marketing exam 2

_______ pricing occurs when a company offers two or more complementary products and sells them for a single price

Bundle

The payment offered to a channel member for performing marketing functions is called a

trade discount

The most common method of market segmentation is

demographic segmentation

The management at fries, a potato chip manufacturer, is calculating their quarterly profits. According to the official data, the firm has sold 200,000 units of their chips priced at $2 dollars per unit for the quarter. The firm has spent $100,000 on production, processing and other costs. The profit made by fries for the quarter is:

$300,000... (200,000 X 2) minus 100,000

Mignon d' Armitage manufactures jewelry. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. Fixed costs are $100,000 and variable costs for each unit will be $20. at the price of 45 dollars each, the number of units that must be sold to break even is

4,000 (100,000/ 45 - 20)

Which of the following is an example of a volume pricing objective

A market-share objective

inelastic demand

A situation in which an increase or a decrease in price will not significantly affect demand for the product. -Insulin price

A technology company that makes computers for professional use is trying to segment its customers. The company asked some professional computer users to evaluate the importance of various computer attributes that influence their purchase decisions and then used this data to segment the consumers based on similar response patterns. This is an example of segmentation by:

Benefits sought

American express, a large firm with many financial products, recently introduced two new credit cards designed for very specific markets: The Knot, for engaged couples, and the Nest for Newlyweds. This is an example of ________ marketing

Concentrated

Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for his car can be classified as _____ products. a. business b. service c. MRO d. consumer

Consumer

________ is a combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated focus on satisfying buyers

Consumer relationship management

Under which of the following conditions is a product most likely to have an elastic demand

Consumers can easily find close substitutes for the product

The practice of adding a percentage of specified dollar amount - or markup - to the base cost of a product to cover unassigned costs and to provide a profit is called ______ pricing

Cost-plus

The demand for computer microprocessor chips depends on the demand for personal computers. This is an example of a

Derived demand

The interpersonal influences on consumer behavior include a person's

Family

Online marketers run the risk of cannibalization when they:

Differently price the same products sold in their retail outlets to be sold online.

_______ Pricing is the pricing strategy of continuously offering lower prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales

Everyday low

Dell computer purchases parts and resources for its computers from multiple suppliers that are spread across the world. This practice is known as

Global sourcing

The identity of the ________ is the most difficult role for salespeople to pinpoint

Influencer

Kurt Lewin's theory of consumer behavior asserts that consumer behavior is a function of personal factors and their interaction with

Interpersonal influences

Which of the following inventory practices seek to boost efficiency by cutting inventories to absolute minimal levels

Just-in-time policy

A cost that changes with the level of production is called a

Marginal cost

At what level of output is profit maximized

Marginal cost equals marginal revenue

Undifferentiated marketing is also called

Mass marketing

Which of the following market structures involves a heterogeneous product and product differentiation among competing suppliers, allowing the marketer some degree of control over price?

Monopolistic competition

________ is an imbalance between consumer's actual and desired states

Need

___________ refers to a first-time or unique purchase situation that requires considerable effort by the decision maker

New-task buying

Which of the following is the final step in the business buying process

Obtaining feedback and evaluating performance

Digismart, a manufacturer of electronic goods in Canada, has moved its manufacturing operations to Costa Rica. This move has helped the company to reduce its production costs and also allowed it to focus on the product design and research activities that lead to new products. The movement of business in this case is an example of

Offshoring

Which of the following statements is true regarding the nature of the business market

Personal selling plays a bigger role in business markets than in consumer markets

Placing a product at a certain point or location within a market in the minds of prospective buyers is known as

Positioning

At which stage of the consumer decision making process is cognitive dissonance most likely to occur

Postpurchase evaluation

Elastic demand

Price of product has a big effect on the quantity consumed. -Coke or pepsi.

A _________ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

Pricing policy

the latest ad of Crest thoothpaste says "Crest is a cavity fighter." This is an example of a positioning strategy based on

Product application

A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers. It offers low-end version for price conscious customers and luxury cars for high-end consumers. This is an example of _______ pricing.

Product-line

Which of the following is a market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price

Pure competition

Helene made sure that her company car was equipped with ONstar in case she ever has car trouble or gets lost while traveling between appointments. Which level of Maslows Hierarchy of needs is she addressing

Safety needs

Zardo Inc. Divides its customers into the following categories: manufacturers, retailers, gov agencies, and not-for-profit institutions. Which of the following type of segmentation is being used by them

Segmentation by customer type

The segmentation of B2B marketplace based on how business purchasers will use the product is called:

Segmentation by end-use application

A skimming pricing strategy is more commonly used by firms to

Set a market- entry price for distinctive goods or services with little to no competition

At specific mileage intervals, Capitol sends certificates to owners of their automobiles offering discounts on repair services through the dealerships. Each repair visit is overseen by a trained service representative and the completed repairs are followed up to ensure customer satisfaction. The attention given by the dealership is called _____.

Shaping

Penetration pricing works best for goods or services

That are characterized by highly elastic demand.

Which of the following is true of products priced as FOB origin

The buyer pays all the freight charges to transport the product from the manufacturer loading dock

Which of the following is the largest segment of the business market

The commercial market, which includes anyone who acquires products to support production of other goods and services.

Which of the following is a basic requirement for effective market segmentation

The market segment must present measurable purchasing power and size.

Which of the following would fall under the category of personal determinants of consumer behavior

The needs and motives of an individual

Engel's law states that, as household income increases

The percentage of income spent on items such as recreation and education increases.

Psychographic segmentation divides a population into groups based on

Their attitudes, values, and lifestyles

Which of the following is most likely to be the reason behind why business purchasers shift from straight rebuy to modified rebuy

To address deterioration in supplier service or delivery.

A credit allowance given for a used item when a customer purchases a new item is known as a

Trade-in

Large-scale enterprises often have a dilemma with setting the ______ price, which is the price they charge themselves when sending goods from one company profit center to another

Transfer

During the search step of the consumer decision process, the consumer:

gathers information about the attainment of a desired state of affairs.

Before beginning the market segmentation process, a firm should

identify bases for segmenting markets

In a marketing context, the immediate or expected change in consumer behavior that results from experience is called a

learning

Which of the following exemplifies a yield management pricing strategy

lowering cab rental rates on weekends compared to weekdays

The practice of using outside vendors to provide goods and sevices that were formerly produced in-house is known as_____

outsourcing

In the absence of other cues:

price is an important indicator of product quality to consumers

Marketers offer rebates in order to

reduce the price paid for a product by customers.

It is crucial for marketers to focus their marketing strategies on opinion leaders in a group as opinion leaders

represent the trendsetters who purchase products before others in the group and then influence the buying decisions of other group members

Customary prices are:

retail prices consumers expect as a result of tradition and social habit.

The relative position of an individual member of a group is called

status

The cohort effect describes

the tendency of members of a generation to be influenced and bound together by events occurring during their key formative years.

The looking glass self is defined as

the way an individual thinks others see him or her

In Maslow's Hierarchy of needs,____________ needs refer to the desire of a person to be accepted by people and groups important to that individual

Belongingness

Which of the following pricing systems is sometimes referred to as postage-stamp pricing since it resembles the pricing structure for mail service?

Uniform-delivered pricing

Evaluating a suppliers performance in categories such as price, EDI capability, delivery times, and attention to special requests is known as

Vendor analysis