MKTG 18 & 19

31. John was going to buy a new Toyota Prius, but the price of the new model was so high that John decided to repair his 2012 Prius instead. John's example shows all of the following EXCEPT _______.

d. sensitivity to price increases makes demand more inelastic

30. At a price of $2,000 per unit, the demand for Rancho 60 mountain bikes from Peyton Bike's Inc. is 300 units, which is the number of bikes the company manufactures every year. This is Peyton Bike's maximum output. If the marketing managers at Peyton Bike's Inc. decide to sell each bike at a price lower than $2,000 per unit, _____.

a. a shortage of bikes will be created

10. To compare themselves to peers, Bryan Air has a consultant to monitor customer service metrics such as customer satisfaction against Frontier Airlines and Virgin Atlantic. This is an example of how companies _______ to gauge the effectiveness of their social media effort.

a. benchmark against competitors

17. Tess has a cooking _______ called the Crafty Cook. This web page allows Tess to have an interactive journal filled with her cooking tips. Readers can post comments about Tess's ideas and add their own suggestions.

a. blog

15. Frank is a personal trainer who uses an RSS feed that allows him to access updates to websites on physical fitness. Frank can keep track of many different websites because the RSS feed is automatically checked for new content. Frank has access to blog entries, news headlines, or podcasts about physical fitness. Frank is classified as a _______.

a. collector

36. The Instant Pot electric pressure cooker was introduced in 2010 and had a slow start, but word of mouth from social media and influential bloggers created an explosive growth in demand for the versatile multi-cooker. Competitors such as Ninja and Crock-Pot pressure cookers have entered the market and prices have begun to stabilize for Instant Pot. What stage in the product life cycle would the Instant Pot be?

a. Growth stage

19. As one of the most well-known natural foods stores, Whole Foods is one of the best blogs on the social scene. The blog's success is tied to the corporate image. Its customers are heavily invested in a healthy lifestyle and willing to pay higher prices for relatively unknown brands and for organic and locally sourced foods. This is an example of a(n) _______ blog.

a. corporate

44. Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to _______.

a. initially charge a relatively low price per product

43. The Los Angeles Times news website offers one month of its subscription-based service for $1 and then the price goes up from there. This is an example of _______.

a. penetration pricing

1. At Toyota, marketers know that for most Toyota customers Facebook, Instagram, and Twitter offer consumers the opportunity to share their thoughts, wishes, and experiences about brands. Toyota marketers realize that consumer interaction and engagement are not really seen in traditional media. This is an example of Toyota using _______.

a. social media

12. Huda Kattan is arguably the world's most influential beauty expert, with a wide-ranging social media outreach. She started as a blogger and has transformed her Instagram page to gain 29 million followers for the makeup tutorials she puts out. Her keys to success have been showing off successful makeup applications, establishing makeup trends, sharing reviews, and creating how-to's. Huda is an example of a _______.

a. social media influencer

33. Lyft raises ride-sharing fares when more people need rides and vice versa. This is referred to as _______.

a. surge pricing

21. Pinterest is a social bookmarking site for finding recipes and crafts. You discover Pins, ideas that people on Pinterest create, and save them to boards to keep your ideas organized. Social bookmarking stores, organizes, searches, and manages "bookmarks." Social bookmarking sites like Pinterest differ from social news sites in that _______.

a. the objective of social bookmarking sites is to enable users to collect, save, and share interesting and valuable links

8. Paulo, a marketing manager of a pharmaceutical company, opens dialogues with stakeholders by giving them compelling content across a variety of media. Which social media objective do his actions illustrate?

b. Build relationships and awareness

11. Azra bought a Chef Air Fryer online. She is delighted to make her entire dinner in 20 minutes and have a very tasty meal with easy, quick clean-up. Azra posted her positive comments and review of the Air Fryer online on Facebook and on her blog. Which category of social media user applies to Azra?

b. Critic

32. The managers at Pick n'Click, an e-commerce website, closely monitor its rival online retailers to analyze how consumers respond to changes in the prices of certain products. They use the results of this analysis to constantly change the prices on their website to maximize sales and profits. In this case, which of the following pricing strategies does Pick n'Click follow?

b. Dynamic pricing

20. Magestic Corp. is an organization that manufactures clothing for women. It uses Facebook to promote its products. Given this information, which statement is true of Magestic Corp.?

b. Its pages are subject to search engine indexing.

26. Santiago Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given the high demand for its service, Santiago's management could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. Santiago Designs bases its pricing policy on _____.

b. earning satisfactory profits

24. To increase the popularity of its new range of smartphones, First Basin Inc. offered several free accessories to customers who bought their smartphones. However, the offer turned out to be unsustainable and the company had to offer discounts on the accessories instead. First Basin's decision is aimed at _____.

b. profit maximization

22. Trip Advisor has roughly 661 million evaluations that cover about 7.7 million accommodations, airlines, experiences, and restaurants, TripAdvisor doesn't require a booking in order to write a critique. TripAdvisor is an example of a ______ .

b. review site

3. RewardStyle helps brands and lifestyle influencers engage successfully in e-commerce. RewardStyle is a global community of more than 60,000 influencers who connect consumers with one million brand partners. RewardStyle relies on user-generated content on a website to assist consumers with purchases and builds strong relationships between influencers and brands. This is an example of _______.

b. social commerce

6. Mentionlytics provides listening tools to help clients discover and react to different sentiments about anything connected to their business. Mentionlytics uses powerful social analytics and mention analytics insights to gather information about what customers are saying about the companies that they use for goods and services. This is an example of _______.

b. social media monitoring

14. Helen follows several blogs and is a frequent user of YouTube. She does not have her own website, and she almost never posts any comments on the sites she visits. She just enjoys reading and watching the content on popular sites. In this case, Helen would be best characterized as a _______.

b. spectator

28. FiberOne cereal costs about the same as Apple Jacks, Boo Berry, MultiGrain Cheerios, Cinnamon Toast Crunch, Crispix, and Corn Flakes. This is an example of _______ pricing.

b. status quo

34. The Tolia Company has costs that include employee salaries (direct labor) and costs it pays for the products it sells (direct materials costs). These costs that change with the level of output are called _____ costs.

b. variable

5. The Wilton Company sells cake decorating supplies, and Wilton consultants demonstrate cake and cupcake frosting techniques on YouTube. At no charge, people can log on and learn all sorts of cake decorating tips. This example shows that in digital marketing attention is earned through _______.

b. videos

27. Yolanda's Bakery sells cupcakes to coffee shops and restaurants. The company strives to increase its market share in terms of the revenue generated. This illustrates the _____ pricing objective.

d. sales-oriented

18. Marla, a 55-year-old woman, needs to move out of town. She wants to connect with some old school friends and stay in touch with former colleagues. Which of the following is Marla most likely to use for this purpose?

c. Facebook

9. The VLM Company thanks customers through a social media post or with a surprise gift card. VLM solicits customer feedback to create the impression that customer opinions are valued and help create better products and services. VLM is an example of one of the following statements about advertising in social media.

c. Marketers advertise in social media as a means of deepening relationships with customers.

39. eBay is an online shopping site that's best known for its auctions and consumer to consumer sales. It's also extremely popular for online merchants to use as a sales channel. eBay is available in many different countries. Which of the following is true of internet auctions like eBay?

c. The eBay site is the most popular auction site, with more than 175 million buyers and sellers.

37. Nextag is an independent price comparison service website for products, travel, and education. It started as a website where buyers and sellers could negotiate prices. Since 2000, the current business model has focused on comparison shopping. Broad-based shopping bots like Nextag _______.

c. are programs that search websites which are based on a Yellow Pages type of model

7. Spirit Airlines has wall monitors that show media interactions in real time. As a message appears on the screen, the system recognizes whether the comment is positive or negative so the Spirit team can respond to customers and ensure that they have a positive experience. This is an example of _______.

c. social media monitoring

2. Beau, a fashion design company, organizes an online contest. Participants are asked to design women's apparel to be posted on a social media website where its members can vote and provide feedback. Based on those votes, Beau will announce the winner and offer that individual a job at its firm. In this scenario, Beau is involved in _____.

d. crowdsourcing

35. The Garden Center sells an item that it buys for $2.50 and sells for $5.75. The addition of $3.25 is an increase of 130% of the cost ($3.25 ÷ $2.50). The difference between the Garden Center's cost and the selling price ($3.25) is the gross margin. This is an example of _______.

d. markup pricing

16. Looking Glass is a social networking site that allows members to write their views and opinions about various products, services, social issues, and more. However, members on this website can write no more than 280 characters. In this case, Looking Glass is a(n) _____.

d. microblog

25. Snelson Research Company specializes in conducting market research for various firms. When it receives a new research proposal, its management first estimates the cost of conducting the research and delivering the final research report. The management then attempts to reduce the costs through efficient operations. In this scenario, Snelson Research Company has a _____ pricing objective.

d. profit-oriented

29. The newly opened Pebble Restaurant was unable to attract a lot of customers. Because the restaurant's owner had to pay back the loan that he had taken to start the restaurant, he decided to offer a 20% discount on the entire menu on weekends. In this scenario, the owner's pricing objective is to maximize _____.

d. sales

41. The marketing manager of Raven Golf Club finds that the club can increase its market share if it slashes membership prices during the first quarter of the year. However, it would mean that the club will not achieve its target return on investment. This conflict illustrates _______.

d. the need to account for trade-offs in pricing objectives

Apple gives priority to profits over market share, making people starve for the new upgraded product. Apple's price skimming strategy is most often used for a new product when _______.

d. the product is perceived by the target market as having unique advantages

40. During the off season, the Rues Hotel offers a 25% discount on its rooms to attract guests. The Rues Hotel is demonstrating the _______.

d. use of price as a promotional tool

23. The Forest Organization successfully manages its prices by creating a pricing infrastructure within the company. Forest managers feel that creating the right pricing strategy is important. The Forest Organization does all of the following EXCEPT _______.

d. use traditional tools and systems to maintain current pricing decisions