Principles of Marketing pt. 2

Which of the following best defines nonprofit marketing?

Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment

What is the primary difference between an agent and a broker?

An agent represents a company on a permanent basis while a broker is employed temporarily

When are marketers least likely to change a product's design, style, or other attributes?

Decline

After selecting a pricing strategy, what is the next step in the establishment of prices?

Determining a specific price​

Which of the following is NOT a common feature of a warehouse club?

Good customer service

Which of the following is an example of a category killer?

Home Depot

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and

Innovators

Wesley is a logistics manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the logistics system is Wesley currently involved?

Inventory management

Which of the following is an advantage of franchising?

Limited capital is needed to start

Which of the following statements is true about the factors that affect pricing decisions?​

Marketers should set prices that are consistent with the organization's goals and mission.

Under which competitive market structure are firms most likely to engage in nonprice competition?

Monopolistic competition

____ is the value of the benefit that is given up by selecting one alternative rather than another.

Opportunity cost

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

Why are line extensions more common than new products?

They are less expensive and lower-risk.

The label on a window air conditioner reads "uses up to 20% less energy." For what reason is this phrase most likely used?

To promote the product

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

When Fiat offers to let qualified buyers test drive the Fiat 500X Urbana, the dealer is trying to stimulate which stage of the product adoption process?

Trial

Odd-even pricing is

a psychological pricing strategy

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

Melissa is interested in upgrading to a new sofa for her apartment. She looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Melissa is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.

aesthetic; functional

A product mix is best described as

all products offered by a firm.

A sharing of meaning defines

communication

The heterogeneity characteristic of services provides marketers with tremendous opportunity to

customize their services to meet unique individual needs.

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

deceptive pricing

Primary demand is defined as

demand for a product category

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

inverse

The test marketing stage

is a sample launching of the entire marketing mix.

Service industries account for ____ of the gross domestic product of most developed nations.

nearly three-quarters

Anything that reduces the accuracy and clarity of communication is called

noise

Selective demand is demand for a

particular brand

The primary function of most wholesalers is to

perform physical distribution of products from manufacturers to retailers

Reference pricing is

pricing a product at a moderate level and positioning it next to a more expensive model or brand

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of

promotion

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

pure goods

The supply chain begins with______________ and ends with_________________.

raw materials; customers

During the decoding process, the

receiver attempts to convert signs or symbols into concepts and ideas

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

Sonequa is a concert promoter who works for singer Beyoncé. She works very hard to make sure most of Beyoncé's concerts are sold out because she understands the concept of perishability, which means

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again for that specific concert.

A trademark signifies

that the owner has exclusive use of a brand and others are prohibited from using it.

Having products available when customers want them created

time utility

When consumers research products online and then go to an actual store to make their purchase, the practice is known as

webrooming

Which of the following represents a supplementary service?​

​Room service

Which of the following is always used to determine the classification of a good?

Buyer's intent for using the product

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?

Concept testing

Which of the following types of distribution allow distribution and consumption to occur at the same time?

Digital distribution

Which of the following has a target market of consumers who live within two to three miles of its stores, or within a few minutes' walking or driving time?

Neighborhood shopping center

Which of the following would be used in setting the price of a new product if considerable competition is expected?

Penetration pricing

______________ refers to how a product is conceived, planned, and produced.​

Product design

____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.

Public relations

Which factor is least likely to affect pricing decisions?

Shifting stock values

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?

Status quo

Select the true statement concerning test marketing.

Test marketing is a limited introduction of the product in areas chosen to represent the intended market.

Which of the following best defines the interest stage in the product adoption process?

The buyer seeks information and is receptive to learning about the product.

Which of the following is true about the target market's evaluation of price?

The importance of price depends on the type of product

Which of the following statements is true about the determination of a specific price for a product?

When no government controls exist, pricing is a flexible way to adjust the marketing mix

A product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

Adrienne asks ten of her friends over to her home to learn about exciting new kitchen products. A salesperson from Pampered Chef makes a presentation and takes the women's orders. This is an example of

a party plan

The two levels of expectations that consumers generally have about services are

acceptable and desired.

Marketers of seasonal products tend to emphasize

advertising

The Target bullseye is a classic example of the term...

brand mark.

Roomba is the ____ of the robotic vacuum cleaner made by iRobot.

brand name

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.

business analysis

Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of

channel conflict caused by inefficient communication between channel members

When one company in a marketing channel has the ability to influence another member's goal achievement, the company has

channel power

A university's student body would be considered its ____ public; parents, alumni, and trustees would be included as its ____ public.

client; general

All packaging must at a minimum

comply with the FDA's packaging regulations.

The ability of a product to provide the same level of quality over time is called

consistency.

The intangibility aspect of a service means that

consumers may have a problem evaluating service offerings.

The main objective of logistics should be to

decrease costs while increasing customer satisfaction

The three primary bases for developing prices are

demand, competition, and cost.

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

demand-based

As discount stores improve their services and atmosphere as well as raise their prices, the distinction between discount stores and ____ is becoming blurred.

department stores

Quality modifications are changes that relate to a product's

dependability and durability.

Coca-Cola offers a line of soft drinks that includes Coca-Cola, Diet Coke, Coca-Cola Zero, Sprite, and Fanta. These drinks best illustrate Coca-Cola's product mix

depth

When establishing prices, a marketer's first step is to

develop pricing objectives

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

differential

The marketing channels for services are usually

direct from provider to customer.

There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and

employee empathy

The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand

equity.

Expensive, high-quality products that are purchased infrequently often reach consumers through

exclusive distribution

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

Aggressive pricing is typical during the ____ stage of the product life cycle.

growth

In which stage of a product's life cycle is the firm focused on establishing and fortifying the product's market position by encouraging brand loyalty?​

growth stage

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

integrated marketing communications

What a price means or what it communicates to customers is called

interpretation

The four major stages of a product life cycle include

introduction, growth, maturity, and decline

Vertical channel integration

is made possible by purchasing the operations of a channel member

A product is a price leader when

it is sold at less than cost in the hope that sales of other products will increase

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called

just-in-time (JIT)

Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication.

kinesic

In marketing, family packaging means

making all of a company's or product line's packaging look similar.

Price is considered to be the variable in the marketing mix that is

most flexible

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

multichannel distribution

Twin-packs and six-packs are examples of

multiple packaging.

A significant factor in the rise of multichannel retailing is

online retailing

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

periodic discounting

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

phase-out.

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is

product positioning.

Three major ways in which marketers engage in product differentiation are

product quality, product design and features, and product support services.

The cost of ____ is usually substantially lower than the cost of ____.

retaining existing customers; acquiring new customers

When McDonald's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing

sales promotion

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase.

screening

Consumers look closely at service quality when comparing competing services because

services are very difficult to evaluate.

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.

shopping

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

A retailer engaged in direct marketing would probably select television home shopping over online retailing to sell a new kitchen device because of

superior ability to demonstrate the product

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.

supplementary

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is

survival

Services are usually provided through ____ directed at people or objects.

the application of human or mechanical efforts

In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless,

the channel members remain autonomous

The process of putting one's thoughts (meaning) into signs (symbols) is called

the coding process

Price is a key element in the marketing mix because it relates most directly to

the generation of total revenue

Pricing objectives should be stated explicitly, stated in measurable terms, and specify a

time frame for achieving them

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

Price wars tend to be disadvantageous to retailers. Why, therefore, would a retailer want to lower prices and take the chance of inciting a price war? ​

​To boost market share

​When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.

​reposition

When a product tries to capitalize on the brand equity of two separate brands, marketers are using

co-branding.

Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered

communication channels

The primary reason that retailers favor rigid markups is

convenience

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

human labor

Production and consumption of services must simultaneously occur due to the ____ characteristic of services.

inseparability

The three levels of brand loyalty from strongest to weakest are

insistence, preference, recognition.

New introductory promotion is most likely to be used during the ____ stage of the product life cycle.

introduction

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ____ stage of the product life cycle.

maturity

One downside to modifying a successful product is that consumers who enjoyed the original version of the product

may view a modified version as a riskier purchase.

Marketing channels create four types of utility for consumers including

place, time, possession, and form

For most consumers, there is an assumed relationship between

price and quality

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand

After building a prototype of his new device, Barry is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

product development

Promotion can help keep prices lower because

promotion of prices intensifies price competition

Price leaders, comparison discounting, and special-event pricing are applications of

promotional pricing

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

selling agent

To engage in price competition successfully, a firm should have

the lowest costs relative to its competitors

​Which of the following best describes someone who is an early adopter in terms of the major adopter categories?

​They choose new products carefully and are viewed as "in-the-know" by other adopter categories.

Which of the following forms of communication is the most adaptive and flexible?

Face-to-face

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

atmospherics

Octavia runs a local ice cream stand and is developing a new type of ice cream sundae. She just sent a press release to the local newspaper and featured the new sundae on her Facebook page and Instagram account. Based on this information, Octavia is most likely in the _____ stage of the new-product development process.

commercialization

The concept of level of quality is relative because it cannot be described without

comparing it to other products.

When products in an industry are relatively homogeneous and price is a key purchase consideration,

competition-based pricing becomes more important

When determining markup as a percentage of cost, divide the markup amount by

cost

Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.

creating awareness

Pepsi-Cola has just released a new line of sparkling water called bubly. To encourage customers to start adopting the new brand, Pepsi-Cola should engage in promotions that focus on

creating awareness

The three major types of nonstore retailing are

direct marketing, direct selling, and vending

Consumers may view relatively expensive products to have great value if the products

have desirable features or characteristics

Using only some of the available outlets to distribute a product is called

selective distribution

When service companies change high-contact services into low-contact services, the

service becomes less personalized.

The U.S. economy is now referred to as a(n)____________.

service economy

When Jennifer buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a

retailer