Marketing Exam 2 Review Chapter 8&9

Which of the following statements regarding the marketing of international products and services is​ correct?

Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.

At which step does a company perform a review of the​ sales, costs, and profit projections for a new product to determine whether the new product is likely to satisfy​ objectives?

Business analysis

​When, if​ ever, is price discrimination​ allowed?

If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing​ management?

Maturity

Which of the following statements regarding socially responsible product decisions is​ correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.

Marketers must consider external considerations in establishing pricing. Which of the following represents those external​ considerations?

The nature of the market and demand and other environmental factors

Charlie markets for a brand that prefers to set prices​ based​ on​​ buyers' perception of value rather than​ on​ the​​ seller's cost. This pricing is​ known​ as:

customer​ value-based pricing

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ _______________________.

dynamic pricing

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________.

price discrimination

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing.

promotional

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

target costing

When Dr. Lawncare developed his revolutionary new robotic lawn​ mower, he expected that during the growth stage of the product life cycle​ ___________.

the company would see rising profits

To create successful new​ products, a company must​ _______.

understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

Brotein is a branded mineral shake powder that has been formulated from a lot of research and​ testing.​ ​ Barn​ Dad, who​ manufactures​ the​ Brotein branded shake powder has decided to offer the product at a high initial price to​ recover​ R​​ & D quickly. This new product pricing strategy is​ known​ as​​ _______________________________.

​Market-Skimming

Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market​ share?

​Market-penetration pricing

A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company​ using?

​Market-skimming pricing

Rogerio is the creator of a gaming station​ (like PlayStation) and has priced his gaming units fairly low in price for its relative costs with the hope that he will make more money on the high priced games which are only compatible with his gaming station. Rogerio is using a strategy​ of​ ___________ pricing.

​captive-product

Over the​ years, the local College Park Cinema has listened to its customers​ (mostly college​ students) and now is able to offer the right combination of quality and good service at a fair price. Which pricing strategy is College Park Cinema​ using?

​good-value pricing

Rodney owns Kensington Chocolate Factory. He has just approved two new holiday flavors of an existing chocolate truffle line that they currently produce. Rodney feels a lot of pressure to get these new flavors on the store shelves as the market for these chocolate truffles has reached satuation and there are many substitute products. Based on the​ information​ above, Rodney has just approved a​ product​ _______________ and the brand is currently in​ the​ ___________________ stage of the​ Product​ Life-Cycle.

​modification, Maturity

One of the NASCAR cup speedways has just added​ new, premium features to​ it's executive level such as online​ reserved​ boxed seating​ options, high-backed leather chairs with armrests​ and​ footrests. As​ well, the latest in​ digital​ sound with screens of the broadcast are included in this seating level. The speedway will now charge a higher price for this level then it once had charged. The addition of these premium features point to which type​ of​ pricing?

​value-added pricing

In lecture we discussed that Consumer Education is likely needed more in which of the following Product Lifecycle Stages than all​ others?

Growth

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

Target return pricing

Pointed out during​ lecture, the most expensive stage​ (on average) of the New Product Development Process is the​ ________________________ stage.

Test Marketing

How do companies apply pricing strategies to accommodate differences in customer segments and​ situations?

They apply a variety of price adjustment strategies.

After market strategy is​ developed, the next step of the new product development process is​ _______________.

business analysis

The XYZ company is trying to increase consumption by finding new users and new market segments for its brands as it manages these products through the maturity stage of the Product Lifecycle. For​ XYZ, the attempt to increase consumption is known​ as​ ______________________.

modifying the market

A​ company's pricing strategy is affected by internal factors such as​ ___________________.

overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations

The illegal practice of​ ______________________ is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business.

predatory pricing

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​ _______________.

​price-fixing