BA exam 2 - homeworks/quiz questions
Which of the following statements regarding segmentation is correct?
Consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets.
Which base of segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product?
behavioral
What is the first step of the new product development process?
idea generation
What does the process of designing marketing channels start with?
analyzing consumer needs
Which of the following best describes the highest price that a customer is willing to pay for a fast-food chain's products?
customer perception
During the 1980s, Progressive added which type of marketing channel?
direct
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price.
good-value pricing
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development.
systematic
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in their territory.
What is a product concept?
A detailed version of a new product idea stated in meaningful consumer terms
What is positioning?
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience.
A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?
Carefully consider the degree of competition and ease of entry into the segment.
Which of the following statements regarding marketing channel design is correct?
Channel alternatives should be evaluated against economic, control, and adaptability criteria.
Which of the following statements is correct regarding the functions channel members perform?
Channel members create greater efficiencies than manufacturers could achieve on their own.
Which of the following statements regarding the growth stage of the product life cycle is correct?
Companies face a trade-off between high market share and high profits.
Which of the following best describes Burger King's pricing strategy regarding its chicken nuggets during McDonald's Monopoly promotion?
Competition-based pricing
Which of the following statements regarding concentrated marketing is correct?
Concentrated marketing involves higher-than-normal risks.
Which of the following statements regarding demographic segmentation is correct?
Consumer needs, wants, and usage rates vary closely with demographic variables.
Which of the following correctly identifies the three major pricing strategies used by marketers?
Customer valuedash-based pricing, cost-based pricing, and competition-based pricing
Which of the following statements about price is correct?
Customers have put increasing pricing pressures on many companies.
With regard to supply and demand, which of the following best represents the intentions of the fast-food company's slash on prices?
Demand will increase for its products.
Which of the following statements about segmentation is true?
Different segments might require different marketing strategies or mixes.
Which of the following statements regarding international distribution channels is correct?
Due to logistics costs in China, the majority of companies can only access affluent areas of major cities.
Which of the following is true regarding the pricedash-demand relationship?
If demand is elastic, sellers will consider lowering their price.
Which of the following statements regarding customer valuedash-based pricing is correct?
In using this strategy, companies often find it hard to measure the value customers attach to their product.
Which of the following is true regarding Progressive's advantage of adding a direct marketing channel in the 1980s?
Increased market share through streamlined marketing
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
Which of the following statements regarding a just-in-time logistics system is correct?
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
If a company finds that a new product concept is acceptable and should be moved forward, what is the next step in the new product development process?
Marketing strategy development
What are the three broad targeting strategies used by marketers?
Mass marketing, differentiated marketing, and micromarketing
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle?
Modify the market, product offering, or marketing mix.
In which type of competition do fast-food restaurants operate?
Monopolistic competition
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
Monopolistic competition
Which of the following statements regarding positioning is correct?
Positions must adapt over time to meet changing consumer needs.
Which of the following is true of a new product in the introduction stage, such as the Day to Night heels?
Profits are generally negative due to the high cost of R&D
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?
Resellers, the government, and social concerns
What is target costing?
Setting a price and then setting costs that will ensure that the price is met
Which of the following best describes Sprouts competitive advantage?
Sprout's overall customer value
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
Which of the following statements regarding standard test marketing is correct?
Test marketing can be costly and delay commercialization of the product.
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law?
The Consumer Product Safety Commission (CPSC)
What is the unique positioning of Sprout?
The channel is marketed to both children and their parents and airs 24 hours a day.
Which of the following statements regarding marketing logistics is correct?
The goal of marketing logistics should be to provide a targeted level of customer service at the least cost.
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
How is price determined using cost-plus pricing?
The price is set by adding a standard mark-up to the cost of the product.
Which of the following statements regarding marketing channel behavior and design is correct?
The success of individual channel members depends on the overall channel's success.
According to the text, the most successful new products satisfy three criteria. What are these criteria?
They solve a major customer problem, are differentiated, and offer a compelling value proposition.
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important product dimensions
Which of the following statements is correct regarding different types of markets?
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
What must companies do to create successful new products?
Understand its consumers, markets, and competitors and develop products that deliver superior value
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and logistics information management
Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS).
administered
On a break-even chart, the break-even volume is located __________.
at the intersection of total revenue and total costs
Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation.
benefits sought
Sprout segmented the market by targeting parents of preschoolers who wished to have an educational and entertaining experience for and with their children. Which type of segmentation does this describe?
benefits sought
Which of the following is a cost-based pricing approach?
break-even pricing
The video indicated that a company in China was manufacturing the first batch of the shoes. This is indicative of which stage of the new product development process?
commercialization
During the idea generation stage of the new product development process, it is important that __________.
companies create a large number of ideas
Candace Cabe created the Day to Night shoe based on an idea she had, and then asked a group of women to provide feedback regarding the idea. Which step of the new product process does this most likely represent?
concept testing
In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)?
corporate
A fast-food restaurant determines the cost of producing its chicken nuggets then adds a percentage to that cost to determine the price charged to consumers. This indicates that the restaurant is utilizing which of the following pricing strategies?
cost-plus pricing
One recent development in generating new product ideas is for a company to invite broad communities of peoplelong dash—such as employees, customers, and even the public at largelong dash—into the innovation process. This is known as __________.
crowdsourcing
When segmenting international markets, markets can be grouped according to language, religion, customs, and values. This type of segmentation is based on __________ factors.
cultural
Which factor sets the ceiling on setting a product's price
customer's value perceptions
Companies should take a holistic approach to new product development. This means that the process should be __________.
customer-centered, team-based, and systematic
Two external factors which must be considered in pricing decisions are __________.
demand and the nature of the market
A(n) __________ shows the number of units the market will buy in a given time period at different prices.
demand curve
Sprout markets to preschool-aged children and their parents. Which type of segmentation is Sprout most likely using?
demographic
If men and women respond similarly to the same marketing mix, they do not constitute distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not __________.
differentiable
Sprout has created a unique market offering by integrating its programs with both children and parents. This unique offering that creates superior customer value is known as __________.
differentiating
Prior to 1945, Progressive, like all insurance companies, used which of the following marketing channels?
direct
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________.
disintermediation
Some sellers require that dealers not handle competitor's products. This strategy is called __________.
exclusive dealing
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________.
fad
__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.
full-line forcing
During concept testing, who is the product concept actually tested on?
groups of target customers
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?
growth
In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as __________ the product.
harvesting
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________.
high-low pricing
Candace Cabe likely had several different ideas for a convertible high-heel, but sifted through each idea until she found the one that was most marketable. Which step of the new development process did this most likely occur in?
idea screening
Which of the following best describes the value that was added when agents were added to Progressive's marketing channel?
increased customer service
On the My M&Ms website buyers can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using for My M&Ms?
individual marketing
Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of __________.
integrated logistics management
When segmenting international markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called __________.
intermarket segmentation
Choosing a differentiated targeting strategy has many benefits, but a potential downside is that __________.
it can increase costs
There is a growing segment of people who want food that tastes good and is also good for them. This healthy-living segment represents which segmentation base?
lifestyle
Psychographic segmentation divides buyers into different segments based on __________.
lifestyle and personality
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called __________.
market targeting
Which of the following descriptions best represents targeting a demographic segment?
marketing prepackaged lunches for children
The video indicated that the shoes would be sold for $120 to $150 per pair. At which stage of the new product development process was this decision most likely made?
marketing strategy development
Which targeting strategy focuses on common consumer needs, as opposed to different needs?
mass marketing
Most products today are in which stage of their product life cycle?
maturity
Which value proposition is the most difficult to sustain in the long run?
more for less
In the 1990s, which distribution channel did Progressive add?
online, direct channel
Companies now use __________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners.
partner relationship management
The amount of money charged for a product is its __________.
price
Price is the only part of the marketing mix that __________.
produces revenue
Which factor sets the floor on setting a product's price?
product costs
At which stage of the new product development process is a physical product first developed?
product development
BMW says their cars are "The Ultimate Driving Machine". Ford trucks are "Built Ford Tough". Which type of differentiation do these examples represent?
product differentiation
In which type of market does no buyer or seller have much impact on setting the going market price?
pure competition
When Dr. Footcare developed and launched a revolutionary new walking shoe, he knew that during the introductory stage of the product life cycle (PLC) __________.
sales would be slow and profits nonexistent
CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members.
selecting
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________.
selectively
To succeed in France, McDonalds had to __________.
tailor their operations to local French preferences
When setting channel objectives, companies should state the objectives in terms of __________.
targeted levels of customer service
The length of a channel is determined by __________.
the number of intermediary levels
After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________.
the responsibilities of channel members
internal factors that affect pricing include __________.
the company's overall marketing strategy, objectives, and marketing mix
What is the overall purpose of differentiation?
to create superior customer value
The company, suppliers, distributors, and customers who open double quote"partnerclose double quote" with one another to improve the performance of the entire system make up the __________.
value delivery network
The full mix of benefits on which a brand is differentiated and positioned is called a(n) __________.
value proposition
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of __________.
value-added pricing
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
value-added pricing
Using __________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.
vendor-managed inventory
