Exam 3

Which of the following would be used in setting the price of a new product if considerable competition is expected? a. Penetration pricing b. Price skimming c. Odd-number pricing d. Reference pricing e. Psychological pricing

a. Penetration pricing

Suppose managers at Mahindra have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Mahindra is producing at the ____ point. a. breakeven b. competitive price c. profit maximizing d. marginal revenue less than marginal cost e. profit margin

a. breakeven

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing. a. promotional b. differential c. price-line d. professional e. psychological

b. differential

A US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing? a. Supply-based b. Customer-based c. Demand-based d. Upfront e. Bundled

c. Demand-based

Nigel is an athlete who plays a variety of sports that all require various athletic shoes. He has a favorable attitude toward Nike shoes. This favorable attitude is called brand a. equity. b. recognition. c. preference. d. loyalty. e. insistence.

d. loyalty.

Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends. a. their spending money b. their disposable income c. their eating habits d. their information searches e. their shopping partners

d. their information searches

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? a. Installations b. Accessory equipment c. Component parts d. Raw materials e. Process materials

a. Installations

When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____ branding. a. family b. individual c. brand-extension d. licensed e. selective

a. family

When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development? a. Product development b. Idea generation c. Business analysis d. Commercialization e. Test marketing

b. Idea generation

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of a. a market mix. b. width of product mix. c. a promotion mix. d. depth of product mix. e. product mix consistency.

d. depth of product mix.

Aggressive pricing is typical during the ____ stage of the product life cycle. a. decline b. stabilization c. plateau d. growth e. introduction

d. growth

The newest version of a product like Bose headphones is likely to use _____, while the new version of Red Bull is likely to use _____ . a. penetration pricing; price skimming b. price skimming; psychological pricing c. price skimming; promotional pricing d. price skimming; penetration pricing e. psychological pricing; penetration pricing

d. price skimming; penetration pricing

Internet sites that allow users to share photos, videos, and podcasts are called which of the following? a. Photo-sharing sites b. Virtual sites c. Video-sharing sites d. Wikis e. Media-sharing sites

e. Media-sharing sites

Kellogg's Rice Krispies, a ____ brand, is likely to be found next to Crispy Rice, a ____ brand that has very similar coloring and styling for its package. a. dealer; private distributor b. producer; house c. distributor; store d. generic; store e. manufacturer; private distributor

e. manufacturer; private distributor

What should marketers do to promote the consistency and reliability of their services most effectively? a. Train employees and develop standard procedures for dealing with customers b. Perform as much of the service as possible before the customer arrives c. Require employees to be shining, happy people all day long d. Limit the number of employees in their organization e. Encourage employees to be creative in solving customer issues and complaints

a. Train employees and develop standard procedures for dealing with customers

McDonald's golden arches are a classic example of a a. brand mark. b. trademark. c. brand. d. brand name. e. brand symbol.

a. brand mark.

Zach is new to the realm of digital marketing. Recently, he saw a blog post about his company that was just untrue. He demanded the blogger remove the post. Much to his surprise, however, the post had already spread to other sites. Zach immediately released content on the corporate website and social media pages with information that refuted the post. Much to his surprise, however, the original post continued to spread. Zach does not understand why users are spreading the post when his organization has posted information claiming that the post is untrue. Zach has failed to realize that a. consumer-generated digital content is often trusted over corporate content. b. any publicity, even negative, is better than no publicity. c. bloggers are professionals who rarely get content incorrect. d. consumers post much more digital content than marketers do. e. the majority of corporate digital communication is not trusted at all.

a. consumer-generated digital content is often trusted over corporate content.

Julie is a retailing and consumer sciences major and plans to pursue a career in fashion design. She enjoys setting the trends for her friends and owns approximately 50 pairs of shoes. She loves shopping for shoes on Zappos, a popular online retail store that is a subsidiary of Amazon. Zappos offers millions of styles of shoes, but Julie can simplify her search through the use of filters. She can filter the search by style, color, material, brand name, and heel height in order to reduce the number of shoes that appear in the search results. Zappos is taking advantage of _____, one of the characteristics of online media. a. control b. addressability c. accessibility d. connectivity

a. control

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during periods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of a. dynamic pricing. b. reference pricing. c. cost-plus pricing. d. special-event pricing. e. penetration pricing.

a. dynamic pricing.

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the a. quantity demanded goes down. b. quantity demanded increases. c. demand increases. d. breakeven increases. e. demand remains constant.

a. quantity demanded goes down.

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is a. survival. b. recovery. c. market share. d. profit. e. keeping the status quo.

a. survival.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts. a. trade b. cumulative c. noncumulative d. intermediary e. push

a. trade

Hotels try to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms at a particular time period, likely length of stay, types of rooms likely to be requested, etc. It wants to be able to sell rooms at the right price to the right people. This pricing strategy is an example of a. yield management. b. special-event pricing. c. penetration pricing. d. price skimming. e. differential pricing.

a. yield management.

Which of the following characteristics distinguish online media from traditional marketing? a. Environment, responsiveness, customization, and affordability b. Addressability, interactivity, accessibility, connectivity, and control c. Dynamic responsiveness, control, friendliness, and attention-getting d. Experience, networking, and personal contact e. Social networking, personal contacts, control, and salesmanship

b. Addressability, interactivity, accessibility, connectivity, and control

Which of the following regulates and makes rules for privacy, fraud, and misappropriation of copyrighted intellectual property, as well as other illicit Internet activities? a. Federal Internet Commission b. Federal Trade Commission c. Federal Bureau of Investigations d. Individual states e. Federal Communication Commission

b. Federal Trade Commission

Aldi's and Dollar General stores have been expanding their footprint across the United States, opening new locations and competing against traditional discount and grocery store chains, such as Walmart, Target, Kmart, Kroger, Jewel Osco, and Schnucks. Both Aldi's and Dollar General hope to capture a large proportion of the dollars consumers spend on grocery and general merchandise items and have responded to consumer desires for value and convenience of a smaller store. What type of pricing objective are these stores utilizing? a. Return on investment b. Market share c. Survival d. Profit

b. Market share

Xi Chung is the owner of a popular bar in a college town and typically advertises in the college newspaper about upcoming drink specials or special events. Xi was an early adopter of e-marketing and worked with a college intern to create a webpage for the business. At the time, Xi believed he could simply modify the newspaper advertisements and Yellow Page listings and publish those to the webpage to attract customers and inform them of events. However, his early efforts with e-marketing were not successful. Which of the following could explain why his website failed? a. Xi didn't spend enough money on digital marketing. b. Xi treated digital marketing like a traditional marketing channel. c. Xi failed to utilize social networks such as Facebook. d. Xi didn't hire an advertising agency.

b. Xi treated digital marketing like a traditional marketing channel.

If Princess Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Princess's demand would be a. marginal. b. elastic. c. inelastic. d. steady. e. prestige.

b. elastic.

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour, this improvement would best be classified as a(n) a. quality modification. b. functional modification. c. market extension. d. aesthetic modification. e. product line extension.

b. functional modification.

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ____ stage of the product life cycle. a. introduction b. maturity c. stabilization d. decline e. growth

b. maturity

When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of a. heterogeneity. b. off-peak demand. c. intangibility. d. inseparability. e. customer contact

b. off-peak demand.

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services. a. business b. supplementary c. bundled d. core e. complimentary

b. supplementary

If a product has an inelastic demand and the manufacturer raises its price, a. total revenue will decrease. b. total revenue will increase. c. the demand will become more inelastic. d. the demand schedule will shift. e. quantity demanded will decrease.

b. total revenue will increase.

Nate Arnold's Auto Towing Service would best be described as a(n) ____ product. a. durable b. unsought c. specialty d. shopping e. convenience

b. unsought

As Georgina enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with coffee-warming app. She answers that she didn't know that this type of app for cars was available. Based on this information, she is now in what stage of the product adoption process for this item? a. Interest b. Adoption c. Awareness d. Trial e. Evaluation

c. Awareness

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish? a. Price skimming strategy b. Odd-number pricing strategy c. Reference pricing strategy d. Everyday low prices strategy e. Special-event pricing strategy

c. Reference pricing strategy

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process. a. product development b. concept testing c. business analysis d. test marketing e. screening

c. business analysis

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using ________ a. price fixing, which considers costs to be less important than competitor's prices. b. market share pricing, which considers competition to be the ultimate pricing goal. c. competition-based pricing, which considers costs to be less important than competitor's prices. d. price fixing, which considers competition to be less important than costs. e. competition-based pricing, which considers profit to be the ultimate pricing goal.

c. competition-based pricing, which considers costs to be less important than competitor's prices.

Due to external pressures and concerns for privacy, Yahoo now has an opt-out option for Internet-based advertising. This is an example of a. connectivity. b. accessibility. c. control. d. interactivity. e. addressability.

c. control.

When influencers fail to disclose a connection to a brand they promote, they may be charged with a. identity theft. b. extortion. c. deceptive advertising. d. misappropriation of intellectual property. e. online fraud.

c. deceptive advertising.

Which of the following is the best example of disruptive innovation? a. Can opener b. Snickers candy bar c. iPhone d. Razor blade e. Chevy Corvette

c. iPhone

Morgan needs some spaghetti sauce and always buys Ragu. However, her local supermarket is out of Ragu and since Morgan wants to get home to cook dinner she settles for Prego. Morgan has brand ____ for Ragu and brand ____ for Prego. a. preference; loyalty b. insistence; recognition c. preference; recognition d. insistence; preference e. loyalty; preference

c. preference; recognition

Edward is a high school senior and plans to attend college after graduation. Edward enjoys playing computer games such as League of Legends and hopes to pursue a career in computer game design. He's taking computer programming classes in high school, and his teacher has been discussing recent issues related to consumer _______ and concerns that the Federal Trade Commission may develop regulations that would provide additional protection to consumers by limiting the amount of consumer information that businesses can gather online. a. credit card information b. intellectual property c. privacy issues d. intelligence

c. privacy issues

The continuum of tangibility goes from ____ on one end to ____ on the other end. a. pure products; pure services b. rational products; irrational products c. service-dominant products; good-dominant products d. easy to see; not easy to see e. mostly service goods; mostly product goods

c. service-dominant products; good-dominant products

Which of the following statements does not apply to convenience goods? a. Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. b. Convenience products require minimal shopping effort. c. Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. d. Consumers are brand loyal to convenience products and are not likely to substitute other brands. e. Colas, gasoline, and bread are good examples of convenience goods.

d. Consumers are brand loyal to convenience products and are not likely to substitute other brands.

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services? a. Perishability b. Homogeneity c. Intangibility d. Inseparability e. Heterogeneity

d. Inseparability

Due to the use of cookies, many websites are able to track visitors when they return to their websites. This helps them track how often the visitor views the website and in what products he or she shows an interest. Some websites have capitalized on this by providing product recommendations to users when they return to their websites based on their past activity. This is an example of a. control. b. accessibility. c. connectivity. d. addressability. e. interactivity.

d. addressability.

One of the most important benefits of e-marketing is the ability of marketers a. and competitors to share information. b. and vendors to share resources. c. and customers to obtain digital information. d. and customers to share information. e. and government regulators to share information.

d. and customers to share information.

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services. a. inseparability b. perishability c. heterogeneity d. intangibility e. tangibility

d. intangibility

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a. special-event pricing. b. price lining. c. comparison discounting. d. price leader pricing. e. differential pricing.

d. price leader pricing.