Marketing chapters 11-14

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What are the 5 C's of pricing?

1. Competition 2. Costs 3. Company Objectives 4. Customers 5. Channel Members

4 stages of the product life cycle

1. introduction 2. Growth 3. Maturity 4. Decline

If adidas were to conduct a survey to find out what percentage of consumers could identify the "three stripe" logo as belonging to the adidas brand, which aspect of brand equity would they be measuring? Brand awareness Brand ownership Brand value Brand loyalty Perceived value

Brand awareness

A marketing function that identifies products and their source and differentiates them from all other products

Branding

Companies like Tiffany go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages of branding? Brands facilitate purchases. Brands establish loyalty. Brands protect from competition. Brands can reduce marketing costs. Brands are assets.

Brands are assets

For most buyers, bread, soap, milk, and soda pop are _________ goods. convenience shopping unsought specialty

Conveinence

Consumers invest the least amount of effort when considering the purchase of _______ products. specialty shopping convenience unsought

Convenience

A candy bar might be a great tasting snack for some people or an energy boost for others. In either case, this describes the __________. actual product augmented product core customer value product attributes

Core customer value

specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants

Customer service

From time to time, it is also necessary to delete products within a product line to realign the firm's resources

Decrease Depth

refers to the process of charging different prices for goods or services based on the type of customer, time of the day, week, or even season, and level of demand

Dynamic Pricing

In terms of a pricing strategy, _____ adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. cost-based pricing high/low pricing predatory pricing EDLP competitor-based pricing

EDLP

With a(n) _________strategy, companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer. high/low pricing reference pricing everyday low pricing odd pricing

Everyday low pricing

the individual brands benefit from the overall brand awareness associated with the family name

Family brand

If the same selection of books were always for sale, with no new titles, there would be no reason to buy more. This is an example of which reason firms must innovate? Diffusion of innovation Market saturation Fashion cycles Changing customer needs

Fashion Cycles

the first to create the market or product category

First movers

The primary federal agency that oversees food and packaged good labels is the ___________. U.S. Congress Federal Trade Commission Food and Drug Administration American Marketing Association

Food and Drug Administration (FDA)

the product gains acceptance, demand and sales increase and more competitors emerge in the product category

Growth stage

seeking product ideas to achieve organizational objectives

Idea generation

firms often add new product lines to capture new or evolving markets and increase sales

Increase Breadth

firms might add items to address changing consumer preferences or to preempt competitors while boosting sales

Increase Depth

refers to the process by which ideas are transformed into new offerings, including products, services, processes and branding concepts that will help firms grow.

Innovation

those buyers who want to be the first to have the new product or service

Innovators

Because of the _______ of services, the images that marketers use must reinforce the benefit or value that a service provides. serviceability intangibility inseparability perishability

Intangibility

Firms can measure the success of a new product, by asking three questions. Which of the following is NOT one of these questions? Does the good satisfy the consumers' technical requirements? Is the product something that consumers consider viable and valuable? Is the product already offered by competing firms? Did sales of the product satisfy the producer's financial requirements?

Is the product already offered by competing firms?

industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

Maturity stage

When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process

Observability

when a firm sets a very low price for one or more of its products with the intent to drive its competition out of business

Predatory pricing

a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

Premium Pricing

Instituting a company-wide policy that all products must provide for at least an 11 percent profit margin to reach a particular profit goal for the firm is an example of which pricing orientation? Sales orientation Profit orientation Customer orientation Competitor orientation

Profit orientation

Brand equity is determined by four aspects of a brand. Which of the following is NOT one of the four aspects? Perceived value Brand loyalty Quality level Brand associations

Quality Level

_____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Outsourcing Brainstorming Reverse engineering Market testing Licensing

Reverse Engineering

_________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Reverse engineering Brainstorming Market testing Outsourcing

Reverse Engineering

involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist

Reverse Engineering

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package

Secondary package

1. _______ is defined in marketing terms as the basic problem-solving benefits consumers are seeking. The perceived value Augmentation The core customer value Equity

The core customer value

What does it mean when a firm's performance on one of the dimensions of service quality is above the highest point in the zone of tolerance? The firm is overcharging for its offerings. The firm has achieved its highest level of profitability. The firm has the opportunity to reach new customer segments. The firm has exceeded customer expectations on that dimension. The firm has fallen short of meeting customer expectations on that dimension.

The firm has exceeded customer expectations on that dimension.

Brands facilitate purchase in all of the following ways EXCEPT _______. they signify a level of quality they project an image they are always appealing to the customer they communicate familiar attributes

They are always appealing to the customer

Many people who take cruises are not aware that their normal health insurance policy will not cover emergencies in a foreign country. For this coverage, they need special trip insurance. For these people, trip insurance is a(n) __________ good. shopping unsought specialty convenience

Unsought

are those costs that vary with production volume

Variable costs

Most service firms today have developed _______ programs, which collect customer inputs and then integrate them into managerial decisions. zone of tolerance voice-of-customer instrumental support standards gap distributive fairness

Voice of the Customer

Is it ALWAYS illegal and unethical to lie in advertising?

YES

What characterizes a market with oligopolistic competition? One firm controlling the market A few dominant firms Many sellers of commodities Many firms selling differentiated products The absence of competition

a few dominant firms

_____ employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. A monopoly A gray market Pure competition A black market A price war

a gray market

Many consumers pay a higher price for green products. This is because, for them, green products have _______ than competitor's non-green offerings. more brand awareness a greater level of brand association a greater perceived value more brand equity

a greater perceived value

In _____, one firm provides the product or service in a particular industry, which results in less price competition. a monopoly an oligopoly monopolistic competition oligopolistic competition pure competition

a monopoly

What takes place when two or more firms compete primarily by lowering their prices? Predatory pricing A gray market An oligopoly A price war

a price war

According to your text, anything that is of value to a consumer and can be offered through a voluntary marketing exchange is called a brand. a value proposition. a product. an offering. a marketing exchange.

a product

The first physical form or service description of a new product, still in rough form, having the same properties as a new product, but produced through different manufacturing processes, is called an idea. a concept. a model. a prototype. a pioneer.

a prototype

Which of the following is NOT a dimension of service quality measured by the zone of tolerance? Accuracy Empathy Assurance Reliability

accuracy

When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the actual product. associated product. associated services. augmented product. core customer value.

actual product

Before researching customers, Dan Kim tests new flavors himself and with members of his staff. This is called ____. gamma testing alpha testing beta testing test marketing prototyping

alpha testing

the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended

alpha testing

When a firm chooses to have a brand legally protected through trademarks and copyrights, the brand becomes _______. a liability to the firm an augmented product an asset to the firm diluted in the eyes of the consumer

an asset to the firm

In the soft-drink industry only a few firms dominate, which is characterized as a monopoly. an oligopoly. pure competition. competitive parity. monopolistic competition.

an oligopoly

Tyler is highly knowledgeable about new developments in bicycling technology, since he reads everything he can find about the subject. Typically being the first to try out new bicycle models, he would be classified _____ in terms of the diffusion of innovation curve. as a laggard as an innovator as an early adopter in the late majority in the early majority

as an innovator

When adidas makes endorsement deals with athletes and other celebrities, the company wants to make sure that the endorser's personality fits the brand's desired image. In other words, adidas wants to ensure that the endorser creates the right type of brand _______. associations extensions ownership loyalty awareness

associations

Medical professionals often hang framed copies of their educational accomplishments in order to convey their competence in their field, thus addressing the _____ dimension of service quality. reliability responsiveness assurance empathy tangibles

assurance

The knowledge of and courtesy by employees and their ability to convey trust and confidence describes which service quality dimension? Reliability Responsiveness Assurance Tangibles

assurance

A deceptive practice of luring customers into the store with a very low advertised price on an item (the bait), only to aggressively pressure them into purchasing a higher-priced model (the switch) by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item.

bait and switch

The _________ tactic is a deceptive practice because the store lures customers in with a very low price on an item, only to aggressively pressure these customers into purchasing a higher-priced model by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item. predatory pricing bait-and-switch price discrimination loss leader

bait and switch

During _______ potential consumers examine a product prototype in a real-use setting to determine its functionality, potential problems, and other issues specific to its use. concept testing alpha testing beta testing idea generation

beta testing

uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use

beta testing

The personal connections that consumers make with a brand and its key attributes is referred to as _______. brand equity perceived value brand associations brand loyalty

brand association

reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, slogan, or famous personality

brand association

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

brand awareness

_______ measures how many consumers in a market are familiar with a brand and what it stands for. Brand value Brand equity Brand loyalty Brand awareness

brand awareness

_______ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. Brand equity Brand awareness Brand perception Brand association Brand loyalty

brand awareness

In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. To the extent that this brand extension adversely affected consumers' perceptions about its current product lines, this could lead to rebranding. co-branding. product labeling. brand licensing. brand dilution.

brand dilution

In the 1980s the Coca-Cola Company introduced New Coke. The product was a total failure and in the short term greatly hurt the reputation of Coca-Cola. This is an example of _________. private labeling brand dilution brand extension co-branding

brand dilution

occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

brand dilution

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as brand equity. market value. brand awareness. perceived value. brand associations.

brand equity

the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service

brand equity

The Victorinox Swiss Army Company is well known for their Swiss Army Knives. The company also makes and markets watches, travel gear, cutlery and even fragrances. This represents a ___________ strategy. co-branding brand dilution brand repositioning brand extension

brand extension

refers to the use of the same brand name in a different product line

brand extension

When Disney launches a popular new movie, the aisles of your local toy store are soon flooded with toys featuring characters from that movie. This is an example of _________. brand licensing co-branding brand dilution brand repositioning

brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee

brand licensing

Consumers' trust for Frito-Lay's brands leads to _____. more costs brand loyalty competition better distribution new products

brand loyalty

when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same category

brand loyalty

Brand equity is determined by four aspects of a brand. Which of the following is not one of the four aspects? Brand awareness Perceived value Brand associations Brand quality Brand loyalty

brand quality

_____ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs. Contribution margin analysis Break-even analysis Predatory pricing Total cost calculation Fixed cost analysis

break even analysis

the point at which the number of units sold generates just enough revenue to equal the total costs; at this point, profits are zero

break even point

Which of the following is NOT an objective of a market penetration pricing strategy? Build sales Increase market share Charge the highest price possible Improve profits quickly

charge the highest price possible

Suppose that adidas collaborated with the NFL to create a series of sports shoes and apparel incorporating the colors and logos of the various NFL teams, and bearing both the adidas and NFL brands. This would be an example of what branding tactic? Brand licensing Brand repositioning Brand association Private label branding Co-branding

co-branding

Yum Brands owns a number of well-known fast food franchises. Often, consumers will see a KFC with a Taco Bell or a Pizza Hut with a Taco Bell sharing the same building or location. In doing this Yum Brands is using a ________strategy. dilution co-branding rebranding repositioning

co-branding

After Jennifer booked a hotel room she had seen advertised, she discovered that the price advertised was not available during the weekend, and a three-day minimum stay was required. This is an example of a _______ gap. delivery standards marketing communication

communication

The _____ gap refers to the difference between the actual service provided to customers and the service that the firm's promotional program promises. knowledge standards delivery communication ethical

communication

Though confusing to customers, U.S. Cellular priced its bundles very similar to its competitor's prices. Which competitor-oriented pricing strategy did U.S. Cellular use in this example? Status quo Premium Elastic Competitive parity Breakeven

competitive parity

Competitive parity and status quo pricing are examples of which type of pricing orientation? Profit orientation Competitor orientation Customer orientation Sales orientation

competitor orientation

Branding provides a way for a firm to differentiate its product offerings from those of its _____. customers competitors partners distributors retailers

competitors

Horizontal price fixing occurs when _______. a company sells the same product to different resellers at different prices parties at different levels of the same marketing channel collude to control the prices passed on to consumers a firm sets a very low price for one or more of its products with the intent to drive its competition out of business competitors that produce and sell competing products work together to control prices

competitors that produce and sell competing products work together to control prices

refers to a brief written description of the product, its technology, working principals and forms

concept

Brand awareness measures how many _____ in a market are familiar with the brand. adults retailers distributors consumers store owners

consumers

Brian never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered _____ products. service unsought specialty shopping convenience

convenience

products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase

convenience products/services

When the bicycle manufacturer Trek determined that some consumers use bikes for green transportation whereas others use them for a hobby, it was most likely assessing the _____ of its bicycles to consumers. brand equity associated services brand awareness core customer value physical characteristics

core customer value

is the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B.

cross price elasticity

_____ indicates that the demand for related products can either be positively or negatively related. The income effect The substitution effect Cross-price elasticity The complementary products effect The supply curve

cross-price elasticity

________ is the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B. The income effect The substitution effect The equilibrium point Cross-price elasticity

cross-price elasticity

A(n) _________ orientation explicitly invokes the concept of value such as when a firm uses a "no-haggle" price structure to make the purchase process simpler and easier. sales customer competitor profit

customer

U.S. Cellular sets prices based on adding value to its products and services. Which pricing orientation does this reflect? Profit orientation Breakeven orientation Competitor orientation Customer orientation Sales orientation

customer orientation

a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs

customer orientation

Which of the following is NOT an advantage of brand loyalty? Buyer is less price sensitive Customer switches brands often Customer spreads positive word-of-mouth Lower marketing costs to reach target

customer switches brands often

Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of die-hard consumers or those with special needs, or they completely exit the market. product development introduction growth maturity decline

decline

Firms with products in the _______ stage either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market. maturity introduction growth decline

decline

Without new products or services, the values of the firm will ultimately _________. increase stay the same decline expand

decline

when sales decline and the product eventually exits the market

decline stage

If a firm deletes an entire product line, it has increased its depth. decreased its depth. increased its breadth. decreased its breadth. diversified.

decreased its breadth

If a firm deletes an entire product line, it has _______. decreased its depth increased its breadth decreased its breadth increased its depth

decreased its breadth

In the classic downward-sloping demand curve, as price increases, demand for the product or service _______. increases stays the same decreases is eliminated

decreases

In the classic downward-sloping demand curve, as price increases, the demand for the product or service increases. stays the same. decreases. levels off. doubles.

decreases

When Sarah went to the hotel lobby for the free hot breakfast provided by the hotel, she found a poor selection of food that was not only stale, but also tasteless. This is an example of a ______ gap. standards knowledge delivery marketing

delivery

A _______ shows how many units of a product or service consumers will demand during a specific period of time at different prices. price point analysis break-even analysis demand curve product curve price elasticity curve

demand curve

shows how many units of a product or service consumers will demand during a specific period at different prices

demand curve

Colgate has a line of oral care products including toothpaste, toothbrushes and teeth whitening products. These products represent the ______ of the line. breadth width depth mix

depth

The process by which the use of an innovation—whether a product, a service, or a process—spreads throughout a market group, over time and across various categories of adopters, is referred to as _______. the product life cycle the marketing strategy diffusion of innovation product development

diffusion of innovation

________ pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss). Zone of tolerance Distributive fairness Cognitive dissonance Procedural fairness

distributive fairness

pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure

distributive fairness

Through innovation, firms often create a broader portfolio of products, which help them _________ and enhance firm value better than a single product. increase their prices diversify their risk advertise more directly reduce total production costs

diversify their risk

Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to purchase new product innovations. laggards innovators early adopters the late majority the early majority

early adopters

If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. laggard early adopters innovator the late majority the early majority

early adopters

Which purchasing group represents about 13.5 percent of all buyers in the market and is crucial for bringing the other buyer categories to the market? Early majority Early adopters Laggards Late majority

early adopters

the second subgroup that begins to use a product or service innovation

early adopters

-which represents around 34% of the population, is crucial because few new products and services can be profitable until this large group buys them.

early majority

Few new products and services can be profitable until which large group of adopters buys them? Innovators Laggards Late majority Early majority

early majority

refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded

elastic

concern for others' well-being and support of their decisions in a job setting

emotional support

Mercy Hospital uses patient questionnaires to determine that the bedside manner of each of its doctors on staff meets patient needs, thus monitoring the _____ dimension of service quality. empathy tangibles reliability assurance responsiveness

empathy

means allowing employees to make decisions about how service is provided to customers

empowerment

By reducing consumers' search costs, _______ adds value; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. odd pricing everyday low pricing reference pricing high/low pricing

everyday low pricing

a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

everyday low pricing (EDLP)

With the _________ effect, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. price skimming experience curve price targeting penetration pricing

experience curve

Originally, all adidas products were marketed under the adidas brand name. This is an example of what brand-naming strategy? Store brand Private label brand Diluted brand Individual brand Family brand

family brand

are those costs that remain essentially at the same level, regardless of any changes in the volume of production

fixed costs

A(n) _______ strategy relies on limited-time offers and other promotions to encourage a temporary boost in sales. everyday low pricing reference pricing high/low pricing odd pricing

high/low pricing

relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

high/low pricing

The first step in the product development process is _______. concept testing idea generation product development market testing

idea generation

The new-product development process starts with ________. idea generation test marketing concept testing beta testing product development

idea generation

The _______ effect refers to the change in the quantity of a product demanded by consumers due to a change in their income. buying substitution income elasticity

income

refers to the change in the quantity of a product demanded by consumers due to a change in their income

income effect

the use of individual brand names for each of a firm's products

individual brand

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

inelastic

When relatively small changes in the price of a product do not generate large changes in the quantity demanded, it can be said that the market for the product is _______. complementary inelastic rigid elastic

inelastic

__________ refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow. Marketing Innovation Strategic planning Augmentation

innovation

Buyers who love to try out new goods and services before the general public accepts them are referred to as _______. early adopters pioneers innovators first movers

innovators

The most common type of consumers in the introduction stage of the product life cycle are the laggards. innovators. early adopters. late majority. early majority.

innovators

When getting a haircut, the customer not only is present, but also may participate in the service process. This is an example that the production and consumption of this service is_________. intangible inseparable heterogeneous perishable

inseparable

the systems and equipment to deliver the service properly

instrumental support

The most fundamental difference between a product and a service is that services are __________, which means they cannot be touched, tasted, or seen like a pure product can. intangible perishable inseparable heterogeneous

intangible

cannot be touched, tasted, or seen like a pure product can

intangible

The ________ stage of the product life cycle is characterized by initial losses to the firm due to high start-up costs and low levels of sales revenue as the product begins to take off. maturity introduction growth decline

introduction

when the product category first launches

introduction stage

The ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. delivery communication knowledge standards

knowledge

An important element of a product is its ______, which is a communication tool that can convey key product benefits to consumers. position label primary package ingredients

label

skeptics who adopt new products when they feel it is necessary

late majority

those innovative product users who modify existing products according to their own ideas to suit their specific needs

lead users

In a service recovery situation, the extent to which a customer perceives the benefits of the "solution" compared to the costs of the inconvenience associated with the service failure will determine the level of assurance. level of distributive fairness. level of procedural fairness. zone of tolerance. communication gap.

level of distributive fairness

Firms purchase the rights to technology or ideas from other research-intensive firms University research centers also often provide such licenses

licensing

Kellogg's has a long list of ready-to-eat cereals which consumers think of as a similar group of products. Kellogg's ready-to-eat cereals are a product ________. family mix assortment line

line

the use of the same brand name within the same product line and represents an increase in a product line's depth

line extension

_______ lowers the price of an item below the store's cost. Price discrimination Predatory pricing Loss leader pricing Vertical price fixing

loss leader pricing

The majority of the brands marketed in the United States are _____ brands. store generic copycat premium manufacturer

manufacturer

Are owned and managed by the manufacturer

manufacturer's brand (national Brands)

the price that manufacturers suggest retailers use to sell their merchandise

manufacturer's suggested retail price (MSRP)

Coca-Cola and Nike would be considered _______ brands, while Market Pantry or Archer Farms products (sold at Target stores) would be considered _______ brands. manufacturer; national private-label; manufacturer manufacturer; store national; premium

manufacturer; store

Which pricing strategy is characterized by the setting of a low introductory price to help drive consumer awareness and create an incentive for the consumer to buy now? Price skimming strategy Experience curve strategy Market penetration strategy Everyday low pricing strategy

market penetration strategy

sets the initial price low for the introduction of the new product or service

market penetration strategy

Sending the product out to test families is a form of ___________. concept testing brainstorming alpha testing idea generation market testing

market testing

The complete set of all products offered by a firm is its product _______. depth mix breadth line

mix

The most common form of competition is _____ where many firms compete for customers in a given market but with differentiated products. oligopolistic competition market saturation pure competition competitive parity monopolistic competition

monopolistic competition

________ occurs when there are many firms competing for customers in a given market but their products are differentiated. Oligopolistic competition Monopolistic competition Pure competition A monopoly

monopolistic competition

occurs when there are many firms competing for customers in a given market but their products are differentiated

monopolistic competition

only a few firms dominate

oligopolistic competition

The relationship between the benefits and cost of Doritos is called _____. brand extension market potential sales potential perceived value market share

perceived value

the relationship between a product's or service's benefits and its cost

perceived value

Services are _____ in that they cannot be stored for use in the future. variable intangible perishable immutable inseparable

perishable

Services are _______ in that they cannot be stored for use in the future. intangible perishable inseparable heterogeneous

perishable

services that cannot be stored for use in the future

perishable

A firm's practice of setting a very low price for one or more of its products with the intent to drive its competition out of business; illegal under both the Sherman Antitrust Act and the Federal Trade Commission Act.

predatory pricing

When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is engaged in monopolistic competition. gray market pricing. predatory pricing. competitive parity. the substitution effect

predatory pricing

________ is/are illegal under both the Sherman Act and the Federal Trade Commission Act because it constrains free trade and represents a form of unfair competition. Bait-and-switch tactics Predatory pricing Loss leader pricing Price discrimination

predatory pricing

before they actually bring a product or service to market to determine how many customers will try and then continue to use the product or service according to a small group of potential consumers

premarket tests

Most goods for sale follow the traditional downward sloping demand curve with the exception of _______ products. convenience prestige unsought shopping

prestige

With ______ products a higher price might lead to a greater quantity sold, but only up to a certain point. unsought convenience shopping prestige

prestige

Each point on the demand curve represents the quantity demanded at a specific ______. price production level profit supply level

price

The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal.

price discrimination

When firms sell the same product to different resellers (wholesalers, distributors, or retailers) at different prices, it can be considered _______. vertical price fixing price discrimination horizontal price fixing predatory pricing

price discrimination

Measures how changes in a price affect the quantity of the product demanded; specifically, the ratio of the percentage change in quantity demanded to the percentage change in price.

price elasticity of demand

The _________ measures how changes in a price affect the quantity of the product demanded. income effect substitution effect supply curve price elasticity of demand

price elasticity of demand

the practice of colluding with other firms to control prices

price fixing

A pricing strategy that involves setting prices higher than those of the competition

price skimming

For _______ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products. penetration pricing odd pricing price skimming reference pricing

price skimming

______ appeals to segments of consumers who are willing to pay the premium price to have the innovation first. Penetration pricing Price skimming Reference pricing Price targeting

price skimming

occurs when two or more firms compete primarily by lowering their prices

price war

Customers tend to believe they have been treated fairly if the service providers follow specific company guidelines. This is an example of _______. procedural fairness service quality distributive fairness the zone of tolerance

procedural fairness

With regard to complaints, _______ refers to the perceived fairness of the process used to resolve customer complaints. cognitive dissonance procedural fairness distributive fairness the zone of tolerance

procedural fairness

Once Dan Kim has successfully tested the concept for a new product, his next step would be _____. outsourcing test marketing product launch product development brainstorming

product development

The _____ stage of the new product development process can involve the development of a prototype for alpha or beta testing. market testing concept testing product launch idea generation product development

product development

entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features

product development

The _______ defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. product life cycle diffusion of innovation product development cycle market adoption process production positioning curve

product life cycle

Introduced in 1920, Band-Aid now has more than 40 products in its product line to help heal cuts and scrapes. Band-Aid has, over the years, increased its product-line depth. product-mix breadth. product-line breadth. product-mix depth. augmented product line.

product line depth

Introduced in 1920, Band-Aid now has more than 40 products to help heal cuts and scrapes. Band-Aid has, over the years, increased their _________. product line depth product mix breadth product line breadth product mix depth

product line depth

The complete set of Kellogg's offerings representing its _____ includes ready-to-eat cereal, toaster pastries, wholesome portable breakfast snacks, cookies, crackers, and natural and organic brands. product line product mix marketing mix product variability brand extension

product mix

Variable costs are affected by profit margins. production levels. marketing outlays. contribution per unit. the break-even point.

production levels

the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually

prototype

With ___________, there are a large number of sellers of standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals. monopolies pure competition oligopolies monopolistic competition

pure competition

a large number of sellers offer standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals

pure competition

a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences

rebranding

Doritos's new color scheme and bold logo are part of its _____. co-branding brand equity product plan rebranding strategy pricing strategy

rebranding strategy

In an advertisement, Sears provides a price, in smaller print and labeled "Reg.," to indicate that $35 is the regular price of Levi jeans. In addition, the advertisement highlights the current "sale" price of $31. The "Reg." price appears as an example of ___________. reference pricing price lining everyday low pricing odd pricing

reference pricing

A product that is perceived to be better than most substitutes is said to have _____, which should speed up the diffusion process. a relative advantage compatibility observability complexity trialability

relative advantage

if a product or service is perceived to be better than substitutes, then the diffusion will be relatively quick

relative advantage

Marriott Hotels invests heavily in employee training and supports this with a structure for rewarding its workers for their dependability and accuracy. This corresponds to which of the following building blocks of service quality? Reliability Responsiveness Assurance Empathy Tangibles

reliability

Abercrombie and Fitch (A&F) was founded in 1892 as a sporting goods, camping and hunting gear store. A&F is now known as a casual luxury lifestyle brand of clothing for college students. To make this change, A&F had to _______ its brand. extend dilute reposition license

reposition

What does R&D stand for?

research and development

Marriott Hotels has a customer-relationship management system whereby the preferences of regular customers are tracked and used to anticipate customer desires and special requests, which helps to facilitate the registration process. This corresponds to which of the following building blocks of service quality? Empathy Tangibles Reliability Assurance Responsiveness

responsiveness

_______ is the willingness to help customers and provide prompt service. Service quality Responsiveness Empathy Assurance

responsiveness

Firms that use a(n) _______ orientation to set prices believe that increasing sales will help the firm more than increasing profits. profit customer competitor sales

sales

Jana's firm is entering a new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives? Profit orientation Sales orientation Competitor orientation Customer orientation Market orientation

sales orientation

a company objective based on the belief that increasing sales will help the firm more than will increasing profits

sales orientation

. For most products, the UPC code would be located on the _______ package. internal secondary external primary

secondary

. Customers have certain expectations about how a service should be delivered. When the delivery of that service fails to meet those expectations, a _______ results. conflict of interest service gap quality gap marketing gap

service gap

Customers' perceptions of how well a service meets or exceeds their expectations is referred to as _______. service gaps service quality product quality cognitive dissonance

service quality

. Rachel has visited several stores comparing sneakers. For Rachel, sneakers would be a(n) _____ product. specialty unsought shopping convenience

shopping

products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives

shopping products/services

If the market is elastic, relatively ____ changes in price generate fairly _____ changes in the quantity demanded. large; small small; small small; equal large; equal small; large

small; large

Miguel wants to buy a Jaguar automobile, but the closest dealer is 250 miles from his home. Nevertheless, Miguel is going to go to that dealer to buy his car. For Miguel, the Jaguar is a(n) ________ product. shopping unsought specialty convenience

specialty

those for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers

specialty products/services

. The ________ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards the firm sets. standards communication knowledge delivery

standards

The _____ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. knowledge standards delivery communication ethical

standards

a competitor-oriented strategy in which a firm changes prices only to meet those of competition

status quo pricing

When a consumer buys another brand of the same type of product due to an increase in price or a decrease in value, this is referred to as the _______ effect. cross-price elasticity substitution complementary products income

substitution

refers to consumers' ability to substitute other products for the focal brand, thus increasing the price elasticity of demand for the focal brand

substitution effect

Which of the following represents the most fundamental difference between a product and a service? Heterogeneity Tangibility Perishability Serviceability Inseparability

tangibility

A university that promotes itself as a very traditional campus with an old-world look and feel, where the facilities are manicured and the dorm rooms are large is focusing on which service quality dimension? Tangibles Assurance Empathy Reliability

tangibles

Dr. Winwood's dental office staff makes sure the waiting room is clean and that the magazines are current and accessible to patients, thus addressing the _____ dimension of service quality. reliability responsiveness assurance empathy tangibles

tangibles

Firms usually implement a _______ strategy when they have a particular profit goal as their overriding concern. target profit pricing status quo pricing competitive parity target return pricing

target profit pricing

A method of determining the success potential of a new product; it introduces the offering to a limited geographical area prior to a national launch.

test marketing

In order to examine the potential success of its 1/3 pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of _________. beta testing trade promotion alpha testing test marketing

test marketing

As a brand becomes more recognizable, _______. the company doesn't have to spend as much on marketing the brand it becomes hard to come up with ways to market the brand it costs more money to maintain the message of the brand customers become less loyal and begin to search for competitors

the company doesn't have to spend as much on marketing the brand

Which of the following explains why the demand for Blu-ray discs increases when the demand for Blu-ray players increases? The income effect The substitution effect Cross-price elasticity The complementary products effect The substitute products effect

the complementary products effects

customers' perceptions of how well a service meets or exceeds their expectations

the service quality

Which of the following is not a reason listed in your text that compels firms to continue introducing new products and services? To adapt to changing customer needs To combat market saturation To diversify risk To respond to fashion cycles To drive the competition out of business

to drive the competition out of business

Why did adidas introduce several sub-brands, including "Performance" and "Neo"? To expand into other countries To reduce branding expenses To serve different target markets The brand had gotten too large To escape bad publicity

to serve different target markets

the sum of fixed and variable costs

total cost

_____ relates to how easily consumers can test and use the product. Trialability Availability Observability Compatibility Relative advantage

trialability

products or services that consumers either do not normally think of buying or do not know about

unsought products/services

_______ shows how many units of a product or service consumers will demand during a specific period of time at different prices. A demand curve Price elasticity A supply curve The income effect

A demand curve

What shape curve is the product life cycle?

Bell shaped

When groups work together to generate ideas

Brainstorming

Chapter 11

CHAPTER 11

CHAPTER 12

CHAPTER 12

CHAPTER 13

CHAPTER 13

CHAPTER 14

CHAPTER 14

the practice of marketing two or more brands together, on the same package or promotion

Co-branding

a diffusion process may be faster or slower, depending on various consumer features, including international cultural differences

Compatibility

a firm's strategy of setting prices that are similar to those of major competitors

Competitive parity

a company objective based on the premise that the firm should measure itself primarily against its competition

Competitor orientation

sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities

Decrease Breadth

_______ tend to avoid change, rarely vary from traditional goods and services, and in some cases never attempt to adopt new types of products. Innovators Laggards Early adopters Late majority adopters

Laggards

make up roughly 16 percent of the market. these consumers like to avoid change and rely on traditional products until they are no longer available

Laggards

lowering the price below the store's cost

Loss leader pricing

one firm provides the product or service in a particular industry

Monopoly

those that consumers purchase for status rather than functionality

Prestige products or services

the overall sacrifice a consumer is willing to make to acquire a specific product or service

Price

the one the consumer uses, such as the toothpaste tube

Primary package

products developed by a retailer and sold only by that specific retailer

Private-label brands

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

Product

defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace

Product Life Cycle

Kellogg's has a variety of brands in its cookies and crackers _____, including Cheez-It crackers, Keebler Townhouse Club crackers, Famous Amos cookies, and Keebler Fudge Shoppe. product line product mix marketing mix augmented products brand extension

Product line

groups of associated items that consumers tend to use together or think of as part of a group of similar products or services

Product lines

the complete set of all products and services offered by a firm

Product mix

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed

Service

In the grocery store, you can see the Kellogg's name on its Special K and Rice Krispies cereals, Eggo waffles, and Pop-Tarts. Having the Kellogg's name on all these various products is an example of the use of a family brand. individual brands. co-branding. rebranding. brand association.

a family brand

In theory, the contour of the product life cycle is _______ with regard to sales and profits. circular u-shaped bell-shaped upwardly sloping

bell-shaped

Frito-Lay's spending on advertising and promotion of Doritos's taste and smell was designed to create _____. quality higher prices entertainment brand associations

brand association

A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called ______. profit margin analysis the income effect the contribution per unit break-even analysis

break-even analysis

technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point

break-even analysis

The point at which the number of units sold generates just enough revenue to equal the total costs is the _______. contribution per unit break-even point target return price profit margin

break-even point

Dan Kim does a lot of customer research on his ideas for new products before actually making a prototype. In the new-product development process, this stage is called ______. concept testing beta testing product development test marketing alpha testing

concept testing

In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like, it involves idea generation. concept testing. product development. market testing. product launch.

concept testing

refers to testing new product concepts with groups of target consumers

concept testing

employs irregular but not necessarily illegal methods;

gray market

The _______ stage of the product life cycle is marked by a growing number of product adopters, and increases in both the number of competitors and the number of available product versions. introduction maturity growth decline

growth

A hair stylist who gives a bad haircut in the morning because he or she stayed out late the night before is an example of which core difference when marketing services? Intangibility Serviceability Perishability Heterogeneity

heterogeneity

variability in the service's quality

heterogeneity

. _________ can create excitement and attract customers through the "get them while they last" atmosphere that occurs during a sale. Reference pricing High/low pricing Odd pricing Everyday low pricing

high/low pricing

In the utilities industry, there is generally only one provider of power in each region of the country. This is an example of which level of price competition? Oligopoly Monopoly Monopolistic competition Pure competition

monopoly

Manufacturer brands are also known as _______. private-label brands retail brands store brands national brands

national brands

People who get Botox treatments consider it to be a private matter; therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. trialability complexity observability compatibility relative advantage

obervability

Commercial airline travel in the United States is an example of which level of price competition? oligopolistic competition pure competition monopolistic competition monopolies

oligopolistic competition

Establish a completely new market or radically change both the rules of competition and consumer preferences in a market

pioneers or breakthroughs

Effective service recovery entails all of the following EXCEPT _______. listening to the customer placing blame with the customer to reduce costs resolving the problem quickly providing a fair solution

placing blame with the customer to reduce costs

A tube of toothpaste is an example of a _______ package. external secondary store primary

primary

Consumers typically seek convenience in terms of storage, use and consumption from the _____ package. external labeled primary secondary

primary

Sears sells appliances using its own Kenmore brand name and it sells tools using its own Craftsman brand name. These ______ brands can only be bought at Sears. national private-label manufacturer premium

private label

refers to the customer's perception of the fairness of the process used to resolve complaints about service

procedural fairness

As the marketing vice president of her firm, Jana is considering implementing a company-wide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this? Profit orientation Sales orientation Competitor orientation Customer orientation Market orientation

profit orientation

focusing on target profit pricing, maximizing profits, or target return pricing

profit orientation

when they have a particular profit goal as their overriding concern

target profit pricing

_____ represent(s) a substantial portion of the population, and few new products and services can be profitable until this large group buys them. Laggards Innovators Early adopters The late majority The early majority

the early majority

In the past, Jaleel's vacation time has been spent at home catching a few local attractions when she could afford them. This year, she received a big bonus at work and has decided to finally take the trip to Europe that she has always dreamed about. Jaleel's purchasing behavior has changed due to the income effect. the substitution effect. cross-price elasticity. the complementary products effect. the substitute products effect.

the income effect

collects customer inputs and integrates them into managerial decisions

voice-of-customer (VOC) program

An important marketing metric used to evaluate how well firms perform on the five service quality dimensions is the __________, which refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service. voice-of-customer program zone of tolerance service gap reliability index

zone of tolerance

The _____ measures the difference between what the customer really wants and what he or she will accept before going elsewhere. voice-of-the-consumer zone of tolerance dimensions of service quality standards gap service recovery

zone of tolerance

refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service

zone of tolerance


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