MKTG Final Exam

______stores are small self-service retailers that aim to capture sales from people who are willing to pay higher prices in exchange for the ease of purchase these retailers offer.

Convenience Stores

It is not necessary for a retailer to work on building and maintaining a positive store image--it usually happens on its own

False

One of the most important concepts in marketing is the price elasticity of demand, which is the point at which the costs of producing a product equal the revenue made from selling the product.

False

When a company recognizes the importance of sharing supply and demand information with suppliers and customers, it is practicing Marketing management.

False

What is the term for a person's feeling of isolation and concern about missing out on what is occurring in the world around us?

Fear of Missing Out

Prestige pricing is a pricing strategy that involves pricing a product ________ competitors.

Higher than

Which type of branded content allows users to be more involved in real-time?

Live-streaming

One of the most important strategic decisions a firm faces is _______ because it reflects the value the product delivers to consumers as well as the value it captures for the firm.

Pricing

In an episode of the Voice, all of the judges have Starbucks mugs at their chairs with the logo prominently displayed. This is an example of

Product placement

When Apple released its first smartphone, it charged customers $999. Shortly thereafter, it reduced the price to $599 for the exact same device. Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy?

Profit maximization

Ray's custom furniture is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Ray does not make any products until he receives an order from the customer. What type of marketing strategy does this represent?

Pull Strategy

A company that forecasts sales, builds an inventory based on the forecast, holds the components in inventory until a customer order is received and then finalizes the product based on the order is using a _______ strategy.

Push-Pull Strategy

Google, Bing, and Yahoo all help users search for information on the World Wide Web. As such, they are considered to be

Search engines

Internet-based applications that enable users to create their own content and share it with others who access these sites are referred to as

Social Media

Morton's Steakhouse is a famous steakhouse restaurant located in various cities throughout the United States. Lee is in charge of sharing demand information with the restaurants meat suppliers to make sure there is always enough for customers. Lee is practicing

Supply Chain Management

How do marketers address the concerns relating to email marketing spam?

They send product information only to customers who "opt-in."

Companies employing qualitative research tools may use focus groups and consumer interviews to generate in-depth responses from consumers regarding their likes and dislikes of a promotional program.

True

Effective materials management supports marketing objectives by making sure that goods are available to ship to customers in an efficient and effective manner.

True

For the first quarter of the year, the price of the company's most popular e-reader was $129,000. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109,000. At this price point, the company sold 1.5 million units indicating that demand for the product is elastic.

True

The degree to which the price of a product affects customers' purchasing behavior is referred to as price sensitivity.

True

The Lego Group has a Lego Ideas website where people can submit ideas for Lego products to be turned into potential sets available commercially, with the original designer receiving 1 percent of the royalties. This is an example of...

User-generated content

A retailer wanting to incorporate self-service into its stores may choose to

incorporate customer operated check-out lanes

All along the supply chain, distribution channels add value to the product by

making the product available to ship, taking customer orders and shipping the product to the next step in the supply chain

Consumers will be more price sensitive when

the price they have to pay is more than they anticipated

A store's color scheme, lighting, music selection and displays are all part of its

atmospherics