MKTG330- MiniTest 3

Approximately 2.5% of those who adopt a product do so almost immediately after the product is launched. These people are called _______.

Innovators

The quality that services possess in which both the service provider and the customer must be present during the service is called ___________.

Inseparability

The quality that services possess of having no physical substance is called _______.

Intangibility

__________ are typically older and less educated than other adopter categories and may choose not to use Internet.

Laggards

What is the first stage in the product development process?

New-product strategy development

The pricing decision must be made with the goal of maximizing long-term

Sustainable profits

materials management

The inbound movement and storage of materials prior to the manufacting process

reference prices

The prices that consumers consider reasonable and fair for a product.

The "right condition" in logistics refers to the safe and satisfactory _______ of a product.

delivery

The difference between what the company thinks the customer expects and how it actually provides the service is called the ________

delivery gap

The process by which a product is adopted and spreads across various types of adopters is called _______.

diffusion

Price is the amount of time, money or _________ a buyer exchanges with a seller to obtain a product.

effort

A scenario in which demand changes significantly due to a small change in price is referred to as __________ demand.

elastic

inventories

goods used to meet supply and demand

The 3rd stage of the new-product development process is _______. During this stage, most ideas are rejected during this stage.

idea screening

A situation in which a specific change in price causes only a small change in the amount purchases is referred to as ___________ demand.

inelastic

Volume maximization is a pricing strategy that involves

setting prices low to encourage more purchases

Rank the stages of the Consumer Adoption Process

1 - Awareness 2- Interest 3- Evaluation 4- Trial 5- Adoption

6 Steps of New Product Development process

1- Idea Generation 2- Idea Screening 3- Business Analysis 4- Product Development 5- Test Marketing 6- Product Launch

Steps in the Customer Relationship Management Process

1- identify current customers 2- understands how customers interact 3- gather specific customer information 4- store and analyze information 5- utilize analysis to build customer relationships

Steps in building an advertising campaign

1- identify the target audience 2- define objectives 3- create advertisements 4- choose advertising tools 5- measure the effectiveness of the advertising

The stages of the product life cycle in order

1- introduction 2- growth 3- maturity 4- decline

steps in the price-setting process

1. Define the pricing objectives 2. Evaluate demand 3. Determine the costs 4. Analyze the competitive price environment 5. Choose a price 6. Monitor and evaluate the effectiveness of the price

As a new product goes through the diffusion process, that product could be purchased by various types of adopters including

-Innovators -Laggards -Early Adopters -Late Majority

Which of the following steps in the new-product Development process occur after the product development step?

-Product launch -test marketing

inelastic

-a starbucks speciality drink -tickets to a concert -surgery to repair a burst appendix

elastic

-airline ticket from NY to boston for a wkd getaway -can of soda -regular cup of coffee

What are the gaps in the Service Gaps Model?

-communication -delivery -knowledge

Which of the following are considered variable costs for a firm?

-delivery costs -utilities -materials and supplies

Characteristics of goods

-mass produced -can be possessed -stored for long periods

Characteristics of services

-not physical -changes each time its sold -production and consumption happen at the same time

Which activities that a firm is likely to engage during a product launch?

-preparing internal systems to take service orders -purchasing the materials needed to package the good

What are the 2 most common and effective strategies for raising prices?

-unbundling -escalator clauses

These are 2 factors influencing price that are often overlooked. What are they?

-underpricing -reference prices

underpricing

charging someone less than they are willing to pay

the product quality is lower than customers' standards

customers return the products in excessive amounts

The difference between actual customer expectations and the company's perception of customer expectations is called the _______ gap.

knowledge

Survival pricing is a pricing strategy that involves

lowering prices to the point at which revenue just covers costs

As an element of evaluating demand for a product, ______________ cost can be defined as the change in total cost that results from producing one additional unit of product.

marginal

Cost-plus pricing is also known as _______ pricing.

markup

The quality that services possess in which they cannot be stored, inventoried, reused, or returned is called ________.

perishability

The prices consumers deem reasonable and fair for a product are called

reference prices

A wholesaler acts as a "middleman", buying goods in bulk and reselling them to __________, which in turn sell to consumers

retailers

A measurement of how good a service experience is or was is called _________ quality.

service

As it relates to evaluating demand, marginal revenue can be defined as

the change in the total revenue that results from selling one additional unit of product

the product is dangerous

the company faces product recalls and legal liabilities

the new product takes sales from an existing product

the company's total revenue and profits are lower than anticipated

the market refuses to pay the target price

the firm lowers the product price, resulting in lost revenue

Transportation

the movement of goods to help firms build a supply and compete globally

price gauging

the practice of overcharging customers in times of great need, such as in the aftermath of a natural disaster

purchasing

the procurement of materials, parts and services

warehousing

the storage of both materials and finished goods

Before a firm can estimate how much revenue it must generate to earn a profit, it must first calculate the break-even point so it knows the sales _________ needed to achieve a profit of zero.

volume