MKT 3050 Test 3 & 4
Which of the following refers to a product that consumers perceive to be new and different from existing products? A. Dynamically continuous innovation B. Discontinuous innovation C. Knockoff D. Innovation E. Continuous innovation
Innovation
Utilizing the communication model, which of the following is an example of medium? A. Brand loyalty B. Company C. Advertising D. Television E. Sales promotion
Television
A consumer who makes Starbucks coffee part of the daily routine has which of the following brand relationships? A. Nostalgic attachment B. Love C. Brand meaning D. Interdependence E. Self-concept attachment
interdependence
Following the introduction of a new product in the marketplace, which of the following stages of the product life cycle features slow growth? A. Growth stage B. Cannibalization C. Introduction stage D. Decline stage E. Maturity stage
introduction stage
Which of the following refers to an amount added to the cost of a product to create the price at which a channel member will sell the product? A. Gross margin B. Retailer margin C. Wholesaler margin D. List price or manufacturer's suggested retail price (MSRP) E. Markup
markup
Which of the following stages of the product life cycle is most likely to utilize reminder advertising for marketing communications as profit margins narrow? A. Maturity stage B. Cannibalization C. Growth stage D. Introduction stage E. Decline stage
maturity stage
Which of the following refers to the total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups? A. Merchandise breadth B. Merchandise mix C. Combination stores D. Merchandise depth E. Merchandise assortment
merchandise mix
Which of the following refers to a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited? A. Business-to-consumer (B2C) e-commerce B. Virtual experiential marketing (VEM) C. Party plan system D. Network marketing E. Pyramid scheme
network marketing
Ebay, eCrater, Bonanzle, eBid, and CQou all utilize which of the following models to allow shoppers to bid on everything from bobbleheads to health-and-fitness equipment to a Sammy Sosa home-run ball. A. Internet price discrimination strategy B. Freemium strategy C. Online auctions D. Price lining E. Dynamic pricing
online auctions
Which of the following refers to a retail store, such as a temporary Halloween costume store, that opens and then disappears after a period of one day to a few months? A. Variety store B. Pop-up store C. Supercenter D. Leased department E. Warehouse club
pop-up store
Which of the following is an illegal pricing strategy in which a company sets a very low price for the purpose of driving competitors out of business? A. Surge pricing B. Price fixing C. Loss-leader pricing D. Bait-and-switch E. Predatory pricing
predatory pricing
Which of the following refer to the assignment of value, or the amount the consumer must exchange to receive the offering or product? A. Prestige products B. Total cost C. Price D. Market share E. Bitcoin
price
Which of the following occurs when two or more companies conspire to keep prices at a certain level? A. Surge pricing B. Price fixing C. Predatory pricing D. Bait-and-switch E. Loss-leader pricing
price fixing
Which of the following refers to the costs of production that vary depending on the number of units produced? A. Markup B. Variable cost C. Contribution per unit D. Fixed cost E. Total cost
variable cost
Which of the following refers to a vertical marketing system in which channel members remain independent but voluntarily work together because of the power of a single channel member? A. Administered VMS B. Retailer cooperative C. Contractual VMS D. Corporate VMS E. Conventional marketing system
Administered VMS
Which of the following SERVQUAL dimensions refers to the knowledge and courtesy of employees, and ability to convey trust and confidence? A. Reliability B. Assurance C. Empathy D. Responsiveness E. Tangibles
Assurance
Which of the following terms refers to features, functions, benefits, and uses of a product? A. Good B. Actual product C. Augmented product D. Attributes E. Core product
Attributes
Which of the following product layers might include a warranty, credit, delivery, installation, and repair service after the sale because marketers know that adding these supporting features to a product is an effective way for a company to stand out from the crowd. A. Actual product B. Good C. Core product D. Attributes E. Augmented product
Augmented product
A company is most likely going to use a media blitz in which step of the adoption pyramid? A. Adoption B. Evaluation C. Interest D. Trial E. Awareness
Awareness
Which of the following refers to an allocation of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them? A. Percentage-of-sales method B. Top-down budgeting technique C. Competitive-parity method D. Bottom-up budgeting techniques E. Objective-task method
Bottom-up budgeting techniques
Which of the following refers to a name, a term, a symbol, or any other unique element of a product that identifies one firm's product(s) and sets it apart from the competition? A. Brand meaning B. Trademark C. Brand equity D. Brand E. Brand storytelling
Brand
________ provides a competitive advantage because it gives the brand the power to capture and hold onto a larger share of the market and to sell at prices with higher profit margins. A. Brand storytelling B. A trademark C. A brand D. Brand meaning E. Brand equity
Brand equity
Which of the following refers to one of the two ways distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to a large number of customers? A. Wholesaling intermediaries B. Independent intermediaries C. Transportation and storage D. Breaking bulk E. Disintermediation (of the channel of distribution)
Breaking bulk
Which of the following refers to online exchanges between companies and individual consumers? A. Virtual experiential marketing (VEM) B. Network marketing C. Party plan system D. Pyramid scheme E. Business-to-consumer (B2C) e-commerce
Business to consumer (B2C) e-commerce
Which of the following refers to the loss of sales of an existing brand when a new item or product family is introduced? A. Product line B. Stock keeping unit (SKU) C. Cannibalization D. Product mix E. Product management
Cannibalization
Which of the following refers to a discount to the retailer or wholesaler based on the volume of product ordered? A. Merchandising allowance B. Case allowance C. Trade shows D. Trade promotions E. Promotional products
Case allowance
Which of the following refers to a very large specialty store, like Best Buy, that carries a vast selection of products in its category? A. Variety store B. Factory outlet store C. Category killer D. Warehouse club E. Department store
Category killer
Which of the following occurs when producers, wholesalers, and retailers depend on one another for success? A. Retailer cooperative B. Channel power C. Channel cooperation D. Channel leader E. Channel conflict
Channel cooperation
Which of the following is the phase in the new product development process in which companies launch a new product, and it requires full-scale production, distribution, advertising, and sales promotion? A. Product concept development and screening B. Market strategy development C. Commercialization D. Test marketing E. Idea generation
Commercialization
Which of the following terms refers to the extent to which a new product is consistent with one's existing cultural values, customs, and practices? A. Relative advantage B. Product adoption C. Diffusion D. Tipping point E. Compatibility
Compatibility
Which of the following refers to a modification to an existing product, to set one brand apart from its competitors? A. Discontinuous innovation B. Innovation C. Continuous innovation D. Convergence E. Dynamically continuous innovation
Continuous innovation
Which of the following refers to a consumer product that is usually low-priced, widely available, and purchased frequently with a minimum of comparison and effort? A. Convenience product B. Impulse product C. Unsought product D. Staple product E. Emergency product
Convenience product
Which of the following refers to a multiple-level distribution channel in which channel members work independently of one another? A. Administered VMS B. Contractual VMS C. Corporate VMS D. Conventional marketing system E. Vertical marketing system (VMS)
Conventional marketing system
Which of the following refers to a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations? A. Retailer cooperative B. Administered VMS C. Contractual VMS D. Corporate VMS E. Conventional marketing system
Corporate VMS
Which of the following refers to one of the two ways distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to a large number of customers? A. Creating assortments B. Disintermediation (of the channel of distribution) C. Transportation and storage D. Wholesaling intermediaries E. Independent intermediaries
Creating assortments
Which of the following refers to the act of tailoring the level of customer service based on a customer's perceived ability to pay? A. Shrinkage B. Customer profiling C. Experiential shoppers D. Retailtainment E. Retail borrowing
Customer profiling
Which of the following logistics elements found in transportation refers to the ability of the carrier to locate goods in shipment? A. Dependability B. Speed of delivery C. Cost D. Capability E. Traceability
Dependability
Which of the following refers to an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise? A. Retailing B. Direct selling C. Green River Ordinances D. Nonstore retailing E. Merchandise mix
Direct selling
Which of the following refers to a process of developing distribution objectives, evaluating internal and external environmental influences on distribution, and choosing a distribution strategy? A. Slotting allowance B. Conventional marketing system C. Vertical marketing system (VMS) D. Distribution intensity E. Distribution planning
Distribution planning
Which of the following terms refers to a type of modification in which an existing product that requires a moderate amount of learning or behavior changes? A. Innovation B. Knock off C. Discontinuous innovation D. Continuous innovation E. Dynamically continuous innovation
Dynamically continuous innovation
Which of the following adopters are concerned about social acceptance, so they tend to gravitate toward products they believe will make others think they are cutting-edge or fashionable. A. Early adopters B. Laggards C. Late majority D. Innovators E. Early majority
Early adopters
Which of the following refers to demand in which changes in price have large effects on the amount demanded? A. Inelastic demand B. Price elasticity of demand C. Elastic demand D. Break-even point E. Cross-elasticity of demand
Elastic demand
Which of the following SERVQUAL dimensions refers to the degree to which the service provider genuinely cares about customers and takes the customer perspective into account when delivering service? A. Tangibles B. Responsiveness C. Assurance D. Empathy E. Reliability
Empathy
Which of the following refers to the process of translating an idea into a form of communication that will convey meaning? A. Medium B. Message C. Receiver D. Encoding E. Source
Encoding
Which of the following refers to the stage of the product adoption pyramid in which consumers weigh the costs and benefits of the new product? A. Awareness B. Evaluation C. Adoption D. Trial E. Interest
Evaluation
Which of the following pricing tactics refers to a pricing tactic in which the cost of transporting the product from the factory to the customer's location is the responsibility of the customer? A. Freight absorption pricing B. F.O.B. origin pricing C. Uniform delivered pricing D. F.O.B. delivered pricing E. Captive pricing
FOB origin pricing
Which of the following refers to making the purchase process easier for customers and manufacturers? A. Breaking bulk B. Facilitating functions C. Transportation and storage D. Communication and transaction function E. Risk-taking functions
Facilitating functions
Which of the following refers to a measure used for comparing the effectiveness of different media vehicleslong dash—average reach frequency? A. Aided recall B. Attitudinal measures C. Cost per thousand (CPM) D. Unaided recall E. Gross rating points (GRPs)
Gross rating points (GRPs)
Which of the following stages of the product life cycle features new competitors that enter the market creating new variations of the product? A. Maturity stage B. Decline stage C. Introduction stage D. Growth stage E. Cannibalization
Growth stage
Which of the following refers to an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose? A. Franchise organization B. Vertical marketing system (VMS) C. Conventional marketing system D. Horizontal marketing system E. Retailer cooperative
Horizontal marketing system
Which of the following is a question a firm would ask when evaluating the firm's strategy on an innovation scorecard? A. Does the organization have an appetite for learning and trying new things? B. Does the organization intentionally avoid trying new things? C. Does leadership encourage members of an organization to try things without fearing failure? D. Do the organization's members have the freedom and security to try things, fail, and then go forward to try different things? E. How aware are organization members of the firm's goals for innovation?
How aware are organization members of the firm's goals for innovation
Which of the following refers to the characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service? A. Variability B. Capacity management C. Intangibility D. Inseparability E. Perishability
Inseparability
Which of the following refers to a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations? A. Reverse logistics B. Supply chain C. Insourcing D. Supply chain management E. Warehousing
Insourcing
Which of the following refer to a strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences? A. Integrated marketing communication (IMC) B. Promotion C. Communication model D. Word-of-mouth communication E. Multichannel promotional strategy
Integrated marketing communication (IMC)
Which of the following refers to an inventory management and purchasing process that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed? A. Supply chain management B. Inventory turnover C. Just in time (JIT) D. Stock outs E. Inventory control
Just in time
A Picture Me portrait studio found in a Walmart store is an example of which of the following types of retailers? A. Warehouse clubs B. Off-price retailers C. Factory outlet stores D. Leased departments E. Department stores
Leased departments
Which of the following refers to the process of designing, managing, and improving the movement of products and includes purchasing, manufacturing, storage, and transport? A. Supply chain management B. Physical distribution C. Reverse logistics D. Supply chain E. Logistics
Logistics
Which of the following characteristics favors an exclusive distribution strategy? A. Low cost of serving individual customers B. Low customer density and service and cooperation as priorities C. Based on a strong market presence, often through advertising and promotion D. Oriented toward mass markets E. Overlapping market coverage
Low customer density and service and cooperation as priorities
Light bulbs, mops, and cleaning supplies are products business customers consume them in a relatively short time. Which product category best fits these products? A. Maintenance, repair, and operating (MRO) products B. Processed materials C. Raw materials D. Equipment E. Component parts
MRO products
Which phase of the new product development process involves identifying the target market, estimating its size, and determining how the company can effectively position the product to address the target market's needs? A. Idea generation B. Market strategy development C. Test marketing D. Commercialization E. Product concept development and screening
Market strategy development
Which of the following refers to the moving of products into, within, and out of warehouses? A. Materials handling B. Transportation C. Order processing D. Warehousing E. Distribution center
Materials handling
Which of the following refers to the variety of choices available for each specific product line? A. Merchandise mix B. Merchandise assortment C. Merchandise depth D. Mergers E. Merchandise breadth
Merchandise depth
Which of the following describes a benefit for consumers who utilize e-commerce? A. Conflict with conventional retailers B. Expensive to order and then return C. More product choices D. Decreased cost of doing business E. Lack of security
More product choices
Which of the following is a limitation for a marketer using e-commerce? A. Very specialized businesses can be successful B. Less traveling C. Shop 24 hours a day D. Must maintain site to reap benefits E. Can receive relevant information in seconds
Must maintain site to reap benefits
Which of the following logistics functions refers to a series of activities that occurs between the time an order comes into the organization and the time a product goes out the door? A. Transportation B. Warehousing C. Distribution center D. Order processing E. Materials handling
Order processing
Which of the following refers to a type of technology that has led to an evolution in retailing by collecting sales data and is hooked directly into the store's inventory-control system? A. Experiential shopper B. Point-of-sale (POS) system C. Automatic reordering system D. Wheel-of-retailing hypothesis E. Perpetual inventory unit control system
POS system
Which of the following utilizes a sales technique in which a company representative known as a consultant, distributor, or advisor makes a sales presentation to a group of people who have gathered in the home of a friend? A. Party plan system B. Business-to-consumer (B2C) e-commerce C. Network marketing D. Pyramid scheme E. Virtual experiential marketing (VEM)
Party plan system
Which of the following refers to the characteristic of a service that makes it impossible to store for later sale or consumption? A. Intangibility B. Perishability C. Disintermediation D. Inseparability E. Variability
Perishability
Which of the following refers to the activities that move finished goods from manufacturers to final customers, including order processing, warehousing, materials handling, transportation, and inventory control? A. Wholesaling intermediaries B. Physical distribution C. Independent intermediaries D. Channel intermediaries E. Channel of distribution
Physical distribution
Which of the following refers to products that organizational customers purchase to use in their finished products? A. Equipment B. Maintenance, repair, and operating (MRO) products C. Component parts D. Raw materials E. Processed materials
Raw materials
Which of the following is the second phase in the new product development process? A. Technical development B. Idea generation C. Business analysis D. Product concept development and screening E. Market strategy development
Product concept development and screening
Which of the following refers to the systematic and usually team-based approach to coordinating all aspects of a product's strategy development and execution? A. Product line B. Product-line length C. Product mix D. Product management E. Cannibalization
Product management
Which of the following refers to the number of different product lines the firm produces? A. Product quality B. Product mix C. Product line D. Cannibalization E. Product mix width
Product mix width
Which of the following involves an illegal sales technique that promises consumers or investors large profits from recruiting others to join the program rather than from any real investment or sale of goods to the public? A. Network marketing B. Party plan system C. Business-to-consumer (B2C) e-commerce D. Virtual experiential marketing (VEM) E. Pyramid scheme
Pyramid scheme
Which of the following refers to a consumer practice of purchasing a product with the intent to return the nondefective merchandise for a refund after it has fulfilled the purpose for which it was purchased? A. Retail borrowing B. Customer profiling C. Shrinkage D. Retailtainment E. Experiential shoppers
Retail borrowing
Which of the following refers to the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use? A. Automatic reordering system B. Point-of-sale (POS) system C. Retailing D. Perpetual inventory unit control system E. Retailtainment
Retailing
________ is suitable for most shopping products, such as household appliances and electronic equipment for which consumers are willing to spend time visiting different retail outlets to compare alternatives. A. Intensive distribution B. Retailer cooperative C. Franchise organization D. Selective distribution E. Exclusive distribution
Selective distribution
Tablet computers are an example of a(n) ________ because the consumer spends considerable time and effort gathering information and comparing alternatives before making a purchase. A. staple product B. convenience product C. specialty product D. shopping product E. unsought product
Shopping product
In the traditional promotion mix, which of the following is a negative of advertising? A. Costs more per contact than mass appeals B. High cost per contact with customer C. Lack of control over the message that is eventually transmitted and no guarantee that the message will ever reach the target D. Some ads having low credibility and/or being ignored by the audience E. Short-term emphasis on immediate sales rather than a focus on building brand loyalty
Some ads having low credibility and/or being ignored by the audience
Which of the following refers to a retailer, like Things Remembered, that carries only a few product lines but offers a good selection within the lines that it sells? A. Hypermarket B. Specialty store C. Box store D. Factory outlet store E. Category killer
Specialty Store
In which step of the advertisement development process does a marketer formulate a creative strategy and develop a creative brief? A. Step 2 B. Step3 C. Step 5 D. Step 1 E. Step 4
Step 3
Which of the following steps of the promotional planning process involves deciding on a push or pull strategy? A. Step 4 B. Step 2 C. Step 1 D. Step 3 E. Step 5
Step 3
In which step of the price planning process does a firm analyze the economy, competition, government regulations, consumer trends, and the internal environment? A. Step 1 B. Step 4 C. Step 2 D. Step 3 E. Step 5
Step 4
At what phase of the new product development process is a firm most likely to create a prototype of the product? A. Product concept development and screening B. Idea generation C. Technical development D. Market strategy development E. Business analysis
Technical development
Knowledge Which advertising format does a celebrity, an expert, or a "man in the street" state the product's effectiveness? A. Testimonial B. Tonality C. Demonstration D. Slice of life E. Lifestyle
Testimonial
Which of the following explains how retail firms change and become more upscale as they go through their life cycle? A. A point-of-sale (POS) system B. An automatic reordering system C. An experiential shopper D. A perpetual inventory unit control system E. Wheel-of-retailing hypothesis
Wheel-of-retailing hypothesis
Which of the following is an advantage of using merchant wholesalers? A. They distribute low-cost merchandise for small retailers and other business customers B. They are used by most small- to medium-sized firms C. They ensure perishable items are delivered and sold efficiently D. They facilitate transactions for bulky products E. They allow small manufacturers to serve customers throughout the world with competitive costs
They allow small manufacturers to serve customers throughout the world with competitive costs
Which of the following is an advantage of rack jobbers? A. They ensure perishable items are delivered and sold efficiently B. They facilitate transactions for bulky products C. They provide merchandising services to retailers D. They are used by most small- to medium-sized firms E. They provide reasonably priced sales options to small organizational customers
They provide merchandising services to retailers
Which of the following utilizes many manufacturers to showcase their products to attendees? A. Promotional products B. Trade shows C. Co-op advertising D. Point-of-purchase (POP) displays E. Trade promotions
Trade shows
Which of the following refers to a group of people within an organization who work together to focus exclusively on the development of a new product? A. Venture team B. Brand manager C. Product category manager D. Product management E. Market manager
Venture team
________ provide(s) most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final messages. A. A limited-service agency B. An account executive C. Creative services D. A full-service agency E. An advertising campaign
a full-service agency
Which of the following refers to a member of the account management department who combines research and account strategy to act as the voice of the consumer in creating effective advertising? A. Account executive B. Research and marketing services C. Account planner D. Creative services E. Media planners
account planner
Which of the following refers to the second layer of the product concept? A. Attributes B. Actual product C. Good D. Core product E. Augmented product
actual product
Which of the following refers to a deceptive pricing tactic in which an advertised price special is used as bait to get customers into the store with the intention of selling them to a higher-priced item? A. Price fixing B. Predatory pricing C. Loss-leader pricing D. Bait-and-switch E. Surge pricing
bait and switch
Which of the following refers to the most popular and fastest growing digital currency? A. Price B. Markup C. Market share D. Bitcoin E. Prestige products
bitcoin
Which of the following is an individual who is responsible for developing and implementing the marketing plan for a single brand? A. Product management B. Brand manager C. Market manager D. Product category manager E. Venture team
brand manager
Which of the following is a pricing tactic a firm uses when it has two products that work only when used together by which the firm sells one item at a very low price and then makes its profit on the second high-margin item? A. Captive pricing B. Uniform delivered pricing C. F.O.B. delivered pricing D. F.O.B. origin pricing E. Price bundling
captive pricing
Which of the following refers to the series of firms or individuals that facilitates the movement of a product from the producer to the final customer? A. Physical distribution B. Channel of distribution C. Wholesaling intermediaries D. Independent intermediaries E. Channel intermediaries
channel distribution
Which of the following branding strategies benefits partnering companies by combining the two brands to provide more recognition power than either enjoys alone? A. National or manufacturer brand B. Private-label brand C. Co-branding D. Generic brand E. Family brand
co-branding
Which of the following refers to a sales promotion where the manufacturer and the retailer share the cost? A. Trade promotions B. Co-op advertising C. Merchandising allowance D. Point-of-purchase (POP) displays E. Frequency programs
co-op advertising
Which of the following refers to manufactured goods or subassemblies of finished items that organizations need to complete their own products? A. Raw materials B. Equipment C. Processed materials D. Maintenance, repair, and operating (MRO) products E. Component parts
component parts
Which the following refers to all the benefits the product will provide for consumers or business customers? A. Good B. Actual product C. Augmented product D. Attributes E. Core product
core product
Which of the following refers to advertising that promotes the company as a whole instead of a firm's individual products? A. Public service advertisements (PSAs) B. Institutional advertising C. Corporate advertising D. Product advertising E. Advocacy advertising
corporate advertising
A marketer utilizing the hierarchy of effects would use which of the following promotional efforts to accomplish the purchase objective? A. Product placement B. Celebrity endorsements C. Slogans and jingles D. Brochures E. Coupons
coupons
At what stage of the product life cycle is the goal to remain profitable and decide whether to keep or phase out the product? A. Cannibalization B. Decline stage C. Introduction stage D. Maturity stage E. Growth stage
decline stage
Which of the following pricing strategies would be used if a firm bases the selling price on an estimate of volume or quantity that it can sell in different markets at different prices? A. Cost-plus pricing B. Price leadership C. Trial pricing D. Demand-based pricing E. Yield management pricing
demand-based pricing
Utilizing the models of marketing communication, which of the following tactics is used in the one-to-one model? A. Public relations B. Buzz building C. Direct marketing D. Advertising E. Sales promotion
direct marketing
Which of the following refers to a product innovation that requires consumers to learn a great deal to be able to effectively use the product because no similar product has ever been on the market? A. Dynamically continuous innovation B. Continuous innovation C. Innovation D. Discontinuous innovation E. Convergence
discontinuous innovation
Which of the following refers to a pricing strategy in which the price can easily be adjusted to meet changes in the marketplace? A. Dynamic pricing B. Freemium strategy C. Price lining D. Online auctions E. Internet price discrimination strategy
dynamic pricing
Which of the following refers to an online strategy in which the price can easily be adjusted to meet changes in the marketplace? A. Price lining B. Internet price discrimination strategy C. Dynamic pricing D. Freemium strategy E. Online auctions
dynamic pricing
Which of the following refers to a branding strategy in which a group of individual products or individual brands share? A. Co-branding B. National or manufacturer brand C. Generic brand D. Private-label brand E. Family brand
family brand
Which of the following refers to the costs of production that do not change with the number of units produced? A. Fixed cost B. Variable cost C. Contribution per unit D. Markup E. Total cost
fixed cost
Which of the following is a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more features, greater functionality, or greater capacity? A. Online auctions B. Dynamic pricing C. Price lining D. Internet price discrimination strategy E. Freemium strategy
freemium strategy
Value co-creation most likely occurs in what phase of the new production development process? A. Market strategy development B. Business analysis C. Idea generation D. Product concept development and screening E. Test marketing
idea generation
Which of the following adopters are typically lower in income level and education than other adopters and are bound by tradition? A. Innovators B. Early adopters C. Laggards D. Late majority E. Early majority
laggards
A(n) ________, with fewer product variations, can improve the firm's image if consumers perceive it as a specialist with a clear, specific position in the market. A. upward-line stretch B. full line C. filling-out strategy D. downward-line stretch E. limited-line strategy
limited line strategy
Which of the following refers to the price that the manufacturer sets as the appropriate price for the end consumer to pay? A. Markup B. Wholesaler margin C. Gross margin D. Retailer margin E. List price or manufacturer's suggested retail price (MSRP)
list price or manufacturer's suggested retail price
Which of the following is an element of the vulnerability phase in retailing? A. Moderate prices B. Low-end facilities C. Low margins D. Increased quality merchandise E. Luxurious facilities
luxurious facilities
________ are independent salespeople who carry several lines of noncompeting products. They have contractual arrangements with manufacturers that outline their territories, selling prices, and other specific aspects of the relationship but provide little, if any, supervision. A. Manufacturers' showrooms B. Merchandise brokers C. Selling agents D. Commission merchants E. Manufacturers' agents or manufacturers' reps
manufacturers' agents or reps
Which of the following refers to an individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group? A. Market manager B. Product category manager C. Venture team D. Brand manager E. Product management
market manager
Which of the following refers to the percentage of a market, defined in terms of either sales units or revenue, accounted for by a specific firm, product lines, or brands? A. Market share B. Retailer margin C. Gross margin D. Price E. Markup
market share
Which of the following pricing strategies is usually the rule in an oligopolistic industry that a few firms dominate, which might be in the best interest of all players because it minimizes price competition? A. Price leadership B. Penetration pricing C. Yield management pricing D. Demand-based pricing E. Value pricing or everyday low pricing (EDLP)
price leadership
Marketers often apply their understanding of the psychological aspects of pricing in a practice they call ________, whereby items in a product line sell at different prices, or price points. A. internal reference price B. predatory pricing C. bait-and-switch D. price fixing E. price lining
price lining
Costco's store brand Kirkland Signature is an example of which branding strategy? A. Private-label brand B. Co-branding C. National or manufacturer brand D. Family brand E. Generic brand
private-label brand
Which of the following distribution channels does Samsung use when it sells TVs through large retailers such as Best Buy? A. Dual or multiple distribution system B. Producer-consumer channel C. Producer-retailer-consumer channel D. Hybrid marketing systems E. Producer-wholesaler-retailer-consumer channel
producer-retailer-consumer channel
Which of the following refers to individuals who are responsible for developing and implementing the marketing plan for all the brands and products within a category? A. Market manager B. Product management C. Brand manager D. Venture team E. Product category manager
product category manager
Which of the following refers to a concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline? A. Product mix B. Product management C. Product line D. Product quality E. Product life cycle
product life cycle
Which of the following refers to a firm's total product offering to satisfy a group of target customers? A. Cannibalization B. Product line C. Product management D. Product mix E. Product-line length
product line
Product objectives often focus on ________, which is the overall ability of the product to satisfy customers' expectations. A. total quality management (TQM) B. Six Sigma C. ISO 9000 D. internal customers E. product quality
product quality
Which of the following refers to claims made in advertising of product superiority that cannot be proven true or untrue? A. Crowdsourcing B. Greenwashing C. Corrective advertising D. Puffery E. Do-it-yourself (DIY) ads
puffery
Which of the following trade promotions is being used if a retail salesperson at a cosmetics counter gets $5 every time she sells a bottle of Glow perfume by JLo? A. Trade shows B. Promotional products C. Push money D. Merchandising allowances E. Incentive programs
push money
________ occurs when a company tries to move its products through the channel by convincing channel members to offer them. A. Push strategy B. Pull strategy C. Bottom-up budgeting techniques D. AIDA model E. Hierarchy of effects
push strategy
Which of the following sales promotions allows the customer to recover part of the product's cost from the manufacturer? A. Rebates B. Frequency programs C. Trade promotions D. Premiums E. Product sampling
rebates
Which of the following pricing tactics is used when price reductions are offered only during a certain time of the year? A. Seasonal discounts B. Cash discounts C. Quantity discounts D. Price bundling E. Trade discounts
seasonal discounts
Which of the following refers to the actual interaction between the customer and the service provider? A. Capacity management B. Service encounter C. Servicescape D. Variability E. Disintermediation
service encounter
Which of the following refers to a standard of no more than 3.4 defects per millionlong dash—getting it right 99.9997% of the time? A. Six Sigma B. Internal customers C. Total quality management (TQM) D. ISO 9000 E. Product quality
six sigma
Utilizing the models of marketing communication, which of the following tactics is used in the many-to-many model? A. Database marketing B. Sales promotion C. Social media D. Personal selling E. Public relations
social media
Which of the following product category best classifies milk, bread, and gasoline as basic or necessary items that are available almost everywhere and most consumers don't perceive big differences among brands? A. Specialty product B. Staple product C. Unsought product D. Convenience product E. Shopping product
staple product
Which of the following refers to the management of flows among firms to maximize total profitability? A. Reverse logistics B. Supply chain C. Physical distribution D. Supply chain management E. Logistics
supply chain management
Which of the following is a pricing strategy in which the price of a product is raised as demand for that product goes up and lowered as demand goes down? A. Bait-and-switch B. Loss-leader pricing C. Predatory pricing D. Price fixing E. Surge pricing
surge pricing
Which of the following pricing objectives focuses on altering pricing policies to reflect the increased emphasis on the product's quality image? A. Sales or market share B. Competitive effect C. Profit D. Customer satisfaction E. The image enhancement
the image enhancement
Which of the following refers to an allocation of the promotion budget based on management's determination of the total amount to be devoted to marketing communication? A. Objective-task method B. Competitive-parity method C. Bottom-up budgeting techniques D. Percentage-of-sales method E. Top-down budgeting technique
top-down budgeting technique
Which of the following refers to the legal term for a brand name, brand mark, or trade character? A. Brand meaning B. Brand equity C. Brand D. Brand storytelling E. Trademark
trademark
________ occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them. A. Creating assortments B. Facilitating functions C. Breaking bulk D. Risk-taking functions E. Transportation and storage
transportation and storage
Which of the following functions of packaging is utilized to supply specific information about the type of item, the manufacturer, and the specific product? A. Package shape B. Directions for use C. Photo of product in use D. Universal Product Code (UPC) E. Warnings
universal product code
If a firm's current product line includes middle- and lower-end items, a(n) ________ adds new itemslong dash—higher priced entrants that claim better quality or offer more bells and whistles. A. full line B. upward-line stretch C. downward-line stretch D. filling-out strategy E. limited-line strategy
upward line stretch
Which of the following refers to online consumer comments, opinions, advice and discussions, reviews, photos, images, videos, podcasts, webcasts, and product-related stories available to other consumers? A. Crowdsourcing B. Advertising campaign C. Greenwashing D. User-generated content (UGC) E. Do-it-yourself (DIY) ads
user-generated content (UGC)
Which of the following refers to an online marketing strategy that uses enhancements including colors, graphics, layout and design, interactive videos, contests, games, and giveaways to engage experiential shoppers online? A. Business-to-consumer (B2C) e-commerce B. Virtual experiential marketing (VEM) C. Party plan system D. Network marketing E. Pyramid scheme
virtual experiential marketing (VEM)
Which of the following pricing strategies is heavily used by hospitality companies like airlines, hotels, and cruise lines because these businesses charge different prices to different customers in order to manage capacity while they maximize revenues? A. Yield management pricing B. Trial pricing C. Cost-plus pricing D. Price leadership E. Demand-based pricing
yield management pricing
