Chapter 7, 13, 19, 20 Marketing
Emily is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?
Extended
Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called
Peak demand
If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use
Penetration pricing
An ad for a new Mercedes automobile states, "The best, or nothing." It is likely that Mercedes is using _________ pricing.
Prestige
If Braun introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as
Price skimming
If Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the
Quality demand goes down
When service companies change high-contact services into low-contact services, the
Service becomes less personalized
What should marketers do to promote the consistency and reliability of their services most effectively?
Train employees and develop standard procedures for dealing with customers
odd-even pricing is
a psychological pricing strategy
Sara buys a new dress at Marshalls that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of
an external reference price
Problem recognition occurs when a consumer
becomes aware that there is a difference between a desired state and an actual condition.
When Aisha and Darius are planning their honeymoon, their travel consultant tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
bundle pricing
When shopping for detergent, Dylan looks at Arm & Hammer, Gain, Method, and Cheer and chooses the one that is on sale. These four brands make up his ____ set.
consideration
The intangibility aspect of a service means that
consumers may have a problem evaluating service offerings.
In general, differences between goods and services are determined by the
degree of tangibility.
The three primary bases for developing prices are
demand, competition, and cost
After purchasing a product, postpurchase evaluation may result in cognitive dissonance. Cognitive dissonance is
doubts that occur because the buyer questions whether the decision to purchase the product was right.
Marketers can influence consumers' evaluations by describing alternatives to products and their attributes in a certain manner, a practice known as
framing
The more ____ involved with delivering a service, the greater the degree of heterogeneity.
human labor
Personal trainers cannot complete their work without their clients present because of the ____ feature of services.
inseparability
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price
In the consumer buying decision process, a buyer will search his or her memory for information about products that might solve the problem they have identified in the
internal search
Within the information search step of the consumer buying decision process, what two primary aspects exist?
internal search and external search
Extended decision making is the type of consumer decision-making process that
is the most complex decision-making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.
When a new variety of Envirokids whole-grain breakfast cereals is first introduced, consumers will most likely engage in ____ when deciding whether or not to purchase this new product.
limited decision making
The three most widely recognized types of consumer decision making are
limited problem solving, extended problem solving, and routinized response behavior.
Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.
market share
Price is considered to be the variable in the marketing mix that is
most flexible
Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing
nonprice competition
The primary psychological influences on consumer behavior are
perception, motivation, learning, attitudes, personality, and lifestyles.
the fact the services cannot be inventoried and then sold at a later date is called
perishability
Maslow's hierarchy of needs refers to the five levels of needs that humans seek to satisfy, from most to least basic to survival. These needs, in order from most to least basic to survival are
physiological, safety, social, esteem, self-actualization.
Jhumpa is questioning whether she has made the right decision about purchasing a new HP laptop after she sees a friend with a new Dell. Jhumpa's doubt whether she made the right decision occurs during the ___________ of the buying decision process.
postpurchase evaluation phase
When marketers emphasize price as an issue and match or beat the prices of other companies, they are using
price competition
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as
price lining
The five major stages of the consumer buying decision process, in order, are
problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.
Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.
professional pricing
Aloft Hotels, Inc. has an objective of achieving a 25% return from its overall sales. This is an example of a ____ pricing objective.
profit
In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
promise too much and cause customer expectations beyond what they can deliver.
After doing considerable shopping, Pax has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Pax?
purchase
The five categories of situational influences are
purchase reason, time perspective, social surroundings, physical surroundings, and buyer's momentary mood.
While shopping at a local grocery store, Cameron sees a display of his favorite brand of energy drink. He buys some to take home for the weekend. This purchase process would be described as
routinized response behavior
Premium-priced products are usually marketed through
selective or exclusive distribution
The three major categories of influences on the consumer buying decision process are
situational influences, social influences, and psychological influences.
Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is
survival
Price is a key element in the marketing mix because it relates most directly to
the generation of total revenue
Purchasers who buy products for personal or household use and not for business purposes are called the
ultimate consumers
Marginal analysis involves examining
what happens to a firm's costs and revenues when production is changed by one unit.
In the consumer buying decision process, the information search stage
yields a group of brands that a buyer views as possible alternatives.
The necessary interaction between service provider and customer that allows a service to be delivered is called
Customer contact