Marketing Exam 2

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms. 100 1,500 20,000 1,000 It cannot be determined from the information provided.

1,500

The owner of a small restaurant that sells takeout fried chicken and biscuits each month pays $2,500 in rent, $500 in utilities, $750 interest on his loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many buckets of chicken does the restaurant need to sell to break even each month? 1050 442 3150 4200

1050

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is 100 units. 4,000 units. 20 units. 1,000 units. 250 units.

250

Nutrioats, an oatmeal cookie product, has been in the market for over seven years. However, the product is now in its decline stage. In this case, which of the following will be a successful strategy to market Nutrioats? ?Lengthening the product line ?Focusing on adding new users ?Spending heavily on advertising to educate consumers about the product's benefits ?Eliminating all nonessential marketing expenses and letting sales decline

?Eliminating all nonessential marketing expenses and letting sales decline

In the context of adopters who participate in the diffusion process, which of the following statements is true of the late majority? ?They are characterized as being venturesome. ?They are more worldly and more active outside their community than noninnovators. ?Their opinions heavily influence their friends and neighbors. ?Their adoption of a new product stems from pressure to conform to group norms

?Their adoption of a new product stems from pressure to conform to group norms.

In the context of the product life cycle, a long-run drop in a product's sales signals the beginning of the _____. ?introductory stage ?growth stage maturity stage? ?decline stage

?decline stage

Fresnas Inc. manufactures and sells electronic equipment. The research and development team has generated ideas for new products, and the ideas pass through the screening stage. In this case, the goal of screening will be to: ?calculate preliminary figures for demand, cost, sales, and profitability. ?eliminate ideas that are inconsistent with the organization's new-product strategy. ?filter various prototypes of the products and select the most efficient one. ?set a limit on the number of members allowed to evaluate the new-product ideas.

?eliminate ideas that are inconsistent with the organization's new-product strategy.

Roger, an affluent graduate, buys gadgets on the first day of their launch in the market. He reads expert reviews on the Internet, and he is not influenced by the opinions of his family and friends while choosing products. Roger would fall under the category of _____ in the diffusion process. ?the late majority ?innovators ?the early majority ?early adopters

?innovators

________ requires finding the major advantages people look for in a product class, the kinds of people who look for each positive aspect of a product, and the major brands that deliver it. Gender segmentation Psychographic segmentation Benefit segmentation Geographic segmentation Age and life-cycle segmentation

Benefit segmentation

Three Arrows Inc. is a company that manufactures bags from recycled paper. It decided to introduce a new product line of trash cans for recycling. This is an example of: product placement product mix line extension product modification Brand extension

Brand extension

Which of the following is true of price-quality relationships? Consumers perceive lowerpriced goods to be more long lasting than higherpriced goods. Consumers believe that higher priced goods are manufactured with better quality of ingredients. Consumers lack information about the quality of lowerpriced goods due to poor advertising. Consumer demands for higher priced goods remain unchanged even if their quality declines.

Consumers believe that higher priced goods are manufactured with better quality of ingredients.

The first step in the marketing research process is: specifying the sampling procedures to be followed Define the problem collecting primary data from available sources planning a research design

Define the problem

The retail mall owner told a marketing researcher, "We have the option of staying open late twice a week or opening up an hour early every day. We need to know which will be most profitable since we cannot do both. The decision must be made in 11 weeks and we only have $10,000 budgeted for this research project." In which step of the marketing research process would the owner determine this budget and time frame?: Define the problem. Develop the research plan. Collect relevant information. Develop findings and recommendations. Take marketing actions.

Develop the research plan.

Why did Howard Moscowitz say there was no perfect pepsi but there are perfect pepsies?: Different segements want different prices Different segements want to buy pepsi in different stores Different segements want different types of advertisement that speaks to them Different segements want different level of sweetness

Different segements want different level of sweetness

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs. Marginal cost break even cost Fixed cost Opportunity cost

Fixed cost

Which of the following is a difference between individual branding and family branding? In individual branding, different brand names are used for different products, whereas in family branding, several different products are marketed under the same brand name. Companies use individual branding when products do not vary in use or performance, whereas companies use family branding when products vary greatly in use or performance. Individual branding identifies the brand of a part that makes up a product, whereas family branding identifies the entire product. Individual branding is used when two brands receive equal treatment, whereas family branding is used when two brands borrow from each other's brand equity.

In individual branding, different brand names are used for different products, whereas in family branding, several different products are marketed under the same brand name.

In which of the following ways does marketing research help managers?: It helps them serve their customers accurately and efficiently It helps them eliminate the use of big data for data analysis It helps them focus on quantity rather than quality of products It helps them ensure that secondary data do not influence marketing decisions

It helps them serve their customers accurately and efficiently

________ involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. Positioning Mass customization Market targeting Market segmentation Differentiation

Market segmentation

________ consists of evaluating each market segment's attractiveness and selecting one or more segments to enter.: Mass customization Market targeting Market segmentation Differentiation Positioning

Market targeting

Which of the following statements is most likely true about unsought products? Unsought products are consumer products and services that customers buy frequently. Marketers use aggressive advertising to convince consumers to buy unsought products. Unsought products are typically purchased for further processing by industrial manufacturers. Compared to convenience products, unsought products are purchased more frequently. Unsought products offer many unique characteristics to status-conscious consumers.

Marketers use aggressive advertising to convince consumers to buy unsought products.

________ shows consumer perceptions of a company's brands versus competing products on important buying dimensions. Differentiation Positioning Market targeting Perceptual positioning maps Market segmentation

Perceptual positioning maps

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Mass customization Positioning Segmentation Differentiation Targeting

Positioning

Which of the following is a difference between primary data and secondary data? Primary data are inexpensive and save time and money, while secondary data are expensive and more time consuming. Primary data can be maintained in secrecy, while secondary data are usually available to all interested parties for relatively small fees or free. Primary data result in a mismatch between a researcher's unique problem and the purpose for which the data was collected, while secondary data result in no such mismatch. Primary data are data that have been previously collected, while secondary data are data that have been collected for the first time.

Primary data can be maintained in secrecy, while secondary data are usually available to all interested parties for relatively small fees or free.

________ prices are carried in buyers' minds and used when looking at a given product. Captive-product Reference Promotional Geographical Dynamic

Reference

Which of the following is an advantage of primary data?: Gathering primary data is less expensive than gathering secondary data.� They answer specific research questions that secondary data cannot answer. They consist of data that are easily available to any interested party. Conducting in-person interviews is an expensive method of gathering primary data.

They answer specific research questions that secondary data cannot answer.

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.: Individual marketing Local marketing Niche marketing Undifferentiated marketing Segmented marketing

Undifferentiated marketing

Which of the following is a secondary data collection method? Using annual reports Conducting survey research Observing consumers doing ethnographic research

Using annual reports

A(n) _____ occurs when an organization uses one of its existing brands to brand a new product in a different product category: brand-extension brand-licensing family branding individual branding new-product branding

brand-extension

"Is the demand and likelihood of profits strong enough to justify entering the market?" is a question that marketers ask during the _____ phase of the new-product development process. screening idea generation business analysis commercialization cannibalization

business analysis

Which of the following is an example of a convenience product? candy furniture life insurance automobile refrigerator

candy

Which of the following sets the upper limit for a product's pricing? profits product costs consumer perceptions of value elements of the product mix competition

consumer perceptions of value

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer. value-added good-value cost-plus competitor-based break-even

cost-plus

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a ________ pricing strategy. customer-oriented target profit target return status quo maximizing profits

customer-oriented

Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here? geographic segmentation benefit segmentation occasion segmentation demographic segmentation psychographic segmentation

demographic segmentation

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________. mass marketing differentiated marketing concentrated marketing individual marketing cross-marketing

differentiated marketing

Joseph, a student of Columbia University, finds some of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before has been identified as a very useful product and students in the US have rated it highly. Considering all these, Joseph also decides to purchase an iPad. Which of the following is the adopter group to which Joseph belongs? early adopter innovator late majority laggard early majority

early majority

When more information is needed about a problem and a tentative hypothesis needs to be made more specific, marketers usually conduct a(n) ____ research. descriptive experimental exploratory analytical statistical conclusive

exploratory

What type of interview contains a small group of participants and a trained moderator that guides the conversation? panel syndicated observational focus group sentiment

focus group

Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach. gender income occasion benefit geographic

income

The fact that services are typically produced and consumed simultaneously is known as the ________ aspect of services. perishability intangibility heterogeneity inseparability

inseparability

Campbells is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge production costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle. stagnancy introduction maturity decline growth

introduction

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coca-Cola, to name a few. These are examples of: product modification. brand extension. product bundling. line extension. brand equity.

line extension.

There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast is in most of New England, and so forth. When Comcast recently proposed a plan to buy Time Warner, the purchase ultimately could not be completed, mostly due to concerns that it would have caused Comcast to become an overly large ________ with too much power. monopoly oliogopolist pure competitor monopolistic

monopoly

Product mix width refers to the ________. number of versions offered for each product in the line ways in which the various product lines are related number of different product lines the company carries total number of items a company carries within its product lines total market share captured by the entire product line

number of different product lines the company carries

The management of Zilo Toys Inc., a toy manufacturing company, believes that the longer the customers spend deciding what to purchase, the less likely they are to purchase more items. In order to determine the average time customers spend in purchasing toys from the store, the management employs Tim to observe the customers as they discuss which toys to buy. He then reports his findings to the management. In this scenario, Tim is engaging in _____. quantitative research survey research observation research focus group research

observation research

Each time you go to the grocery store and have your purchases scanned while using a loyalty or bonus reward card, you are contributing to a database that can help marketers determine all of the following except: what a typical shopping list looks like. whether changes in prices affect buying. marketplace trends. what kinds of promotions might be attractive to you. other stores where you buy similar products

other stores where you buy similar products

Which of the following terms best describes the process of designing and producing a container or wrapper for a product? labeling positioning licensing packaging branding

packaging

There is an old saying "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with: cross-shopping. competitive parity pricing. target return value. prestige pricing. break-even point pricing.

prestige pricing

Dunchen Moo, a manufacturer of dairy products, sells a variety of milk powders, flavored whipped cream, and yogurts. It markets a number of yogurts including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts under the Dunchen brand are collectively an example of a _____. market segment target market product mix product line

product line

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry. product line reeling product line extension product line classification ?product line contraction

product line extension

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________. product length product mix product depth product consistency product assemblage

product mix

Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. demographic segmentation geographic segmentation benefit segmentation psychographic segmentation occasion segmentation

psychographic segmentation

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________. benefit segmentation segmentation by loyalty status segmentation by usage rate psychographic segmentation occasion segmentation

segmentation by usage rate

Which of the following is a pure tangible good? shampoo a spa treatment financial advice a meal at a restaurant a medical check-up

shampoo

Major appliances, furniture, and clothing are typical examples of ________ products. convenience shopping unsought specialty capital

shopping

Some services require that the client be present to conduct the service. Which of the following is an example of such a service? pest control furniture polishing surgery car repairing

surgery

Malcolm is the campaign manager for a congressional candidate. He wants to know how voters across his district feel about recent sexual harassment scandals involving politicians. Malcolm will most likely use ________ to gather this type of data. surveys observation experiments voter registration data census data

surveys

Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup? the natural ingredients the Silkskin brand the products' revolutionary packaging the hypoallergenic properties of the products the desire for having beautiful eyes

the desire for having beautiful eyes

Marketing research refers to: The process of systematically collecting and analyzing information in order to define a marketing problem. the use of information technology to find objective solutions to a marketing problem. the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. the use of subjective data such as interviews and observation to complement empirical data obtained through the use of information technology. the science of using observable human behavior in order to identify and solve marketing problems.

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions