Exam 2 BA370

During the ______ stage of the product life cycle, the market for the product usually becomes saturated.

Maturity

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

cost-based

The ________ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).

segmentation

customers' perceptions of how well a service meets or exceeds their expectations

service quality

The value of a brand can be calculated and compared to other brands in the form of ______.

Brand equity

Consumer packaged goods companies sell products across many different product lines. These companies have significant ______ in their product mixes.

Breadth

Which of the following is an example of product line extension?

Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke

the difference between the actual service provided to customers and the service that the firm's promotion program promises

Communications gap

Some grocery retailers have invested in their own private brands, charging just slightly lower than national brands to signal the quality of the products is good, involving the use of

Competition based

What are products that household buyers use for their own use called?

Consumer Products

Which of the following describes the core customer value of a product?

the basic benefits consumers are seeking

______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.

Behavioral

List the following in order of the segmentation, targeting, and positioning process, with the first step at the top.

1. Establish Strategy or Objective 2. Describe Segments 3. Evaluate Segment Attractiveness 4. Select Target Market 5. Identify and Develop positioning strategy

Which of the following is an example of a brand extension?

Acme chips and Acme dips

When a product goes into the_______ stage of the product life cycle, it eventually exits the market.

Decline

the difference between the firm's service standards and the actual service it provides to customers

Delivery Gap

The number of products within a product line is a firm's product line ______.

Depth

Branding enables a firm to do which of the following?

Differentiate its product offerings Make consumers aware of available products

The customer orientation strategy increases value by doing which of the following?

Focusing on customer satisfaction Setting prices to match consumer expectations

Since humans' work output cannot be standardized to the same degree as the output of a machine, one substantial difference between the marketing of services and products is the ______ of service delivery.

Heterogenity

New product development process

Idea generation, concept testing, product development, market testing, product launch, evaluation of results

One of the basic ways in which services differ from products is that production and consumption are ______ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

Inseperable

Consumers can see and touch a product, such as a laptop computer, but cannot touch the financing program used to purchase the laptop. Services cannot be touched, tasted, or seen; they are ______.

Intangible

The_____ stage of the life cycle for a new product or service category usually starts with a single firm, and innovators are the ones to try the new offering.

Introduction

What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind

Perceptual map

the difference between customers' expectations and the firm's perception of those customer expectations

Knowledge gap

______ are consumers who like to avoid changes and rely on traditional products until they are no longer available

Laggards

The product ______ is the complete breadth and depth of all products offered by a firm

Mix

______ segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumer.

Occasion

______ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.

Product Life Cycle

A product mix typically consists of ______, or groups of associated items.

Product Line

Which of the following are marketing segmentation approaches?

Psychographic Geographic Benefits Behavioral Demographic

Firms engaged in competitor orientation might use which of the following strategies?

Status quo pricing Competitive Parity

Match each of the following targeting strategies (on the left) with an example (on the right) that shows how that strategy is used.

Undifferentiated- Sugar, milk, packaged ice Differentiated- Proctor and Gamble offers Pantene, Head and Shoulders, Aussie, and Wella shampoos Concentrated- An infomercial firm sells a gadget to better fry and flip eggs in cooking Micromarketing- A florist designs the bride's and five attendants' bouquets

markdown

a reduction from the original selling price

A contractual arrangement between firms where one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee is called ______.

brand licensing

Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to

build brand awareness

The practice of marketing two or more brands together on the same package or promotion is known as:

co-branding

Five C's of Pricing

competition, costs, company objectives, customers, channel members

Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with ________ products.

competitors

of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopter

diffusion

fairness refers to customers' desire to be compensated a fair amount to correct a perceived loss that resulted from a service failure.

distributive

are the category of consumers who begin to use a product or service immediately following the innovators

early adopters

When a firm such as Ruth's Chris Steak House tells servers to "use your best judgment" in serving a customer who is not satisfied with his or her $40 steak, it is allowing the server to make decisions at the point of delivery. This is called .

empowerment

n terms of their place on the diffusion of innovation curve, innovators are the ______ category of consumers.

first

Usually, during the_______ stage of the product life cycle, the typical consumers would be early adopters, and there would be increases in the number of competitors.

growth

A(n) _____ strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases.

high/low pricing

Although there are numerous stages in the product development process, every firm starts to develop new products through ______ and then finishes with an evaluation of ______.

idea generation; results

size discount

larger the quantity bought, the less the cost per unit

The early _______represents the earlier half of the two largest categories of consumers on the diffusion of innovation curve.

majority

What are the two basic types of brand ownership strategies?

manufacturer brands store brands

The ______stage of a product life cycle is characterized by the adoption of the product by the late majority and intense competition for market share among firms.

maturity

When there are many firms competing for customers in a given market, but the products are differentiated, it is known as

monopolistic competiton

Service providers cannot inventory or stockpile things like haircuts during slow times to "sell" later when the facility is busy. This characteristic of services is called ______

perishibility

seasonal discounts

price reductions given to customers purchasing goods or services out of season

For _____ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products.

price skimming

A ___________ occurs when oligopolistic companies compete with each other by repeatedly lowering their prices.

price war

the difference between the firm's perceptions of customers' expectations and the service standards it sets

standards gap

Strategies that can be used as part of the profit orientation strategy include which of the following?

target profit pricing maximizing profits

Firms position their products based on methods such as

the value proposition, salient attributes, symbols, and competition

concept testing can be as simple as a brief written description of the product that might also include _______.

visual images customer needs it satisfies