Marketing 340 Exam #2 (Possible Questions)

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

Differentiated

Which of the following sets the upper limit for a product's pricing?

Consumer perceptions of value

A laundry detergent that consumers purchase frequently, with minimum comparisons, is an example of a(n) ________ product.

Convenience

Which of the following is most likely a true statement about shopping products?

Correct Shopping products are purchased less frequently than convenience products.

Which of the following types of products are generally priced the lowest?

Correct convenience products

Service inseparability means that ________.

Correct services become a part of their providers, whether the providers are people or machines

Cost-based pricing relies on consumers' perceptions of value to drive pricing

False

Line extensions occur when a company extends existing brand names to new or modified products in a new category.

False

The simplest pricing method is break-even pricing, which involves adding a standard markup to the cost of a product

False

Which of the following is true of the product life cycle (PLC)?

It is generally difficult to forecast the sales level at each PLC stage

________ is the process of evaluating the attractiveness of different market segments and selecting one or more segments to enter.

Market Targeting

A firm uses _________ when it charges a high, premium price for a new product with the intention of reducing the price in the future

Market-skimming price

Which of the following statements is most likely true about unsought products?

Marketers use aggressive advertising to convince customers to buy unsought products

When a product hits the __________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition

Maturity

Pricing a product based on consumers' reference prices is referred to as _________ pricing

Psychological

Which of the following is an approach where firms target a whole market based on common consumer needs?

Undifferentiated Marketing

Fads are characterized by their _________

Unusually high sales and rapid decline

In which of the following cases is crowdsourcing used for new product development?

A company creates a forum where anyone can contribute new product ideas

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A slowdown occurs in sales growth

Market segments that can be effectively reached and served are said to be ________.

Accessible

Demographic variables are the most popular bases for segmenting customer groups because they ________.

Are easier to measure

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

Behavioral

Which of the following sets the lower limit for a product's pricing?

Product costs

In a sequential new product development process, which of the following is true of the product development step?

Product development is usually followed by test marketing