by a firm is its product _______.

mix

Commercial airline travel in the United States is an example of which level of price competition?

oligopolistic competition

Services are _______ in that they cannot be stored for use in the future.

perishable

Effective service recovery entails all of the following EXCEPT _______.

placing blame with the customer to reduce costs

Most goods for sale follow the traditional downward sloping demand curve with the exception of _______ products

prestige

With ______ products a higher price might lead to a greater quantity sold, but only up to a certain point.

prestige

Each point on the demand curve represents the quantity demanded at a specific ______.

price

When firms sell the same product to different resellers (wholesalers, distributors, or retailers) at different prices, it can be considered _______.

price discrimination

The _________ measures how changes in a price affect the quantity of the product demanded.

price elasticity of demand

For _______ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products.

price skimming

Customers tend to believe they have been treated fairly if the service providers follow specific company guidelines. This is an example of _______.

procedural fairness

With regard to complaints, _______ refers to the perceived fairness of the process used to resolve customer complaints.

procedural fairness

Introduced in 1920, Band-Aid now has more than 40 products to help heal cuts and scrapes. Band-Aid has, over the years, increased their _________.

product line depth

With ___________, there are a large number of sellers of standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals

pure competition

In an advertisement, Sears provides a price, in smaller print and labeled "Reg.," to indicate that $35 is the regular price of Levi jeans. In addition, the advertisement highlights the current "sale" price of $31. The "Reg." price appears as an example of ___________.

reference pricing

Firms that use a(n) _______ orientation to set prices believe that increasing sales will help the firm more than increasing profits.

sales

Customers have certain expectations about how a service should be delivered. When the delivery of that service fails to meet those expectations, a _______ results.

service gap

Customers' perceptions of how well a service meets or exceeds their expectations is referred to as _______.

service quality

Rachel has visited several stores comparing sneakers. For Rachel, sneakers would be a(n) _____ product.

shopping

The service dimensions with the _______ zones of tolerance are the most important for a business to deliver on.

shortest

Miguel wants to buy a Jaguar automobile, but the closest dealer is 250 miles from his home. Nevertheless, Miguel is going to go to that dealer to buy his car. For Miguel, the Jaguar is a(n) ________ product.

specialty

The ________ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards the firm sets.

standards

When a consumer buys another brand of the same type of product due to an increase in price or a decrease in value, this is referred to as the _______ effect.

substitution

Firms usually implement a _______ strategy when they have a particular profit goal as their overriding concern.

target profit pricing

In order to examine the potential success of its 1/3 pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of _________.

test marketing

As a brand becomes more recognizable, _______.

the company doesn't have to spend as much on marketing the brand

Brands facilitate purchase in all of the following ways EXCEPT _______.

they are always appealing to the customer

Many people who take cruises are not aware that their normal health insurance policy will not cover emergencies in a foreign country. For this coverage, they need special trip insurance. For these people, trip insurance is a(n) __________ good.

unsought

An important marketing metric used to evaluate how well firms perform on the five service quality dimensions is the __________, which refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

zone of tolerance