marketing exam 2

Starbucks rewards members download an app to apply. After inputting their information customers receive a thank you email for signing up, points every time they use their app, and a free drink on their birthday. Every time a customer interacts with the app data is collected and analyzed to improve business relationships. Starbucks is using ___________ to analyze customer interactions.

Customer relationship management (CRM)

Fresh Grocer gives all their shoppers the option of a free rewards card. This rewards card collects data on customer purchases and tells management what products the consumer is interested in. Fresh Grocer wants all customers to enroll in their rewards program because it is a ________ technique used to create coupons targeted toward the

Data mining

Oskkosh Trucks, Inc., specializes in building heavy- duty fire, airport-rescue, cement, and garbage trucks. Instead of pursuing a small share of a large market, the firm goes after a large share of a few, relatively small segments. Oshkosh uses a ________ market-coverage strategy.

Concentrated (or niche)

The ________ for a guest paying for a night's stay at a hotel is rest and sleep.

Core product

A soup company found its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and the Southwest. As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than it produced in its other plants. The company is using ________ segmentation?

Geographic

Pepsi wants to create a new campaign to appeal to a different audience but can't decide exactly who their target audience will be. They begin by dividing the market into smaller groups of buyers with distinct needs, characteristics and behaviors. This is an example of...

Market Segmentation

Which of the following is NOT considered an advantage of test marketing new products?

Providing competitors with an early look at the new product

Several senior managers of Doors, Inc., are strongly in favor of a market-penetration pricing strategy. Which of the following, if true, would MOST STRENGTHEN their argument?

Significant economies of scale in production

Evelyn decides to price her product above average so she can recover much of her development costs and some of her other costs. Evelyn is using a ________ new-product pricing strategy?

Skimming price

The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________?

Skimming price

Which of the following is NOT considered a significant disadvantage of test marketing a product before its commercialization?

Test marketing can lead to unexpected product-line extensions

White Wave Inc., the maker of Silk soy milk, gave away free samples of its product to get consumers to try the first refrigerated soy milk sold in America. What stage of the consumers' adoption of a new product was White Wave Inc. trying to influence?

Trial

XYZ company has decided to ignore market segment differences and target the entire market with one offering that will appeal to the largest number of buyers. XYZ company has chosen a ___________ marketing strategy.

Undifferentiated mass marketing

Starbucks wants to segment the market by _________. After research they found that 10% of consumers buy coffee from Starbucks everyday, making them heavy product users. After segmentation, loyal customers will receive a better discount than the consumers that come in once every three months.

Usage rate

The major purpose of the test marketing stage in new-product development is to provide management with the information needed to make a final decision about ________?

Whether to launch the new product or not

When Glow Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, it is giving a(n) ________ discount.

seasonal

Evelyn set up a multiple-city test market, with a demonstration booth in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." Evelyn was doing which of the following?

concept testing

Cheryl is going on a date tonight. She realized she was out of toothpaste so she runs out to CVS. She grabs a tube of Crest off the shelf without any thought. For Cheryl, Crest toothpaste is a _______.

convenience product

Among the potential problems with cost-plus pricing is that it ________?

1. Disregards the buyers perceptions of value 2. Ignores competitors prices

The ________ for a guest paying for a night's stay at a hotel is the use of a bed, bathroom, towels, dresser, light, and closet.

Actual Product

The ________ for a guest paying for a night's stay at a hotel would include express checkout and superb room service.

Augmented product

Macy's sells a lot of products from various retailers. To keep up with competition pricing, Macy's relies on analyzing the vast amount of data collected on competitors pricing to reveal patterns and trends. The type of data that Macy's is using can be classified as:

Big data

GEICO uses driver information such as age, gender, location and driving record before pricing and issuing auto insurance. By extracting this information GEICO determines patterns and predicts which drivers are most dependable. GEICO is using:

Predictive analysis

Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on-the-go and elderly consumers.

Product concept

When the brand Ralph Lauren, known for their clothing, began making lines of towels, sheets, and other home accessories, that was ________.

brand extension

Hewlett-Packard sets the prices of its printers relatively low and sets the prices of its print cartridges quite high. This is a classic example of ________ pricing.

captive product

Gillette sells their initial razors very inexpensively, but the replacement blades for that razor are extremely expensive. The price for this unit is ______.

captive-product-pricing

Given that her product is new and has a specific target market, Evelyn is MOST likely to use a ________ market targeting strategy for her vacuum cleaner.

concentrated

Jimmy Dean works for a consumer goods company that produces breakfast sandwiches. He knows that the bread costs .50, eggs cost .25, cheese costs .05, and bacon costs .20. He wants to add a standard markup of 50% to the cost for the price of the product which would be $2. What type of pricing is this?

cost plus

In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market.

demographic

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Facebook uses data to notify you of local events. Therefore, your news feed is different than your cousin that lives in Ohio. Facebook is using ________ segmentation variables.

geographic

Tina Temperpedicis VP of marketing for Orange ( an innovative tech company that makes computers, mp3 players and cell phones), they launched a cell phone that has a 3-D keyboard about 6 months ago. As of 2 weeks ago, sales have grown very fast and profits are increasing, but they have not reached peak sales performance. What stage in the product life cycle is the product in?

growth

Bob and Phyllis Cord own two retail stores, one in Pottstown, PA, and one in Norristown, PA. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________?

local marketing

During the Growth stage of the Product Life Cycle when sales and profits are rising, marketers looking to maximize market share should adopt a ______ pricing strategy.

market penetration

Vespa is coming out with a new scooter that can last 800 miles on 1 gallon of gas, but which is priced 40% higher than any other scooter on the market. What type of pricing is this?

market skimming

GE is the world's leading manufacturer of diesel-electric locomotives with more than 15,000 locomotives currently operating around the globe. Given what you know about the macroenvironment and product life cycles, at what stage of the PLC (product life cycle) is this GE product?

maturity

Honda offers three separate models of its popular Accord sedan: an LX model with basic features and the lowest price; an SE model with more luxurious and advanced features that is mid-priced; and an EX model with top-of-the-line features as well as the highest price. Honda Accord's pricing is a good example of ________?

product-line pricing

Which of the following is most likely an example of a shopping product?

television

Due to little product awareness or knowledge, _____________ products require aggressive advertising and personal selling by producers and resellers.

unsought

Loyalty programs such as Saxbys Rewards and TJ Maxx Rewards are examples of segmentation by ________.

usage rate