Chapter 7, 13, 19, 20 Marketing

Emily is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?

Extended

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

Peak demand

If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use

Penetration pricing

An ad for a new Mercedes automobile states, "The best, or nothing." It is likely that Mercedes is using _________ pricing.

Prestige

If Braun introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as

Price skimming

If Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the

Quality demand goes down

When service companies change high-contact services into low-contact services, the

Service becomes less personalized

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

odd-even pricing is

a psychological pricing strategy

Sara buys a new dress at Marshalls that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

an external reference price

Problem recognition occurs when a consumer

becomes aware that there is a difference between a desired state and an actual condition.

When Aisha and Darius are planning their honeymoon, their travel consultant tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of

bundle pricing

When shopping for detergent, Dylan looks at Arm & Hammer, Gain, Method, and Cheer and chooses the one that is on sale. These four brands make up his ____ set.

consideration

The intangibility aspect of a service means that

consumers may have a problem evaluating service offerings.

In general, differences between goods and services are determined by the

degree of tangibility.

The three primary bases for developing prices are

demand, competition, and cost

After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is

doubts that occur because the buyer questions whether the decision to purchase the product was right.

Marketers can influence consumers' evaluations by describing alternatives to products and their attributes in a certain manner, a practice known as

framing

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

human labor

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

inseparability

A price developed in the consumer's mind through experience with the product is called a(n)

internal reference price

In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the

internal search

Within the information search step of the consumer buying decision process, what two primary aspects exist?

internal search and external search

Extended decision making is the type of consumer decision-making process that

is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

When a new variety of Envirokids whole-grain breakfast cereals is first introduced, consumers will most likely engage in ____ when deciding whether or not to purchase this new product.

limited decision making

The three most widely recognized types of consumer decision making are

limited problem solving, extended problem solving, and routinized response behavior.

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

Price is considered to be the variable in the marketing mix that is

most flexible

Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing

nonprice competition

The primary psychological influences on consumer behavior are

perception, motivation, learning, attitudes, personality, and lifestyles.

the fact the services cannot be inventoried and then sold at a later date is called

perishability

Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least basic to survival. These needs, in order from most to least basic to survival are

physiological, safety, social, esteem, self-actualization.

Jhumpa is questioning whether she has made the right decision about purchasing a new HP laptop after she sees a friend with a new Dell. Jhumpa's doubt whether she made the right decision occurs during the ___________ of the buying decision process.

postpurchase evaluation phase

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

price lining

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.

professional pricing

Aloft Hotels, Inc. has an objective of achieving a 25% return from its overall sales. This is an example of a ____ pricing objective.

profit

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

promise too much and cause customer expectations beyond what they can deliver.

After doing considerable shopping, Pax has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Pax?

purchase

The five categories of situational influences are

purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.

While shopping at a local grocery store, Cameron sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as

routinized response behavior

Premium-priced products are usually marketed through

selective or exclusive distribution

The three major categories of influences on the consumer buying decision process are

situational influences, social influences, and psychological influences.

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is

survival

Price is a key element in the marketing mix because it relates most directly to

the generation of total revenue

Purchasers who buy products for personal or household use and not for business purposes are called the

ultimate consumers

Marginal analysis involves examining

what happens to a firm's costs and revenues when production is changed by one unit.

In the consumer buying decision process, the information search stage

yields a group of brands that a buyer views as possible alternatives.

The necessary interaction between service provider and customer that allows a service to be delivered is called

Customer contact