Chapter 15-19 final exam mkgt3175
Which of the following statements is true of average-cost pricing?
Average-cost pricing works well if the firm actually sells the quantity it used to calculate the average-cost price.
In the United States, selling the same product to different buyers at different prices is
illegal if it injures competition.
A software company develops a software product that customers like, but high prices and inadequate distribution cause the product to fail. This is an example of which of the following causes of marketing inefficiency?
improper blending of the four Ps
Which of the following concerns the marketing activities of an individual firm?
micro-marketing
What should marketing managers do if their company receives negative reviews?
respond and fix the problems
Aster Co. has introduced a new product and set the price to help achieve "the 10% share we need to be in the game." This is an example of a
sales-oriented objective.
The basic objective of the market-directed economic system of the United States is to
satisfy the needs that consumers feel are important.
Amal is designing a website for her property management company and is taking special care to include key words that she knows customers will use when searching for her company and the services it offers. By doing this, she hopes to improve the website's ranking in unpaid search results. Amal is engaging in
search engine optimization.
Firms operating in monopolistic competition implies that
there are pricing options.
Firms are more likely to be successful when
they blend the four Ps of the marketing mix properly.
Customers tend to be more price-sensitive when
they have substitute ways of meeting a need.
Which social media platform operates like a public message board and allows registered users to send short messages with a character limit?
When Margot finishes a book she enjoys, she likes to post about it on social media and recommend it to her friends. This is an example of
user-generated content.
Mukesh is the marketing manager for a line of laundry products sold throughout the country. While there are many customers who are willing to pay the list price for his products, he wants to attract additional customers as well. What strategy would be most effective for Mukesh?
using coupons and rebates
Some producers give _____ to retailers to pass on to the retailers' salesclerks in return for aggressively selling particular items or lines.
"push money" allowances
The total cost of producing 200 units of a product is $4,000, including a total fixed cost of $1,800. This means that the average variable cost per unit is
$11
Randy's Convenience Mart buys Lemon Fizz, a cold beverage, in 2-liter plastic bottles for $1.00. They use a 50 percent selling price markup, meaning that consumers pay Randy's ________ per bottle.
2.00
Pulaski Plumbing Supply is planning to bring a new type of valve to market and is conducting a break-even analysis. For this analysis they are assuming a selling price of $2.50 per valve. The total fixed cost associated with producing the valve is $10,000. The variable cost to produce each valve is $2.10. In this analysis, what is the break-even point (BEP) for the valve?
25,000 units
Which of the following statements is true of a cumulative quantity discount?
A cumulative quantity discount encourages a customer to consolidate buying from a single supplier.
Which of the following statements is true about how firms use markups to set prices?
A markup is usually expressed as a percentage, rather than a dollar amount.
Which of the following statements is true of a one-price policy?
A one-price policy makes pricing easier.
Which of the following statements is true of rebates?
A rebate is a refund paid to a consumer after a purchase.
Which of the following is true of advertising?
Advertising can actually result in lower prices for the consumer.
Which of the following is true of advertising?
Advertising can increase demand for the product—resulting in economies of scale in manufacturing, distribution, and sales.
Which of the following is true of Instagram?
All of these answers are correct.
Which of the following statements about geographic pricing policies is true?
All of these statements about geographic pricing policies are true.
Which of the following is true of the various demand-oriented approaches for setting prices?
Demand-backward pricing starts with a price consumers are willing to pay and then figures out what a producer can charge.
Which of the following is true of marketing and social media?
Firms' promotional objectives often focus on enhancing brand familiarity by increasing the number of customers who insist on a brand.
Which of the following describes subscription pricing?
For $10.99 a month, customers can stream any movie in Netflix's catalog.
Which of the following is a disadvantage of a rigid one-price policy?
It allows competitors to undercut one's price.
Which of the following is true of earned media?
It is out of a marketing manager's control.
Which of the following statements about introductory price dealing is accurate?
It is used to speed a new product into the market.
Although it was previously thought of a site that could be used to network for jobs, ______ is now frequently used by companies to communicate with customers and by salespeople to identify leads and share knowledge with customers.
Which of the following is true of marginal analysis?
Marginal analysis focuses on the price that earns the highest profit, but a slight miss does not mean failure because demand estimates do not have to be completely accurate.
Which of the following statements is accurate with regard to what marketers should do to overcome the challenges they face in marketing?
Marketers need to work harder and smarter at finding ways to satisfy consumer needs without sacrificing the environment.
With regard to the challenges facing marketers, which of the following is the best advice for companies?
Marketing managers should frequently evaluate and adapt marketing strategies.
Which of the following is true of media coverage of a company and its activities?
Media coverage of a company's goods or services often involves PR people writing a basic article and convincing the press to print it.
The amount of money that is charged for "something" of value, or _____, is one of the four major strategy decision variables that a marketing manager controls.
Price
Which of the following statements about international dimensions of advertising, publicity, and sales promotion is not true?
Privacy laws are stricter in the United States than they are in Europe.
Which of the following components of the marketing mix concerns decisions about packaging and branding?
Product
Which of the following explains why firms may incur losses with average-cost pricing?
The average-cost approach does not consider how costs change as output changes.
Which of the following is true of reviews?
The majority of large retailers find that reviews positively affect sales.
Which of the following is true of opinion leaders?
They are often targeted by marketing managers and may be given free samples to prompt positive reviews and word-of-mouth.
Which of the following is an example of owned media?
a Facebook post by a company
Which of the following is an example of paid media?
a sponsored message
Which of the following is not necessarily part of a good marketing plan?
advertisements to be used in promoting the marketing mix
A producer of sports equipment offers its retailers a 2 percent price reduction on all purchases if the dealer advertises its products locally. In this scenario, the producer is using a(n)
advertising allowance.
Which of the following is an example of a cost-oriented price setting approach?
break-even analysis
Some firms sell computer printers at a relatively low suggested retail price and sell the ink cartridges required to run the printers at a relatively high price. This form of pricing is called
complementary product pricing.
Who should be responsible for restricting business activities that harm the environment or deplete scarce resources?
consumer-citizens
Which of the following is not a type of owned media?
customer reviews
Consumer satisfaction
depends on one's own expectations and aspirations.
By developing and implementing more effective marketing strategies, a marketing manager can
do all of these.
Frisky Flights is a regional airline based in El Paso. Frisky uses a computer system to set prices for its tickets. The price for any given flight changes over time based on demand. This is an example of
dynamic pricing.
Promotional messages generated by third parties, such as journalists or customers, rather than by the company or brand are known as ______ media.
earned
Which social media site dominates social media and is used so extensively that most organizations must have at least some presence on it?
Prices are "administered" when
firms consciously set their own prices.
Companies use infographics to
grab attention and convey complex information in a simplified form.
Average-cost pricing
involves adding a "reasonable" markup to the average cost of a product.
A primary reason that a firm would use average-cost pricing is that it
is easy to do.
Which of the following can be used as a rough measure of how efficiently a firm is satisfying customers?
its profits
Which of the following concerns how the whole marketing system works?
macro-marketing
The best pricing tool marketers have for looking at costs and revenue (demand) at the same time is
marginal analysis.
With respect to changes and trends affecting marketing strategy planning, data mining can be classified under
market research.
Which of the following options is a type of sales oriented objective?
market share
In which of the following types of economies will the forces of competition help speed the diffusion of marketing advances to consumers everywhere?
market-directed economy
Loraine is a marketing manager responsible for a line of five different dishwasher models. The line includes a basic dishwasher, several models with progressively more and better features, and a high-end model with a fashionable appearance and several unique features. Loraine should use ________ pricing when setting the prices for these refrigerators.
market-oriented full-line
Companies can use ______ to track the actions of individual customers and create automatic responses that are triggered by customer actions.
marketing automation software
A ________ is responsible for integrating strategy decisions made by people throughout a given firm about all of the Four Ps into a coherent plan.
marketing manager
When a product moves through several levels within a channel between being produced and its final sale at retail to a consumer, the price that the consumer pays is likely the result of a(n)
markup chain.
With respect to markups and turnovers, a marketing manager should be aware that
markup combines with stockturn rate to determine what the product actually earns.
The stockturn rate is the
number of times the average inventory is sold in a year.
The micro-marketing of firms that are production-oriented
often costs a lot for the amount of customer satisfaction it generates.
One of the advantages of a market-directed economic system is that it
operates automatically.
Which of the following sections of the marketing plan includes a description of how the Four Ps fit together?
overview of the marketing strategy
Kruger Pharmaceuticals uses printed brochures and a company website to promote its brand and products. This is an example of ______ media.
owned
Mercury is a company that makes unique lighting solutions based on customer specifications. Frank has used them twice and has really liked the results, so when he hears his friend Osvaldo is looking to upgrade the lights in his dining room and kitchen, Frank is quick to recommend Mercury and gives Osvaldo a coupon for 15% off design services. This is an example of
pass-along
A(n) _____ policy tries to sell the whole market at one low price and is typically used when a firm expects strong competition very soon after introduction.
penetration pricing
Which social media site would a person most likely use to assemble a "wish list" or to keep track of decorating or travel ideas?
Which of the following is a demand-oriented approach to pricing?
prestige pricing
In a marketing plan, the nature of demand and marginal analysis are part of the _____ component of the marketing mix.
price
A major timber exporting firm meets with competing timber exporters where they agree to not sell below certain prices. These exporting firms are engaging in
price fixing.
Holly's Candle Shop sells scented candles. The shop offers hundreds of different types of candles, but they are all priced at either $10, $8, or $6. In this case, Holly's Candle Shop appears to be using
price lining.
It is cheaper for a cable company's customers to sign up for a package that includes cable, Internet, and phone service than for them to purchase each of these services individually. This is an example of
product-bundle pricing.
Nora is the marketing manager for a pharmaceutical firm that has just been approved to sell a unique new drug that cures the common cold. Nora decides to set a low price, reasoning that if the price is too high then many potential customers will be unable to unwilling to purchase the drug. Which pricing objective is most likely to be guiding Nora's decision?
profit maximization
Developing a "marketing plan"
provides a blueprint for how a firm will implement its marketing strategy.
When Royal Blue Airlines began flying between Los Angeles and San Francisco, the airline offered individual travel agents a bonus of $5 each time they sold a Royal Blue ticket on the route. Royal Blue appears to be using a _____ allowance to encourage retail travel agents to promote its flights over the competition.
push money
The price that a consumer expects to pay for a product is known as its
reference price.
Experts have found that in the short run, marketing ________ social values and in the long run it ________ social values.
reflects; reinforces
Trying to find the most profitable price and quantity to produce
requires an estimate of the firm's demand curve.
Which of the following is not a method companies frequently employ to encourage word-of-mouth?
requiring customers to review their purchases
When a firm follows a value pricing policy, it attempts to
set a fair price level for a marketing mix that provides superior customer value.
Cellphones with unique new technology are usually released in the market at a high price since there is no immediate competition for the product. Gradually, the prices are reduced to capture more customers and to compete with competitors who copy the new technology. This type of pricing strategy is known as a _____ policy.
skimming price
Meeting competition and nonprice competition are types of _____ pricing objectives.
status quo-oriented
A(n) ________ is intended to reassure retailers or other intermediaries that they will make some profit on a new product even if consumers do not buy it, and thereby convince them to carry it.
stocking allowance
A marketing manager for a large company sets a specific amount of profit as an objective, which is stated as a percentage of sales. The manager compares the performance of each division of the firm against this objective and drops those divisions that are not yielding the specified profit. Which of the following pricing objectives is the marketing manager using in this scenario?
target return objective
A customer is more likely to buy a firm's product if
the benefits of the marketing mix exceed the cost of the product.
An equipment producer produces a new type of paint sprayer for automobile body-repair shops. The sprayer not only saves labor time on the actual painting, but also reduces the need for polishing after the painting is done. The producer considers the money that auto-body repair shops will save on labor and polishing if they buy its new sprayer and sets a price for it that makes it cheaper for them to buy and use the new sprayer than to continue with their existing equipment. Which of the following price setting approaches is the producer using in this scenario?
value in use pricing
When does publicity work best?
when it is an integrated part of the marketing mix
When are white papers most successful with business customers?
when they aid the customer in solving a specific problem but do not promote a particular company's products