Exam 2 - Marketing
The product life cycle concept can be applied by marketers as a useful framework for describing how ________
a market responds to a product over time
A product has three distinct layers. The second layer is the ________, which is the physical good or delivered service.
actual product
The ________ for a guest paying for a night's stay at a hotel is the use of a bed, bathroom, towels, dresser, light, and closet.
actual products
Fixed costs ________
are cost that do not vary with production or sales level
Cost-plus pricing ________.
involves adding a standard markup for profit
________ are the last in the population to adopt a new product
laggards
Through ________, one firm sells another firm the right to use a legally protected brand name for a specific purpose for a specific period of time.
licensing
When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.
Competitor's pricing
Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.
Everyday low
________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
High-Low
The ________ for a guest paying for a night's stay at a hotel is rest and sleep.
core product
Which of the following processes does value-based pricing reverse?
cost-based pricing
________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
cost-based pricing
What sets the ceiling for product prices?
customer perceptions of the product's value
________ pricing uses buyers' perceptions of value as the key to pricing.
customer value-based
Consumers must engage in a great amount of learning to use a(n) ________ because no similar product has ever been on the market.
discontinuous innovation
A(n) ________ is a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.
dynamically continuous innovation
Which of the following is most likely a fixed cost?
facility rental payments
The sales peak typically occurs during which stage of the product life cycle?
maturity
________ involves designing and producing the container or cover for a product
packaging
Companies that adopt value-added pricing ________.
attach value-added features and services to differentiate their offers and support their higher prices
The ________ for a guest paying for a night's stay at a hotel would include express checkout and superb room service.
augmented product
The ________ is the actual product plus supporting features, such as delivery, installation, financing, and warranty.
augmented product
The concept of ________ encompasses the beliefs and associations that a consumer has about a brand.
brand meaning
The final stage in the product life cycle is ________.
decline
________ is the product life cycle period when sales fall off and profits drop.
decline
________ refers to the amount of money charged for a product or service.
Price
When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing.
good-value pricing
Which of the following involves introducing less-expensive versions of established, brand name products?
good-value pricing
________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.
good-value pricing
Which stage in the product life cycle is characterized by rapidly increasing sales and increasing profits?
growth
Diffusion refers to ________.
how the use of a product spreads throughout a population
The first phase of new product development is ________.
idea generation
If demand hardly changes with a small change in price, the demand is ________.
inelastic
________ is the only element in the marketing mix that produces revenue.
price
________ refers to a measure of the sensitivity of demand to changes in price
price elasticity
What sets the floor for product prices?
product costs
Which of the following is a cost-based approach to pricing?
target return pricing
A ________ is the legal term for a brand name, brand mark, or trade character.
trademark
Costs that change with the level of production are referred to as ________.
variable cost
Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?
competition-based pricing
The perceived value of different product offers can be reasonably assessed by ________.
conducting surveys and experiments
A ________ is a modification to an existing product.
continuous innovation
A consumer doesn't have to learn anything new to use a(n) ________.
continuous innovation
A product has three distinct layers. The most basic level is the ________, which consists of all the benefits the product will provide for consumers or business customers
core product
As production moves up, the average cost per unit decreases because ________.
fixed costs are spread over more units
which of the following is essentially no branding at all?
generic branding