Marketing Exam 2

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

Which of the following statements regarding American subcultural groups is correct?

Asian Americans are the most affluent US demographic segment

What is the first thing marketers must do when using value-based pricing?

Assess customer needs and value perceptions

On the break-even chart, the break-even volume is located:

At the intersection of total revenue and total costs

Which of the following statements is true regarding costs?

Average cost tends to decrease with accumulated production experience

______ is the first stage in the new product adoption process.

Awareness

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep​ monitoring, text​ notification, and wireless sync to their smart phone. In serving these two very different​ groups, Fitbit is using:

Benefits sought segmentation

Which of the following is a cost-based pricing approach?

Break-even pricing

The _____ consists of all the people who are involved in an organizational buying decision.

Buying center

Cheese makers in Wisconsin sell their leftover brine to local city and county highway​ departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this​ represent?

By-product pricing

One problem with business-to-business e-procurement is that it:

Can erode long-standing customer-supplier relationships

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

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

During the idea generation stage of the new product development​ process, it is important that​:

Companies create a large number of ideas

When consumers engage in _____ buying behavior they go through a learning process, so it is most important that marketers understand information gathering and evaluation behavior.

Complex

Which of the five characteristics identified in the text has an inverse relationship with an​ innovation's rate of​ adoption? As this characteristic​ increases, the rate of adoption is slower.

Complexity

Which of the following statements regarding concentrated marketing is correct?

Concentrated marketing involves higher-than-normal risks

Which of the following statements is correct regarding consumer buying decisions?

Consumers are often unaware of what influences their purchases

Which of the following statements regarding the buyer decision process is correct?

Consumers may, in some situations, skip steps in the buyer decision process

Which of the following statements is correct regarding the influence of personal factors on buying behavior?

Consumers tend to buy brands whose personality matches their own

Typically, consumers put in minimum time and effort when buying products such as laundry​ detergent, candy, and fast food. These types of goods are classified as​ __________ products.

Convenience

Charles Revson, who started Revlon, once said "We sell hope." Revson was defining the ____ of Revlon cosmetics.

Core customer value

One recent development in generating new product ideas is for a company to invite broad communities of people - such as employees, customers, and even the public at large - into the innovation process. This is known as:

Crowdsourcing

When segmenting international​ markets, markets can be grouped according to​ language, religion,​ customs, and values. This type of segmentation is based on​ __________ factors.

Cultural

What are the three cultural factors that influence consumer buyer behavior?

Culture, subculture, and social class

Which of the following correctly identifies the three major pricing strategies used by marketers?

Customer value-based pricing, cost-based pricing, and competition-based pricing

One form of __________ is when movie theaters charge one price for adults and a different price for senior citizens.

Customer-segment pricing

Which factor sets the ceiling on setting a product's price?

Customer-value perceptions

Which of the following statements regarding managing brands is correct?

Customers' engagement with brands and customers' brand experiences are the key elements in maintaining a brand's position

Which of the following statements is true regarding initiating price cuts?

Cutting prices in an industry with excess capacity may lead to price wars

Unlike marketers in the consumer market, business-to-business marketers:

Deal with far fewer but far larger buyers

_____ 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

Business-to-business marketers will sometimes promote their goods directly to consumers. This is because business demand is _____.

Derived

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​ distinct, identifiable segments. Gender would not be an effective base for segmentation in this example because the segments are not​:

Differentiable

According to the text, one result of technology is that the new space for engaging business customers is:

Digital and social media

Which of the following statements regarding dynamic pricing is correct?

Dynamic pricing could cause consumer resentment and damage customer relationships

Which adopter category consists of opinion leaders who adopt new ideas early but​ carefully?

Early adopters

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called​:

Fad

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.

The strategy of _____ means that the firm attempts to offer the right combination of quality and good service at a fair price.

Good-value pricing

During concept testing, who is the product concept actually tested on?

Groups of target customers

A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended​ strategy?

Growth

In the decline stage of the product life cycle, some companies continue to offer the product but reduce various costs, hoping that sales hold up. This is known as _____ the product.

Harvesting

Dissonance-reducing buying behavior would result from which of the following conditions?

High involvement and few differences between brands

Retailers such as Kohl's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of:

High-low pricing

What is the first step of the new product development process?

Idea generation

Which of the following is true regarding the price-demand relationship?

If demand is elastic, sellers will consider lowering their price

Which of the following statements regarding habitual buying behavior is correct?

In these types of purchases, marketers often use price and sales promotion as incentives for purchase

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

Indicator of quality

On the My M&Ms website, buyers can place custom orders for M&Ms. They can choose colors, message, upload photo on each candy. Which targeting strategy is M&M using?

Individualized marketing

materials and parts, capital items, supplies and services are groups of ____ products.

Industrial

A University is buying new overhead projectors for its classrooms. The​ University's Information Technology Department has been asked to provide specifications and recommendations for this purchase. The IT Department is playing which role in the​ University's buying​ center?

Influencer

Which of the following statements about new product development strategy is correct?

Innovation can be very expensive and very risky

People can be classified into adopter categories. Which two categories are the first to adopt a new product​ idea?

Innovators and early adopters

Which of the following statements regarding the institutional market is correct?

Institutional markets have captive patrons

What are the four special service characteristics marketers must consider when designing marketing programs?

Intangibility, inseparability, variability, and perishability

Services cannot be seen, tasted, heard, or smelled before they are bought. In other words, services are:

Intangible

When segmenting international​ markets, marketers often can form segments of consumers who have similar needs and buying behaviors even though they are located in different countries. This is called:

Intermarket segmentation

Choosing a differentiated targeting strategy has many​ benefits, but a potential downside is that:

It can raise costs

Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include:

Launch a low-price fighter brand

There is a growing segment of people who want food that tastes good and is also good for them. This​ healthy-living segment represents which segmentation​ base?

Lifestyle

Psychographic segmentation divides buyers into different segments based on:

Lifestyle and personality

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy are they using?

Line extension

Which targeting strategy focuses on common consumer​ needs, as opposed to different​ needs?

Mass marketing

Most products today are in which stage of their product life​ cycle?

Maturity

Which of the following statements concerning new products is correct?

Modified and improved products are considered new

Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?

Monopolistic competition

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

More for less

What are the four major psychological factors that influence consumer buyer behavior?

Motivation, perception, learning, and beliefs and attitudes

Which of the following is a personal factor that influences a consumer's buying behavior?

Occupation

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

Perishability

What tends to be the most effective source of information when consumers make a buying​ decision?

Personal sources

Which of the following statements regarding positioning is correct?

Positions must adapt over time to meet changing consumer needs

Recently, Amazon.com has been accused of​ __________, which is the practice of selling products below cost to harm competitors.

Predatory pricing

Price is the only part of the marketing mix that:

Produces revenue

Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of​ __________ pricing.

Product bundle

Which factor sets the floor on setting a product's price?

Product costs

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

Product development

BMW says their cars are​ "The Ultimate Driving​ Machine". Ford trucks are​ "Built Ford​ Tough". Which type of differentiation do these examples​ represent?

Product differentiation

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges are called a ______.

Product line

Whirlpool washers and dryers are offered in many different models. Whirlpool will use​ __________ pricing to determine the price steps between the different models.

Product line

The number of items in a product line represents the _____ and the total number of product lines a company carries represents the _____.

Product line length; product mix width

Product value analysis is an approach to cost reduction that is used at which stage of the buying decision​ process?

Product specification

A soda pop company offers a discount to a grocer. In exchange, the grocer agrees to provide in-store advertising for the soda pop and additional sales-support. This is an example of:

Promotional allowances

Which stage of the business buying decision process occurs between supplier search and supplier​ selection?

Proposal solicitation

In which type of market does no buyer or seller have much impact on setting the going market price?

Pure competition

A purse company's ad feature the cast of a popular reality show. Product sales increase significantly among the fans. From the fans' viewpoint, the cast is a:

Reference group

One form of e-procurement is __________ in which companies put their purchasing requests online and invite bids.

Reverse auctions

When Dr. Footcare developed and launched a revolutionary new walking​ shoe, he knew that during the introductory stage of the product life cycle​ (PLC):

Sales would be slow and profits nonexistent

What is target costing?

Setting a price and then setting costs that will ensure that the price is met

Furniture, major appliances, clothing, and hotel services are classified as ___ products.

Shopping

Which of the following correctly identifies the social factors that influence consumer buyer behavior?

Small groups, social networks, family, and social roles and status

Mothers Against Drunk Driving (MADD) runs advertising campaigns aimed at stopping drunk driving and preventing underage drinking. This is an example of:

Social marketing

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

Standardization decreases product design, manufacturing, and marketing costs

In the B-to-B market, one strategy is to offer a complete solution to a buyer's problems. This is called:

Systems selling

Which of the following statements regarding standard test marketing is correct?

Test marketing can be costly and delay commercialization of the product

Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law?

The Consumer Product Safety Commission (CPSC)

According to the simple model of buyer behavior, what is in a buyer's black box?

The buyer's characteristics and the buyers' decision process

What are the two major components of a B-to-B marketer's buying activity?

The buying center and the buying decision process

Product planners think of products on three levels. Which of the following correctly identifies the three​ levels?

The core customer value, the actual product, and the augmented product

Which of the following statements regarding socially responsible product decisions is correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition

The US government normally awards contracts to:

The lowest bidder

How is price determined using cost-plus pricing?

The price is set by adding a standard markup to the cost of the product

What determines if a buyer is satisfied or dissatisfied with a purchase?

The relationship between consumer expectations and perceived product performance

According to the text, the most successful new products satisfy three criteria. What are these criteria?

They solve a major customer problem, are differentiated, and offer a compelling customer value proposition

What is the overall purpose of differentiation?

To create superior customer value

What is the purpose of the Robinson-Patman Act?

To prevent unfair price discrimination

What are perceptual positioning maps used for?

To show consumer perceptions of different brands on important buying dimensions

Which of the following statements about service marketing is correct?

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

Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other​ in-park features. This is called​:

Two-part pricing

Two things can come between the intention to make a purchase and the actual​ purchase: the first is the attitudes of others and the second is​ __________.

Unexpected situational factors

The full mix of benefits on which a brand is differentiated and positioned is called a:

Value proposition

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

Which of the following is a concern when using optional-product pricing?

Which products to include in the base price and which to offer as options

One major objective of a market-penetration pricing strategy is to:

Win a large market share

What is a product concept?

A detailed version of the new product idea stated in meaningful consumer terms

Which of the following is a business-to-business market transaction?

A grocery store buying cereal from Kellogg's

Which of the following best describes brand equity?

A measure of the brand's ability to capture consumer preference and loyalty

In which type of buying situation will a buyer usually go through all the stages of the business buying​ process?

A new task buying situation

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

A private brand

Which of the following correctly defines a product?

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