MKTG Ch. 12 & 13

Landscapers, dry cleaners, and doctors are most likely to price their services based on ____, while psychologists, lawyers, and marriage counselors are likely to price their services based on ___.

Functions performed, time

Ben owns a wedding planning company that specializes in unique and eccentric weddings. Recently, he has been trying to improve the quality of the service received by the company's clients, but has experienced difficulty finding ways to standardize and control the quality. Ben's problem illustrates the _____ feature of services.

Heterogeneity - The variation in quality of services

Dorothy recently purchased a piano and had no problem testing out the piano to listen to how it sound and felt. She is finding it more difficult to evaluate piano lessons. The piano was easy to evaluate because it had many _____ qualities.

Search qualities - Tangible attributes that can be evaluated prior to purchase

Difference between the desired level of expectations and the acceptance level of expectation is the"

Zone of tolerance

The collective individuals who have an interest in or a concern about an organization, product or social cause is referred to as a __________ public.

Target

Basic aim of a nonprofit organization is to obtain a desired response from:

Target market

New pricing strategy, don't know how consumers will react, what stage of the new-product development process should they proceed to?

Test marketing, they can measure sales and customer satisfaction using actual customers

Most products possess a certain degree of intangibility. (T/F)

True

Early in the commercialization phase, marketers must make decisions about

Warranties, repairs and replacement parts

Early in the commercialization phase, marketers must make decisions about:

Warranties, repairs and replacement parts Price, distribution and promotion are proposed earlier and finalized in commercialization

The two levels of expectations that consumers generally have about services are

Acceptable and desired

Heterogeneity increases as the _____ increases.

Amount of human labor increases, greater variation

To manage products effectively, the product manager must be independent of other departments. (T/F)

Both product and brand managers operate cross-functionally to coordinate the activities, information and strategies involved in marketing an assigned product

Analyzing potential costs associated with developing and distributing a product is part of which phase?

Business analysis

Direct consumers of a product of a nonprofit organization are

Client pubics

For the Special Olympics, the athletes competing would be considered its _____ publics, while the athletes' parents, the coaches, and donors would be included in its _____ publics.

Client, general

Dylan is working on a team to finalize the budget and the marketing plan for a new dishwasher he has been developing at Whirlpool. He is in the _____ phase of the new-product development process.

Commercialization because during this phase they refine and finalize plans and budgets for full-scale manufacturing and marketing of a product occurs

After assessing whether the product is consistent with the manufacturer's objectives and resources, the next step is:

Concept testing

During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product, and _____, which evaluates the potential impact of the product idea on the firm's sales, costs, and profits.

Conceptual testing, business analysis

Lindsay stops by the Safeway grocery, her preferred store, on the way home from work. She picks up her usual brand of laundry detergent and orange juice, but she sees that there are no more free-range eggs available. Lindsay is very concerned about the ethical treatment of animals and so she leaves Safeway and goes to another grocery to purchase the free-range eggs. Lindsay's purchase of the laundry detergent and orange juice would most likely be classified as _____ products. Her purchase of the eggs would most likely be classified as ______ products.

Convenience; specialty

Larry hired an accountant to complete his tax return. The accountant was able to get Larry a refund, but Larry is having a difficult time finding out whether the accountant he hired got him the largest refund possible. This is because the accountant's work is typical of service firms in that it has many

Credence qualities because customers may be unable to evaluate these attributes even after purchasing and consuming a service

What is the most protectable brand type as determined by a series of court decisions? A) suggestive B) descriptive C) arbitrary D) fanciful E) generic

D) Fanciful most to least is fanciful, arbitrary, suggestive and descriptive Generic terms are not protectable

Each of the following is a method that can be used by service companies to understand customer needs and expectations except A) focus groups. B) surveys. C) comment cards. D) market segmentation. E) employee opinions.

D) Market segmentation because that's the process of dividing a total market into groups with relatively similar product needs

Old Spice recognized that it needed to revitalize its brand and attract new segments for its deodorant, leading to a new advertising campaign. This is an indication that Old Spice's products were primarily in the _____ stage of the product life cycle.

Decline, decide whether to reposition a product to extends its life or eliminate it

A local IGA store is experiencing declining sales in several categories throughout the store—especially fresh produce. The store manager believes this decline in fresh produce store sales is related to the "buy local" phenomenon and consumers' desire to support sustainable agriculture, purchase fresh produce that's in season locally, and organic. Which type of research should the local IGA store utilize to determine how best to respond to the change in store sales?

Exploratory

Brian asks his friend Gordon for recommendations for a pediatrician for his children. Gordon tells him that KidsHealth is a great practice if he can get Dr. Fusco assigned to his children. Gordon's recommendation addresses which of the following service features?

Heterogeneity, b/c Gordon said ALL his children receive care from the one physician which shows consistency

A grocery store recently discovered that it is having a problem with its checkout clerks being inconsistent in how they interact with the customers. The grocery store is having a problem with which of the following characteristics of the service offering?

Heterogeneity, inconsistency in interaction with customers

If the losses of a product are too great to prolong a product's life, the best strategy of deletion is

Immediate dropout

Doug had tickets to attend a Broadway play with his family. When they arrived at the theater, they were disappointed to find out that the star of the show was unable to perform and that the understudy would be performing the lead role instead. This is an issue regarding the _____ quality of services.

Inseparability

Willie is a mechanic and is hoping to increase revenue. He is hoping to schedule more cars, but every timeslot at his auto shop is almost always filled. Willie's difficulty in expanding involves the aspect of service called

Inseparability because WIllie must be able to perform additional auto repairs or hire a new mechanic

It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services?

Inseparability because a service must be produced and consumed at the same time

Liz recently moved to a new town and wanted to find a new doctor. She looked at several doctors' offices to view their location, their cleanliness, and their waiting rooms before she finally decided on which doctor to visit. Liz was trying to overcome the issue associated with the _____ aspect of services.

Intangibility,

Taylor is a product manager for Coleman's line of tents and recently discovered that Eureka, one of their competitors, was in the process of test marketing a new type of six-person tent in the Rocky Mountain region. He might decide to try _____ in order to reduce the validity of Eureka's results.

Jamming

Whenever Apple releases a new version of its iPad, it continues to produce and market previous versions for some period of time. However, Honda stops production of the prior year's model of its Civic when they launch the new year's model. Apple's new product strategy is a _____, while Honda's strategy is an example of a(n) _____.

Lin extension; product modification

Which survey method is the least flexible?

Mail surveys

The four factors that affect a customer's evaluation of a service are the analysis of customer expectations, service quality specifications, employee performance, and

Management of service expectations

Gene works in the uniform and apparel division of Cintas. He has responsibility for managing the marketing activities for uniforms aimed at restaurants and dining facilities. Gene's title is

Market Manager, responsible for managing the marketing activities that serve a particular group or class of customers

The makers of Tide Detergent created "pods" of the product, characterized by a small, square, plastic-wrapped packet that was easier to use. Since it is packaged in these square pods, it requires no measuring and can be transported more easily if one is carrying clothes to a laundromat. This change in packaging is a strategy that can most likely help boost sales in the ____ stage of the product life cycle.

Maturity - Time for product modifications

Which of the following is a way that a movie theater can address the issues of perishability of services?

Offer discounted matinee rates to movies shown early in the afternoon

If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager.

Product

Jasmine is part of a team working on a new line of rugs designed for use on outdoor patios. During a meeting with the team, Jasmine asked whether they wanted to make the level of quality and durability of the new rugs higher than the quality level of their chief competitor. Based on her question, the team is most likely in which phase of the new-product development process?

Product development

Kim is currently building a working model of a new motorized scooter for kids to ride. She is engaged in which phase of the new-product development cycle?

Product development

Brands provide all of the following benefits for sellers except that they do not

Reduce perceived risk of purchase

In consumer markets, buyers find ____ to be important characteristics for quality, while _____ are important quality characteristics in business markets.

Reliability and durability; company reputation and ease of repair

Product Deletion: Focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits, is what time of deletion?

Run-out, exploits any strengths left in the product

Geico advertises that you can save 15% or more on auto insurance by switching to Geico. Which of the following best describes Geico's approach?

Since many customers see auto insurance providers as similar in quality, Geico is claiming to be lower in price

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.

Supplementary

Peak demand is when

a service provider that offers a time-sensitive service receives most of its revenue.

Business services are:

performances or efforts that cannot be physically possessed