Marketing 310 Exam 2

market skimming prices are preferred in all of the following conditions except

an initial low price is set by the companies

new product development starts with

idea generation

which of the following correctly defines a product

A product is anything offered to a market that might satisfy a need or want.

which of the following is an example of horizontal channel conflict

a ford dealer complaining that another ford dealer is advertising in its territory

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

an administered VMS

margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. because she does not know much about wine, she will likely use the price of the wine as

an indicator of quality

what is the first step in marketing channel design

analyzing consumer needs

which of the following statements is true regarding costs

average cost tends to decrease with accumulated production experience

_______ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product

behavioral

channel members performance should be evaluated against standards which include all of the following except

channel management

distribution channels are more than simple collections of firms tied together by various flows. which of the following statements is not a characteristic of distribution channels

channel systems stand still, restricting formation of new intermediary systems

internal factors that affect pricing include

company's overall marketing strategy, objectives, and marketing mix

channel members should be selected on the basis of all of the following attributes except

competitiveness

the franchise organization is the most common type of _______ VMS

contractual

producers of ______ typically use intensive distribution for their products

convenience goods

historically, _______ have lacked leadership and power, often resulting in damaging conflict and poor performance

conventional distribution channels

sherwin-williams sells its paint and other branded products exclusively through company-owned retail stores. sherwin-williams has established a

corporate VMS

which of the following statements is true regarding initiating price cuts

cutting prices is an industry loaded with excess capacity might lead to price wars

_______ occurs when retailers set an artificially high "regular price" and then advertise a "sale price", which is actually close to their everyday price

deceptive pricing

a _______ has no intermediary levels

direct marketing channel

companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and sistuations

dynamic pricing

_________ is a strategy in which the seller requires that dealers not handle competitors products

exclusive dealing

_______ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line

full-line forcing

the concept of ________ recognizes that providing better customer service and trimming distribution costs require teamwork

integrated logistics management

the length of a channel is indicated by the number of

intermediary levels

which of the following describes a just-in-time logistics system

just-in-timer logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations

from the producers point of view, a greater number of levels of marketing channel means

less control and greater channel complexity

companies today are placing greater emphasis on logistics for several reasons, which include all of the following except

limited product variety has created problems for logistics management

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which form of segmented pricing are these schools​ using?

location-based pricing

techniques that can be used by sellers for avoiding customers perception of price gouging includes all of the following except

low-price fighter items

which of the following is a reason that producers use marketing channels and channel intermediaries

marketing channel members are able to transform the assortments of products made by producers into the assortments wanted to consumers

One key function performed by channel members is​ ___________, or shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging.

matching

Which value proposition is the most difficult to sustain in the long​ run?

more for less

when a single firm sets up two or more marketing channels to reach one or more customer segments, it is using a

multichannel distribution system

Companies now use​ ________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate relationships with channel partners.

partner relationship management

companies today see channel members as first-line customers and practice strong

partner relationship management

For which service characteristic do marketers need to pay close attention to fluctuations in​ demand?

perishability

amount of money charged for a product or service is its

price

archer daniels midland co is the worlds largest processor of soybeans, corn, and wheat. in the 1990s the justice department found it guilty of regularly meeting with competitors when setting process. ADM was guilty of

price-fixing

federal legislation on _______ states that sellers must set prices without talking to competitors

price-fixing

in making products and services available to consumers, channel members add value. key functions performed by the marketing channels include all of the following except

pricing

The Ford Mustang is offered in several different models. Ford will use​ __________ pricing to determine the price steps between the different models.

product line

some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. this is an example of pricing referred to as

psychological pricing

techniques that can be used by sellers for avoiding customers perception of price gouging includes all of the following except

rationing products to customers

which of the following is a potentially effective action a company could take in response to a competitors price cut

reduce the price

assume a competitor has cut prices and a company determines it should respond. potential actions that the company could initiate include

reducing price, raising perceived value, improving quality and increasing price, and launching a low-price "fighter brand"

________ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers

reverse logistics

in _______ pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs

segmented

what is predatory pricing

selling below cost with the intention of punishing a competitor

Which channel partners in a​ company's supply chain are upstream from a manufacturer or​ producer?

suppliers

when setting channel objectives, companies should state the objectives in terms of

targeted levels of customer service

when the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries and

the responsibilities of channel members

in a broad sense, price is

the sum of all the values that customers give up to gain the benefits of having or using a product or service

what is the purpose of the robinson-putnam act

to prevent unfair price discrimination

One major objective associated with a​ market-penetration pricing strategy is to​ ________.

win a large market share

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ __________ differentiation.

channel

anythinglefthanded.com.uk only sells products designed for left-handed people. which targeting strategy is it using

concentrated marketing

in determining product quality, what are the two dimensions of quality marketers must decide upon

level and consistency

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy did it use

line extension

marketers should carefully consider public policy issues and regulations regarding all of the following except

product development

if a company adds a new product line to its existing portfolio, it has increased its

product mix width

to be more socially responsible, some companies appoint ________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems

product stewards

when marketers target segments such as sports fans, do-it-yourselfers, commuters, and wine enthusiasts, which base of segmentation are they using

psychographic segmentation

under ________, the market consists of many buyers and sellers trading in a uniform commodity

pure competition

beyond the market and the economy, what other factors in its external environment must a company consider when setting prices

resellers, the government, and social concerns

To succeed in France, McDonalds had to __________.

tailor its products to local tastes in france

what are the four major functions of logistics

warehousing, inventory management, transportation, logistics information management

which of the following statements is true regarding initiating price increases

wherever possible, the company should consider ways to meet higher costs or demand without raising prices

Toothpastes claim they​ "whiten teeth,"​ "fight bad​ breath," and​ "reduce plaque." Which base of segmentation is being used in this​ example?

benefits sought

Freedom from defects and consistency in delivering a targeted level of performance is an attribute of​ product's __________.

conformance quality

which of the following statements regarding segmentation is correct

consumer and business marketers use many similar variables, but business marketers use additional variables to segment their markets

Charles Revson started Revlon. He once said​ "We sell​ hope." Revson was defining the​ ______ of Revlon cosmetics.

core customer value

_______ uses buyers perception of value as the key to pricing

customer value-based pricing

which of the following statements about price is correct

customers have put increasing pricing pressures on many companies

market penetration prices are preferred in all of the following conditions except

enough buyers must want the product at a higher price

When a company lengthens a product line by adding more items within that lines current range, it is

filling the line

which of the following statements is true concerning new product pricing strategies

for a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

profits increase during the _________ stage of the product life cycle

growth

at which stage of the new product development process is crowdsourcing used

idea generation

the process of evaluating each markets segments attractiveness and selecting one or more market segments to enter is called

market targeting

________ reverses the usual process of first designing a new product, determining its cost, and then asking, "can we sell it for that"

target costing

Market_____ evaluates each market segments attractiveness and selects one or more segments to serve

targeting

if the product passes both the concept test and the product test, the next step is

test marketing

what is positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Walmart created the Great Value brand for its food products and the Equate brand for it​ pharmacy, health, and beauty. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart​ using?

a private brand

which of the following forms of products are considered as services

airline travel

which of the following is a cost-based pricing approach

break-even pricing

which of the following is not considered on of the links in the service profit chain

buyer- seller interaction

Through a company invites broad communities of people into the innovation process.

crowdsourcing

_______ development focuses on finding new ways to solve customer problems

customer centered new product

_______ segmentation divides buyers into different segments based on lifestyle or personality characteristics

psychographic

which of the following statements regarding socially responsible product decisions is correct

the government may prevent companies from adding products through acquisition of the effect threatens to lessen competition

the winning value proposition by discount stores such as Walmart and Best Buy can be categorized as

the same for less

which of the following statements about brand positioning is correct

the strongest brands are positioned on beliefs and values

which of the following statements concerning new product is correct

modified and improved products are considered new

through _______ a company can obtain new products by buying a whole company, a patent, or a license to produce someone elses product

acquisition

what is the first step in a value-based pricing strategy

assess customer needs and value perceptions

_______ is a measure of the brands ability to capture consumer preference and loyalty

brand equity

the swissarmy company markets multi-tools, clothing, watches, and travel accessories all under the swissarmy brand name. this is an example of which brand development strategy

brand extension

________ helps the seller to segment markets

branding

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing.

captive-product

companies that make products that must be used along with a main product are using

captive-product pricing

a colleague wants to evaluate the attractiveness of a particular market segment. which of the following would be good advice for your colleague

carefully consider the degree of competition and ease of entry into the segment

instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. this type of marketing strategy is known as

concentrated marketing

after ideas are screened, the next stage of the new product development process is

concept development and testing

which of the following statements about segmentation is true

different segments might require different marketing strategies or mixes

if men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not

differentiable

which of the following is an effective strategy during the growth stage of the product lifecycle to sustain rapid growth

enter new markets

which of the following is true regarding the price-demand relationship

if demand is elastic, sellers will consider lowering their price

A company can differentiate itself from competitors using symbols such as​ McDonald's golden​ arches, Twitter's​ bird, and the Nike swoosh. Which type of differentiation is​ this?

image differentiation

the westin stamford hotel in singapore failed when it once advertised itself as the worlds tallest hotel. this difference was not worth establishing because it did not satisfy which of the following criteria

important

which of the following statements does not apply to the description of prices

in recent decades price factors have gained increasing importance

on the m&m web site, users can place custom orders for m&m. they can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. which targeting strategy is M&M using here

individual marketing

materials and parts, capital items, and supplies are services or groups of _____ products

industrial

which of the following statements about new product development strategy is correct

innovation can be expensive and risky

service marketing requires ________. this means that the service firm mist orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction

internal marketing

one important consideration in using a differentiated targeting strategy is that

it can increase costs

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

market-penetration pricing

when apple introduced its iphone, it priced the new product at $599, considerably higher than either its ipod or competing cellular phones. apple was pursuing a _________ new product pricing strategy

market-skimming

most products are which stage of the life cycle, and therefore most of marketing management deals with them at this stage

maturity

which of the following is an appropriate strategy during the maturity stage of the product lifecycle

modify the market, product offering and marketing mix

the goal of the competition-based pricing is

not to match or beat competitors price

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing.

optional-product

which of the following statements does not describe price

price is the only element in the marketing mix that represents costs

price is the only part of the marketing mix that

produces revenue

which of the following statements regarding the important decisions in the development and marketing of individual products is correct

product attributes that communicate and deliver benefits to the consumer include quality, features, style, and design

bath and body works offers three-fer deals on its soaps and lotions. this is an example of ____________ pricing.

product bundle

the pricing method in which sellers combine several products and offer a reduced price is known as

product bundle pricing

At which stage of the new product development process is a physical product first​ developed?

product development

_________ is the first stage of the product life cycle

product development

when dr. lawncare developed his revolutionary new weed killer, he knew that during the introductory stage of the product lifecycle

sales would be slow and profits non-existent

The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market

segmentation

________ means that the quality of services depends on who provides them as well as when, where, and how they provided

service variability

manny is willing to exert special effort to find a valuable and rare 1960 baseball card featuring the famous new york yankee, mickey mantle. this baseball card would be classified as a ________ product

specialty

which of the following statements is true regarding standardizing products for international markets

standardization decreases product design, manufacturing, and marketing costs

installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a ______ approach to new product development

systematic

what is the purpose of differentiation

to create superior customer value

what are perceptual positioning maps used for

to show consumer perceptions of different brands on important buying dimensions

which of the following statements about services marketing is correct

training current employees better and hiring new ones with more skills can increase service productivity

which of the following statements is correct regarding different types of markets

under oligopolistic competition, each seller is alert and responsive to competitors pricing strategies and marketing moves

to create successful new products, a company must do which of the following

understand its consumers, markets, and competitors, and develop products that deliver superior value

using an _______ marketing strategy, a firm might decide to ignore market segment differences

undifferentiated

blood donations to the red cross are considered _______ products

unsought

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?

value-added pricing

one of the disadvantages of product and service standardization for international market is

varying worldwide market

using _______, the customer shares real-time data on sales and current inventory levels with the supplier. the supplier then takes full responsibility for managing inventories and deliveries

vendor-managed inventory

UPS charges different prices for shipping depending on an​ item's destination. The more distant the city the package is being shipped​ to, the higher the price UPS charges. Which geographic pricing method is UPS​ using?

zone pricing