mrkting exam
When Walmart communicates to consumers that, for any given group of often-purchased items, its prices will tend to be lower than that of any other competitor, Walmart is exhibiting what type of pricing strategy?
EDLP
__________ research is a type of quantitative research that manipulates variables to help determine cause and effect.
Experimental
From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about
From charitable giving to medical records to Internet tracking, consumers are more anxious than ever about
Assuming that a marketing research study will answer important questions and reduce uncertainty associated with the proposed project, a major question that needs to be addressed before starting the study is
Is top management committed to the project and willing to abide by the results of the research?
Which of the following is true regarding the ticketing and marking process?
It is more efficient for a retailer to perform these activities at a distribution center than in its stores.
All of the following statements regarding secondary packaging are true except
It is of little value to the average consumer
__________ pricing tactics lower the price of a product below the store's cost.
Loss-leader
In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.
POS terminal
__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents
Reverse engineering
One of the reasons service failures need to be addressed quickly is to
avoid negative word of mouth from upset customers.
"Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. All of the following are valid reasons except
"It's a way to show the position of the company throughout the product's life cycle."
Is top management committed to the project and willing to abide by the results of the research?
"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need
In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is
$200,000.
A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) __________ tool.
CRM
_______ products are products whose demands are positively related and as such, they rise or fall together.
Complementary
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.
Cross-docking
Natalie operates on a pretty tight budget. She is a price-conscious shopper and usually buys store or generic brands to save money. Recently, however, Natalie was given a pretty substantial raise. As such, she has altered her shopping patterns and now regularly buys more expensive, name-brand goods. This is an example of
the income effect.
According to a typical demand curve, the higher the price
the lower the quantity consumers will buy
The more substitutes that exist in a market,
the more sensitive consumers will be to changes in the price of a particular product.
After assessing the market growth potential in Mexico for his company's baby products, Harmon wanted to evaluate market competitiveness. To do this, Harmon would consider
the number of competitors, entry barriers, and product substitutes
All of the following are included in the full price of a product or service except
the price of alternative products and services
What is neuromarketing?
the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies
A reference price might be considered deceptive if
the reference price has been inflated or is fictitious.
In marketing's four Ps, place refers to all activities required to get
the right product to the right customer when that customer wants it.
There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept?
the substitution effect
Manufacturers use cash discounts primarily because it allows them to benefit from
the time value of money
Whenever the president of the local public university promotes the institution, he emphasizes the university's price (much lower than neighboring private colleges) and high quality. He is positioning the institution based primarily on
the value proposition.
One important reason manufacturers like rebates is that
their redemption rates are low.
Joe is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product line. The advantages of using these data include
they can be quickly accessed at a relatively low cost.
All of the following statements about distribution centers are true except
they enable retailers to carry less merchandise in individual stores.
Radio frequency identification tags are
tiny computer chips that transmit information about a container's contents.
Many product-dominant firms use quality service
to maintain a sustainable competitive advantage.
When a salesperson calls you to sell a cemetery plot, this is most likely what type of product?
unsought product
A customer orientation toward pricing implicitly invokes the concept of
value
Franchising is the most common type of contractual _______ marketing system.
vertical
The Stanley company wants Home Depot to carry all its tools but not the tools of its competitors so that Stanley can maximize its sales. But Home Depot carries a mix of tool brands so it can maximize the sales in its tool category. This misalignment of goals will likely lead to a ________ channel conflict.
vertical
A(n) __________ is a supply chain whose members act like a unified system.
vertical marketing system
A ___________ program is a promotional strategy that encourages people to pass along a marketing message to other potential consumers.
virtual marketing
At the end of a brainstorming session, participants are often asked to
vote on the best ideas
One of the benefits of offering a size discount to consumers is they will purchase more of a marketer's product and
will be less likely to switch brands.
Cost-based pricing assumes that costs
will not vary much for different levels of production.
Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those tires had supposedly sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as
bait and switch.
In a __________ pricing tactic, sellers advertise very low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price.
bait-and-switch
A noncumulative B2B quantity discount is
based only on the amount purchased in a single order.
The light beer commercial with the slogan "less filling, tastes great" was based on __________ segmentation.
benefit
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product.
beta teating
If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of
beta testing
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
brand extension
Matt was passionate about Hollister. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk for what seemed like hours about why he only shopped there. From a strictly marketing perspective, this word of mouth is an element of
brand loyalty
Yesterday, Lorinda overheard a surprisingly unpleasant encounter between the manager of the hardware store where she works and a sales rep who sells a well-known line of tools. The rep insisted that his tools should be more prominently displayed and that a better assortment would mean more sales. The manager had other plans and told him so, and the conversation turned into a loud argument. What Lorinda observed was an example of
channel conflict.
When her company's dry goods deliveries were late for the third time, Melissa withheld payment from her supplier until it was back on schedule. This is an example of ________ power.
coercive
When Greenbelt Construction Company began building houses in a large subdivision with many other builders, the company priced its homes slightly higher than its competitors and promoted the added quality features found in Greenbelt's homes. Greenbelt was using a(n) _______ pricing strategy.
competition-based
In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends to charge its guests similar rates to what the Crown Plaza hotels charge. Westin is using a _______ pricing strategy.
competitive parity
When firms set prices similar to those of competitors, they are following a strategy of
competitive parity.
Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing?
competitor-oriented pricing
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.
concentrated
When manufacturers try to understand what customers are looking for, they are thinking about the _______ component of the product offer.
core customer value
Sometimes brand names become synonymous with a product itself. If that happens, the brand
could lose its trademark status.
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
credible commitments
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
credible commitments.
Marketers can take advantage of the variable nature of services by
customizing services to meet customers' needs exactly
Supermarkets collect information about individual customers through their use of loyalty cards, and then analyze the data to look for patterns in purchases. This is an example of
data mining
Walmart is known for its efficient logistical systems. Every time consumers buy something, that purchase is recorded and sent to company headquarters, where it is used to generate reorders to vendors. In addition, customers' billions of purchases are analyzed to uncover patterns of consumers' purchasing behavior. This is an example of
data mining
To meet or exceed customers' expectations, marketers must
determine what those expectations are.
In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company
differentiated its product.
trisha makes purses out of old blue jeans and sells them to customers at local craft fairs. What type of marketing channel does this represent?
direct
All of the following are activities carried on in a distribution center except
distributing paychecks and paystubs for retail employees.
A ________ is a facility for the receipt, storage, and redistribution of goods to company stores
distribution center
A weakness associated with cost-based pricing methods is that they
do not recognize the role consumers or competitors' prices play in the marketplace.
The Coffee Express company is located in a business district with few customers on the weekend. To attract customers on Saturday and Sundays, it reduces its prices on these two days. This is an example of
dynamic pricing.
As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group.
early majority
After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harmon wanted to evaluate market access. To do this, Harmon would consider
ease of accessing or developing distribution channels and brand familiarity.
Typically, manufacturers and retailers exchange business documents through a(n) __________ system, the computer-to-computer exchange of business documents from a retailer to a vendor and back.
electronic data interchange
_______ means allowing employees to make decisions about how service is provided to customers.
empowerment
General Mills offers three sizes of its popular cereal Cheerios: 10-, 14-, and 18-ounce boxes, and they are priced at approximately $2.99, $3.99, and $4.49, respectively. The company employs this tactic to
encourage consumers to purchase larger quantities each time they buy.
The first step in the STP process is to
establish strategy or objectives
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
establishing an early market share lead.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. The next step is to
evaluate the attractiveness of each segment.
Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the __________, which refers to a decrease in unit cost as product volume increases.
experience curve effect
The __________ occurs when unit cost drops as the quantity sold increases.
experience curve effect
Which of the following types of research would be considered quantitative research
experimental research
Colin has just received a delivery from the company's distribution center. He opens the containers and finds the popcorn and snacks are all bar-coded and priced and the package includes an end-of-the-aisle display rack. Colin has received a(n) __________ shipment.
floor-ready
When Cynthia's Boutique receives dresses, they already have price tags and are on hangers. Cynthia's Boutique receives __________ merchandise
floor-ready
A(n) __________ is a small group of people brought together for an intensive discussion of a topic
focus group
Empowerment is when __________ are authorized to make decisions to help their customers and, as a result, service quality generally improves
frontline employees
The phrase "birds of a feather flock together" captures the idea of __________ segmentation.
geodemographic
Let's Dish is a meal-preparation service operating in three states. Customers visit a Let's Dish store to select and partially prepare their meals, which are then packaged for the freezer. At home, the customer can pull a meal out of the freezer and warm it in the oven or microwave. If Let's Dish wanted to expand into new areas of the United States, what segmentation method would probably be most useful in choosing new locations?
geodemographic segmentation
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.
growth
The decision to delete a product is never taken lightly because, generally, manufacturers
have made substantial investments in product development and manufacturing.
Which of the following refers to variability in a service's quality
heterogeneity
When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another.
heterogeneous
Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. to be among the first to buy sale items. Dan would likely respond to a _______ pricing strategy.
high/low
In a(n) _______ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases
high/low
In determining the price of his company's new small-business accounting software, Richard is assessing how much better his company's software is as compared to alternative products available in the market. Richard is using _______ pricing.
improvement value
Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level?
in depth interview
Randall wants to do an online survey of college professors about the factors that influence their textbook selection. He would like to use a structured survey but is not sure what responses to include for each question. Randall could use __________ to help him develop his survey.
in-depth interviews
Which of the following research methods would be best in helping a marketer understand how people feel about a product or service on an individual, detailed level?
in-depth interviews
Sam was called in to meet with his boss, Tricia. He was afraid he was going to be fired for the mistake he had made dealing with an important customer of the store. Instead, Tricia explained that he had handled the situation well, listening to the customer and finding a fair solution. Tricia told him that, even more important, working the way he did to correct the error could result in
increased customer purchases and positive word of mouth
A local furniture store buys furniture from various manufacturers and resells the furniture to its customers. What type of marketing channel does this represent?
indirect
In a(n) _______ marketing channel, one or more intermediaries work with manufacturers to provide goods and services to customers.
indirect
A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) _______ price elasticity demand.
inelastic
Because Walmart has vast information about the consumer goods market, it might exert ___________ power over P&G by providing or withholding important market information
information
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.
innovators; early adopters
Rob 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 we can't get parts." Rob's company lacks the __________ workers need to be able to do a good job
instrumental support
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
instrumental support.
The manager of a company selling cellular phones in rural U.S. markets asks you to conduct survey research into the question, What percentage of people in Kansas live in communities of less than 10,000 people? The problem with this research objective is that
it is already known and available from the U.S. Census Bureau.
The observation that consumers are generally more sensitive to price increases than to price decreases suggests that
it is easier to lose customers with a price increase than to gain customers with a price decrease.
One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that
it is easier to lower prices than to raise them.
In questionnaire design, a question such as "Marketing is the best part of the business program, isn't it?"
it leads respondents to a particular response
When a product is successful in the introductory stage of the product life cycle,
it may start to see profits toward the end of this stage
Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of
keeping up in a market where sales come mostly from new products.
Manufacturers trying to implement a just-in-time delivery system need to start with
knowledge of customer demand.
When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.
laggard
When the sequel to Star Wars: The Force Awakens eventually shows up on their regular television networks, this group might watch it.
laggards
All of the following are characteristics of products in the maturity stage of the product life cycle except
laggards are a major focus of marketing efforts.
After installing an electronic data interchange, Carmella's gift shop was able to reduce _______, the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise.
lead time
When confronted with an angry and emotional customer, the best first step toward service recovery is to
listen carefully and with empathy until the customer feels he or she has been heard.
Frequent buyer/user award programs are used to
maintain contact with loyal customers
Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to
make purchase decisions.
While JIT systems have many benefits, they
make the logistics function more complicated.
It is the responsibility of __________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.
marketers themselves
When selecting a target market, firms will be most successful if they
match the firm's competencies with a market segment's attractiveness.
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.
maturity
A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.
maximizing profits
"Corporate pilot fish" are former employees who start a new business based primarily on contacts and contracts with their old company. A corporate pilot fish would probably pursue a(n) __________ targeting strategy
micromarketing
paul subscribes to an Internet service that alerts him whenever other firms in his industry are quoted in the media. Paul is using this type of marketing research primarily to
monitor his competition
In a market with _______ there are many firms providing differentiated products.
monopolistic competition
All of the following are advantages of using a distribution center except
more accurate sales forecasts are possible.
Pricing _______ products is especially challenging because little or nothing is known about consumers' perceptions of its value.
new-to-the-world
One of the key characteristics of brainstorming sessions is
no idea is immediately accepted or rejected
Even if they succeed, new-to-the-world products are
not adopted by everyone at the same time
Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?
occasion segmentation
How is consumer panel data collected during the test marketing phase of a new product introduction?
panelist scan their receipts on a home scanning device
In a corporate vertical marketing system,
participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.
Felicia had just taken over her family's business after spending ten years in the marketing department of a large corporation. She met with a representative from one of her firm's biggest customers, who told her, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." She had expected a more cutthroat approach rather than this call for a
partnering relationship.
Firms that use the same brand name for new products can spend relatively less on marketing costs for the new product because
people already know what the brand means.
When marketers state that services are __________, they are referring to the fact that services cannot be stored for use in the future.
perishable
Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that 5 to 10 last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel is close to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening.
perishable
All of the following are guidelines provided by the American Marketing Association for conducting marketing research except
personal information about research participants should not be shared, except with a designated member of senior management.
Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's
positioning
Whenever Donald calls on potential pest control customers, he emphasizes the fact that, unlike the national franchise competitors, he is a local business person and has been in business over 20 years. Donald is __________ his business relative to his competition.
positioning
If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with
predatory pricing.
Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering
premium pricing
Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering
premium pricing.
The Clayton Act and the Robinson-Patman Act forbid certain types of
price discrimination.
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
price inelastic
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
price inelastic.
Because there are many firms with similar products in purely competitive markets,
price is determined by the laws of supply and demand.
Because there are only a few firms in markets with oligopolistic competition,
price wars may occur
A toothpaste tube is an example of a ________ package
primary
When a research team has gathered data for specific research needs, this is known as
primary data.
A __________ package is the one a consumer uses. A __________ package is used by retailers to display and sell the product.
primary; secondary
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
product development
Firms spend millions of dollars annually to build brand equity, recognizing that brand equity contributes to
profitability
At the break-even point,
profits are zero
All of the following are considered an important function of labels on products and packages except
protecting against damage to the product
Managers of fast-food restaurants struggle with a rapid turnover of personnel. Employee turnover rates of 100 to 200 percent annually are common. The work environment is difficult and customers can often be demanding. One of the first steps managers can take to help workers deliver quality service is to
provide emotional support and concern for their employees
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
providing support and incentives for their employees.
VALS is the most widely used __________ segmentation tool.
psychographic
Marketers have found that __________ segmentation is often more useful for predicting consumer behavior than __________ segmentation
psychographic; demographic
In _______ many firms provide similar products that are considered substitutes for each other
pure competition
When the marketing research problem is not clearly defined, a researcher will likely engage in __________ research.
qualitative
H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems. The firm gets the merchandise just in time for it to be used in the manufacture of another product or for sale when the customer wants it. This is an example of a ___________ inventory system.
quick response (QR)
Historically, prices were
rarely changed except in response to radical shifts in market conditions.
Karen has identified four potential market segments for her Rent-A-Chef home meal catering service. She will now evaluate whether or not each segment is attractive relative to all of the following except
realistic.
Everyday low pricing (EDLP) provides value to consumers by
reducing their search costs.
Walmart may 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.
referent
After defining objectives and research needs, the next step in the marketing research process involves
research design
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.
responsive
Private-label brands are developed and managed by
retailers
The local furniture store will purchase outdoor furniture only during the winter months because the manufacturer offers a better price to the furniture store. This type of pricing tactic is known as a
seasonal discount
A marketing research project often begins with a review of the relevant __________ data.
secondary
Which of the following would not be used in calculating the profitability of a segment?
segment perceptions
Which of the following would not be used in calculating the profitability of a segment?
segment preceptions
Ronaldo wants to develop an Internet auction-based business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to
select a target market
Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will
set specific, measurable goals based on customers' expectation
Kendra is taking a backpacking trip across Europe. She wants to make sure that the backpack she chooses is the best one for her adventure, so she is spending a considerable amount of time comparing alternatives to make sure she selects the best one. For Kendra, this backpack represents what type of product?
shopping
All of the following are recommended strategies for service recovery except
silencing an irate customer before the individual makes any angry outbursts.
The most common form of a quantity discount for consumers is a
size discount.
When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a(n) __________ pricing strategy.
skimming
Firms that are engaged in sentiment mining are analyzing data collected from
social media sites
Andy likes gourmet popcorn, and will spend time trying to find his favorite brand. His girlfriend, Joanne, loves popcorn but doesn't care about brands. For Andy, popcorn is a __________ good while for Joanne it is a __________ good.
specialty; convenience
Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely
spread positive word of mouth to other physicians.
All of the following are included in the four product life cycle stages except
stagnation
Which service gap is the Ritz-Carlton Hotel trying to address when it takes time and spends up to $1,700 to train a new employee?
standards gap
Training service providers to know exactly what a "good job" entails is setting service
standards.
Steven managed an auto parts store in the 1990s. At that time, stockouts—failure to have the parts auto mechanics needed to do their work that day—increased the likelihood of the mechanics becoming customers of competing auto supply stores. To avoid this problem and keep his business customers, Steven most likely
stockpiled inventory, adding to the cost of providing auto parts.
Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be
strategic partners.
When the price for Blu-ray players dropped, the demand for DVD players went down, so DVD players and Blu-ray players are
substitute products
It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's
symbol
Jaleel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jaleel will most likely use __________ to gather this type of data.
syndicated data
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the service quality building blocks caused Monique to select an alternative venue?
tangibles
The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ______ service characteristic.
tanglibles
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______ pricing strategy.
target return
All of the following were considered a new-to-the-world product or service when introduced excep
the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs.
Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
the average number of school-age children in families sending a child to the day care center
Because market and operating conditions are different in each target market
the choice of a pricing strategy should be specific to the target market.
B2B quantity discounts are legal if
the discounts are available to all customers.
Most customers want to achieve a fair solution following a service failure. All of the following factors affect a person's perceptions of "fairness" in these kinds of situations except
the firm's policy on service recovery
one of the reasons marketers use loyalty segmentation is
the high cost of finding new customers.
Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products
the income effect
Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products.
the income effect
Caroline needs to find information about income and age distribution in Orange County, California. The best source of secondary research of use to Caroline is likely to be
Us census data
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?
Will retailers purchase the swimwear if it becomes available
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?
Will retailers purchase the swimwear if it becomes available?
When CarMax promises a "no-haggle" pricing structure, it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.
a customer orientation
A pricing strategy is
a long-term approach to setting prices in a companywide integrated effort.
A pricing tactic is
a short-term approach that is often in response to a competitive threat.
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)
advanced shipping notice
Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of
an associated service
Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing that
an increase in the price of natural gas will increase demand for his electrical heating systems.
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as
an indicator of quality.
Brands can be owned by
any firm in the supply chain.
Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering
as perceived by the consumer.