MKT 300 Exam 3

which is demand-based pricing

Airlines often price their tickets higher on the weekend because more people are purchasing tickets

__________________________________________ is used when costs and revenues are secondary to competitors' prices.

Competition-based

The _____________________________________ consists of a product's fundamental utility or main benefit and usually addresses a fundamental need of the consumer.

Core product

which is mark-up pricing

Costco and Sam's Club adds 14 percent of the cost to set the price

___________________________________ refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing.

Electronic marketing

A(n)___________________________________ is a tangible physical entity.

Good

_______________________________ allows customers to express their needs and wants directly to a company in response to its marketing communications.

Interactivity

which is cost-plus pricing

Joe's sandwich company determines the cost of making each sandwich and then adds a certain dollar amount to test the final price

_______________________________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy.

Key Performance Indicators (KPIs)

which is competition-based pricing

To undercut its rivals, a new furniture company prices its products below competing brands

Amazon cut prices on their first day of ownership when they purchased Whole Foods. They wanted to be more competitive to other grocery brands such as Kroger and Walmart.

Whole Foods Example

Marketers' ability to obtain digital information is referred to as ____________________________.

accessibility

The ability of a marketer to identify customers before they make a purchase is called __________________________________.

addressability

Adrienne has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _______________________________ modification.

aesthetic

Home Depot has an iOS program that allows users to match colors in photographs with the store's selection of carpets. This is an example of a(n) _______________________________.

application (app)

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. This person is in the _________________________ stage of the product adoption process.

awareness

Devices that trigger a retailer's app to display custom messages and promotions are known as ___________________

beacon technology

The Target bullseye is a classic example of a(n) ____________________________________.

brand mark

Bethany and Joseph are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new UtiliBot. They are in the _____________________________________ phase of the new-product development process.

commercialization

Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ______________________________ than an unfamiliar brand.

consideration set

Due to external pressures and concerns for privacy, Yahoo now has an opt-out option for internet-based advertising. This is an example of ___________________________________.

control

Delta Airlines encourages customers to post reviews on its company website or Facebook page in the hopes of increasing the company's ________________________.

credibility

The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability is the ____________________________ stage.

decline

An American Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American Airways flight from Chicago to Phoenix. This is an example of ____________________________________ service pricing?

demand-based

Coca-Cola offers a line of soft drinks that includes Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, and Fanta. These drinks best illustrate Coca-Cola's product mix ____________________.

depth

If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be ________________________________.

elastic

If Glade, which markets Glade scented Plug Ins and Glade scented candles and wax melts were to introduce Glade laundry detergent and dryer sheets with the same scents, this would be called ________________________________ branding.

family branding

Changes that affect a product's versatility, effectiveness, convenience, or safety are called _____________________________ modifications.

functional

A package of aluminum foil on the shelf at Safeway has only a white package with black letters stating "aluminum foil." This product is an example of a ___________________________ brand.

generic

In the Whole Foods example we discussed in Chapter 12, Amazon reduced the price of ______________________________________ to be more competitive with Kroger, Walmart, and Trader Joe's.

groceries, primarily produce

Achieving greater penetration of the market is typically a business goal during the _____________________________________ stage of the product life cycle.

growth

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the __________________________________ of services.

heterogeneity

Modifying a product to have ______________________________ may enable a company to charge a higher price by creating customer loyalty and lowering customer sensitivity to price.

higher quality

If Florida Gas and Electric increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be _______________________________.

inelastic

Personal trainers cannot complete their work without their clients present because of the ___________________________________ feature of services.

inseparability

The three levels of brand loyalty from strongest to weakest are ____________________________, ____________________________, and ____________________________.

insistence, preference, recognition

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ________________________________ aspect of services.

intangibility

For most products, a(n) _______________________________ relationship exists between the price of a particular product and the quantity demanded.

inverse

Although Sergei's grandfather still prefers using a land line, he just bought his first cell phone. Sergei's grandfather is most likely oriented toward the past and is a member of the ______________________________ group.

laggards

In the Chapter 11 lecture, Colgate Calming Clean toothpaste with hemp seed oil was an example of a(n) _______________________________________________.

line extension

As consumers become more informed about their options, the demand for _________________________ products has ______________________.

low priced , has grown

A __________________________________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions.

manufacturer

Dunlop managers notice that when the number of tires the company sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's __________________________________________.

marginal revenue

Adidas is establishing a ____________________________ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

Internet sites that allow users to share photos, videos, and podcasts are called ____________________.

media-sharing sites

In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and ____________________________________________________________________.

modification should make the product more consistent with customers desires

Food King grocery stores offer candy bars in the checkout lanes for $0.99 rather than $1.00. This use of ____________________ pricing should help increase sales of the candy bars.

odd number

If Acer uses ______________________________ pricing for its newest Chromebook, it is probably most interested in obtaining market share; and it is assuming

penetration pricing, that other competitors could enter the market easily

Larissa is a concert promoter who works for singer Kanye West. She works very hard to make sure most of Kanye's concerts are sold out because she understands the concept of _____________________________________ which means that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again for that specific concert.

perishability

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called _________________________________.

phase-out

A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using a(n) _________________________________________ pricing strategy.

premium pricing

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of _______________________________________.

price

A measure of sensitivity of demand in relation to changes in price is ______________________.

price elasticity of demand

Dorito's has expanded to Nacho Cheese Doritos, Cool Ranch Doritos, and Salsa Verde Doritos, to name a few. These are examples of ________________________________________.

product types or product depth

The internet can be referred to as a _____________________ medium because users determine which websites they are going to view.

pull

Minerals, chemicals, timber, and agricultural products are considered _____________________.

raw materials

After building a prototype of his new device, Barry is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the __________________________________________ phase of the new-product development process.

screening

Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of ________________________. A problem associated with ___________________________________ is that consumers can predict when prices will be lowered and delay purchases until that time.

secondary-market pricing, secondary-market pricing

An organization would use a(n) ______________________________________ pricing objective if it were in a favorable position and desired nothing more.

status quo

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as _______________________________ services.

supplementary

The growing use of two-day and next-day delivery by online companies best relates to the _______________________

the distribution variable of the marketing mix

Two trends that have caused consumer-generated information to gain importance are _______________________________________________ and _________________________________________.

the increase of consumers sharing their opinions through digital media and the consumer's mistrust of information from corporations.

A(n) ___________________________________signifies that the owner has exclusive use of a brand and others are prohibited from using it.

trademark

In the L'Oreal video we watched in Chapter 9, the company used Search to identify __________________________________________________.

what women were searching on Google so they could design their marketing mix