MKTG EXAM 2 REVIEW

What is breadth and how do you increase or decrease it?

-The depth of the product line includes the number of different products offered within the product line -increasing it increases the amount of product a company brings to the market. -ex: many different types of basketball sneakers for Nike

A university using benefit segmentation and targeting students who want to get a degree quickly while still working full-time would most likely focus on a. Providing classes at convenient times and offering online classes b. Discount pricing for students taking more than 12 credit hours c. The higher average salaries earned by college graduates d. The great variety of classes offered e. The number of Nobel Prize winners on the faculty

A

Craig was complaining to another member of the lawn crew, "I don't know how they expect me to do an adequate job. The mower doesn't work right, the trimmers are so dull they don't cut anything, and the rest of the equipment is so old that we can't get parts." Craig's company lacks the ______ workers need to do a good job. a. Instrumental support b. Emotional support c. Service infrastructure d. Maintenance schedule e. Customer expectation mechanisms

A

Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ______ segmentation. a. Occasion b. Loyalty c. Geographic d. Psychographic e. Demographic

A

The Apple iPod changed the way people listen to music, but it also created an entirely new industry devoted to accessories, ear buds, docking stations, and speakers. The Apple iPod is considered a a. Pioneer product b. Introductory product c. Mature product d. Diffused product e. Early adopted product

A

The process by which the use of a new product or service spreads throughout a market group is referred to as a. Diffusion of innovation b. New product introduction c. Lead user dispersion d. The product life cycle e. Product development diffusion

A

When Adele decided to open up a tea shop in the center of town, she chose a group of customers who represent her customers of interest to survey their wants and needs. This group is called a a. Sample b. Focus group c. Target market d. Demographic e. Potential customer

A

Which of the following is considered part of the augmented product? a. Product warranty b. Features c. Design d. Quality e. Brand name

A

What's the difference between alpha testing and beta testing?

Alpha testing primarily takes place within the organization, whereas Beta testing takes place in the user's environment

What is the difference between inelastic and elastic demand?

An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small.

A(n) _________ pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases. a. Premium b. High/low c. EDLP d. Slotting e. Uniform

B

Differences in weather and climate create opportunities for a. Concentrated targeting b. Geographic segmentation c. Benefit segmentation d. Psychographic segmentation e. Demographic segmentation

B

For years, the Mogul Sheraton, a 4-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a _____ gap in services marketing. a. Seniority b. Knowledge c. Standards d. Delivery e. Communication

B

Tesla represents a(n) _______ because it manufacturers its own cars in Fremont, CA, and it operates its own retail stores in high-foot-traffic locations such as malls and shopping streets. a. Independent marketing channel b. Corporate vertical market system c. Indirect marketing channel d. Horizontal channel e. Conventional marketing channel

B

The _______ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less. a. Knowledge b. Communication c. Delivery d. Standards e. Empowerment

B

The price elasticity of demand for a teeth-whitening kit is -1.5. The market for this product is considered a. Inelastic b. Elastic c. Dynamic d. Saturated e. A prestige market

B

There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumer are more apt to buy alternate cereals instead. This illustrates which concept? a. The income effect b. The substitution effect c. The break-even point d. The target return effect e. Cross-price elasticity

B

What tools help marketers make sense out of the data and use it to make appropriate business decisions? a. Data mining b. Marketing analytics c. Syndicated data d. Churn e. Observation

B

________ give both members of the relationship an incentive to pool their strengths and abilities and exploit potential opportunities together a. Cross-checking b. Shared goals c. Vendor-managed inventory systems d. Vertical conflict reduction systems e. Horizontal channel conflicts

B

A weakness associated with cost-based pricing methods is that they... a. Are too difficult to calculate b. Do not consider profit when calculating c. Do not recognize the role consumers or competitors' prices play in the marketplace d. Do not consider fixed costs or variable costs e. Are structurally inflexible and ignore vertical price-fixing alternatives

C

Although marketers have found that psychographics are often more useful for predicting consumer behavior than demographics, psychographic segmentation... a. Is available in only limited geographic areas b. Is rarely used and unproven c. Involves knowing and understanding self-values, self-concept, and lifestyles d. Offers only one-to-one potential e. Is still an unproven area

C

Company sales invoices, census data, and trade association statistics are examples of a. Primary data b. Data mines c. Secondary data d. Tertiary data e. Qualitative data

C

For new product marketers, early adopters are important because they tend to be a. Few in number b. The first to adopt a new product c. Opinion leaders d. Fond of prototypes e. Alpha testing enthusiast

C

Marketers with luxury brands use brand extensions cautiously in order to avoid a. Brand licensing fees b. Exclusive cobranding arrangements c. Diluting the core brand d. Private-label branding disputes e. Product line extension limitations

C

McDonald's introduced a Favorites Under 400 Calorie Menu as part of an attempt to reverse the perception that McD's only has unhealthy food. Suppose that McD's follows up, and collects and analyzes social media posts from Facebook, Twitter, and similar sites, hoping to understand whether or not consumer perceptions are improving. This would be an example of a. Quantitative research b. An online focus group c. Sentiment mining d. Neuromarketing e. An experiment

C

Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because a. Brands protect corporate copyrights b. Consumer loyalty can be bought for less now compared to the past c. Brand equity can be obtained only by means of product line depth d. People already know what the brand means e. Well-known brands are less likely to introduce brand extensions

D

Luis likes gourmet popcorn and will spend time trying to find his favorite brand. His girlfriend, Nanette, loves popcorn but doesn't care about brands. For Luis, popcorn is a _____ good, while for Nanette it is a ______ good. a. Shopping; specialty b. Convenience; shopping c. Convenience; specialty d. Specialty; convenience e. Unique; universal

D

The improvement value method and the cost of ownership method are two approaches for setting prices that are _______ methods. a. Cost-based b. Competitor-based c. Production-based d. Value-based e. Market-based

D

"Why create a positioning map?" Which of the following reasons are valid for creating a positioning map? a. It sets up your company for successful micromarketing in 10 years b. It shows how to segment the market c. It develops an undifferentiated targeting strategy d. It's a way to show the position of your company throughout the product's life cycle e. You can easily show where the company is positioned and how large the market is

E

French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000 is extraordinary, and not for the casual shopper. The handbag is considered a a. Product in demand b. Inelastic product c. Elastic product d. Custom product e. Prestige product

E

One reason marketers of new, innovative products often start out with a price skimming strategy rather than a penetration strategy is that a. Few consumers understand a penetration strategy b. A price skimming strategy targets all product adopters equally c. Price skimming is legal while price penetration is not d. A price skimming strategy lowers value for consumers e. It is easier to lower prices than to raise them

E

The perceptions of ______are being measured in a perceptual map. a. Competitors b. Strategic planners c. The company's executive team d. The current R&D team e. Consumers

E

Walmart might have _______ power if a supplier desperately wants to be associated with Walmart, because being known as an important Walmart supplier enables that supplier to attract other retailers' business. a. Coercive b. Legitimate c. Licensing arrangement d. Information e. Referent

E

______ research is a type of quantitative research that manipulates variables to help determine cause and effect. a. Descriptive b. Syndicated c. Manipulative d. Focus group e. Experimental

E

What is oligopolistic competition? How does this impact pricing?

Firms in an oligopoly set prices, whether collectively—in a cartel—or under the leadership of one firm, rather than taking prices from the market

What is depth and how do you increase or decrease it?

The breadth of the product line refers to the different categories of products in which the brand or company offers products

What is horizontal channel conflict?

a dispute between two or more channel partners of the same level in the same channel

What is penetration pricing?

a pricing strategy that is used to quickly gain market share by setting an initially low price to entice customers to purchase

What is price skimming?

a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market

What is bait-and-switch?

a scam to mislead buyers, whereby a seller advertises an appealing but ingenuine offer to sell a product or service that the seller does not actually intend to sell

What is Just-In-Time inventory?

a strategy in which commerce companies receive the exact amount of inventory they need, right when they need it

What is distributive fairness?

customers feel their final shopping outcomes are fair compared with their inputs

What is a brand extension?

firm uses the same brand name in a different product category

What is procedural fairness?

focuses on the fairness of procedures of price setting and negotiation

What are unsought products?

goods that the consumer does not know about or does not normally think of buying

What are the stages of the product life cycle?

introduction, growth, maturity, and decline

What is vertical channel conflict?

one that occurs between two different types of members in a channel

What is loss-leader pricing?

selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional products and services to those customers.

What is competition-based pricing?

setting your prices in relation to the prices of your competitors

What is a delivery gap?

the difference between the experience specification and the actual results of the service

What is a knowledge gap?

the distinction between the customer's expectations and the company's perception of users' needs

What is the zone of tolerance?

the gap between two levels of customer expectations - the desired service and adequate service

What is test marketing?

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

What is co-branding?

the marketing of a product or service under two or more brand names.

What is cross-price elasticity?

the way that changes in the price of one good can affect the quantity demanded of another good.

What is a line brand extension?

when a parent brand launches a new product line in a category already familiar with its customers