CH 10 HW

What is skimming? a. setting price to switch customers to new product lines b. setting price to match the competition c. setting price to maximize market share d. setting price to maximize profit

setting price to maximize profit

T/F Only major strategic decisions need to be supported through marketing research.

F

T/F Pricing procedures are the same for all types of ventures.

F

Market Segmentation

The process of identifying a specific set of characteristics that differentiate one group of consumers from the rest. 1. Demographic variables = Age, marital status, sex, occupation, income, and location 2. Benefit variables = Convenience, cost, style, trends (depending on the nature of the particular new venture)

A market is a. a group of consumers who have purchasing power and unsatisfied needs. b. a way of gaining consumer data. c. a segment of the economy. d. a group of known purchasers.

a group of consumers who have purchasing power and unsatisfied needs.

What is penetration pricing? a. setting price to match the competition b. setting price to switch customers to new product lines c. setting price to maximize market share d. setting price to maximize profit

setting price to maximize market share

T/F It is usually more expensive to gather secondary data than primary data.

F

Pricing strategies

Factors affecting the pricing decision: The degree of competitive pressure The availability of sufficient supply Seasonal or cyclical changes in demand Distribution costs The product's life-cycle stage Changes in production costs Prevailing economic conditions Customer services provided by the seller The amount of promotion The market's buying power

T/F In the marketing shift from the 4Ps to the 4Cs, price shifts to choice and promotion shifts to communities.

T

T/F Marketing information that has already been compiled is known as secondary data.

T

T/F Marketing research involves the gathering of information about a particular market, followed by analysis of the information.

T

T/F Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.

T

T/F Pricing in the social media age is sometimes based on a model that offers basic levels of service for free.

T

T/F Social media marketing is the application of online collaborative media for marketing purposes.

T

The 4Ps of marketing include all the following except: a. promotion b. principle c. price d. product

b. principle

The 4Cs of marketing include all the following except: a. choice b. communities c. continuity d. cocreation

c. continuity From Product........to Cocreated From Promotion.....to Communities From Price............to Customizable From Place............to Choice

The textbook recommends that social media marketers consider three aspects of social media when using social media tools for marketing purposes. What are they? a. resource management, context, and content b. cost, complexity, and relevancy c. control, contribution, and distribution d. creating something of value, enabling customer promotion, and encouraging participation

creating something of value, enabling customer promotion, and encouraging participation

Inhibitors to marketing research include all of the following except: a. distribution b. cost c. irrelevancy d. complexity

distribution

Secondary data consists of a. existing information. b. newly developed primary research. c. internal data only. d. external data only.

existing information.

Of the following, which is not associated with entrepreneurial tactics in market research? a. in-person interviews b. blog monitoring c. guerrilla marketing d. lead user research

in-person interviews

When developing a survey, you should consider a. giving concise but incomplete instructions. b. including questions only pertaining to the study. c. the personality of the respondents. d. ask leading and biased questions.

including questions only pertaining to the study.

Of the following, which does the textbook identify as critical to the marketing planning process? a. marketing myopia b. market niche c. marketing research d. market segmentation

marketing research

All of the following techniques are used in gathering primary data except a. observational methods b. experimentation c. analysis of financial records d. surveys

analysis of financial records

What is meant by pricing for the life cycle? a. that pricing needs to be adjusted at each stage in a product's life cycle b. that pricing of new products needs to start out low and end high c. that pricing of new products needs to start out high and end low d. that pricing needs to be increased at each stage in a product's life cycle

that pricing needs to be adjusted at each stage in a product's life cycle

Of the following pricing models, which is not indicative of pricing in the social media age? a. the growth stage model b. the affiliate model c. the freemium model d. the subscription model

the growth stage model

T/F Skimming is setting prices at such a low level that products are sold at a loss.

F

Market segmentation is a. the process of segmenting the sales force b. the process of categorizing products into different segments c. heavily psychographic in nature d. the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest

the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest