Marketing Exam 2
If a cable television company had 100 million subscribers at the end of the year, and 2 million of its subscribers left its service, it would have a churn rate of a. 1 percent b. 2 percent c. 3 percent d. 4 percent e. 20 percent
2 percent
Because a market is saturated, firms may attempt to enter new geographical markets that may be less saturated. For example, pharmaceutical companies are realizing that they need to turn to ____________ for continued growth in the coming years. BRIC countries third-world countries communist countries Germany France
BRIC countries
For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting its marketing mix variables to give customers a. a more flexible supply chain strategy b. a perceptual map of the imaging landscape c, more product features than the competition offers d. lower prices than the competition offers e. a clear, distinctive, and desirable understanding of their products relative to competing products
a clear, distinctive, and desirable understanding of their products relative to competing products
Because many consumers choose stores based on proximity to their workplaces or homes, great locations are difficult to define. more important than great products. always situated near supply chain members. a competitive advantage that few rivals can duplicate. almost always locations next to big-box discounters.
a competitive advantage that few rivals can duplicate
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on a demand curve. the law of averages. multiple regression analyses. target return strategies. a sales orientation.
a demand curve
Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to a. how the secondary data was collected b. where the data were warehoused c. whether or not the Census Bureau has certified the research d. whether the data were transformed into information e. how often primary data were submitted for secondary data
a. how the secondary data were collected
All of the following are included in the five dimensions used by consumers to determine overall service quality except assurance. reliability. acceptability. responsiveness. empathy.
acceptability
Especially in the fashion industry where styles and trends change rapidly, a quick response system can allow retailers to better forecast long-term demand. reduce logistical overlay. increase cross-docking promotional effectiveness. align deliveries more closely with actual sales. allow manufacturers to introduce unpopular styles and still be successful.
align deliveries more closely with actual sales
Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of a. product style. b. the actual product. c. an associated service. d. the product position. e. the core value.
an associated service
When conducting a survey about choosing vacation destinations, Hillary will need to _________. in order to get reluctant respondents to provide honest information a. choose only highly verbal consumers b. assure consumers that their individual responses will be kept confidential c. use only focus group interviews d. as unstructured questions e. create an efficient data warehouse
assure consumers that their individual responses will be kept confidential
One of the reasons service failures need to be addressed quickly is to minimize the zone of tolerance. increase empowerment zones. avoid negative word of mouth from upset customers. avoid a situational ethics conflict. keep management from finding out what happened.
avoid negative word of mouth from upset customers
The term _______ refers to the enormous amount of information that firms now have access to but cannot handle using conventional data management and data mining software. big data churn data mining data dump information overload
big data
With more than 200 million active customers and billions of pieces of shopping data, Amazon qualifies as a big data user. syndicated data user. mining data user. panel data user. survey data user.
big data user
For retailers, promotion refers to supply chain communication. the relationship between price and product. the image a store attempts to maintain through its pricing strategy. both their in-store environment and their media communications. the seasonal discounts offered to move end-of-season items.
both their in-store environment and their media communications
All of the following are included in the main criteria used for determining how "good" a brand is, or how much equity it has except a. brand awareness. b. brand loyalty. c. brand associations. d. brand conceptualization. e. perceived value.
brand conceptualization
When a company launches a new product line with an existing brand name, this is known as a brand extension. a line extension. a multi-brand. a new brand. co-branding.
brand extension
When Disney flooded retail stores with products based on its Frozen movie, this illustrated a. strategic brand alteration. b. rebranding. c. brand licensing. d. brand repositioning. e. brand scaling.
brand licensing
Efforts to change a brand's focus to target new markets or change the image of a brand are called a. co-branding. b. brand extraction. c. brand collusion. d. brand repositioning. e. brand dilution.
brand repositioning
In addition to extensive online and outdoor advertising, Under Armour has intensified its ______ efforts by signing Washington Nationals baseball star Bryce Harper to the biggest endorsement deal for an MLB player. logo branding social media value differentiation
branding
All of the following are typical outlets used by retailers except catalogs. the Internet. business-to-business requests for proposals (RFPs). stores. restaurants and hotels.
business-to-business requests for proposals (RFPs)
Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of sales tactics. channel conflict. retail strategy tension. passive aggressive behavior. a failure of EDI processes.
channel conflict
Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of a. co-branding. b. brand extraction. c. brand collusion. d. a generic brand. e. brand dilution.
co-branding
All of the following are included in the five Cs of pricing except customers. channel members. cost. collaboration. company objectives.
collaboration
diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing? internal pricing profit-oriented pricing competitor-oriented pricing customer-oriented pricing sales-oriented pricing
competitor-oriented pricing
_______ products are products whose demands are positively related and as such, they rise or fall together. Substitute Premium Elastic Inelastic Complementary
complementary
One of the categories of products for which brand extension is especially logical is generic goods. generic services. commodities. complementary goods. licensed brands.
complementary goods
Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. He buys lunch while on the road visiting customers, and grabs bread and milk on the way home when he stops to buy gas. Brian probably does the majority of this shopping at a convenience store. warehouse club. conventional supermarket. drugstore. category specialist.
convenience store
In determining the price for his company's new photo printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using _______ pricing. improvement value EDLP reference-based cost of ownership premium
cost of ownership
The pricing method that considers what consumers may be willing to pay for a particular product based on the value received over the product's entire lifetime is the _______ pricing method. cost-based cost of ownership reference-based improvement value market-based
cost of ownership
By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by keeping up in a market where sales come mostly from new products. satisfying the changing needs of the technological research staff. avoiding market saturation from products that have just been introduced to the market. creating diversification and reducing risk. spreading out production costs.
creating diversification and reducing risk
All of the following are required to build a successful strategic relationship except mutual trust. open communications. creation of a joint venture. common goals. credible commitments.
creation of a joint venture
In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours. traditional combination cross-docking vertical horizontal
cross-docking
Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through reverse engineering. licensing technology. customer input. R&D consortia. clinical trials.
customer input
A "no haggle" pricing policy is a type of _____ pricing strategy. maximizing profits sales orientation target return status quo customer-oriented
customer-oriented
The Service Gaps Model is designed to highlight those areas where service providers provide the best possible service. manufacturers are cutting corners on product quality. customers believe they are getting less or poorer service than they should. service providers know more than their customers. delivered service exceeds expected service.
customers believe they are getting less or poorer service than they should
In addition to merchandise and payments, information flows throughout a supply chain. All of the following statements are a good characterization of the flow of information in a supply chain except a manufacturer will send and receive information from buyers, stores, and distribution centers. stores will send and receive information from manufacturers, buyers, distribution centers, and customers. distribution centers will send and receive information from stores and manufacturers. customers will send and receive information from stores and manufacturers. buyers will send and receive information from stores and manufacturers.
customers will send and receive information from stores and manufacturers
Marketers can take advantage of the variable nature of services by merging services with products. customizing services to meet customers' needs exactly. offering to expedite intangibles. expanding the standards gap. using strict standardization.
customizing services to meet customers' needs exactly
Which of the following reflects the maturity stage of the product life cycle? a. Sales: low; Profits: negative or low; Typical consumers: innovators; Competitors: one or few b. Sales: rising; Profits: rapidly rising; Typical consumers: early adopters and early majority; Competitors: few but increasing c. Sales: declining; Profits: declining; Typical consumers: laggards; Competitors: low number of competitors and products d. Sales: peak; Profits: peak to declining; Typical Consumers: late majority; Competitors: high number of competitors and competitive products e. Sales: peak; Profits: increase; Typical Consumers: laggards; Competitors: low number of competitors
d
Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed using data mining techniques to uncover a. data isolation b. data mining c. secondary data collection d. sentiment mining e. qualitative research
data mining
For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company __________ when certain product lines failed to meet this expectation. increasing product line depth decreasing product line depth decreasing product mix breadth increasing product mix breadth introducing brand extensions
decreasing product mix breadth
What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand? a. Demand is cross-price elastic. b. Demand is price inelastic. c. Demand is price elastic. d. Demand maintains the status quo. e. Demand results in the income effect.
demand is price elastic
Kellogg's marketing communications about its Special K cereal appeal almost exclusively to women. This is an example of __________ segmentation. a. geographic b. psychographic c. demographic d. benefits e. behavioral
demographic
If you walk into a(n) __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything organized into distinct departments for displaying merchandise. department store off-price retailer discount store specialty store category specialist
department store
Macy's, Kohl's, JCPenney, and Nordstrom are examples of department stores. off-price retailers. discount stores. extreme value stores. category specialist store
department stores
Psychographics is the segmentation method that delves into how customers a. adjust to demographic changes b. allocate scarce incomes to a variety of goods and services c. describe themselves d. value their livelihoods e. believe other people see them
describe themselves
To meet or exceed customers' expectations, marketers must know where customers live. know how often consumers buy their products. determine what those expectations are. recognize that expectations are tangible. empower customers to meet their own expectations.
determine what those expectations are
The process by which the use of a new product or service spreads throughout a market group is referred to as new product introduction. lead user dispersion. diffusion of innovation. the product life cycle. product development diffusion.
diffusion of innovation
All of the following are activities carried on in a distribution center except coordinating inbound transportation. receiving, checking, storing, and cross-docking merchandise. distributing paychecks and paystubs for retail employees. getting merchandise floor ready. coordinating outbound transportation.
distribution paychecks and pay stubs for retail employees
A weakness associated with cost-based pricing methods is that they are too difficult to calculate. do not consider profit when calculating. do not recognize the role consumers or competitors' prices play in the marketplace. do not consider fixed or variable costs. are structurally inflexible and ignore vertical price-fixing alternatives.
do not recognize the role consumers or competitors' prices play in the marketplace
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. innovator laggard late majority early majority early adopter
early adopter
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. innovator laggard late majority early majority early adopter
early majority
The price elasticity of demand for a teeth-whitening kit is −1. The market for this product is considered ineleastic. elastic. dynamic. saturated. a prestige market.
elastic
Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back. cross-docking exchange electronic data interchange vendor-managed inventory vertical conflict reduction radio frequency identification
electronic data interchange
After installing a(n) _______ in its JIT system, Chocolate Tree (a retail chocolate store) was able to reduce lead time for merchandise orders. supply chain distribution center quick change directory electronic data interchange system checking system
electronic data interchange system
Flora is frustrated with her company's supply chain management information system. She wants to be able to receive sales data, initiate purchase orders, send and receive invoices, and receive returned merchandise documentation. Flora needs a(n) cross-docking exchange. electronic data interchange system. vendor-managed inventory system. vertical conflict reduction system. radio frequency identification system.
electronic data interchange system
Using technology and __________ are two ways a delivery gap can be reduced in size. empowering employees variability analysis voice-of-customer analysis zone of tolerance analysis public relations
empowering employees
One of the potential benefits to a firm of introducing new-to-the-world products or services is cost savings. late majority marketing. establishment of a completely new market. the ability to avoid paying pioneers for new product development. the ability to capitalize on existing consumer preferences.
establishment of a completely new market
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to a. categorize each market segment by consumer demographics b. establish her overall objectives c. decide on a targeting strategy d. develop a positioning strategy e. evaluate the attractiveness of each segment
evaluate the attractiveness of each segment
Academic researchers often jump at the opportunity to conduct a research study, curious to learn more and address unanswered questions for the sake of general knowledge. Businesspeople tend to be more cautious before embarking on a marketing research study, recognizing that research is often beyond most managers' ability to comprehend. expensive and time-consuming. an academic exercise of little real value. an impediment to decisive management. of little use in real marketing situations.
expensive and time-consuming
The __________ occurs when unit cost drops as the quantity sold increases. slotting allowance benefit price fixing return improvement value effect experience curve effect cumulative bundling benefit
experience curve effect
Which type of store is small and offers a limited merchandise assortment at very low prices? specialty stores extreme-value retailers outlet stores limited assortment supermarkets convenience stores
extreme value retailers
Higher-income consumers visiting __________ feel like they are on a treasure hunt, searching for a bargain. department stores extreme-value retailers big-box retailers services retailers category specialist stores
extreme-value retailers
Fredrica manages an upscale women's clothing store. She wants more information about her customers general feelings about upcoming fall fashions. Frederica will most likely use _______ to gather this type of data a. door to door surveys b. focus group interviews c. syndicated data d. sales invoices e. census data
focus group interviews
Tyree is concerned about a competitor's new line of outdoor barbecue grills that provide most of the same features as his products. Tyree might consider using __________ to gather qualitative information from consumers about the competitor's offerings. industry surveys experiments focus groups observation primary data mining
focus groups
Retailers that offer a broad variety of merchandise, limited services, and low prices are known as full-line discount stores. convenience stores. home improvement stores. category specialists. department stores.
full-line discount stores
The phrase "birds of a feather flock together" captures the idea of _____ segmentation a. geodemographic b. benefit c. psychographic d. loyalty e. geographic
geodemographic
Nora is deciding whether to purchase brand-name sneakers or a less expensive store brand. She has purchased other shoes with the same brand name in the past but was only marginally satisfied. In this situation, Nora is likely to purchase the store-brand sneakers because they offer more brand awareness. higher degrees of brand loyalty. greater perceived value. a better brand image. more product line depth.
greater perceived value
Each time a politician or celebrity writes a book, bookstores can expect at least some customers to want the book, but whether or not it will become a best-seller is less certain. The bookstore's primary inventory management challenge is how to get the author to sign copies of the book. whether to price the books in the distribution center or at the retail store. which other books to promote along with this book. whether or not to display the book at the checkout counter. having enough books to satisfy customer demands versus the cost of having the inventory.
having enough books to satisfy customer demands versus the cost of having the inventory
Martha had several unpleasant experiences trying to find the merchandise she needed at a large lumber yard and hardware store. The employees—when she could find them—rarely seemed to know where anything was outside of their own departments. But on her most recent visit, she was pleasantly surprised to find that the store had installed kiosks where she could get directions quickly and accurately. The store had found a technological solution to the services marketing issue of intangibility. part-time employees. perishability. inseparability. heterogeneity.
heterogeneity
Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds. government regulations Better Business Bureau guidelines high costs accounting concerns well-publicized liability cases
high costs
If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used? horizontal price fixing vertical price fixing horizontal price discrimination vertical price discrimination loss-leader pricing
horizontal price fixing
Several airlines have agreed to charge the same fare for a single route. The airlines are using horizontal price fixing. vertical price fixing. horizontal price discrimination. vertical price discrimination. loss leader pricing.
horizontal pricing fixing
Which of the following is the most logical example of complementary products? hot dogs and hamburgers VCRs and DVD players hot dogs and hot dog buns Honda cars and Toyota cars a university and a corporation
hot dogs and hot dog buns
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie's first consideration? What is the appropriate advertising strategy? When will customers want this product? What prices will customers be willing to pay? What assortment of products will customers want? How likely is it for certain retailers to carry this product?
how likely is it for certain retailers to carry this product?
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model. innovators; early adopters early adopters; the early majority the early majority; the late majority the late majority; laggards laggards; innovators
innovators; early adopters
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of instrumental support. employee incentives. emotional support. line extensions. the delivery gap.
instrumental support
Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin's problems is that services are __________, making evaluation of service quality difficult. quantifiable substantial unequally distributed intangible inconsequential to customers
intangible
When supply chain members view their goals and ultimate success as intricately linked, or ________, they develop deeper long-term relationships. conventional vertical horizontal administered interdependent
interdependent
The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, What percentage of people in Kansas live in communities of less than 10,000 people? The problem with this research objective is that it is irrelevant to the cellular company. it is already known and available from the U.S. Census Bureau. it will lead to a set of unstructured questions it probably can't be determined with any level of accuracy. the research will be costly.
it is already known and available from the us census bureau
All of the following statements regarding secondary packaging are true except a. It can provide information to consumers not found on the primary packaging. b. It is important to the retailer in terms of convenience in handling. c. It can be an important positioning tool to convey the brand image. d. It can allow for cost efficiencies due to larger order and shipment sizes. e. It is of little value to the average consumer.
it is of little value to the average customer
Jackson manages an upscale French restaurant in the Washington, DC, area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his servers to report comments and requests for items that have previously been offered only as specials. Jackson uses this information to reduce the __________ gap in services marketing. seniority knowledge standards delivery communication
knowlege
All of the following are characteristics of products in the maturity stage of the product life cycle except laggards are a major focus of marketing efforts. price competition is intense. marketing costs increase as firms defend their market share. the market may become saturated because nearly all potential customers have adopted the product. to increase the customer base, firms consider entry into new markets and new market segments.
laggards are a major focus of marketing efforts
Today, __________ dominate supply chains. large retailers manufacturers government agencies wholesalers distributors
large retailers
When confronted with an angry and emotional customer, the best first step toward service recovery is to call security in case it is necessary to escort the person from the building. match the person's voice in intensity and volume to gain control of the confrontation. gently but firms tell the person you will not tolerate being addressed in that tone of voice and turn away until he or she calms down. listen carefully and with empathy until the customer feels he or she has been heard. ask a coworker to take over handling the complaint to get a neutral perspective.
listen carefully and with empathy until the customer feels he or she has been heard
__________ pricing tactics lower the price of a product below the store's cost. Fixed Zone Regular Loss-leader Cost-based
loss-leader
All of the following are common business-to-business pricing tactics except seasonal discounts. slotting allowances. quantity discounts. loss-leader pricing. advertising allowances.
loss-leader pricing
A product in the __________ stage of the product life cycle has a high number of competitors and competitive products. introduction growth decline development maturity
maturity
In the United States, most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle. growth pioneer introduction decline maturity
maturity
If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market. pure competition oligopolistic competition monopolistic competition monopoly duopoly
monopolistic competition
In a market with _______ there are many firms providing differentiated products. pure competition oligopolistic competition monopolistic competition a monopoly a duopoly
monopolistic competition
One of the key characteristics of brainstorming sessions is no idea is immediately accepted or rejected. everyone must come up with ideas. the first idea is almost always the best idea. only the marketing team is included in these sessions. the manager should always make the final decision.
no idea is immediately accepted or rejected
When consumers are unable to articulate their experiences, _____ becomes particularly useful in understanding consumers' preferences a. observation b. surveying c. in-depth interviewing d. primary data mining e. a focus group
observation
__________ can purchase merchandise at substantial discounts from the original wholesale prices because they do not ask the suppliers for advertising allowances or markdown adjustments. Department stores Specialty stores Category specialists Drugstores Off-price retailers
off price retailers
Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine all of the following EXCEPT a. what a typical shopping list looks like b. whether changes in prices affect buying c. marketplace trends d. what kinds of promotions might be attractive to you e. other stores where you buy similar products
other stores where you buy similar products
The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market. blockbuster early adopter pioneer market tester concept tester
pioneer
_______ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitor's offerings a. processing b. preceptualizing c. positioning d. proportioning e. prospecting
positioning
______is a disadvantage of secondary research, while ________ is a disadvantage of primary research. Cost; outdated information Time required for collection; sources not original Potential bias; cost Outdated information; information not relevant to data needs Sophisticated training required to obtain it; potential bias
potential bias; cost
If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with loss-leader pricing. bait-and-switch pricing. price fixing. unfair slotting. predatory pricing.
predatory pricing
_______ must always be aligned with other elements of a retailer's strategy in order to accurately define the value of the product and a retailer's image. Mobile commerce Transportation Distribution Price Labeling
price
Generally, a _______ represents either a short-term response to a competitive threat or a broadly accepted method of calculating a final price for the customer that is short term in nature. pricing strategy reference price high/low strategy loss leader price pricing tactic
pricing tactic
Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. a. brand equity b. product line breadth c. product line depth d. product mix depth e. product mix breadth
product line depth
The complete set of all products offered by a firm is called its a. product line. b. product categories. c. product mix. d. product breadth. e. product line depth.
product mix
Personal selling is particularly important for retailers selling online services. discount items. products that are complicated or expensive. low-cost services. trend or fashion items.
products that are complicated or expensive
Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to product mix breadth. corporate stakeholder relations. profitability. brand liability. perceived brand personality.
profitability
Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to ban abusive customers from their restaurants. reward service providers based solely on the speed of service. provide emotional support and concern for their employees. review the delivery support system. make sure services delivery expectations are consistent and coherent throughout the organization.
provide emotional support and concern for their employees
After observing a customer verbally abuse a server, the first thing a manager can do to ensure quality service is to throw the customer out of the restaurant. assume the server provoked the attack and respond accordingly. provide emotional support to the server. review the delivery support system. make sure services delivery expectations are consistent and coherent throughout the organization.
provide emotional support to the server
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by empowering consumers. providing support and incentives for their employees. directing zone of tolerance limits for employees. doing effective customer screening. forcing rude customers to use technology.
providing support and incentives for their employees
Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation. a. demographic; psychographic b. geographic; geodemographic c. psychographic; demographic d. demographic; behavioral e. demographic; benefit
psychographic; demographic
Education marketers know that the primary motivations of most nontraditional college students are self-respect and self-fulfillment, so they craft their marketing message to emphasize the benefits these consumers are looking for in a college education. What type of segmentation method was used to segment this market? a. psychographics b. demographics c. geographics d. geodemographics e. behavior
psychographics
Historically, prices were the center of attention in almost all marketing strategies. analyzed and changed constantly. calculated to minimize contribution per unit. allowed to vary seasonally as cross-shopping tendencies fluctuated. rarely changed except in response to radical shifts in market conditions.
rarely changed except in response to radical shifts in market conditions
Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions. fixed price reference price seasonal price leader price cost-based price
reference price
In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy. improvement value odd-even prices everyday low pricing reference prices cost of ownership
reference prices
Cheryl will let only Martiné cut her hair. She has tried other stylists, but she knows from experience that Martiné cuts her hair well every time. For Cheryl, __________ is the most important of the five service quality dimensions. assurance reliability tangibles responsiveness empathy
reliability
The marketing of services differs from product marketing because services are all of these except intangible. inseparable. heterogeneous. renewable. perishable.
renewable
In vendor-managed inventory systems, corporations send information to retail customers, bypassing wholesalers and retailers. companies send information to cooperatives. customers send information to retailers. sales reps send sales information to the retailer. retailers send sales information to the manufacturer.
retailers send sales information to the manufacturer
__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. Reverse innovation Reverse engineering Selective dissection Redistribution Creative destruction
reverse engineering
When Joe's Chicken Shack wants chicken delivered in smaller batches more frequently, it offers its distributors an incentive in the form of special bonuses to change their schedules. Joe's demonstrates which kind of power? coercive reward referent expertise information
reward
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort? industry-oriented sales-oriented competitor-oriented innovation-oriented customer-oriented
sales-oriented
When Betty decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest. This group is called a sample. focus group. target market. demographic. potential customer.
sample
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. promotional discounts zone of tolerance allowances perishability gap analysis point-of-purchase displays satisfaction guarantees
satisfaction guarantees
Both major political parties have developed proprietary databases that contain vast information about voters, broken down by demographic and geographic information. This kind of information is primary data. secondary data. syndicated data. neuromarketing. qualitative research.
secondary data
A(n) __________ distribution intensity helps a seller maintain a particular image and control the flow of merchandise into an area. intensive widespread selective collective variable
selective
Stores like Home Depot and Costco act as wholesalers when they take delivery in whole-lot quantities. sell directly to consumers. sell products for distributors. sell to contractors or restaurant owners. compete with each other.
sell to contractors or restaurant owners
All of the following are guidelines for developing a market research questionnaire except a. the layout should be professional and easy to follow b. questions should address only one issue at a time c. questions should be sentenced appropriately d. questions should use vocabulary respondents are familiar with e. sensitive questions should be asked first
sensitive questions should be asked first
Carol's Studio, located in a shopping mall, offers Zumba dance classes for all ages. Carol's Studio is known as a(n) service retailer. category specialist. specialty store. outlet studio. small-box specialist.
service retailer
The percentage of a customer's purchases made from a particular retailer is referred to as share of wallet. share of market. customer loyalty. customer relationship management. customer value ratio.
share of wallet
Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product? a. convenience b.unsought c. shopping d.luxury e.routine
shopping
When Meg planned her trip to Australia, she spent months evaluating packages, airfares, and hotel accommodations. Meg's trip is an example of a(n) ________ product. a. shopping b. convenience c. sought d. unsought e. specialty
shopping
Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price penetration. bundling. fixing. referencing. skimming.
skimming
Which of the following markets is most likely to be characterized by oligopolistic competition in the United States? soybeans pens and pencils smartphone service providers men's clothing electrical service to the home
smartphone service providers
When Delta increases its average fares, American Airlines and United often follow with similar increases. This is an example of competitor orientation. customer orientation. status quo pricing. customer orientation. adding value.
status quo pricing
__________ are subtle forms of promotion that facilitate shopping. Electronic signs Store credit cards and gift cards Large stocks of popular national brands Quick response and just-in-time delivery systems Extreme value offers and specialty share of the wallet programs
store credit cards and gift cards
Commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen are sources of a. primary data b. internal secondary data c. syndicated data d. public data e. data mining
syndicated data
Because there are only a few firms in markets with oligopolistic competition, everyone is a price taker. producers do not have to consider the reactions of rival firms. government often encourages consolidation to reduce the number of competitors. price wars may occur. the many competitors will focus on product differentiation.
the many competitors will focus on product differentiation
All of the following statements regarding brand loyalty are true except a. the marketing costs of reaching loyal customers are typically very high. b. brand-loyal customers are unlikely to switch to competitor's brands. c. brand-loyal customers generate positive word of mouth. d. firms tend to reward brand loyal customers with extra benefits. e. brand-loyal customers do not need persuasion to buy the firm's brands.
the marketing costs of reaching loyal customers are typically very high
Earl was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Earl perceived price as _______ for a good or service, while most consumers recognize price as the _______ made to acquire a good or service. the money paid; overall sacrifice a variable cost; fixed cost a fixed cost; variable payment the overall sacrifice; monetary payment the break-even amount; total cost
the money paid; overall sacrifice
Salina is working to create greater brand awareness for her company's new line of fitness trackers. To increase brand awareness, the least important information that should be included in promotions is a. the brand name. b. the logo. c. the packaging. d. the slogan. e. the product history.
the packaging
All of the following are included in the full price of a product or service except taxes. shipping. travel costs. the price of alternative products and services. value of the consumer's time.
the price of alternative products and services
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates the product launch. the company's evalutation of results. premarket demonstrations. alpha testing. beta testing.
the product launch
Manufacturers use cash discounts primarily because it allows them to benefit from uniformed delivered pricing. seasonal slotting allowances. price skimming. the time value of money. high/low pricing.
the time value of money
One problem in relying on price elasticity and demand curves when setting prices is a. the way a product or service is marketed can have a profound impact on price elasticity. b. the underlying ideas of the demand curve and elasticity are less relevant in the modern economy. c. only economists can properly analyze demand curves and set prices using this tool. d. competitors can construct the same demand curves, so there is no advantage in using them. e. marketing split from economics over the ideas of demand and elasticity.
the way a product or service is marketed can have a profound impact on price elasticity
Value-based pricing can be difficult to implement because the way consumers perceive value changes often. this method requires all costs be identified and calculated on a per-unit basis. value depends on variable costs and not fixed costs. everyday low pricing has neutralized the impact of price on consumers' purchase decisions. it is difficult to determine how competitors will price their products.
the way consumers perceive value changes often
The key factor distinguishing retailers from other members of the supply chain is that they sell to consumers, businesses, and government. they utilize marketing to reach consumers. they use advertising to generate demand. they rarely engage in personal selling. they sell to customers for their personal use.
they sell to customers for their personal use
If a market penetration pricing strategy results in lower per-unit cost, competitors might be discouraged from entering the market because selective consumer demand will increase gross profit margins. a high/low cost-based pricing strategy will not work. they would likely need to quickly produce a large volume in order to compete. profits would increase too rapidly. they would be able to advertise only to the same target market as the firm that introduced the original product.
they would likely need to quickly produce a large volume in order to compete
The contribution per unit is price minus total costs. price minus total variable cost. price minus variable cost per unit. total revenue minus total cost. break-even quantity divided by total fixed costs.
total revenue minus total cost
Leona is the logistics manager for the Barnes & Noble bookstore chain. She is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increase _______ costs. sales force labor transportation promotional advertising new product development
transportation
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products. relative advantage compatibility observability complexity trialability
trialability
A customer orientation toward pricing implicitly invokes the concept of a. knowing the dimensions of the target market. b. positioning. c. the income effect. d. value. e. profit.
value
The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of data warehousing. a push marketing strategy. vendor-managed inventory. manufacturer-managed distribution. cross-docking.
vendor-managed inventory
A(n) __________ is a supply chain whose members act like a unified system. vertical marketing system independent marketing system concentrated marketing system conventional marketing system strategic marketing system
vertical marketing system
A ___________ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers. supply chain direct marketing virtual marketing wholesale marketing social media
virtual marketing
Cost-based pricing assumes that costs will vary with the level of prices. are used to estimate value. are calculated based on historical consumer perceptions of what things should cost. will continue to decrease as production increases. will not vary much for different levels of production.
will not vary much for different levels of production
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask? What retailers should be used to sell the swimwear? Will retailers purchase the swimwear if it becomes available? What wholesale price should be charged? What promotional plan will work best? In which season should we introduce the product?
will retailers purchase the swimwear if it becomes available?
The first question a marketing researcher should ask before embarking on a research study is a. who will pay for it b. will the research be useful c. when is the due date d. what sample size will be needed e. should we use structured or unstructured questions
will the research be useful
When John checked into his Orlando hotel, the front desk clerk informed John that his room would not be ready for another 20 minutes. John didn't mind waiting; he had arrived well ahead of the standard check-in time and this wait time fell within his __________, the area between his expectations regarding desired service and the minimum level of service he will accept. zone of tolerance delivery gap zone of intolerance service gap patience zone
zone of tolerance