MKT 320 Exam 3

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is 20 units. 100 units. 250 units. 4,000 units. 1,000 units.

250 units.

__________ research is a type of quantitative research that manipulates variables to help determine cause and effect. Focus group Syndicated Descriptive Manipulative Experimental

Experimental

What makes a high/low pricing strategy appealing to sellers? It allows the seller to market itself as an "everyday low price leader." It attracts two distinct market segments. It reduces the need for slotting and advertising allowances. It allows sellers to capture the most profit from a new product or service. It doesn't require the seller to continually offer sales or deep discounts.

It attracts two distinct market segments.

________ is another term for private-label brands. Store brands Experiential brands Manufacturer's brands Off brands National brands

Store brands

Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be door-to-door surveys. focus group interviews. syndicated data. sales invoices at public libraries. U.S. Census data.

U.S. Census data.

In countries like the United States, services have almost all been replaced by technology. are a small portion of GDP relative to manufacturing. will decrease in demand as the population ages. are replacing property taxes as a source of government revenue. account for an increasing share of jobs.

account for an increasing share of jobs.

By providing good customer service, firms __________ their products. increase the perishability of reduce the empowerment cost associated with reduce the assurance for eliminate the communication gap for add value to

add value to

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 the product position. an associated service. the core value. the actual product. product style.

an associated service.

In a __________ pricing tactic, sellers advertise very low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price. bait-and-switch cost-based reference seasonal fixed offer

bait-and-switch

In the case of Band-Aid adhesive bandages, the brand name has distinctive brand substitutability. avoided brand extensions. successfully employed private-label branding. grown through private-label branding. become synonymous with the product itself.

become synonymous with the product itself.

A _______ refers to the use of the same brand in a different product line. product mix extension co-brand brand license brand extension line extension

brand extension

Efforts to change a brand's focus to target new markets or change the image of a brand are called brand collusion. brand extraction. co-branding. brand repositioning. brand dilution.

brand repositioning.

Shell MasterCard, created cooperatively by Shell Oil Company and MasterCard, is an example of brand collusion. a generic brand. co-branding. brand extraction. brand dilution.

co-branding

All of the following are included in the five Cs of pricing except cost. customers. collaboration. company objectives. channel members.

collaboration

Firms using a(n) _______ pricing method set their prices relative to what other firms are charging. reference-based competition-based value-based improvement value cost-based

competition-based

When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer. augmented products core customer value quality level associated services product support

core customer value

Milton owns a lawncare business. From experience, Milton has found that John Deere equipment lasts almost twice as long as competitors' machines. For John Deere, Milton's perception about its products makes _______ pricing a logical choice. market-based improvement value cost of ownership reference-based cost-based

cost of ownership

Retailers use _____ because they believe their use will induce customers to try new products, convert first-time users to regular users, increase purchases, and protect market share. noncumulative quantity discounts rebates cumulative quantity discounts seasonal discounts coupons

coupons

A(n) __________ gap exists when a firm knows what it needs to do to meet customers' service expectations, but sometimes fails to do it. empowerment communication delivery standards knowledge

delivery

A weakness associated with cost-based pricing methods is that they do not consider fixed or variable costs. do not recognize the role consumers or competitors' prices play in the marketplace. do not consider profit when calculating. are structurally inflexible and ignore vertical price-fixing alternatives. are too difficult to calculate.

do not recognize the role consumers or competitors' prices play in the marketplace.

Along the service-product continuum, which of the following would be considered the most service dominant? doctor's office restaurant grocery store apparel specialty store bookstore

doctor's office

What type of interview contains a small group of participants and a trained moderator that guides the conversation? panel sentiment observational syndicated focus group

focus group

Which of the following refers to variability in a service's quality? perishability heterogeneity delivery gap service gap communications gap

heterogeneity

Consumers might not realize that Old Spice health and wellness products and Iams pet nutrition products are made by the same company—Procter & Gamble. Old Spice and Iams are known as corporate brands. traditional brands. individual brands. umbrella brands. family brands.

individual brands.

Because services are __________, it is often difficult for marketers to convey the benefits to consumers. perishable heterogeneous intangible inseparable substantial

intangible

A major advantage of primary data collection is it offers behavioral insights generally not available from secondary research. it is general enough to meet many different researchers' needs. it can be easily accessed through syndicated databases. it takes less time to collect than secondary data. it is less expensive to collect than secondary data.

it offers behavioral insights generally not available from secondary research.

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. standards knowledge delivery communication senioritis

knowledge

Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a _______ pricing tactic. leader price lining slotting cumulative quantity discount bundling

leader

Which of the following best describes when Johnson & Johnson introduces a travel-sized package for its existing baby oil product using the Johnson & Johnson brand? co-branding line extension brand extension rebranding brand dilution

line extension

For marketers using a price skimming strategy, once the initial demand is met for new and innovative products, they will likely use zone pricing to maximize differences. offer deep discounts to create a loss leader pricing strategy. discontinue the product and create a new one. leave the market. lower the price to capture the next most sensitive market segment.

lower the price to capture the next most sensitive market segment.

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen. target profit sales orientation maximizing profits target return status quo

maximizing profits

Cross-price elasticity is the change in quantity of a product demanded divided by the change in its price. change in quantity of a product demanded divided by the change in its elasticity. percentage change in quantity demanded of Product A compared to the percentage change in price of Product B. change in price of Product A divided by change in quantity demanded for Product B. percentage change in quantity of a product demanded divided by the percentage change in its price.

percentage change in quantity demanded of Product A compared to the percentage change in price of Product B.

French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a elastic product. product in demand. inelastic product. custom product. prestige product.

prestige product.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably price sensitive. income elastic. price inelastic. price elastic. cross-price elastic.

price inelastic.

When a research team has gathered data for specific research needs, this is known as data mining. data recovery. primary data. data modeling. secondary data.

primary data.

Social media monitoring, in-depth interviews, and focus groups are all __________ research methods. structured data warehousing syndicated marketing quantitative qualitative

qualitative

When the marketing research problem is not clearly defined, a researcher will likely engage in __________ research. quantitative experimental qualitative data mining survey

qualitative

Everyday low pricing (EDLP) provides value to consumers by creative use of reference pricing. offering noncumulative quantity discounts. reducing their search costs. continually offering items on sale. minimizing the number of options a consumer can evaluate.

reducing their search costs.

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. everyday low pricing odd-even prices reference prices improvement value 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. responsiveness assurance tangibles reliability empathy

reliability

After defining objectives and research needs, the next step in the marketing research process involves research evaluation. report writing. data collection. data analysis. research design.

research design

Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy. target profit status quo sales orientation maximizing profits target return

sales orientation

A marketing research project often begins with a review of the relevant __________ data. unfocused structured primary quantitative secondary

secondary

Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy. impulse specialty shopping convenience ritual

shopping

By setting appropriate service standards and measuring service performance, firms can attempt to close a __________ gap. seniority knowledge standards delivery communication

standards

When Delta increases its average fares, American Airlines and United often follow with similar increases. This is an example of adding value. customer orientation. target return pricing. status quo pricing. sales orientation.

status quo pricing.

Commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen are sources of internal secondary data. syndicated data. data mining. public data. primary data.

syndicated data.

Gerald's Tire Service provides each employee with a clean, sharp-looking uniform. It also instructs employees to put all tools back where they belong and keep the work area clean and uncluttered. Gerald's Tire Service emphasizes __________ in the five service quality dimensions. reliability empathy responsiveness tangibles assurance

tangibles

There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept? the substitution effect the target return effect the income effect the break-even point cross-price elasticity

the substitution effect

A customer orientation toward pricing implicitly invokes the concept of value. the income effect. profit. knowing the dimensions of the target market. positioning.

value