!!!!!MKT Exam 2!!!!!!!!
!!!! According to the model of buyer behavior, what is in a buyer's "black box"? !!!!! A. The buyer's wants, needs, and preferences B. The buyer's characteristics and decision process C. The buyer's economic and social preferences D. The buyer's purchase and post-purchase behavior E. The buyer's attitudes and preferences
B.
!!!!Roshika 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. an indicator of the cost of production B. an indicator of quality C. an indicator of geographic pricing D. a type of segmented pricing E. a limited-time offer
B.
!!!!! At one time, Miller Beer was known as the "champagne of bottled beer." It was targeted at an elite class of customers. Later, to increase sales, Miller was repositioned to attract members of the working middle class. What is this segmentation method called? !!!! A. Benefit B. User status C. Psychographic D. Usage rate E. Behavioral
C.
!!!!! When a company lengthens a product line by adding more items beyond its current range, it is ________. !!!!! A. decreasing the width of its product mix B. increasing the width of its product mix C. stretching the line D. decreasing the depth of the line E. filling the line
C.
!!!!!! Socially responsible target marketing would classify which of the following as an especially vulnerable target market for harmful or controversial products? !!!!!! A. Wealthy consumers B. Females C. Children D. Baby boomers E. Single households
C.
!!!!Which of the following statements regarding socially responsible product decisions is correct?!!!! A. Manufacturers are generally not concerned with product liability. B. Companies can safely ignore patent laws. C. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition. D. Safety legislation has been passed to regulate chemical substances, drugs, and poisons, but not toys, automobiles, or fabrics. E. When companies drop products, they do not have any obligations to suppliers, dealers, and customers.
C.
!!!!!Which of the following statements is true regarding standardizing products for international markets?!!!! A. Markets and consumers all over the world are alike, so a company should always standardize international products. B. Standardization ensures that products will succeed in foreign markets. C. Standardization helps a company develop a different image in different countries. D. Standardization decreases product design, manufacturing, and marketing costs. E. Standardization increases product design, manufacturing, and marketing costs.
D.
!!!! Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?!!!! A. Distributor branding B. National branding C. Store branding D. Private branding E. Co-branding
E.
!!!!! Firms that manufacture seasonal products target their consumers primarily through ________ segmentation. !!!! A. age and life-cycle B. demographic C. psychographic D. income E. occasion
E.
!!!!! The marketing manager at Only Organic Delicatessen targets customers who are focused on organic, healthy food choices but who still want to dine out. The restaurant chain offers a wide variety of organic, low-fat, locally raised produce and foods. Only Organic's approach is best referred to as ________ segmentation. !!!!! A. geographic B. user status C. benefit D. age and life-cycle E. psychographic
E.
!!!!________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.!!!! A. Inseparability B. Tangibility C. Variability D. Intangibility E. Perishability
E.
!!!______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.!!!! A. Product managers B. Ombudsmen C. Brand managers D. Attorneys E. Product stewards
E.
!!!!After market strategy is developed, the next step of the new product development process is _______________.!!!! A. commercialization B. business analysis C. prototyping D. idea generation E. concept development
B.
!!!!The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?!!!! A. Intangibility B. Variability C. Perishability D. Tangibility E. Inseparability
B.
!!!!Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?!!!! A. Growth B. Maturity C. Product development D. Introduction E. Decline
B.
!!!! Adding a new product line to an existing portfolio means that the line has __________________. !!!! A. extended product line length B. increased product support services C. increased product mix width D. differentiated its product mix depth E. altered its product mix consistency
C.
!!!!! Dividing buyers into groups based on social class, lifestyle, or personality characteristics is called ________ segmentation. !!!!! A. behavioral B. user status C. geographic D. psychographic E. age and life-cycle
D.
!!!!! Groups of __________________ products consist of materials and parts, capital items, and supplies and services. !!!! A. shopping B. convenience C. unsought D. industrial E. specialty
D.
!!!!________________________ is one major objective associated with a market-penetration pricing strategy.!!!! A. Winning large market share B. Skimming off small but profitable market segments C. Avoiding everyday low pricing D. Attracting buyers willing to pay a higher price E. Preventing customer dissatisfaction
A.
!!!!! Which of the following is NOT one of the typical advantages of e-procurement systems? !!!!!! A. Improving customer-supplier relationships B. Finding better supplier resources C. Reducing time between order and delivery D. Eliminating paperwork E. Allowing buyers to focus on more strategic issues
A.
!!!!!! Which of the following statements regarding packaging is correct? !!!!!! A. Innovative packaging can give a company an advantage over competitors and boost sales. B. Product safety is not impacted by packaging. C. Companies can say anything they want on product packaging. D. Packaging should change every few months. E. Product strategy does not include packaging as an important consideration.
A.
!!!!Internal factors that affect pricing include _________________.!!!! A. The company's overall marketing strategy, objectives, and marketing mix B. The nature of the market, demand, and the economy C. The company's overall marketing strategy, objectives, and the nature of the market D. The company's overall marketing strategy, the nature of the market, and demand E. The company's overall marketing strategy, objectives, and demand
A.
!!!!The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.!!!! A. product line B. optional-product C. captive-product D. product bundle E. two-part
A.
!!!!The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.!!! A. price discrimination B. deceptive pricing C. price-fixing D. predatory pricing E. retail price maintenance
A.
!!!!Which of the following is NOT a product life cycle (PLC) stage?!!!! A. Commercialization B. Maturity C. Growth D. Decline E. Introduction
A.
!!!!Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"!!! A. target costing B. target return pricing C. EDLP D. value-added pricing E. cost-plus pricing
A.
!!!!!! ________________ is one problem with business-to-business e-procurement. !!!!! A. Suppliers being pitted against one another B. Reduced purchasing efficiency C. Increased paperwork requirements D. Increased transaction costs E. Increased time between order and delivery
A.
!!!! If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives? !!!! A. Preventing competition B. Grabbing international market share C. Supporting resellers and gaining their support D. Avoiding government intervention E. Customer retention and building profitable customer relationships
B.
!!!! Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement? !!!!!! A. Specialty products B. Convenience products C. Industrial products D. Shopping products E. Capital products
B.
!!!!! A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________. !!!! A. external marketing B. internal marketing C. service differentiation D. interactive marketing E. supplier and vendor marketing
B.
!!!!! The type of segment characteristic in which the size, purchasing power, and profiles of the segments can be quantified is known as _______________________ !!!! A. substantial B. measurable C. accessible D. actionable E. differentiable
B.
!!!!A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?!!!! A. psychological pricing B. market-penetration pricing C. product bundle pricing D. market-skimming pricing E. captive-product pricing
B.
!!!!Which of the following is true regarding the price-demand relationship?!!!! A. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. B. If demand is elastic, sellers will consider lowering their prices. C. Demand and price are directly related—the higher the price, the greater the demand. D. Price elasticity measures how responsive price will be to a change in demand. E. If demand is inelastic, a small change in price will result in a large change in demand.
B.
!!!______________________ is the step of the new product development process during which a physical product is first developed.!!! A. Concept development and testing B. Product development C. Idea generation D. Marketing strategy development E. Test marketing
B.
!!!! The three functions of __________ include identifying, describing, and promoting the product. !!!! A. innovation B. product design C. labeling D. product lines E. packaging
C.
!!!!A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.!!!! A. product line B. by-product C. optional-product D. captive-product E. product bundle
C.
!!!!A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.!!! A. High-low pricing B. Everyday low pricing (EDLP) C. Target return pricing D. Competition-based pricing E. Value-added pricing
C.
!!!!Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development.!!!!! A. intrapreneurial B. crowdsourced C. systematic D. sequential E. customer-centered
C.
!!!!To create successful new products, a company must _______.!!!! A. spend more on research and development (R&D) than its competitors and understand its consumers B. obtain successful products through acquisitions instead of doing internal development C. understand its consumers, markets, and competitors and develop products that deliver superior value to customers D. focus its new product development efforts only on consumers and deliver value E. cut costs to keep the price of new products low while delivering acceptable quality
C.
!!!! When marketers aggressively promote only one benefit to the target market, the benefit promoted is known as the product or service's _____________________. !!!!! A. unique difference proposition B. unique product proposition C. unique position proposition D. unique selling proposition E. unique benefit proposition
D.
!!!!! Which of the following statements regarding the important decisions in the development and marketing of individual products is correct? !!!!! A. Packaging decisions are not an important part of developing individual products. B. Determining product support services is not part of the development of individual products. C. Product labeling is no longer subject to legal regulation. D. Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design. E. How a product is branded is separate from the development and marketing of individual products.
D.
!!!!!!! If competitors cannot easily copy the benefit a company chooses to promote, that benefit is said to be _________. !!!!!! A. profitable B. distinctive C. affordable D. preemptive E. superior
D.
!!!!!Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided.!!!!! A. perishability B. packaging C. intangibility D. variability E. inseparability
D.
!!!!Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?!!!! A. Cost-plus pricing B. Cost-based pricing C. Good-value pricing D. Customer value-based pricing E. Value-added pricing
D.
!!!!Which of the following statements is correct concerning service marketers going global?!!! A. The growth of global service companies is expected to decline in the near future. B. Compared with product marketers, service marketers do not face any additional challenges when going global. C. One industry that still has not globalized is retailing. D. The trend toward growth of global service companies is expected to continue in the near future. E. Due to the nature of their business, professional service firms cannot expand their business to foreign markets.
D.
!!!!Which of the following statements regarding managing service quality is correct?!!!! A. Customer retention is not related to service quality. B. Setting standards is not important in delivering service quality. C. Service quality is easier to define and judge than product quality. D. Unlike product quality, service quality will always vary. E. Service recovery is unimportant in managing service quality.
D.
!!!!Which of the following would be an appropriate strategy during the growth stage of the product life cycle?!!!! A. Modify the market, product offer, and marketing mix. B. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. C. Use promotional spending to inform consumers and get them to try the product. D. Spend a lot of money on product improvement, promotion, and distribution. E. Shift some advertising from building product awareness to building product conviction and purchase.
D.
!!!Which of the following statements is true regarding product life cycle curves?!!! A. Marketing strategies do not change for different life cycle stages. B. Managing products through their life cycle is an easy task. C. Once a product reaches the decline stage, it cannot be recycled back to growth. D. The sales of a typical product follow an S-shaped curve made up of five stages. E. All products follow the traditional five-stage PLC model.
D.
!!!!! __________________ segments are those segments that are conceptually !distinguishable! and respond differently to different marketing mix elements and programs. !!!!! A. Accessible B. Substantial C. Measurable D. Differentiable E. Actionable
D.
!!!!!! Which of the following statements regarding the business market is correct? !!!!! A. In the business market buying process, buyers and sellers are less dependent on each other than in the consumer market. B. Business buying decisions are less complex than consumer buying decisions. C. The business market is not as large as the consumer market in terms of dollars spent and items purchased. D. The business market has more buyers than the consumer market. E. Many sets of business purchases are made for one set of consumer purchases.
E.
!!!!Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.!!!! A. cash rebates B. psychological pricing C. promotional pricing D. segmented pricing E. dynamic pricing
E.
!!!!UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.!!!!! A. free on board (FOB) origin B. base-point pricing C. uniform-delivered pricing D. freight-absorption pricing E. zone pricing
E.
!!!!When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.!!!! A. captive-product B. optional-product C. by-product D. market-penetration E. premium pricing
E.
!!!!When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.!!!! A. optional-product B. psychological C. geographical D. segmented E. promotional
E.