MKT421T Wk 5 - Apply: Course Post Assessment

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a psychological barrier?

"But I feel self-conscious wearing this."

Suppose you are the owner of a picture frame store and you wish to calculate how many frames you must sell to cover your fixed and variable costs at a given price. Let's assume that the demand for your frames is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). If your picture frame store sold 2,000 picture frames, what would your profit (or loss) be?

$128,000 profit

Forever Quilting is a small company that makes quilting kits priced at $120 each. There is no quantity discount. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner. Last month the company sold 150 kits. Forever Quilting's total revenue for the month was

$18,000

The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50 How many buckets of chicken does the restaurant need to sell to break even each month?

1,050 buckets

You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt. The labor cost is $5 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year Additionally, the cost of materials will be $10 per shirt. What is the break-even quantity?

16,000 shirts

Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price. Demand for pictures is strong, so the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). What is the quantity of picture frames you will need to sell to break even?

400 picture frames

When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, when the product was made available, consumers who were young, highly educated, adventuresome and well-informed began buying them. While those buyers were relatively few in number, marketers such as IBM and Compaq were encouraged because other, less adventuresome consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were

Innovators

When a company uses advertising on Instagram, is this tactic is part of the_______element of the marketing mix.

Promotion

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year Which of the following would be the least sound marketing program decision?

Select a skimming pricing strategy to position the product as "premium."

A new exercise video contends that with one day of fasting and a one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program.________ barriers could doom the new product to failure because the product's claims are not consistent with how consumers really behave.

Social

21st Century Fox is the name for Fox's broadcast/cable TV networks and TV/movie studios. Since most of the shows produced at its TV production unit and many of the movies made at its studio are only televised on its cable TV networks, 21st Century Fox is an example of

a corporate vertical marketing system.

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast-food restaurants and consider the purchase of a meal option there.

a reference value

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

automatic dishwashers

A recent Samsung Galaxy ad highlighted the advantages of its smartphone relative to Apple's iPhone. What type of product advertisement is the Samsung ad?

comparative

A recent Samsung Galaxy ad highlighted the advantages of its smartphone relative to Apple's iPhone. What type of product advertisement is the Samsung ad?

comparative

If a bank is known for delivering customer value through its focus on taking great care of customers, it is most likely focusing on providing its customers with the best

customer service

When querying its marketing information system (MIS), one convenience store discovered that when consumers bought a sandwich, many also purchased toothpaste. This information was obtained from checkout scanner data from its stores nationwide This convenience store used __________ to extract this information from its MIS to find a statistical link between the two product categories.

data mining

Mrs. Renfro's, Inc., sells 25 different relishes in 45 states. Mrs. Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a ________ that Mrs. Renfro's has taken advantage of to make its product a success.

demand factor

At a Hallmark store you can find several lines of greeting cards, including Fresh Ink, Nature's Sketchbook Shoebox, Maxine, Mahogany, and Tree of Life cards—all made by Hallmark for sale in its stores and intended to appeal to different target markets. The Mahogany line is designed to appeal to African Americans.

demographic

Procter & Gamble (P&G decided to skip a generation of consumers when it began to market Old Spice deodorant. The target market consists of men aged 18 to 34 years old (Generation Y) who don't remember the Old Spice brand sold to their grandfathers many years ago. P&G is using which type of segmentation variable?

demographic

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. This is an example of which type of marketing channel strategy?

dual distribution

Which type of distribution density does Piaget use when the maker of fine jewelry and watches distributes its products through a single retailer in select cities in the United States?

exclusive distribution

When the Office of National Drug Control Policy ran an ad with the headline, "Marijuana harmless? Didn't see the merging truck," it was using which type of ad appeal?

fear

The American Cancer Society reports that 57,000 Americans 57,000 Americans die from colon cancer each year, a number that would drop significantly if people over 50 were checked regularly. But being tested for colon cancer is not a pleasant experience and most people fear the possibility of bad news. The ACS sponsored several ads using "Polyp Man" dressed in a big red suit to encourage people to get tested. This is most likely an example of a ________ appeal.

humorous

Most Apple retail stores have a Genius Bar staffed with highly trained personnel who can help customers with their purchases of iPads, iPhones, and other Apple products and services. Which buying requirement is Apple satisfying with its Genius Bar?

information

Which buyer requirement would be most important in choosing a channel for a financial service for a novice investor who is interested in setting up a retirement account?

information

An ad for Campbell's soup reads, "We haven't changed that great taste your family's always loved." This is an example of ________ advertising.

informative

When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, when the product was made available, consumers who were young, highly educated, adventuresome, and well-informed began buying them. While those buyers were relatively few in number, marketers such as IBM and Compaq were encouraged because other, less adventuresome consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were

innovators.

When Coca-Cola promoted Coke as a morning beverage for those consumers who don't drink coffee, it used a ________ strategy.

market modification

Lands' End will custom-fit a Marinac jacket and make it with additional features such as thumb loops, underarm ventilation slits, and a key clip when you order from LandsEnd.com. This is an example

mass customization.

At what stage of the product life cycle does it first become true that most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it?

maturity

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they are to be discarded. Unfortunately the production process cannot be patented, so competitors could enter the market within a year. Which of the following is the best description of the product life cycle of this product?

moderately slow introduction, followed by modest growth, gradually leveling off

Recognized for excellence by Advertising Age The Community is a global agency of people with diverse backgrounds with a mission "to create culturally-potent ideas for a multi-everything world." The Community has created Hispanic-American campaigns Domino's Pizza Ferrero Rocher, Verizon, Coca-Cola, and Google as a part of their programs incorporating

multicultural marketing.

market modification The Community is a global agency of people with diverse backgrounds with a mission "to create culturally-potent ideas for a multi-everything world." The Community has created Hispanic-American campaigns Domino's Pizza Ferrero Rocher, Verizon, Coca-Cola, and Google as a part of their programs incorporating

population inputs.

When Wendy's wants to increase the value of its Dave's Hot 'N Juicy cheeseburger to its customers, it combines complementary items (French fries and a soft drink) to expedite the ordering process and provide a complete meal. This product modification approach is called

product bundling.

The Lemon Tree is a high-fashion boutique selling top-of-the-line women's clothing and accessories. The keys to its success include knowing customers' changing tastes and providing something different than other retailers. In addition, because of demanding clientele, The Lemon Tree's management is investing in the use of one-to-one marketing and artificial intelligence. The least important environmental force to The Lemon Tree at this time is likely to be

regulatory

In the movie Tin Men, two rival salesmen engaged in a variety of dishonest and unethical practices in order to sell aluminum siding to homeowners in 1963. Their job was difficult, in part, because the supply of aluminum siding surpassed the demand for the product and competition was intense. This situation is indicative of the ________ era of U.S. business history.

sales

Which group would be the least likely target market for a company producing canned food in single-serving sizes?

school kitchens

If a marketing manager queries his marketing databases to determine the effect of three different levels of price for a new product, he is using

sensitivity analysis

The United States Army was both praised and criticized for its use of a popular video game, America's Army which was designed to reach potential recruits. The game's creator, Colonel Casey Wardynski, wanted to provide a sense of the training and teamwork one could find in the Army's military environment. The game was designed for "boys 14 years or older," which represent the Army's

target market.

The element of the marketing mix that describes a good, service, or idea to satisfy consumers' needs is known as

the product.

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features so Samsung uses which type of segmentation variable based on their viewing preferences?

Behavioral segmentation

Samsung sells a variety of TVs, from simple and small ones to large smart TVs with Internet connectivity and 3-D technology. Customers prefer different features, so Samsung uses which type of segmentation variable based on their viewing preferences?

Behavioral segmentation