Chptrs 12 &16

A bundled price is preferable when:

consumers dislike having to pay extra for every part of a service.

Which of the following is an example of postpurchase communication?

A hotel sends an email survey to its guests a week after their stay, asking them to comment on the quality of the service they received.

. _____ is the process by which meanings are exchanged or shared through a common set of symbols.

Communication

TrustUs Insurance's tagline is "You're in safe hands with TrustUs," and Serenity Life Insurance uses a rock as its trade symbol because it wants to convey stability. What type of promotion strategy are these companies using?

Creating a strong organizational image

Which of the following is a limitation of the revenue-oriented pricing approach?

Difficulty in determining costs

Arise Food Corporation displays posters in supermarkets to promote its new range of pasta sauces. Which of the following stages of the communication process is the company engaged in during the course of promoting its products?

Encoding

Which of the following statements is true of the characteristics of the elements in a promotional mix?

Important promotional ingredients tend to receive the most funding.

Which of the following statements is true of a promotional mix?

In advertising, the sponsor or company is identified.

Which of the following statements is true of the AIDA model?

It discusses how consumers respond to marketing messages.

According to the gap model of service quality, which of the following is true of gap 1?

It results from a lack of understanding or a misrepresentation of customers' needs, wants, or desires.

Premium boutique hotels encourage employees to develop strong, personal relationships with guests. Such hotels offer value-added services that are not available at traditional hotels. At which level of relationship marketing are these hotels operating?

Level 3

Which of the following is a difference between people-processing and possession-processing services?

People-processing services require customers to enter the service factory, while possession-processing services typically do not require the presence of the customer in the service factory.

_____ refers to the inability of services to be stored, warehoused, or inventoried.

Perishability

Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.?

Personal selling

_____ promotion is designed to stimulate a purchase or an action.

Persuasive

____ refers to the follow-up activities that a service firm might engage in after a customer transaction.

Postpurchase communication

_____ refers to communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.

Promotion

_____ focuses on maximizing the surplus of income over costs.

Revenue-oriented pricing

_____ consists of all marketing activities that stimulate consumer purchasing, such as coupons, contests, free samples, and trade shows.

Sales promotion

Which of the following statements is true of advertising?

The cost per contact in advertising is low.

When a product is in the growth stage of its product life cycle, it is necessary to ensure that:

advertising and public relations continue to remain important.

The advertisements for ground coffee sold by Khokho's Inc. state, "The highest quality coffee doesn't have to be expensive." This is an example of how a product communicates its _____.

competitive advantage

Treat Bytes Inc., a food product manufacturing company, introduces a new range of protein-rich snacks targeted at vegetarians. The products have very low levels of fat and cholesterol that make them a healthy source of protein for vegetarians. These products are unique, and people consider them to be of the highest quality. These unique features of the products present Treat Bytes Inc. with a _____.

competitive advantage

The fishing lures produced by Fun Lite Corporation are unique in that they are handcrafted. Advertising by the company emphasizes the point that how its lures, unlike others, are all handcrafted. This feature is the company's:

competitive advantage.

The AIDA concept:

does not explain how all promotions influence purchase decisions.

Green & Gold is a coffee chain based in the United States. Its management has been trying to refocus on the things that originally made the company successful. For example, Green & Gold stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure that customers can smell the freshly ground coffee aroma when they pass by the store. However, when questioned, consumers tend to emphasize on the need for pricing incentives such as a frequent purchasing program. According to the _____, there may be a difference between what customers want and what Green & Gold management thinks customers want.

gap model of service quality

Wild Plus, a television channel dedicated to wildlife, organizes promotional events in several shopping malls across the city to promote its new wildlife adventure series. Articles about the new program are also published in local newspapers. Therefore, Wild Plus is engaged in:

generating publicity.

A television channel promotes its new reality show through print and broadcast advertising as well as personal appearances by show participants in promotional events, Web sites, and merchandise signed by the participants. To make sure that all of the promotional messages are coordinated, the television channel should use the:

integrated marketing communications approach.

Two popular beverage manufacturing companies in different countries merge together to gain strategic advantages. The merger gives each brand access to a significantly larger market. To effectively reach both markets, the merged company needs to coordinate its promotional mix to produce a consistent, unified, and customer-focused message. In other words, the company needs to use:

integrated marketing communications.

At Great Bear Nature Tours, the owners are careful to treat both guests and employees very well. In fact, most employees feel that they are treated like privileged guests at work. This is an example of:

internal marketing.

Silver Line Electronics Inc. uses technology to produce laptops and other gadgets in bulk based on each individual client's specific needs and requirements. This is an example of _____.

mass customization

A proper promotional mix is one that _____.

meets the needs of the target market

Car Bar allows its customer to rent a car at $10 per day on weekdays, at $15 per day on weekends, and at $20 per day exclusively during the holiday season. This pricing strategy helps the company match the supply and demand for its cars. This is an example of _____.

operations-oriented pricing

David and Kathy like to take their young son, Chaz, to Moe's Southwestern Grill for lunch after church every Sunday. While they like to eat at Moe's at any time, Sunday is particularly good because it is "kids eat free" day at the restaurant. Until Moe's began this attractive offer, Sundays were very slow. Now it is one of the busiest days of the week for the restaurant. This strategy was a way to contend with the service characteristic of:

perishability

The promotional mix elements that should be emphasized for products moving into the growth stage of the product life cycle are:

personal selling and persuasive advertising.

Which of the following is a difference between private-sector organizations and nonprofit organizations?

private-sector organizations prioritize market segments that are most likely to respond to particular offerings, while nonprofit organizations target those who are apathetic about receiving their services.

A(n) _____ is the combination of advertising, personal selling, sales promotion, social media, and public relations that are used to reach the target market and fulfill an organization's overall goals.

promotional mix

In 2008, the NBC television network used marketing tools such as advertising, personal selling, public relations, and sales promotion to communicate with its target audience about its new reality show. The television network's _____ described its plan on how to use these tools most effectively.

promotional strategy

The National Pork Board of the United States wants to create more consumer demand for pork products. The board decides on how to use advertising, public relations, personal selling, sales promotion, and social media to create a coordinated plan that will become an integral part of the its marketing functions. Thus, the board is developing a _____.

promotional strategy

A beverage company plans to launch a new energy drink. It decides to partly sponsor a marathon in the city. It places billboards and posters describing the new drink throughout the marathon route. Company representatives distribute flyers to people arriving to watch the marathon. The company also issues press releases as part of the product launch. Therefore, the company is executing a:

public relations strategy.

A manufacturer using the _____ promotional strategy focuses its promotional efforts on end consumers.

pull

The use of aggressive personal selling and trade advertising by a manufacturer to convince a wholesaler or a retailer to carry and sell particular merchandise is known as a _____ strategy.

push

Advent Automobiles Inc. launches a new sport utility vehicle. The company places advertisements in leading newspapers and social media sites to reach out to consumers. In the context of the communication process, Advent Automobiles Inc. is the _____.

sender

Business Essentials is a support group that consists mostly of young women who offer tips on budgeting and debt relief. Their goal is to help women break financial ceilings. Business Essentials is providing a(n) _____ that is helpful to women who want to be financially savvy.

service

Cashcrash.com is an online money transfer company that provides consumer remittance facilities. With the Cashcrash bank deposit service, consumers can send money directly to bank accounts in several countries around the world. Thus, Cashcrash.com would be classified as a:

service.