Marketing Management Exam 3

The test marketing was successful. Now, Jahzara needs to estimate the sales potential of the new all-natural cleaning product her company developed. Which of the following equations should she use? $SP = (MP × PI) + Pr $SP = (MP + PI) × Pr $SP = MP + PI + Pr $SP = MP × PI × Pr

$SP = MP × PI × Pr

What percent of a typical firm's value is determined by intangible assets, including its brand names? 50% 33% 25% 75%

50%

Since we read from left to right, when we see a price, we process the number of dollars before the number of cents. This is why so many prices end in which of the following numbers? 0 11 33 99

99

Companies who survive for decades need to do what with their logos? Colorize Keep Adapt Simplify

Adapt

Which of the following is known as a group of customers who love their brand so much that they like to connect with other customers who think like themselves? Brand group Brand community Brand ambassador group Brand conglomerate

Brand community

Which of the following is the strategic use of a brand's equity where the firm uses the brand's name to get customers to buy something new? House of brands Umbrella branding Co-branding Brand extension

Brand extension

Which of the following topics related to brand associations has been researched recently? Status symbols Tourism marketing Brand similarities Brand personalities

Brand personalities

Which is an example of co-branding? Krispy Kreme gets a new donut flavor. Nike offers golf balls as part of its golf line. QuickBooks has its basic software, a version for Macs, another for small business needs, and premier packets for professionals, nonprofits, and retailers. Brembo brakes are in Aston Martins.

Brembo brakes are in Aston Martins.

In order to best value a brand, how should it be measured? According to popularity By using focus groups By using a market survey By using means that best translates into a financial vocabulary

By using means that best translates into a financial vocabulary

Which of the following is not a physical quality of branding? Name and logo Color Packaging Cognitive association

Cognitive association

At which stage in the new product development process does the company have a number of ideas that it thinks might work and gets customers' feedback as to which ideas sound most promising? Test marketing Concept testing Product development Product testing

Concept testing

Focus groups and web surveys are used mostly during which phase of product development? Brainstorming Beta testing Concept testing Launch

Concept testing

Which of the following tends to be higher when the product has a clear relative advantage over existing products, is compatible with the customer's lifestyle, is not overly complex (or the complexity is masked by a user-friendly interface), and is easily tried or sampled in order to facilitate initial assessment? Consumer acceptance Risk Cost Efficiency

Consumer acceptance

Which of the following stages in the product life cycle occurs last? Maturity Market growth Market introduction Decline

Decline

Which of the following brand names lacks an inherent meaning? Coca-Cola Nike Dior Home Depot

Dior

What growth strategy combines new markets and new products? Market penetration Product development Market development Diversification

Diversification

Which growth strategy is the toughest? Market penetration Product development Market development Diversification

Diversification

Which of the following items is an example of brand extension? Dove soaps offer deodorant, body lotions, and hair care products, all called Dove. Intel is inside many PCs. Dawn dish soap and OLAY offer a hand renewal version of Dawn. Tide detergent contains the self-branded EverFresh scent.

Dove soaps offer deodorant, body lotions, and hair care products, all called Dove.

What term refers to the "wiggle room" in the supply and demand curve? Price insensitivity Elasticity Variance Error

Elasticity

Which of the following is represented by the Greek letter epsilon? Error Elasticity Profit Cost

Error

To what does FIFO refer? Four-in, four-out First-in, first-out Front-in, front-out Financially fit, financial options

First-in, first-out

Which of the following is not a source used to value a brand? Annual reports Customer surveys Focus groups Interbrand calculations

Focus groups

Marketers frequently use which of the following to try to estimate the likely results of various actions, most frequently price cuts and competitive response? Strategies Promotions Competition Game theory

Game theory

The point of which of the following is to get companies to think about the broader market, rather than only optimizing their own needs? Conjoint analysis Game theory Elasticity Competition

Game theory

What sub population is growing faster than any other in the United States? African American Hispanic Asian Caucasian

Hispanic

A brand name whose image is waning is less of a liability in which approach? Umbrella approach Community approach House of brands Marketing approach

House of brands

Marketing management is involved throughout the new product development process, and especially in which of the following stages? Test marketing Concept testing Product development Idea generation

Idea generation

Which of the following steps comes immediately after idea creation in the new product development process? In-house winnowing and refinement Concept testing Product testing Test marketing

In-house winnowing and refinement

Which type of branding is the primary form of co-branding in which one of the companies and its product is the primary host and the other company and its product add value to the host product? Ingredient Associated Global Enhanced

Ingredient

Which of the following is true about competitive pricing? It is set by covering costs and then adding some margin. It is set by covering costs only. It is set by figuring out just how much a customer is willing to pay and pricing near that mark. It is at a medium level, somewhere in between extremes, using competitors' prices as a starting point, and adjusting from there.

It is at a medium level, somewhere in between extremes, using competitors' prices as a starting point, and adjusting from there.

What term refers to the group of people who are the most risk averse, skeptical of new products, or economically marginalized? Early adopters Early majority Innovators Laggards

Laggards

Why can a store brand offer decent quality for lower prices? Inexpensive products compared to national brands Inexpensive packaging compared to national brands Lower advertising costs because they can advertise for free in the store Lower taxes than national brands

Lower advertising costs because they can advertise for free in the store

In which phase of the product life cycle is customer awareness getting stronger and some buzz occurring in the marketplace? Market introduction Decline Market growth Maturity

Market growth

During which of the following stages in the product life cycle is a new product (good or service) brought into the marketplace with heavy marketing spending? Market growth Market introduction Maturity Decline

Market introduction

In order to calculate sales potential, we need to know what three things? Market price, purchase potential, target market Test market size, purchase intention, target market Market intention, purchase potential, price Market potential, purchase intention, price

Market potential, purchase intention, price

A product has more competition during which of the following stages than in any other stage in its life cycle? Maturity Market growth Market introduction Decline

Maturity

A true global brand carries how many brand name(s) and logo(s) anywhere it is offered, and it is available in most markets in the world? At least five One More than 10 Unlimited

One

What type of consumer is represented by the left side of this figure? One who wants the brand and is willing to pay more to get it One who appreciates a good deal and will give up the brand to retain the lower price One who values low price and brand name both highly One who does not care about brand name or price

One who wants the brand and is willing to pay more to get it

Services are said to be which of the following, which means there is no such thing as storing inventory or excess capacity? Perishable Price sensitive Legitimate Concrete

Perishable

Which of the following is greater when the item is a luxury good rather than a necessity, when many substitutes are available, or when the purchase is a relatively big one? Price sensitivity Product sensitivity Place sensitivity Promotion sensitivity

Price sensitivity

What does it mean for demand to be unitary? Prices go up or down, but revenues remain about the same. Prices remain the same, but revenues go up and down. Prices and revenue change unpredictably. There is never a change in price or revenue.

Prices go up or down, but revenues remain about the same.

Which of the following is an example of a company using a house of brands approach? Honda has cars, motorcycles, and lawn mowers. Procter & Gamble has many brands including Crest and Swiffer. Canon makes cameras and copiers. Nike makes shoes, clothes, and gym bags.

Procter & Gamble has many brands including Crest and Swiffer.

What term refers to the likelihood that the target segment will buy the product? Sales intention Market potential Purchase intention Sales potential

Purchase intention

Which of the following pieces of information is found in scanner data? Quantities bought Price of competing products Customer's willingness to pay Product characteristic that attracted the buyer

Quantities bought

The point of indifference at which you say, "If you raise the price, forget it, I won't buy; if you drop the price, okay, I will," refers to which of the following terms? Reservation price Predatory pricing Deceptive pricing Vertical price fixing

Reservation price

Which of the following examples identifies a store brand? Sam's Choice Premium Second label Generic brand

Sam's Choice

National Product Company is indecisive about what prices it should charge for items in its new product line. The company wants the most accurate data on customers' willingness to pay for its products. National Product Company can use which of the following types of data to set prices, which can yield very precise estimates of demand and price sensitivities at numerous price points? Survey data Conjoint analysis Online data Scanner data

Scanner data

Which of the following is a branding question a company needs to consider as part of its overall marketing strategy? Should we offer multiple products under the same brand name, or roll them out with distinct brand names? How can we build our brand community? Should we change our current brand name? Should we form a brand conglomerate?

Should we offer multiple products under the same brand name, or roll them out with distinct brand names?

Which of the following is the idea that the price (on the sticker) is much higher than the referent? Price fixing Sticker shock Predatory pricing Price discrimination

Sticker shock

What is the key brand association? Attributes such as appealing color and a creative name Personal benefits of the product The extent to which the consumer relates to the brand Emotional benefits

The extent to which the consumer relates to the brand

When we draw a graph of price and demand, elasticity is defined by which of the following? The y-intercept of the line The x-intercept of the line The number of points we plot to create the line The slope of the line

The slope of the line

Which of the following is true about the price-sensitive segment? They are deal prone. They are inelastic. Demand doesn't change when the price changes. They'll buy our brand no matter what.

They are deal prone.

Which of the following statements is true about firms and brands named after the founder? They tend to have an inherent meaning. They show creativity in marketing. They do not translate well to other brands across the firm. They serve primarily as an ego trip for the founders.

They serve primarily as an ego trip for the founders.

Which approach is found frequently among companies with strong engineering orientations, pharmaceutical and biomedical firms, financial services, and many high-technology companies? Bottom-up Top-down Upward Downward

Top-down

Which branding approach provides stronger financial outcomes to the company? Umbrella approach House of brands Community branding Marketing approach

Umbrella approach

Which of the following is the formula for cost-plus pricing? Unit cost/(1 - X%) Unit cost × (1 - X%) Unit cost + (1 - X%) Unit cost - (1 - X%)

Unit cost/(1 - X%)

Which of the following is an assessment of what the customer gets compared with what the customer gives up? Market research Value Price Auction

Value

Which of the following is the Interbrand formula to assess the value of a brand? Value of firm minus physical and financial assets Price of brand minus packaging cost Tangible value minus intangible value Value of firm minus administrative costs

Value of firm minus physical and financial assets

Which of the following formulas defines profit? [(Price - Variable Costs) × Demand] - (Fixed costs) Price - Demand - (Fixed costs × Variable costs) Price + (Demand - Fixed costs) × Variable costs Price × (Demand - Fixed costs) + Variable costs

[(Price - Variable Costs) × Demand] - (Fixed costs)

A connection of nodes that deal with brand name, attributes, and abstract benefits is considered a(n) _____. brand community emotional connection brand association network brand mapping

brand association network

When considering being worldwide, it is generally better to use the same _____. brand name advertisement price store brand

brand name

Branding cities and countries is becoming increasingly popular, as destinations seek more tourism or _____. business investment recognition taxes population

business investment

Companies build associations to their brands through _______. classical conditioning operant conditioning learning behavioral studies

classical conditioning

The opposite of a top-down approach is usually called _____. outside-in inside-out co-creation bottom-up

co-creation

Free spirits eschew big national brands due to the __________ they represent. value image commercialism country of origin

commercialism

The medium price of a product is determined by ______. the customer's willingness to pay competitors' price ± fudge factor cost + markup the product's popularity

competitors' price ± fudge factor

If the inner/middle pricing choice between two extremes looks particularly attractive, we call this the reference. median. compromise. average.

compromise.

(Price - Variable costs) is also called ______. profit contribution per unit to fixed costs maximum sales volume fixed price units per contribution

contribution per unit to fixed costs

The process of developing new products depends first on a company's ______. bottom line size location culture

culture

The stage of the product life cycle where sales and profits drop and new products replace older generations is called ______. market growth market introduction decline maturity

decline

Strong brands _______. are a liability deliver greater returns with less risk guarantee success for a company are the most significant barrier to entry in the market

deliver greater returns with less risk

The group made up of approximately 10-15% of the population who is so influential that the loss of one of these customers costs the firm more than the loss of later adopters are known as the _____. innovators late majority early majority early adopters

early adopters

The group of people that are more risk averse and wait to hear that people who have already adopted the product have had favorable experiences with the new product are known as the _____. early adopters late majority innovators early majority

early majority

If demand bounces around when prices change, it is ______. elastic stable absolute unreliable

elastic

A price's role as a cue is so strong that prices are known to contribute to the formation of __________ prior to a purchase. beliefs expectations decisions explanations

expectations

Using customer data from test marketing to predict the product's likely success is known as ________. forecasting foreshadowing test marketing profit prediction

forecasting

There is less risk with __________ new products than with __________ new products. inexpensive, expensive expensive, inexpensive incrementally, really really, incrementally

incrementally, really

If a change in price barely affects demand, it means the demand is ______. supplied inelastic unstable relative

inelastic

Most co-branding examples lean more toward being ______. brand personalities umbrella branding luxury branding ingredient branding

ingredient branding

The 3-5% of consumers who like to try new ideas and are willing to take risks are known as _____. early adopters innovators the early majority laggards

innovators

In the top-down approach, the idea comes from within the company, and then feedback from the outside is sought later in the process. Because of this, top-down is also called _____. inside-out outside-in long-term short-term

inside-out

Profit maximization occurs when marginal revenue equals ______. marginal profit marginal sale marginal cost cost-plus pricing

marginal cost

If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components), the strategic objective is to ______. maximize per unit margins eliminate advertising maximize sales volume raise the price as much as possible

maximize sales volume

How many new brands are issued annually by the U.S. Patent and Trademark Office? 25,000 50,000 75,000 more than 100,000

more than 100,000

The most stunning demographic trend in America and Western Europe is that the population is becoming _______. older less educated more wealthy more concerned about the environment

older

When testing the best color for a new detergent, SoapSuds Inc. set up a test market that uses a virtual shopping experience to give customers a chance to buy the product (or not). This is called a(n) _____. simulated test market area test market electronic test market forecast test market

simulated test market

If E = 1, demand is said to be ______. elastic inelastic unitary invalid

unitary

Because customers typically overstate their purchase intention, research has suggested ratcheting down the purchase intention estimate by a factor of ______. ¼ ¾ ½ ⅛

¾