Marketing Quiz 4 and 5

demand curve

A _______ shows how many units of a product or service consumers will demand during a specific period of time at different prices. break-even analysis price point analysis product curve price elasticity curve demand curve

price discrimination and is legal

A local pizza parlor located on campus offers a student rate for its pizza lunch special. This is a form of ______________. price discrimination and is legal. price discrimination and is illegal. predatory pricing and is legal. bait-and-switch pricing and is legal. predatory pricing and is illegal.

early adopters

Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to purchase new product innovations. the late majority innovators the early majority early adopters laggards

first movers

As _____, one of the advantages that pioneers have is they create a new market or product category, establishing a commanding initial market share lead. laggards imitators first movers fashion cycles early adopters

Profit-orientation

As the marketing vice president of her firm, Cassie is considering implementing a companywide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this? Customer-orientation Competitor-orientation Sales-orientation Profit-orientation Market-orientation

Pintrest

Ashely has a cupcake company. She knows her target audience is women ages 35-54 with higher household incomes. She also knows that a good way to get these women excited about her product is to visually depict it and to encourage sharing of the photos. Knowing this, which social media would be best for Ashley to use? Twitter Tumblr Pinterest LinkedIn SnapChat

sales-orientation

Ashley's firm is entering a new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives? Customer-orientation Sales-orientation Market-orientation Competitor-orientation Profit-orientation

Growth

At which stage in the product life cycle do sales experience their most rapid increase? Introduction Decline Mature Product development Growth

generate leads

Ben works in the office of a building materials company. One of his jobs is to identify new building projects and to determine who will make the building materials purchase decisions. Ben is involved in the _______________ step of the selling process. customer relationship management. generate leads closing the sale preapproach follow up

lagged effect

Budweiser has been running the same ad consistently as consumers don't always run out and buy the product the first time they see the ad. This is known as the _______________. lagged effect competitive parity share of voice effect IMC effect multiple effect

transportation

Cameron is the logistics manager for the Barnes & Noble bookstore chain. He is weighing the many benefits of the company's JIT system, but will need to consider that just-in-time inventory management systems increases _______ costs. VMI promotional EDI transportation sales force labor

Persuasive

Charles is the brand manager for Spotify which is in the growth and early maturity stages of the product life cycle, when competition is most intense. He is attempting to accelerate the market's acceptance of the product. Therefore, his best bet is to use ________________ advertising. Informative Reminder Pull Push Persuasive

seasonal discounts

Consumers who shop after-Christmas sales to stock-up on wrapping paper and bows at deep discounts are taking advantage of ________________. seasonal discounts. predatory pricing. price bundling. size discounts. rebates.

flighting

Coppertone uses a _____ advertising schedule, where it advertises heavily in the months leading up to and during the summer, with no advertising after the season ends. status quo seasonal flighting continuous pulsing

Assurance

During the follow-up stage, what service quality dimension is being addressed when customers are given adequate guarantees that their purchases will perform as expected? Assurance Responsiveness Reliability Empathy Tangibles

decline

Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market. mature growth introduction late majority decline

a vendor-managed inventory

Frito-Lay is an example of a company that partners with retailers by implementing _____ system, involving taking on the responsibility of managing inventory levels at the retailers where its products are sold. a vendor-managed inventory an electronic data warehouse an independent marketing channel a stock-keeping unit (SKU) a radio frequency identification tag

Competitive Parity

Hannah's share of market recently increased to 5%. She has evaluated all the competitive spending within her market and realizes she is only 3% of the total spend. To maintain share, she needs to increase her budget to represent 5% of total category spend. Hannah is employing the ____________ budgeting process. percentage of revenue competitive parity objective-and-task available budget percentage of sales

top of mind awareness

Harley Davidson has _____ if a consumer responds "Harley" when asked about American-made motorcycles. aided recall top of mind awareness evoked awareness limited recall limited awareness

profits

In break-even analysis, when the break-even point is reached _______ is (are) zero. the contribution per unit supply profits costs demand

manage risk through diversification

In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years to better withstand external shocks and _________. change customer preferences. manage risk through diversification. improve business relationships. respond to fashion cycles. hedge against market saturation.

pricing

In omnichannel retailing, what visible element must often be adjusted because of competition faced in different channels? return policies VMI pricing supply chain distribution

idea generation

In the new product development process, companies have a variety of ways for _____ including outsourcing, brainstorming, licensing, and customer research. market testing product development product launch idea generation concept testing

the income effect

In the past, Jillian's vacation time has been spent at home catching a few local attractions when she could afford them. This year, she received a big bonus at work and has decided to finally take the trip to Europe that she has always dreamed about. Jillian's purchasing behavior has changed due to _________. the income effect. the substitute products effect. the substitution effect. cross-price elasticity. cross-product elasticity

an oligopoly

In the soft drink industry only a few firms dominate, which is characterized as _____________. a monopoly. an oligopoly. monopolistic competition. pure competition. competitive parity.

networking

Jillian is a new agent for a financial services company. She decides to join the local chamber of commerce, the local association of businesswomen, and the local chapter of the United Way organization. Jillian is attempting to use __________ to generate leads. inbound marketing trade shows customer relationship management. networking trade management

open innovation

Many companies are looking to this methodology to speed up new product development by using other people's wheels. Concept testing Full scale commercialization Open innovation Reverse engineering Prototype development

inbound marketing

Many marketers rely on driving leads by creating downloadable quality content online. This is known as _____________________________. cold calling inbound marketing customer acquisition sales affect CRM

assurance

Medical professionals often hang framed copies of their educational accomplishments in order to convey their competence in their field, thus addressing the _____ dimension of service quality. assurance tangibles empathy reliability responsiveness

customer expectations

Molly is looking for a Michael Kors chronograph watch, and assumes she can view and try them on at Macy's. She makes a special trip to the store to look at the watches, and selects the style she likes best. Which aspect of choosing a retail partner allows Molly to confidently shop for this item at a particular store? customer expectations distribution intensity channel structure vertical integration of channel customer relationship management.

premiums

Patrick was struggling selling his golf photography outside a PGA event. When he offered a tee shirt with a golf photograph on it with any framed golf photo, sales picked up. Patrick discovered the value of sales promotions, specifically _________ in encouraging customers to buy. sweepstakes rebates premiums samples deals

observability

People who get Botox treatments to reduce their wrinkles consider it to be a private matter, therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. trialability observability relative advantage complexity compatibility

Direct Marketing

Personalized e-mail marketing is an online, passive form of persuasive communication and would be classified as an example of ____________________. SEO advertising direct marketing personal selling public relations

a reference price

Retailers using a high/low pricing strategy often communicate this through the creative use of _____, which is the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process. a reference price the cost of ownership the improvement value prices ending in odd numbers price lining

price lining

Ricky is at the store selecting a wine to bring to his girlfriend's home for dinner. He notices a wine priced at $30 another priced at $20 and another at $10. The store is employing a ________________ pricing strategy. seasonal discount quantity discount leader rebate price lining

alpha testing

Sean, Michael, Amanda, Jared and Lauren are all working on a new line of backpack coolers that can meet consumer's needs to keep their beverages cold while hiking and on other outdoor excursions. While it is still early on in the development process, they have developed several prototypes and each team member will use a product prototype for the next week around campus to test it. This type of testing is called ____________________. alpha testing beta testing concept testing in-depth interviews

intensive

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose __________ distribution. exclusive intensive independent primary selective

competitor-based pricing

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 _____________. value-based pricing. competitor-based pricing. variable costing. predatory pricing. cost-based pricing.

leader pricing

Supermarket chains often implement _____, a pricing tactic of selling leading brands of products below their own cost to build store traffic. leader pricing cost-based pricing Value-in-use predatory pricing price lining

vendor-managed inventory

The local auto supply store gets merchandise delivered to it by its manufacturers as soon as it has a need, reducing stockouts with minimal inventory. This demonstrates the concept of a push marketing strategy cross docking vendor-managed inventory manufacturer managed inventory sku management

Exciting

Through its Facebook page, a major restaurant chain is offering its customers a Groupon coupon for 50 percent off the purchase of a meal. In doing so, the restaurant is focusing on which aspect of the 4E framework? Enlightening Experiencing Educating Exciting Employing

Direct

When Cassie sells the jewelry she makes at craft fairs or on her personal website, she is utilizing a(n) _____ marketing channel. direct indirect secondary distributor modified

integrated marketing communications

When Coca Cola successfully employed the "Share a Coke" campaign, they utilized a ________________strategy to unify messaging across all mediums. pioneer advantage pull push integrated marketing communications AIDA

price bundling

When Suddenlink Communications offers its customers a discount when they order their television, Internet, and phone service all with Suddenlink on just one bill, it is an example of ___________. quantity discounting. a markdown. price bundling. leader pricing. a rebate.

loyalty

When a customer undertakes a post-purchase evaluation and decides he or she is satisfied, this often leads to ______________. ambivalence. brand assurance distributive fairness. cognitive dissonance loyalty

Push

When introducing new products, Quaker Oats uses a(n) _____ strategy by offering retailers discounts on the products along with point-of- purchase displays to motivate them to highlight the product. push pull reminder informative persuasive

vertical

When supply chain members that buy and sell to one another are not in agreement about their goals, _____ channel conflict can occur. horizontal competitive administered independent vertical

experience curve effects

When using a market penetration strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. This is due to __________________. markdowns. seasonal discounts. price lining. improvement value. experience curve effects.

Educate

Which facet of the 4E framework is best addressed by thought-sharing sites? Employ Enlighten Excite Educate Evolve

Commissions

Which of the following is not one of the five Cs of pricing? Costs Channel members Competition Company objectives Commissions

friendliness

Which of the following is not one of the five distinct service dimensions that customers use to evaluate how well a service meets or exceeds their expectations? Tangibles Reliability Responsiveness Empathy Friendliness

Identify the target market

Which of the following is the first step in planning and executing an advertising campaign? Create the advertisements. Convey the message. Determine the advertising budget. Identify the target market. Set the advertising objectives.

a gray market

_____ employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. Pure competition A price war A gray market A monopoly A black market

Break-even analysis

_____ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs. Predatory pricing Contribution margin analysis Fixed cost analysis Break-even analysis Total cost calculation

premium pricing

_____ is a tactic in which a firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best, or for whom price does not matter. Target profit pricing Competitive parity Status quo pricing Target return pricing Premium pricing