BA317 Exam 2
If you are a marketer for a manufacturer, and the marketing mix for your product focuses on very specific market segments, you'd like to sell your product through
Specialty stores
Which of the following statements regarding brand loyalty is not true?
The marketing costs of reaching loyal customers are typically very high.
The service dimension called __________ refers to the ability of the firm's employees to convey trust and confidence.
assurance
If a manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company be least likely to choose as a retailing partner?
convenience store
are combating competitive pressures by increasing the amount of exclusive and private-label merchandise they sell and expanding their online presence.
department stores
Which of the following is least likely to be a source of ideas for new products?
geodemographic segmentation
By owning its brands like Tide and Crest, P&G
has greater control over its marketing strategy.
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.
income effect
Internet buyers are sometimes surprised to see online retailers using information about their past purchases to customize promotions targeted to them the next time they visit the retailer's website. The retailer is using the information to
increase the share of wallet from their best customers.
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.
maturity
A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.
maximizing profits
Cross-price elasticity is the
percentage change in quantity demanded of product A compared to the percentage change in price of product B.
For which of the following is demand likely to be least sensitive to price increases?
prescription drugs
Because services like cruises and car rentals are perishable, many marketers use
pricing strategies to match supply with demand
Bullseye
probable, possible, working
Personal selling is particularly important for retailers selling
products that are complicated or expensive.
Marketers spend billions of dollars annually attempting to build effective brands. One basic benefit of a brand is that it
provides a way for a firm to differentiate its product offerings from competitors.
traction
quantitative evidence of real customer demand; more sales, more users, more demand
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
reduce inventories needed to satisfy retailers' demand.
For David, the variable costs associated with staying open longer hours will include all of the following except
rent
In vendor-managed inventory systems,
retailers send sales information to the manufacturer.
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
reverse innovation
channels
targeting blogs, unconventional PR, publicity, SEM, offline advertising, content marketing, Social and Display ads, email marketing, business development, sales, affiliate programs, existing platforms, trade shows, speaking engagement, community building
Which of the following was not a new-to-the-world product or service when it was introduced?
the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs
Retailers can gain valuable knowledge about their customers from the transaction process and from
the insights of store personnel
lead time
the time between the decision to place an order and the receipt of the merchandise.
Shorter lead times allow retailers
to reduce the needed level of inventories.
As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product.
trialability
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle
until a superior product comes along and replaces it
Generally, the larger and more sophisticated the channel member, the less likely that it will
use supply chain intermediaries
Dawn works for a
wholesaler