MKTG330- MiniTest 3
Approximately 2.5% of those who adopt a product do so almost immediately after the product is launched. These people are called _______.
Innovators
The quality that services possess in which both the service provider and the customer must be present during the service is called ___________.
Inseparability
The quality that services possess of having no physical substance is called _______.
Intangibility
__________ are typically older and less educated than other adopter categories and may choose not to use Internet.
Laggards
What is the first stage in the product development process?
New-product strategy development
The pricing decision must be made with the goal of maximizing long-term
Sustainable profits
materials management
The inbound movement and storage of materials prior to the manufacting process
reference prices
The prices that consumers consider reasonable and fair for a product.
The "right condition" in logistics refers to the safe and satisfactory _______ of a product.
delivery
The difference between what the company thinks the customer expects and how it actually provides the service is called the ________
delivery gap
The process by which a product is adopted and spreads across various types of adopters is called _______.
diffusion
Price is the amount of time, money or _________ a buyer exchanges with a seller to obtain a product.
effort
A scenario in which demand changes significantly due to a small change in price is referred to as __________ demand.
elastic
inventories
goods used to meet supply and demand
The 3rd stage of the new-product development process is _______. During this stage, most ideas are rejected during this stage.
idea screening
A situation in which a specific change in price causes only a small change in the amount purchases is referred to as ___________ demand.
inelastic
Volume maximization is a pricing strategy that involves
setting prices low to encourage more purchases
Rank the stages of the Consumer Adoption Process
1 - Awareness 2- Interest 3- Evaluation 4- Trial 5- Adoption
6 Steps of New Product Development process
1- Idea Generation 2- Idea Screening 3- Business Analysis 4- Product Development 5- Test Marketing 6- Product Launch
Steps in the Customer Relationship Management Process
1- identify current customers 2- understands how customers interact 3- gather specific customer information 4- store and analyze information 5- utilize analysis to build customer relationships
Steps in building an advertising campaign
1- identify the target audience 2- define objectives 3- create advertisements 4- choose advertising tools 5- measure the effectiveness of the advertising
The stages of the product life cycle in order
1- introduction 2- growth 3- maturity 4- decline
steps in the price-setting process
1. Define the pricing objectives 2. Evaluate demand 3. Determine the costs 4. Analyze the competitive price environment 5. Choose a price 6. Monitor and evaluate the effectiveness of the price
As a new product goes through the diffusion process, that product could be purchased by various types of adopters including
-Innovators -Laggards -Early Adopters -Late Majority
Which of the following steps in the new-product Development process occur after the product development step?
-Product launch -test marketing
inelastic
-a starbucks speciality drink -tickets to a concert -surgery to repair a burst appendix
elastic
-airline ticket from NY to boston for a wkd getaway -can of soda -regular cup of coffee
What are the gaps in the Service Gaps Model?
-communication -delivery -knowledge
Which of the following are considered variable costs for a firm?
-delivery costs -utilities -materials and supplies
Characteristics of goods
-mass produced -can be possessed -stored for long periods
Characteristics of services
-not physical -changes each time its sold -production and consumption happen at the same time
Which activities that a firm is likely to engage during a product launch?
-preparing internal systems to take service orders -purchasing the materials needed to package the good
What are the 2 most common and effective strategies for raising prices?
-unbundling -escalator clauses
These are 2 factors influencing price that are often overlooked. What are they?
-underpricing -reference prices
underpricing
charging someone less than they are willing to pay
the product quality is lower than customers' standards
customers return the products in excessive amounts
The difference between actual customer expectations and the company's perception of customer expectations is called the _______ gap.
knowledge
Survival pricing is a pricing strategy that involves
lowering prices to the point at which revenue just covers costs
As an element of evaluating demand for a product, ______________ cost can be defined as the change in total cost that results from producing one additional unit of product.
marginal
Cost-plus pricing is also known as _______ pricing.
markup
The quality that services possess in which they cannot be stored, inventoried, reused, or returned is called ________.
perishability
The prices consumers deem reasonable and fair for a product are called
reference prices
A wholesaler acts as a "middleman", buying goods in bulk and reselling them to __________, which in turn sell to consumers
retailers
A measurement of how good a service experience is or was is called _________ quality.
service
As it relates to evaluating demand, marginal revenue can be defined as
the change in the total revenue that results from selling one additional unit of product
the product is dangerous
the company faces product recalls and legal liabilities
the new product takes sales from an existing product
the company's total revenue and profits are lower than anticipated
the market refuses to pay the target price
the firm lowers the product price, resulting in lost revenue
Transportation
the movement of goods to help firms build a supply and compete globally
price gauging
the practice of overcharging customers in times of great need, such as in the aftermath of a natural disaster
purchasing
the procurement of materials, parts and services
warehousing
the storage of both materials and finished goods
Before a firm can estimate how much revenue it must generate to earn a profit, it must first calculate the break-even point so it knows the sales _________ needed to achieve a profit of zero.
volume