MKT 3013 EXAM 2 STUDY SET
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
Which of the following is NOT one of the typical advantages of e-procurement systems?
Improving customer-supplier relationships
and boost sales.
Innovative packaging can give a company an advantage over competitors and boost sales.
__________________ represent an internal source of new product ideas for a company.
Intrapreneurial programs
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made for one set of consumer purchases.
What is the first step of the buyer decision process?
Need recognition
Which of the following lists the five steps of the buyer decision process in the correct order?
Need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
Which of the following statements regarding managing service quality is correct?
Unlike product quality, service quality will always vary.
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?
maturity
______________________ is the step of the new product development process during which a physical product is first developed.
product development
At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method called?
psychographic
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development.
systematic
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________.
the company would see rising profits
Dividing buyers into groups based on social class, lifestyle, or personality characteristics is called ________ segmentation.
psychographic
The business buying process can be a complex and complicated process with eight basic stages. Which of the following is the first stage in this process?P
roblem Recognition
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ______________________.
modifying the market
Firms that manufacture seasonal products target their consumers primarily through ________ segmentation.
occasion
Which of the five characteristics identified has an inverse relationship with an innovation's rate of adoption, meaning as this characteristic increases, the rate of adoption is slower?C
omplexity
H2Coast, an automobile manufacturer, produces fuel-efficient hybrid vehicles that are targeted toward high-end exotic-vehicle collectors with ample leisure time. H2Coast most likely segments the consumer market based on ________ variables.
psychographic
________________ is one problem with business-to-business e-procurement.S
uppliers being pitted against one another
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
Which of the following describes the process of dividing markets into groups based on consumers' knowledge, attitudes, uses, or responses?
Behavioral segmentation
___________________ is the value of customer relationships that a brand creates.
Customer equity
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
Customer value-based pricing
__________________ segments are those segments that are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Differentiable
____________________ is a characteristic important in influencing an innovation's rate of adoption and described by the degree to which the innovation may be tried on a limited basis.
Divisibility
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is a pure tangible good?
Toothpaste
_________ refers to the practice of integrating ethnic themes and cross-cultural practices within a company's mainstream marketing.
Total market strategy
After market strategy is developed, the next step of the new product development process is _______________.
business analysis
Which of the following is NOT a product life cycle (PLC) stage?
commercialization
Crowdsourcing is used in the _______________________ step of the new product development process.
idea generation
Adding a new product line to an existing portfolio means that the line has __________________.
increased product mix width
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following needs in Maslow's hierarchy is generally satisfied first?
Physiological needs
___________________ consists of many different people who play multiple roles in the buying process.
The buying center
According to the model of buyer behavior, what is in a buyer's "black box"?
The buyer's characteristics and decision process
Which of the following is a personal characteristic influencing a consumer's buying behavior?O
ccupation
Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as ______________________.
market segmenting
Which of the following is a variable used to segment business buyers that is not used to segment consumer buyers?
operating characteristics
If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________.
preemptive
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extension
Which of the following would be an appropriate strategy during the growth stage of the product life cycle?
Spend a lot of money on product improvement, promotion, and distribution.
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
Which of the following would make a segment less attractive to enter?
new entrants finding it easy to enter the segment
Which of the following is often considered a key business marketing strategy for winning and holding accounts?s
ystems selling
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
Which of the following is NOT a social factor influencing consumer buying behavior?
Cognitive dissonance
Which of the following refers to the degree to which an innovation fits the values and experiences of potential consumers?
Compatibility
The website leftyslefthand.com markets products to left-handed consumers only. Which targeting strategy does this represent?
Concentrated marketing
Which of the following is likely to slow the adoption of a new technology?
Conceptual complexity
Which of the following are tradition-bound, suspicious of changes, and adopt the innovation only when it has become something of a tradition itself?
Lagging adopters
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management?
Maturity
When Subaru of America allows Outback buyers to customize cars to meet their exact needs and preferences, it is practicing which type of marketing?
Micromarketing
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
New brand
Marketers of brands understand that they must figure out how to reach ___________________ that can exert social influence on others.
Opinion leaders
___________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.
Perishability
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
Private brands
products.
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________.
acquisition
Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products?
children
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
Heeltoe, a boutique that caters to the footwear needs of women, manufactures two different lines of footwear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Heeltoe most likely segments the consumer market based on ________ variables.
demographic
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ___________ is defined in terms of how highly consumers regard and respect the brand.
esteem
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.
generating person-to-person brand conversations
Munoz Specialty Foods groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Munoz creates a different set of advertisements and promotions. On which of the following segmentation variables does the firm divide its market?
geographic
______________________ determines if a buyer is satisfied or dissatisfied with a purchase.T
he relationship between the consumer's expectations and the product's perceived performance
The Ritz-Carlton has carefully created a strong and distinctive differentiation strategy, which is supported by everything the company says, is, and does. Which type of differentiation is this?
image differentiation
The type of segmentation that forms segments of consumers who have similar needs and buying behaviors even though they are located in different countries is known as _________.
intermarket segmentation
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________.
internal marketing
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________.
introduction timing
The type of segment characteristic in which the size, purchasing power, and profiles of the segments can be quantified is known as _______________________
measurable
Mi Rancho Supermarkets is a chain grocer that locates stores in neighborhoods with large Hispanic populations. Their stores carry a greater selection of Hispanic and Latin foods. The type of marketing that Mi Rancho uses is an example of ________.
micromarketing
Consumers obtain information from numerous sources. Which of the following involves dealer and manufacturer websites, packaging, and displays?C
ommercial sources
A manufacturer of half-ton pickup trucks creates a positioning map for the U.S. half-ton pickup market. The position of each circle on the map indicates the brand's perceived positioning on two dimensions: price and orientation (economy versus performance). The size of each circle indicates the brand's relative market share. This is an example of a ________________.
perceptual positioning map
Which of the following describes the process of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers?
positioning
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
The marketing manager at Only Organic Delicatessen targets customers who are focused on organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of organic, low-fat, locally raised produce and foods. Only Organic's approach is best referred to as ________ segmentation.
psychographic
A purse company's ads feature the members of a popular housewives reality show. Product sales increase significantly among fans. From fans' viewpoint, the housewives reality show is a ______________.
reference group
Amazon is now promising same-day pick-up of goods as well as local secure pick-up points. What point of differentiation is this?
services differentiation
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
When marketers aggressively promote only one benefit to the target market, the benefit promoted is known as the product or service's _____________________.
unique selling proposition
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
variability
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price-fixing
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
What is the nature of demand in business markets?D
emand in business markets is derived demand.
Groups of __________________ products consist of materials and parts, capital items, and supplies and services.
industrial
packaging
labelingQ
Capital products
Convenience products
Which of the following statements is true regarding product life cycle curves?
The sales of a typical product follow an S-shaped curve made up of five stages.
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
________________________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________.
a fad
Kidcomp, an American computer-manufacturing firm, targets children younger than age 10 by providing free games and applications. The firm's marketing approach is reflective of ________ segmentation.
age and life-cycle
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.
an indicator of quality
Which of the following statements about new product development strategy is correct?
innovation can be very expensive and very risky
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
