marketing test 4

inelastic

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.

the lower the quantity consumers will buy

According to a typical demand curve, the higher the price,

grocery store

Along the service-product continuum, which of the following would be considered the most product dominant?

doctor's office

Along the service-product continuum, which of the following would be considered the most service dominant?

add value to

By providing good customer service, firms __________ their products or services.

a demand curve

Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on

knowledge

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

sales orientation

Health clubs often use a low introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.

standards

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists.

target profit

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.

zone of tolerance

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere.

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.

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

empathy

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. Employees are instructed to always address a guest by name, if possible. To accomplish this, employees are trained to listen and observe carefully to determine a guest's name. Which service characteristic is this an example of?

delivery gap

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a

price and demand

The demand curve shows the relationship between ______ during a specific time

prestige pricing

There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with

competitive parity

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.

competitor-oriented

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________________ pricing strategy.

competitive parity

When firms set prices similar to those of competitors, they are following a strategy of

empowerment

_________ means allowing employees to make decisions about how service is provided to customers

cannot be physically possessed

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

collaboration

all of the following are included in the five c's of pricing except

the price of alternative products and services

all of the following are included in the full price of a product or service except

price

consumers generally believe that _______ is one of the most important factors in their purchase decisions

percentage change in quantity demanded of product A compared to the percentage change in price of product B.

cross-price elasticity is the

because managers don't understand the relationship between benefits and costs

in developing marketing strategies, why is price often the most challenging of the four P's to manage?

renewable

the marketing of services differs from product marketing because services are all of these except

inelastic

the price elasticity of demand for a specific brand of deodorant is 1. the market for this product is considered

elastic

the price elasticity of demand for a teeth-whitening kit is -1. the market for this product is considered

customers believe they are getting less or poorer service than they should

the service gap model is designed to highlight those areas where

customers, competition, costs, company objectives, channel members

what are the 5 c's of pricing

elastic or inelastic

when it comes to measuring consumer's' price sensitivity, products are viewed as either

intangible

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

communications gap

when there is a significant difference between the service customers receive and the service the firm promotes, the firm has a

heterogeneity

which of the following refers to variability in a service's quality?