Marketing exam 2

Which of the below is correct about break-even analysis?

It fails to consider customer value and the relationship between price and demand.

A firm buys cleaning supplies from a supplier on a regular basis and consistently orders the same amounts of the same products from this supplier. This is an example of a(n) ________.

Straight rebuy

Which of the below conditions is the key for implementing an effective market-penetration pricing strategy for a product?

The market for the product is highly price sensitive.

Lagging adopters are tradition-bound, suspicious of changes, and adopt an innovation only when it has become something of a tradition itself.

True

A Pet Food Supplier divides its pet consumer market into cats, dogs, rabbits, and cage-birds. In this case, which of the following variables has the company used for market segmentation?

benefit

Tiffany is planning to release a new line of bracelet jewelry. It is currently evaluating the sales history of identical products and conducting a survey to estimate pessimistic and optimistic levels of expected sales for the new bracelet jewelry line. What stage of new product development process is Tiffany currently going through?

business analysis

Which of the below is an industrial product categorized under materials and parts?

cement

Which of the below sets the upper limit for a product's pricing?

consumer perceptions of value

Which of the below could initiate a price increase?

cost inflation

A cruise ship markets different vacation packages (i.e., services, products, activities) to different segments based on each segment's needs. What is this firm practicing?

differentiated

If Tiffany, an upscale jewelry retailer, starts selling inexpensive watches to take advantage of huge growth in low-end customer segments, what is Tiffany most likely engaging in?

downward stretching

A firm that uses captive-product pricing make up for the low prices of its main products by low prices on the captive products.

false

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

false

When compared to an undifferentiated targeting strategy, differentiated targeting strategy usually leads to weaker product position in each market segment.

false

Proctor and Gamble was the first company to introduce a deodorant for women formulated specifically for women's skin chemistry. Which variable has the company used for market segmentation?

gender

What is the first step in the new product development process?

idea generation

Which of the below is the proper sequence of the steps that firms generally follow in formulating a customer-oriented marketing strategy?

market segmentation, market targeting, differentiation, and positioning

A dog food manufacturer has just concept tested a new product idea, which is a chewable toy-food that not only entertains dogs but also cleans their teeth and provides the nutrition they need. The dog owners so far loved the idea. What is the next step in the new product development process?

marketing strategy development

If a firm is positioning its offerings as the best products at economical prices, what strategy is it using?

more-for-less

What does the second section of a marketing strategy statement of a new product describe?

planned price, distribution, and marketing budget for the first year

In what stage in the new product development process, the products undergo rigorous alpha tests to make sure that they perform safely and effectively, and beta tests so that consumers will find value in them and rate them.

product development

During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studying components to determine if they can be redesigned, standardized, or made less expensively?

product specification

Which products are purchased either less-frequently or infrequently and are subject to comparison shopping for price, quality, style, suitability, etc.?

shopping

What is the type of marketing practice and concept called that focuses on creating behaviors that will benefit individuals and society's well-being?

social marketing

Dr. Girard is in the process of redecorating her apartment. She has purchased unique looking oriental silk rugs for her living and dining rooms without going through any comparison shopping for rugs in department stores. What type of product did Dr. Girard purchase?

specialty product

A brand extension gives a new product instant recognition and faster acceptance.

true

Amazon uses dynamic pricing because it aims to be responsive to online buyers' wants and changes in the marketplace.

true

Augmented product decisions are built around the core benefits and actual product decisions and offer additional consumer service and other product related benefits.

true

Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing.

true

Business and consumer marketers use many of the same variables to segment their markets.

true

Competition-based pricing involves setting prices based on competitors' strategies, costs, prices, and market offerings.

true

Crowdsourcing refers to throwing the innovation doors wide open and inviting broad communities of people — customers, employees, independent scientists and researchers, and even the public at large — into the new product innovation process.

true

Marketers must be careful to guard against stereotypes when using age and life-cycle segmentation.

true

The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.

true

The major external sources of new product ideas include customers, suppliers, distributors, competitors, and research firms.

true

Total quality management (TQM) is an approach in which all of the employees are involved in constantly improving the quality of products, services, and business processes of a firm.

true

How are the fads are typically characterized by?

unusually high sales and rapid decline

What is the practice of adding more features to a product/service to differentiate and justify their high price is known as?

value-added

The Dominos Pizza brand name and its logo can be used as ________ that may potentially stimulate an individual's attention and decision to purchase pizzas at its locations.

Cues

Which of the below uses consumers' perceptions of what a product/service is worth as the key to pricing.

Customer value-based pricing

Which statement below is correct about the new product development process?

Customers, competitors, distributors, and suppliers are major sources of new product ideas.

Early mainstream adopters are venturesome and typically try new ideas at some risk.

False

Hispanic Americans are the most affluent and brand conscious demographic segment in the United States.

False

In a straight rebuy, a buyer considers a product or service for the first time.

False

Perceptual positioning maps are used by marketers to divide a market into smaller groups with distinct characteristics.

False

Perceptual positioning maps are used by marketers to identify supplier and retailer perceptions of a product.

False

The smaller the gap between expectations and performance of a product, the greater a consumer's dissatisfaction.

False

When buying unsought products, consumers spend considerable time and effort in gathering information and making comparisons.

False

Which of the below is a social factor that influences consumer buying behavior?

Family

Which of the below is the most correct statement regarding social class?

Social classes show distinct product preferences in areas such as clothing.