Mkt 205 Principles of Marketing Final Exam - Bob Jones University - Dunn - Fall 2018

Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.

brand personality

Home Depot and PetSmart are examples of ________.

- category killers factory outlets warehouse clubs superstores off-price retailers

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

- launching a fighter brand improving product quality using high-low pricing raising the perceived value of a product accepting a reduced market share

At its most basic form, a marketing channel consists of the producer and the ________.

- retailer consumer competitor processor sales agent

NOT an accurate description of modern marketing

Marketing emphasizes selling and advertising exclusively.

Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________

Marketing intermediary

Marketing Mix

Product, Price, Promotion, and Place

________ are the major marketing factors in the sale of most manufactured materials and parts.

Public relations and brand management - Price and service Branding and advertising Branding and packaging Sales promotion and advertising

Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.

demand

Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.

derived

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

differentiation relevance equity personality knowledge

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

direct marketing - sales promotion public relations personal selling affinity marketing

Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.

enefit gender psychographic - age and life-cycle geographic

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________

functional allowances cash discounts trade-in allowances seasonal discounts - promotional allowances

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

local marketing

Which group includes neighborhood residents and community organizations?

local publics

In addition to segmenting and targeting the correct market, which of the following is NOT an area in which marketers must make decisions?

product assortment services mix store's atmosphere using experiential retailing - manufacturing schedules

For which of the following products would the intensive distribution strategy most likely be used?

soft drinks luxury cars high-end cameras lawn mowers furniture

Companies can legitimately charge a higher price if ________.

the demand for products manufactured by a firm is highly elastic consumers de-emphasize quality the cost of advertising is minimal - consumers perceive that the company's product offers greater value derived demand remains constant

Customer equity refers to ________.

the total combined customer lifetime value of all of the company's current and potential customers

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?

true friends

A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs.

variable target total unit - overhead

Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ________.

variety-seeking buying behavior

McDonald's, Subway, and Jiffy Lube are all examples of ________.

voluntary chains retailer cooperatives - franchises category killers power centers

Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________.

wholesaling nonstore retailing shopper marketing - experiential retailing showrooming

A company can ________ an SBU by selling it or phasing it out and using the resources elsewhere.

OPTIONS: divest promote expand hold

Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?

product differentiation

least likely to be a tool used by small businesses?

purchasing data from Nielsen or U.S. Yankelovich MONITOR

By definition, ________ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

segmented variable cost-plus reference flexible

Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Macy's typically charges a relatively high markup, but also holds frequent sales and price promotions, in particular offering discounts to customers who use a Macy's credit card. Macy's uses ________.

self-service retailing experiential retailing high-low pricing everyday low pricing retail convergence

Jolene's firm markets preplanning services for a mortician. She finds that most of her target market avoids discussing future funeral needs. She convinces people to invest in the firm's services through her large-scale promotional efforts. Jolene's firm most likely practices the ________.

selling concept

Introducing a new product into the market is called ________.

simulation test marketing segmentation commercialization co-marketing

As a manufacturer increases the price, ________.

the break-even volume drops

A company should strive to build a brand name that becomes identified with the product category, as Scotch Tape did.

FALSE

A product line consists of unrelated products that are sold to diverse customer groups.

FALSE

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

FALSE

Air carriers transport digital products from producer to customer via satellite, cable, phone wire, or wireless signal.

FALSE

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

FALSE

Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.

FALSE

Department stores carry narrow product lines with deep assortments within those lines.

FALSE

GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

FALSE

The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

FALSE

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.

Internal Value Chain

disadvantage of using information from internal databases?

Internal information may be incomplete or in the wrong form for making marketing decisions.

Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?

SWOT analysis

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

Specialty products Consumer products Brands Liabilities - Services

________ are a type of SBU that often require heavy investments to finance their rapid growth.

Stars

A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

TRUE

A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

TRUE

Category killers are giant specialty stores that carry a very deep assortment of a particular line.

TRUE

Constantly reduced prices can erode a brand's value in the eyes of customers.

TRUE

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

TRUE

Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.

TRUE

In a retailer cooperative, independent retailers band together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

TRUE

true with regard to strategic planning?

The focus of strategic planning is to define a game plan for long-run survival and growth.

true of the Millennials?

They are the children of baby boomers and were born between 1977 and 2000.

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Unsought products Convenience products Capital items Supplies and repair services Shopping products

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Unsought products Shopping products Convenience products Capital items - Specialty products

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

administered vertical marketing system horizontal marketing system conventional distribution channel - multichannel distribution system corporate vertical marketing system

A segment is less attractive if it ________.

already contains many strong and aggressive competitors

Companies that adopt value-added pricing ________.

attach value-added features and services to differentiate their offers and support their higher prices

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

basing-point pricing - dynamic pricing price bundling cost-plus pricing captive pricing

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

business feasibility plan business proposal marketing strategy development product acceptance - business analysis

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

captive product primary product - by-product bundled product optional product

A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________.

cause-related marketing

A company or association's ________ is designed to help guide responses to complex social responsibility issues.

code of ethics

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

consumer-generated marketing

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.

convenience product product attribute service - specialty product capital item

In the new product development process, the first idea-reducing stage is ________.

crowdsourcing idea generation business analysis - idea screening concept development

In routine buying situations, which of the following members of the buying center has formal or informal power to select or approve the final suppliers?

deciders

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

decrease in the economies of scale - accumulated production experience increase in the diseconomies of scale increase in derived demand increase in primary demand

Trends in the natural environment include all of the following EXCEPT ________.

decreased costs of product development

first step in the marketing research process?

defining the problem and objectives of the study

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

idea generation product design product activation concept development and testing product development

A detailed version of a new idea stated in meaningful customer terms is called a product ________.

image - concept proposal solution lining

In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments.

individual survey - simulated test market focus group standard test market controlled test market

Cameron loves to own and be up-to-date on the latest technological gadgets available in the market. Among his friends, he is always the first to own the latest electronic gadgets. He loves trying out new products before others. Cameron most likely belongs to the ________ adopter group.

innovator

A person's buying choices are influenced by four major psychological factors?

learning motivation beliefs perception ???

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.

market growth rate

An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

market segments

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

market-penetration pricing market-skimming pricing product-line pricing cost-plus pricing competitive pricing

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

maturity growth laggard - decline incubation

Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats.

need recognition purchase decision alternative evaluation product evaluation - information search

Luke Price, a manager in an automobile factory, wanted his subordinates to rate their satisfaction about the new pistons that arrived last month. He asked them to rate the product based on strength and ease of handling. Which of the following is evident here?

performance review

A particular automobile company works to keep its customers happy after each sale, aiming to delight each one of them in order to increase their customer lifetime value. Which of the following steps of the buyer decision process does the company exemplify?

postpurchase behavior

Fire Up makes fireproof clothing material and it licenses select stores around the world to use its material to make finished products with the Fire Up logo. Which of the following types of franchising is evident here?

service-firm-sponsored equity strategic alliance manufacturer-sponsored retailer franchise system manufacturer-and-service-sponsored joint venture service-firm-sponsored retailer franchise system manufacturer-sponsored wholesaler franchise system