Marketing

Which of the following is not a service product?

A 100 percent service satisfaction guarantee

KFC has restaurants in Mexico where Inactives make up the majority of the online population. To match their marketing efforts with the characteristics of the population, KFC should

Focus more on traditional promotions rather than social networking.

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called

Markup pricing

Which of the following basis for pricing is most commonly used by retailers?

Markup pricing

When a satellite dish company uses bundling to combine phone, dish, and broadband Internet access prices, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.

Psychological

Which of the following is a requirement for setting pricing objectives

The objectives should be explicitly stated.

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

aesthetic

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

business analysis

Maintaining or increasing market share

can be achieved even if industry sales are flat or decreasing.

Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as

captive pricing

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ____ phase of the new-product development process.

commercialization

When products in an industry are relatively homogeneous and price is a key purchase consideration

competition-based pricing becomes more important

A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service, special boarding rights, and extra customer service.

core; supplementary

____ are those consumers who construct their own media outlets, such as blogs, podcasts, consumer-generated videos, and wikis.

creators

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.

credence

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services.

customer service

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.

demand based

During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of

demand based pricing

Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of

demand based pricing

You are the head of pricing strategy for your firm and you are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets. The system is a state-of-the-art, real-time information system that captures the details of every sale made in your retail outlets. Now, you will have up-to-the-minute data on sales volume trends and performances for your entire product line. You plan to use this data to set prices based on these volume trends.

demand based pricing

When establishing prices, a marketer's first step is to

develop pricing objectives

Pricing strategies and methods

help direct and structure the selection of a final price.

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

heterogeneity

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of service

heterogeneity

You are considering hiring an outside consultant to help you improve your services business. You believe your most pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you need to work on this very important issue. Based on this, you should be looking for a

heterogeneity

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of

intangibility

Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services.

intangibility

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

line extension

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

market share

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____

multiple-unit pricing; lower per unit price

Service industries account for ____ of the gross domestic product of most developed nations

nearly three quarters

Marketers at organizations engaged in nonprice competition

need competitive price information to make sure that their products are priced at approximately the same level as the prices of competing brands.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

overall; marketing

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time

periodic discounting

You are the marketing manager for a multi-state auto dealership in the Southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos.

periodic discounting

Kate, owner of K's Tanning Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty tanning beds from earlier in the week were available on this Saturday afternoon. Kate's problem deals with the ____ characteristic of services.

perishability

Which of the following is the best example of a high-contact service?

plastic surgery

____ are free online publicity that helps the company.

positive customer reviews

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

price leader pricing

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

product development

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

pure goods

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)

quality modification

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set

return on investment

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.

roll out approach

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

screening

Markup is measured either as a percentage of ____ or a percentage of ____.

selling price; cost

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

survival

The Office Place is an office supplies company who has just adjusted its price levels so that it can increase its sales volume to match its expenses. The Office Place is most likely employing a(n) ____ objective.

survival

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one

two times more

Competition-based pricing is

used when costs and revenues are secondary to competitors' prices.

In service marketing, the most important link to the customer is

well trained contact employees

Pricing the basic product in a product line low while pricing related items at a higher level is called

captive pricing

The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but also connect with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney

connectivity

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

random discounting

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?

reference pricing strategy