mktg exam 2 ALL
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing. A. product bundle B. two-part C. captive-product D. product line E. by-product
C. captive-product
___________ are payments or price reductions that reward dealers for participating in advertising and sales-support programs. A. volume discounts B. cash discounts C. promotional allowances D. quantity discounts E. trade-in allowances
C. promotional allowances
The first part of a marketing strategy statement describes the ________ of a new product. A. planned price B. marketing budget C. target market D. marketing mix strategy E. profit goals
C. target market
__________ is a currently accepted or popular style in a given field. A. A fad B. Fashion C. Style D. Crowdsourcing
B. Fashion
Mi Rancho Supermarkets is a chain grocer that locates stores in neighborhoods with large Hispanic populations. Their stores carry a greater selection of Hispanic and Latin foods. The type of marketing that Mi Rancho uses is an example of ________. A. differentiated marketing B. micromarketing C. target marketing D. concentrated marketing E. undifferentiated marketing
B. micromarketing
_____________________ is the value of customer relationships that a brand creates. A. Customer value B. Brand value C. Customer equity D. Brand differentiation E. Brand equity
C. Customer equity
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship? A. Generic brands B. Co-brands C. Private brands D. Private labels E. Manufacturer's brand
C. Private brands
Internal factors that affect pricing include _________________. A. The company's overall marketing strategy, the nature of the market, and demand. B. The nature of the market, demand, and the economy C. The company's overall marketing strategy, objectives, and the nature of the market D. The company's overall marketing strategy, objectives, and marketing mix. E. The company's overall marketing strategy, objectives, and demand
D. The company's overall marketing strategy, objectives, and marketing mix.
Other internal factors that influence pricing decisions include ____________. A. the company's overall pricing strategy, objectives, and marketing mix, as well as organizational considerations B. the company's overall sales strategy, revenue objectives, and marketing mix, as well as organizational considerations C. the company's overall marketing strategy, objectives, and marketing mix D. the company's overall sales strategy, objectives, and marketing mix, as well as organizational considerations E. the company's overall marketing strategy, objectives, and marketing mix, as well as organizational considerations
E. the company's overall marketing strategy, objectives, and marketing mix, as well as organizational considerations
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI? A. Brand extension B. Line extension C. New brand D. Multibranding E. Licensing
C. New brand
When a company builds a brand, it needs to make important decisions regarding the brand. Of the following, which is NOT one of those decisions? A. Brand licensing opportunities B. Brand development C. Brand name selection D. Brand sponsorship options E. Brand positioning
A. Brand licensing opportunities
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations? A. The nature of the market and demand and other environmental factors B. Demand, revenue objectives, and stakeholder requirements C. Market strategy, environmental factors, and distribution channels D. Demand, market strategy, and the effect of reseller actions E. The nature of the market and environmental factors
A. The nature of the market and demand and other environmental factors
Finding the best name is part of __________, and it begins with a careful review of the product and its benefits, the target market, and proposed marketing strategies. A. brand name selection B. brand development C. brand sponsorship D. brand positioning
A. brand name selection
When marketers aggressively promote only one benefit to the target market, the benefit promoted is known as the product or service's _____________________. A. unique selling proposition B. unique difference proposition C. unique product proposition D. unique benefit proposition E. unique position proposition
A. unique selling proposition
__________ is the third step in value-based pricing. A. Designing products to deliver the desired value at a target price B. Determining costs that can be incurred C. Assessing the customer needs and value perceptions D. Setting a target price to match the customer's perceived value
B. Determining costs that can be incurred
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives? A. Customer retention and building profitable customer relationships B. Grabbing international market share C. Preventing competition D. Supporting resellers and gaining their support E. Avoiding government intervention
B. Grabbing international market share
Which of the following is true regarding the price-demand relationship? A. Price elasticity measures how responsive price will be to a change in demand. B. If demand is elastic, sellers will consider lowering their prices. C. If demand is inelastic, a small change in price will result in a large change in demand. D. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. E. Demand and price are directly related—the higher the price, the greater the demand.
B. If demand is elastic, sellers will consider lowering their prices.
__________ is dividing a market into segments according to the moments when buyers get the idea to buy, actually make their purchase, or use the purchased item. A. Income segmentation B. Occasion segmentation C. Psychographics segmentation D. Behavioral segmentation
B. Occasion segmentation
__________ is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products. A. A unique selling proposition B. Product position C. A value proposition D. A competitive advantage
B. Product position
The marketing manager at Only Organic Delicatessen targets customers who are focused on organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of organic, low-fat, locally raised produce and foods. Only Organic's approach is best referred to as ________ segmentation. A. geographic B. psychographic C. user status D. age and life-cycle E. benefit
B. psychographic
Which of the following correctly describes the classifications into which products and services fall? A. Luxury products and non-luxury products B. Technology products and non-technology products C. Consumer products and industrial products D. Wholesale products and retail products E. Consumer products and business products
C. Consumer products and industrial products
When, if ever, is price discrimination allowed? A. If the seller can substantiate that it is distributing internationally, then it is legal. B. If the seller is selling via the Internet as its main channel, then it is legal. C. If the seller can prove that its costs are different when selling to different retailers, then it is legal. D. If the seller can prove that it is allowable in certain states and local retailing areas, then it is legal. E. If the seller can prove that its revenue is affected when selling to similar retailers, then it is legal.
C. If the seller can prove that its costs are different when selling to different retailers, then it is legal.
How do companies apply pricing strategies to accommodate differences in customer segments and situations? A. They use accommodations such as preferred pricing strategies. B. They use selective promotional pricing strategies. C. They apply a variety of price adjustment strategies. D. They focus on segmented pricing strategies. E. They create price allowance pricing strategies.
C. They apply a variety of price adjustment strategies.
One important consideration in using a differentiated targeting strategy is that _______. A. the demand for customized products is decreasing B. serving one or a few smaller segments can limit sales C. it can increase costs D. it is easier for the company because it only needs to manage one market offering E. focusing on what is common in consumers can potentially appeal to the largest number of buyers
C. it can increase costs
A __________ is the full mix of benefits on which a brand is positioned. A. competitive advantage B. unique selling proposition C. value proposition D. product position
C. value proposition
Social responsibility includes public policy issues and regulations involving _________________, and product warranties. A. product quality and safety, product replacement B. product replacement, product quality and safety C. patent protection, product quality and safety D. acquiring or dropping products, patent protection, product quality and safety E. product sustainability, patent protection, product quality and safety
D. acquiring or dropping products, patent protection, product quality and safety
Which of the following statements regarding the marketing of international products and services is correct? A. Markets and consumers around the world are now so similar that international product and services marketers no longer face special challenges when marketing in foreign countries. B. The trend toward growth of global service companies will not continue and will actually decline. C. Advertising is one service industry that has not needed to globalize its operations. D. Markets and consumers all over the world are alike, so a company should always standardize international products. E. Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
E. Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management? A. Maturity B. Introduction C. Decline D. Product development E. Growth
A. Maturity
______________________ is the step of the new product development process during which a physical product is first developed. A. Product development B. Marketing strategy development C. Test marketing D. Concept development and testing E. Idea generation
A. Product development
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy. A. premium pricing B. market-penetration C. by-product D. captive-product E. optional-product
A. premium pricing
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage. A. growth B. relaunch C. maturity D. decline E. introductory
E. introductory
