Marketing Final Exam

Caruso's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Caruso's is adopting

An omnichannel strategy

An everyday low pricing strategy stresses the continuity of retail prices

At a level between the regular price and the deep-discount sale prices of competitors

Where does retailing fall in the supply chain

At the end

Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service

Augmented product

A pricing strategy and a pricing tactic are essentially the same thing

False

A product label is just a required sticker on a package

False

At the breakeven point, profits are maximized

False

Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable

False

Costs related to supply and costs related to demand are the two primary cost categories

False

Distribution centers are always operated by distribution specialist

False

It is best if firms choose one pricing strategy to use for all its products rather than use different methods for pricing

False

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters

False

On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available

False

Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss)

False

Quick response (QR) inventory systems allow retailers to maximize their inventory holdings

False

Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment

False

Selective distribution grants exclusive geographic territories

False

The improvement value method and the cost of ownership method are both cost-based pricing methods

False

The marketing of services differs from the marketing of products because services are tangible and separable from the service provider

False

The more familiar customers are with a brand, the harder their decision-making process will be

False

The sender of an integrated marketing communication controls the meaning individual receivers take from the message

False

________ is the process by which ideas are transformed into new products and services that will help firms grow

Innovation

When marketers say that services are _________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can

Intangible

Which of the following are communication channels used in the IMC process

Internet

________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise

Omnichannel

In the four Ps of marketing ________ refers to all the activities required to get the right product to the right customer when that customer wants it

Place

Consumers generally believe that ________ is one of the most important factors in their purchase decisions

Price

A demand curve shows the relationship between _______ during a specific period of time

Price and demand

A ____________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products

Product line

The complete set of all products offered by a firm is called

Product mix

Integrated marketing communications (IMC) represents the _______ elements of the six Ps

Promotion

__________ is an inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems

Quick response

Wholesalers sell to

Retailers

The IMC communication process begins with ________, who (which) must be clearly

The sender

A delivery gap is the difference between the firm's service standards and the actual service it provides to customers

True

A product is anything that is of value to a customer and can be offered through a voluntary marketing exchange

True

American Airlines just reduced its fares for summer flights by $100. Delta Airlines changes its pricing structure and reduces its flights by $100 as well. Delta is employing status-quo

True

Brands enable customers to quickly differentiate one firm or product from another

True

Cost-based methods do not recognize the role that consumers' or competitors' prices play in the marketplace

True

Effective packaging and labels send consumers the signal "Buy me"

True

Even the best marketing communication can be wasted if the sender does not gain the attention of the customer

True

If there is a difference between the message that is sent and the message that is received, it is probably due to noise

True

Integrated marketing communications (IMC) represents the promotion dimension of the six Ps. It encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media

True

Intensive distribution outs products in as many places as possible

True

Many retailers and some manufacturers use an omnichannel or multichannel strategy in which they sell in more than one channel

True

Marketing channel management adds value because it gets products to customers efficiently, quickly, and at low cost

True

Marketing channel management and supply chain management are virtually the same thing

True

New product development adds value to a firm's products and services through innovation

True

One of retailers' most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market

True

One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized offerings and services for each customer

True

Rarely is the lowest-price product offering the dominant brand in a given market

True

The communication gap can be reduced by managing customer expectations

True

The fact that the Apple iPad is easy to try- demo units are available at Apple stores as well as other retail stores- is helping it diffuse more quickly

True

The failure rate for new products is high

True

The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service

True

When a retail store rarely sells deeply discounted or sale products, it is known as "everyday low pricing"

True

When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This refers to price elasticity of demand

True

The improvement value method and the cost of ownership method are two approaches for setting prices that are ________ methods

Value-based

Pioneer or breakthrough products

can change consumer preferences

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed

Firms using a ________ pricing method set their prices relative to what other firms are charging

competition-based

The process by which the use of a new product or service spreads throughout a market group is referred to as

diffusion of innovation

For a brand name to be effective, it needs to be

easy for customers to recognize and remember

One of the potential benefits to a firm of introducing new-to-the-world products or services is

establishment of a completely new market

A demand curve is built on the assumption that

everything but price and demand remains the same

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

The marketing of services differs from product marketing because services are

inseparable

Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because

it happens behind the scenes

A company's product mix consists of

its various product lines

Pricing ________ products is especially challenging because little or nothing is known about consumers' perception of its value

new-to-the-world

When marketers state that services are _________, they are referring to the fact that services cannot be stored for use in the future

perishable

In the IMC communication process, the _______ is the person who reads, hears, or sees and processes the message being communicated

receiver

A distribution center is typically operated by

retailers, manufactures, or distribution specialists

Fashion trends tend to experience _______ product life cycles

short

Unlike product, promotion, or place, price is the only part of the marketing mix

that generates revenue

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

The IMC process includes a

transmitter

A customer orientation toward pricing simplicity invokes the concept of

value

Every firm needs different strategies to develop pricing models for its products. The strategies include that can help cost-based, competition-based, and

value-based

A company that buys products from manufacturers and resells them to retailers is a

wholesaler