marketing 436 ch 8-14
For most products, as long as the customer perceives the ratio of price and benefit to be at least equal, perceptions of ________ will likely be favorable.
value
Which of the following is one of the characteristics of services?
variability
A trademark for a product is a brand asset.
true
Different target markets will view the same product in completely different ways.
growth
New-to-the-world products are products that ________.
have not been available before their introduction to the market
An organization's focus on internal service quality implies that employees ________.
hold a customer's mindset
Barbara's Bakery sells custom cakes, cookies, and other pastries. These represent Barbara's Bakery's product line.
true
Desktop computers, cell phones, and tablet computers are examples of new-to-the-world products considered disruptive innovations.
true
Different target markets will view the same product in completely different ways.
true
Employees play a critical role in the success of services because of their inseparability and variability.
true
In industries with strong market-leading brands, competitors design and build products targeted specifically at the market leader.
true
Price objectives are the desired or expected result associated with a pricing strategy and must be consistent with other marketing-related objectives, such as positioning or branding.
true
Providers of professional services such as doctors, lawyers, and accountants use their degrees and designations to convey a level of trust to a purchaser.
true
Regardless of whether the setting is B2C or B2B, most costs are associated with the purchase price.
true
The three benefits of high brand equity are perceived quality, brand connections, and brand loyalty.
true
The three customer brand roles include conveying information about a product, educating the customer about the product, and reassuring the customer in the purchase decision.
true
With prestige pricing, some of the traditional price/demand curves cannot properly predict sales or market response because it violates the common assumption that increasing price decreases volume.
true
The percentage of jobs in the United States that are service-related is more than ________ of all jobs.
80 percent
While screening and evaluating ideas, a stop-to-market mistake happens when ________.
a good idea is eliminated during the screening process
Tiffany & Company's blue-colored box is widely recognized by consumers. Which of the following roles of packaging does this exemplify?
aesthetics
When a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of ________.
bait and switch
A(n) ________ is defined by the American Marketing Association as "a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers."
brand
Gerry always purchases clothing made by S&G Clothing. He tells others about how much he likes their clothes and the high levels of quality maintained by S&G. When a shirt he purchased turned out to be defective, instead of switching to another clothing company, he gave S&G a chance to fix the problem and still shops there. Which dimension of brand equity does Gerry demonstrate?
brand loyalty
Intel makes a product most people never see; however, it spends a great deal of money building its brand and now people ask for "Intel Inside." This is an example of linking the benefit of ________ to marketing strategy.
brand loyalty
Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ________ extension.
category
Procter & Gamble wanted Crest Vivid White Toothpaste to stand out from competitor brand toothpastes on store shelves, so it created a stand-up package and used a graphics-heavy box. In the context of objectives of packaging, the company focuses on ________.
communication
Mrs. Butterworth's syrup comes in a bottle shaped like a woman. The intent of this type of packaging is to transfer critical brand messages quickly through design cues since many competitor syrup brands come in teardrop-shaped bottles. The unique shape of the Mrs. Butterworth's bottle fulfils which objective of packaging?
communication (communicate brand messages)
Internal sources of generating product ideas include ________.
company salespeople
When a customer cannot make a reasonable evaluation of the quality of a service even after use because they lack expertise, this relates to a service's ________ attributes.
credence
External sources of generating product ideas include ________.
customers
Exceeding customer expectations is often referred to as customer ________.
delight
An important issue for consumers is conformance, which is the product's ability to ________.
deliver on features and performance characteristics promised in marketing communications Correct
The primary function of marketing and the entire organization, in a broader context, is to ________.
deliver value to the customer
In the context of criteria used to prioritize product ideas, time to market refers to the time taken to ________.
develop and get the product to market
In the service-profit chain, external service value leads to all of the following EXCEPT ________.
employee turnover
In the context of product testing, beta testing is designed to ________.
encourage customers to evaluate and provide feedback on a prototype
The rise of Walmart as one of the world's largest corporations has brought the concept of ________ to the forefront of global consumer consciousness.
everyday low pricing
The zone of defection describes the area of ________.
extremely dissatisfied customers
More than any other discriminator, style has the disadvantage of being difficult to copy.
false- advantage of being difficult to copy
Brand-loyal customers are less forgiving of problems related to the brand, which hinders the company's ability to respond to a negative experience.
false- brand loyal customers are forgiving
A service is a product in the sense that it represents a bundle of benefits that can satisfy customer wants and needs with physical form.
false- without physical form
In product line pricing, the escalation of product prices up the product line does not depend on prices competitors are charging for similar products.
false-does depend on competitors and customer assessment
As noted in the text, Caesars Entertainment has found that its ROI for customers in the "Zone of Defection" is considerably higher than in the other zones.
false-high ROI is "zone of affection"
The essential component in delivering value is the product price.
false-product experience
Firms that have an objective of utilizing pricing to communicate positioning use a stability pricing strategy
false-value pricing strategy
The marketing manager for DRNK Spirits decided that all of the products his company produced would carry the same brand name of Nightlife. As a result, there is Nightlife Ale, Nightlife Lager, Nightlife Vodka, Nightlife Tequila, and Nightlife Whiskey. This is an example of ________ branding.
family
If a firm is considered customer-centric, it implies that the company ________.
gives more important to everything that takes place both inside and outside the firm
Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called ________.
inseparability
The four characteristics of services are that they are ________.
inseparable, perishable, intangible, and variable
Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.
intangible characteristics
Nickelodeon and Marriott partnered to create a kid-friendly chain of vacation-oriented hotels. Which of the following types of cobranding relationships does this exemplify?
joint venture
Compared to products, services are ________.
low in search qualities
When companies provide too few products in a product line, they run the risk of ________.
missing important market opportunities
To enable customers to draw conclusions about a brand's service, service companies face the challenge of making their intangible services seem ________.
more tangible
RB Soaps, the market leader in body wash, sells its products in every state under the same brand. This is an example of ________ branding.
national
Estimating total demand is a function of three separate purchase situations, which are ________ purchases.
new, repeat, and replacement
The introduction phase of the product life cycle for an industry is usually characterized by ________.
no profits
Because Sony has so many different product offerings in various types of electronics, management has found that it is helpful to use brands to keep track of products in each type. Thus, it has different brand names for its televisions, DVD players, and portable music players. Which company brand role does this example illustrate?
offering a effective and efficient methodology for categorizing products
A company's brand role includes ________.
offering an effective and efficient methodology for categorizing products
In markets where customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptable margins even with aggressive pricing, a ________ strategy can create a powerful barrier to market entry for other firms.
penetration pricing
Because of its reputation for excellent flavor and increasing energy, DBM Beverages is able to charge a price premium for its products. Which of the following dimensions of brand equity does this example illustrate?
perceived quality
Even though a national brand pain reliever and a store brand pain reliever both contain the same amount of ibuprofen per capsule and are both gel coated, Cho chooses to purchase the national brand because she thinks it will work better based on the brand name alone. Which dimension of brand equity does this example illustrate
perceived quality
It may be more accurate to think of a service as being ________ rather than produced.
performed
In the context of product classifications, tangibility refers to the ________.
physical aspects of a product
A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs, is called ________.
predatory pricing
One rationale for establishing a price skimming objective is that ________ lends status to a product or brand by virtue of a price relatively higher than the competition.
prestige pricing
________ could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits.
price-fixing
When a firm's objective is to gain as much market share as possible, a likely pricing strategy is ________, sometimes also referred to as pricing for maximum marketing share.
pricing penetration
A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its ________ as well as its ability to translate some of the cost savings to the bottom line.
pricing strategies
The marketing manager of a store brand pain reliever is designing the package for its new gel-coated capsules. Her main concerns are to design a package that prevents tampering with its contents and keeps children from accessing the product without adult assistance. On which of the following objectives of packaging is the marketing manager focusing?
protection
Creating a perception about price merely from the image the numbers provide the customer demonstrates ________ pricing.
psychological
Pricing objectives very frequently are designed to maximize profit, which necessitates a ________ pricing strategy.
return on investment ROI
Besides the standard auction approach where buyers bid for a seller's offering, it is now very common for sellers to utilize ________ to bid prices to capture a buyer's business.
reverse auctions
Which of the following characterizes the decline stage of the product life cycle?
significant price pressures come from competitors and consumers
A service-centered perspective is very consistent with a customer-centric approach in which people, processes, systems, and other resources are to be aligned to best serve customers.
true
In markets where customers typically witness rapidly changing prices, ________ can provide a source of competitive advantage.
stability pricing
Once a firm has invested in continuous process improvement and quality control in operations, goods, in general, tend to be much more ________ than services.
standardized
As with average-cost pricing, the effectiveness of ________ pricing is highly dependent on the accuracy of the forecast.
target return
Once a customer begins to have a positive experience with a service provider and builds a relationship with the firm, customer loyalty ________.
tend to be greater for services than goods
When shipping prices are dependent on geographic areas based on the distance from the shipping location, it is considered ________ pricing.
zone