BUS2-130 Midterm 2
MATHY (study on your own)
9,500,000
How do firms that use captive-product pricing make up for the low prices of their main products?
They set high markups on the captive products
Which of the following is an example of a horizontal conflict in a distribution channel?
a Ford car dealer complaining that another Ford dealer is underpricing the same model.
Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Nike Manufacturers. Performance Inc. also markets its products through the company website. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?
a conflict between Performance Inc. and The Sneaker Store.
________ is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.
a marketing channel
Epixal, an American video game manufacturer, targets teens between the age of 14 and 18, providing free game trials and applications for PS5, Xbox, and PCs. The firm's marketing approach exemplifies _______ segmentation.
age and life-cycle
Harley-Davidson customers share a common, deeply held attraction to the brand. Harley appeals include: freedom, independence, power, and authenticity. Harley-Davidson doesn't just sell motorcycles, It sells self-expression, lifestyles, aspirations, and dreams. This illustrates _______.
core customer values
Which of the following would most likely trigger a price increase?
cost inflation
Producers use marketing intermediaries because they ________.
create greater efficiency in making goods available to target markets.
All the institutions in a channel are connected by several types of flow. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of _______.
information flow.
A market segment is less attractive when _______.
it contains powerful suppliers who can control prices
In a logistics system, minimizing distribution costs most likely involves _______.
large shipping costs
SoiDoim a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with _______
line extensions
The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________.
market-penetration pricing
Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.
marketing strategy development
When a product is in the ______ stage, profits level off or decline because of increased marketing costs to defend the product against competition.
maturity
The first part of a marketing strategy statement describes the ________ of a new product.
target market and planned value proposition
A firm that uses direct marketing would most likely sell its products through ________.
the company website.
Beyonce's Lemonade Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Beyonce's Lemonade is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for the Beyonce's Lemonade line of eye makeup?
the desire for having beautiful eyes
Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy.
time-based
Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.
undifferentiated
Fads are characterized by their ________.
unusually high sales and rapid decline
Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced.
variable
Which of the following statements is most likely true about the new product development process?
Customers, competitors, distributors, and suppliers are major sources of new product ideas.
_______ involves using an existing brand name for a new product category.
brand extension
Introducing a new product into the market is called ________.
commercialization
Which of the following sets the price ceiling for a product's pricing?
consumer perceptions of value
Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of _______ products.
convenience
Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.
demographic
If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments.
differentiable
The Port of New Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called _______ marketing.
differentiated
High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.
exclusive
Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________.
exclusive dealing
The new product development process usually starts with _______
idea generation
Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.
idea screening
A product line is most likely too short if managers can _______
increase profit by adding items
Royal Majesty, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Royal Majesty offers a(n) _______ value proposition.
more-for-more
Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?
multibrands
Nvidium Electra, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on _______.
multiple segmentation bases
As a result of _______, a company might not be allowed to make its product illegally similar to a competitor's already established product.
patent laws
World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?
perishability
_______ consist of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
positioning
_______ is the sum of all the values that customers exchange for the benefits of having or using a product or service.
price
Bose promises "better sound through research." This is an example of ________.
product differentiation
TECHland Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as _______ pricing.
product line
Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.
product mix
What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?
promotional pricing
In _______, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.
pure competition
In a just-in-time logistics system, _______.
retailers carry small inventories of merchandise to last for only a few days
the second part of a marketing strategy statement describes the _______ of a new product
short term planned price, distribution, and marketing budget.