Marketing chapters 11-14
What are the 5 C's of pricing?
1. Competition 2. Costs 3. Company Objectives 4. Customers 5. Channel Members
4 stages of the product life cycle
1. introduction 2. Growth 3. Maturity 4. Decline
If adidas were to conduct a survey to find out what percentage of consumers could identify the "three stripe" logo as belonging to the adidas brand, which aspect of brand equity would they be measuring? Brand awareness Brand ownership Brand value Brand loyalty Perceived value
Brand awareness
A marketing function that identifies products and their source and differentiates them from all other products
Branding
Companies like Tiffany go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages of branding? Brands facilitate purchases. Brands establish loyalty. Brands protect from competition. Brands can reduce marketing costs. Brands are assets.
Brands are assets
For most buyers, bread, soap, milk, and soda pop are _________ goods. convenience shopping unsought specialty
Conveinence
Consumers invest the least amount of effort when considering the purchase of _______ products. specialty shopping convenience unsought
Convenience
A candy bar might be a great tasting snack for some people or an energy boost for others. In either case, this describes the __________. actual product augmented product core customer value product attributes
Core customer value
specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants
Customer service
From time to time, it is also necessary to delete products within a product line to realign the firm's resources
Decrease Depth
refers to the process of charging different prices for goods or services based on the type of customer, time of the day, week, or even season, and level of demand
Dynamic Pricing
In terms of a pricing strategy, _____ adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. cost-based pricing high/low pricing predatory pricing EDLP competitor-based pricing
EDLP
With a(n) _________strategy, companies stress the continuity of their retail prices at a level somewhere between the regular, nonsale price and the deep-discount sale prices their competitors may offer. high/low pricing reference pricing everyday low pricing odd pricing
Everyday low pricing
the individual brands benefit from the overall brand awareness associated with the family name
Family brand
If the same selection of books were always for sale, with no new titles, there would be no reason to buy more. This is an example of which reason firms must innovate? Diffusion of innovation Market saturation Fashion cycles Changing customer needs
Fashion Cycles
the first to create the market or product category
First movers
The primary federal agency that oversees food and packaged good labels is the ___________. U.S. Congress Federal Trade Commission Food and Drug Administration American Marketing Association
Food and Drug Administration (FDA)
the product gains acceptance, demand and sales increase and more competitors emerge in the product category
Growth stage
seeking product ideas to achieve organizational objectives
Idea generation
firms often add new product lines to capture new or evolving markets and increase sales
Increase Breadth
firms might add items to address changing consumer preferences or to preempt competitors while boosting sales
Increase Depth
refers to the process by which ideas are transformed into new offerings, including products, services, processes and branding concepts that will help firms grow.
Innovation
those buyers who want to be the first to have the new product or service
Innovators
Because of the _______ of services, the images that marketers use must reinforce the benefit or value that a service provides. serviceability intangibility inseparability perishability
Intangibility
Firms can measure the success of a new product, by asking three questions. Which of the following is NOT one of these questions? Does the good satisfy the consumers' technical requirements? Is the product something that consumers consider viable and valuable? Is the product already offered by competing firms? Did sales of the product satisfy the producer's financial requirements?
Is the product already offered by competing firms?
industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them
Maturity stage
When products are easily observed, their benefits or uses are easily communicated to others, which enhances the diffusion process
Observability
when a firm sets a very low price for one or more of its products with the intent to drive its competition out of business
Predatory pricing
a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter
Premium Pricing
Instituting a company-wide policy that all products must provide for at least an 11 percent profit margin to reach a particular profit goal for the firm is an example of which pricing orientation? Sales orientation Profit orientation Customer orientation Competitor orientation
Profit orientation
Brand equity is determined by four aspects of a brand. Which of the following is NOT one of the four aspects? Perceived value Brand loyalty Quality level Brand associations
Quality Level
_____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Outsourcing Brainstorming Reverse engineering Market testing Licensing
Reverse Engineering
_________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Reverse engineering Brainstorming Market testing Outsourcing
Reverse Engineering
involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist
Reverse Engineering
the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package
Secondary package
1. _______ is defined in marketing terms as the basic problem-solving benefits consumers are seeking. The perceived value Augmentation The core customer value Equity
The core customer value
What does it mean when a firm's performance on one of the dimensions of service quality is above the highest point in the zone of tolerance? The firm is overcharging for its offerings. The firm has achieved its highest level of profitability. The firm has the opportunity to reach new customer segments. The firm has exceeded customer expectations on that dimension. The firm has fallen short of meeting customer expectations on that dimension.
The firm has exceeded customer expectations on that dimension.
Brands facilitate purchase in all of the following ways EXCEPT _______. they signify a level of quality they project an image they are always appealing to the customer they communicate familiar attributes
They are always appealing to the customer
Many people who take cruises are not aware that their normal health insurance policy will not cover emergencies in a foreign country. For this coverage, they need special trip insurance. For these people, trip insurance is a(n) __________ good. shopping unsought specialty convenience
Unsought
are those costs that vary with production volume
Variable costs
Most service firms today have developed _______ programs, which collect customer inputs and then integrate them into managerial decisions. zone of tolerance voice-of-customer instrumental support standards gap distributive fairness
Voice of the Customer
Is it ALWAYS illegal and unethical to lie in advertising?
YES
What characterizes a market with oligopolistic competition? One firm controlling the market A few dominant firms Many sellers of commodities Many firms selling differentiated products The absence of competition
a few dominant firms
_____ employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. A monopoly A gray market Pure competition A black market A price war
a gray market
Many consumers pay a higher price for green products. This is because, for them, green products have _______ than competitor's non-green offerings. more brand awareness a greater level of brand association a greater perceived value more brand equity
a greater perceived value
In _____, one firm provides the product or service in a particular industry, which results in less price competition. a monopoly an oligopoly monopolistic competition oligopolistic competition pure competition
a monopoly
What takes place when two or more firms compete primarily by lowering their prices? Predatory pricing A gray market An oligopoly A price war
a price war
According to your text, anything that is of value to a consumer and can be offered through a voluntary marketing exchange is called a brand. a value proposition. a product. an offering. a marketing exchange.
a product
The first physical form or service description of a new product, still in rough form, having the same properties as a new product, but produced through different manufacturing processes, is called an idea. a concept. a model. a prototype. a pioneer.
a prototype
Which of the following is NOT a dimension of service quality measured by the zone of tolerance? Accuracy Empathy Assurance Reliability
accuracy
When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the actual product. associated product. associated services. augmented product. core customer value.
actual product
Before researching customers, Dan Kim tests new flavors himself and with members of his staff. This is called ____. gamma testing alpha testing beta testing test marketing prototyping
alpha testing
the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended
alpha testing
When a firm chooses to have a brand legally protected through trademarks and copyrights, the brand becomes _______. a liability to the firm an augmented product an asset to the firm diluted in the eyes of the consumer
an asset to the firm
In the soft-drink industry only a few firms dominate, which is characterized as a monopoly. an oligopoly. pure competition. competitive parity. monopolistic competition.
an oligopoly
Tyler is highly knowledgeable about new developments in bicycling technology, since he reads everything he can find about the subject. Typically being the first to try out new bicycle models, he would be classified _____ in terms of the diffusion of innovation curve. as a laggard as an innovator as an early adopter in the late majority in the early majority
as an innovator
When adidas makes endorsement deals with athletes and other celebrities, the company wants to make sure that the endorser's personality fits the brand's desired image. In other words, adidas wants to ensure that the endorser creates the right type of brand _______. associations extensions ownership loyalty awareness
associations
Medical professionals often hang framed copies of their educational accomplishments in order to convey their competence in their field, thus addressing the _____ dimension of service quality. reliability responsiveness assurance empathy tangibles
assurance
The knowledge of and courtesy by employees and their ability to convey trust and confidence describes which service quality dimension? Reliability Responsiveness Assurance Tangibles
assurance
A deceptive practice of luring customers into the store with a very low advertised price on an item (the bait), only to aggressively pressure them into purchasing a higher-priced model (the switch) by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item.
bait and switch
The _________ tactic is a deceptive practice because the store lures customers in with a very low price on an item, only to aggressively pressure these customers into purchasing a higher-priced model by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item. predatory pricing bait-and-switch price discrimination loss leader
bait and switch
During _______ potential consumers examine a product prototype in a real-use setting to determine its functionality, potential problems, and other issues specific to its use. concept testing alpha testing beta testing idea generation
beta testing
uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use
beta testing
The personal connections that consumers make with a brand and its key attributes is referred to as _______. brand equity perceived value brand associations brand loyalty
brand association
reflect the mental and emotional links that consumers make between a brand and its key product attributes, such as a logo and its color, slogan, or famous personality
brand association
Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.
brand awareness
_______ measures how many consumers in a market are familiar with a brand and what it stands for. Brand value Brand equity Brand loyalty Brand awareness
brand awareness
_______ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. Brand equity Brand awareness Brand perception Brand association Brand loyalty
brand awareness
In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. To the extent that this brand extension adversely affected consumers' perceptions about its current product lines, this could lead to rebranding. co-branding. product labeling. brand licensing. brand dilution.
brand dilution
In the 1980s the Coca-Cola Company introduced New Coke. The product was a total failure and in the short term greatly hurt the reputation of Coca-Cola. This is an example of _________. private labeling brand dilution brand extension co-branding
brand dilution
occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold
brand dilution
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as brand equity. market value. brand awareness. perceived value. brand associations.
brand equity
the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service
brand equity
The Victorinox Swiss Army Company is well known for their Swiss Army Knives. The company also makes and markets watches, travel gear, cutlery and even fragrances. This represents a ___________ strategy. co-branding brand dilution brand repositioning brand extension
brand extension
refers to the use of the same brand name in a different product line
brand extension
When Disney launches a popular new movie, the aisles of your local toy store are soon flooded with toys featuring characters from that movie. This is an example of _________. brand licensing co-branding brand dilution brand repositioning
brand licensing
a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee
brand licensing
Consumers' trust for Frito-Lay's brands leads to _____. more costs brand loyalty competition better distribution new products
brand loyalty
when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same category
brand loyalty
Brand equity is determined by four aspects of a brand. Which of the following is not one of the four aspects? Brand awareness Perceived value Brand associations Brand quality Brand loyalty
brand quality
_____ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs. Contribution margin analysis Break-even analysis Predatory pricing Total cost calculation Fixed cost analysis
break even analysis
the point at which the number of units sold generates just enough revenue to equal the total costs; at this point, profits are zero
break even point
Which of the following is NOT an objective of a market penetration pricing strategy? Build sales Increase market share Charge the highest price possible Improve profits quickly
charge the highest price possible
Suppose that adidas collaborated with the NFL to create a series of sports shoes and apparel incorporating the colors and logos of the various NFL teams, and bearing both the adidas and NFL brands. This would be an example of what branding tactic? Brand licensing Brand repositioning Brand association Private label branding Co-branding
co-branding
Yum Brands owns a number of well-known fast food franchises. Often, consumers will see a KFC with a Taco Bell or a Pizza Hut with a Taco Bell sharing the same building or location. In doing this Yum Brands is using a ________strategy. dilution co-branding rebranding repositioning
co-branding
After Jennifer booked a hotel room she had seen advertised, she discovered that the price advertised was not available during the weekend, and a three-day minimum stay was required. This is an example of a _______ gap. delivery standards marketing communication
communication
The _____ gap refers to the difference between the actual service provided to customers and the service that the firm's promotional program promises. knowledge standards delivery communication ethical
communication
Though confusing to customers, U.S. Cellular priced its bundles very similar to its competitor's prices. Which competitor-oriented pricing strategy did U.S. Cellular use in this example? Status quo Premium Elastic Competitive parity Breakeven
competitive parity
Competitive parity and status quo pricing are examples of which type of pricing orientation? Profit orientation Competitor orientation Customer orientation Sales orientation
competitor orientation
Branding provides a way for a firm to differentiate its product offerings from those of its _____. customers competitors partners distributors retailers
competitors
Horizontal price fixing occurs when _______. a company sells the same product to different resellers at different prices parties at different levels of the same marketing channel collude to control the prices passed on to consumers a firm sets a very low price for one or more of its products with the intent to drive its competition out of business competitors that produce and sell competing products work together to control prices
competitors that produce and sell competing products work together to control prices
refers to a brief written description of the product, its technology, working principals and forms
concept
Brand awareness measures how many _____ in a market are familiar with the brand. adults retailers distributors consumers store owners
consumers
Brian never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered _____ products. service unsought specialty shopping convenience
convenience
products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase
convenience products/services
When the bicycle manufacturer Trek determined that some consumers use bikes for green transportation whereas others use them for a hobby, it was most likely assessing the _____ of its bicycles to consumers. brand equity associated services brand awareness core customer value physical characteristics
core customer value
is the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B.
cross price elasticity
_____ indicates that the demand for related products can either be positively or negatively related. The income effect The substitution effect Cross-price elasticity The complementary products effect The supply curve
cross-price elasticity
________ is the percentage change in the quantity of Product A demanded compared with the percentage change in price in Product B. The income effect The substitution effect The equilibrium point Cross-price elasticity
cross-price elasticity
A(n) _________ orientation explicitly invokes the concept of value such as when a firm uses a "no-haggle" price structure to make the purchase process simpler and easier. sales customer competitor profit
customer
U.S. Cellular sets prices based on adding value to its products and services. Which pricing orientation does this reflect? Profit orientation Breakeven orientation Competitor orientation Customer orientation Sales orientation
customer orientation
a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs
customer orientation
Which of the following is NOT an advantage of brand loyalty? Buyer is less price sensitive Customer switches brands often Customer spreads positive word-of-mouth Lower marketing costs to reach target
customer switches brands often
Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of die-hard consumers or those with special needs, or they completely exit the market. product development introduction growth maturity decline
decline
Firms with products in the _______ stage either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market. maturity introduction growth decline
decline
Without new products or services, the values of the firm will ultimately _________. increase stay the same decline expand
decline
when sales decline and the product eventually exits the market
decline stage
If a firm deletes an entire product line, it has increased its depth. decreased its depth. increased its breadth. decreased its breadth. diversified.
decreased its breadth
If a firm deletes an entire product line, it has _______. decreased its depth increased its breadth decreased its breadth increased its depth
decreased its breadth
In the classic downward-sloping demand curve, as price increases, demand for the product or service _______. increases stays the same decreases is eliminated
decreases
In the classic downward-sloping demand curve, as price increases, the demand for the product or service increases. stays the same. decreases. levels off. doubles.
decreases
When Sarah went to the hotel lobby for the free hot breakfast provided by the hotel, she found a poor selection of food that was not only stale, but also tasteless. This is an example of a ______ gap. standards knowledge delivery marketing
delivery
A _______ shows how many units of a product or service consumers will demand during a specific period of time at different prices. price point analysis break-even analysis demand curve product curve price elasticity curve
demand curve
shows how many units of a product or service consumers will demand during a specific period at different prices
demand curve
Colgate has a line of oral care products including toothpaste, toothbrushes and teeth whitening products. These products represent the ______ of the line. breadth width depth mix
depth
The process by which the use of an innovation—whether a product, a service, or a process—spreads throughout a market group, over time and across various categories of adopters, is referred to as _______. the product life cycle the marketing strategy diffusion of innovation product development
diffusion of innovation
________ pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss). Zone of tolerance Distributive fairness Cognitive dissonance Procedural fairness
distributive fairness
pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure
distributive fairness
Through innovation, firms often create a broader portfolio of products, which help them _________ and enhance firm value better than a single product. increase their prices diversify their risk advertise more directly reduce total production costs
diversify their risk
Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to purchase new product innovations. laggards innovators early adopters the late majority the early majority
early adopters
If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. laggard early adopters innovator the late majority the early majority
early adopters
Which purchasing group represents about 13.5 percent of all buyers in the market and is crucial for bringing the other buyer categories to the market? Early majority Early adopters Laggards Late majority
early adopters
the second subgroup that begins to use a product or service innovation
early adopters
-which represents around 34% of the population, is crucial because few new products and services can be profitable until this large group buys them.
early majority
Few new products and services can be profitable until which large group of adopters buys them? Innovators Laggards Late majority Early majority
early majority
refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded
elastic
concern for others' well-being and support of their decisions in a job setting
emotional support
Mercy Hospital uses patient questionnaires to determine that the bedside manner of each of its doctors on staff meets patient needs, thus monitoring the _____ dimension of service quality. empathy tangibles reliability assurance responsiveness
empathy
means allowing employees to make decisions about how service is provided to customers
empowerment
By reducing consumers' search costs, _______ adds value; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores. odd pricing everyday low pricing reference pricing high/low pricing
everyday low pricing
a pricing strategy that relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases
everyday low pricing (EDLP)
With the _________ effect, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. price skimming experience curve price targeting penetration pricing
experience curve
Originally, all adidas products were marketed under the adidas brand name. This is an example of what brand-naming strategy? Store brand Private label brand Diluted brand Individual brand Family brand
family brand
are those costs that remain essentially at the same level, regardless of any changes in the volume of production
fixed costs
A(n) _______ strategy relies on limited-time offers and other promotions to encourage a temporary boost in sales. everyday low pricing reference pricing high/low pricing odd pricing
high/low pricing
relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases
high/low pricing
The first step in the product development process is _______. concept testing idea generation product development market testing
idea generation
The new-product development process starts with ________. idea generation test marketing concept testing beta testing product development
idea generation
The _______ effect refers to the change in the quantity of a product demanded by consumers due to a change in their income. buying substitution income elasticity
income
refers to the change in the quantity of a product demanded by consumers due to a change in their income
income effect
the use of individual brand names for each of a firm's products
individual brand
Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.
inelastic
When relatively small changes in the price of a product do not generate large changes in the quantity demanded, it can be said that the market for the product is _______. complementary inelastic rigid elastic
inelastic
__________ refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow. Marketing Innovation Strategic planning Augmentation
innovation
Buyers who love to try out new goods and services before the general public accepts them are referred to as _______. early adopters pioneers innovators first movers
innovators
The most common type of consumers in the introduction stage of the product life cycle are the laggards. innovators. early adopters. late majority. early majority.
innovators
When getting a haircut, the customer not only is present, but also may participate in the service process. This is an example that the production and consumption of this service is_________. intangible inseparable heterogeneous perishable
inseparable
the systems and equipment to deliver the service properly
instrumental support
The most fundamental difference between a product and a service is that services are __________, which means they cannot be touched, tasted, or seen like a pure product can. intangible perishable inseparable heterogeneous
intangible
cannot be touched, tasted, or seen like a pure product can
intangible
The ________ stage of the product life cycle is characterized by initial losses to the firm due to high start-up costs and low levels of sales revenue as the product begins to take off. maturity introduction growth decline
introduction
when the product category first launches
introduction stage
The ________ gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. delivery communication knowledge standards
knowledge
An important element of a product is its ______, which is a communication tool that can convey key product benefits to consumers. position label primary package ingredients
label
skeptics who adopt new products when they feel it is necessary
late majority
those innovative product users who modify existing products according to their own ideas to suit their specific needs
lead users
In a service recovery situation, the extent to which a customer perceives the benefits of the "solution" compared to the costs of the inconvenience associated with the service failure will determine the level of assurance. level of distributive fairness. level of procedural fairness. zone of tolerance. communication gap.
level of distributive fairness
Firms purchase the rights to technology or ideas from other research-intensive firms University research centers also often provide such licenses
licensing
Kellogg's has a long list of ready-to-eat cereals which consumers think of as a similar group of products. Kellogg's ready-to-eat cereals are a product ________. family mix assortment line
line
the use of the same brand name within the same product line and represents an increase in a product line's depth
line extension
_______ lowers the price of an item below the store's cost. Price discrimination Predatory pricing Loss leader pricing Vertical price fixing
loss leader pricing
The majority of the brands marketed in the United States are _____ brands. store generic copycat premium manufacturer
manufacturer
Are owned and managed by the manufacturer
manufacturer's brand (national Brands)
the price that manufacturers suggest retailers use to sell their merchandise
manufacturer's suggested retail price (MSRP)
Coca-Cola and Nike would be considered _______ brands, while Market Pantry or Archer Farms products (sold at Target stores) would be considered _______ brands. manufacturer; national private-label; manufacturer manufacturer; store national; premium
manufacturer; store
Which pricing strategy is characterized by the setting of a low introductory price to help drive consumer awareness and create an incentive for the consumer to buy now? Price skimming strategy Experience curve strategy Market penetration strategy Everyday low pricing strategy
market penetration strategy
sets the initial price low for the introduction of the new product or service
market penetration strategy
Sending the product out to test families is a form of ___________. concept testing brainstorming alpha testing idea generation market testing
market testing
The complete set of all products offered by a firm is its product _______. depth mix breadth line
mix
The most common form of competition is _____ where many firms compete for customers in a given market but with differentiated products. oligopolistic competition market saturation pure competition competitive parity monopolistic competition
monopolistic competition
________ occurs when there are many firms competing for customers in a given market but their products are differentiated. Oligopolistic competition Monopolistic competition Pure competition A monopoly
monopolistic competition
occurs when there are many firms competing for customers in a given market but their products are differentiated
monopolistic competition
only a few firms dominate
oligopolistic competition
The relationship between the benefits and cost of Doritos is called _____. brand extension market potential sales potential perceived value market share
perceived value
the relationship between a product's or service's benefits and its cost
perceived value
Services are _____ in that they cannot be stored for use in the future. variable intangible perishable immutable inseparable
perishable
Services are _______ in that they cannot be stored for use in the future. intangible perishable inseparable heterogeneous
perishable
services that cannot be stored for use in the future
perishable
A firm's practice of setting a very low price for one or more of its products with the intent to drive its competition out of business; illegal under both the Sherman Antitrust Act and the Federal Trade Commission Act.
predatory pricing
When a firm sets a very low price for one or more of its products with the intent to drive its competition out of business, it is engaged in monopolistic competition. gray market pricing. predatory pricing. competitive parity. the substitution effect
predatory pricing
________ is/are illegal under both the Sherman Act and the Federal Trade Commission Act because it constrains free trade and represents a form of unfair competition. Bait-and-switch tactics Predatory pricing Loss leader pricing Price discrimination
predatory pricing
before they actually bring a product or service to market to determine how many customers will try and then continue to use the product or service according to a small group of potential consumers
premarket tests
Most goods for sale follow the traditional downward sloping demand curve with the exception of _______ products. convenience prestige unsought shopping
prestige
With ______ products a higher price might lead to a greater quantity sold, but only up to a certain point. unsought convenience shopping prestige
prestige
Each point on the demand curve represents the quantity demanded at a specific ______. price production level profit supply level
price
The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal.
price discrimination
When firms sell the same product to different resellers (wholesalers, distributors, or retailers) at different prices, it can be considered _______. vertical price fixing price discrimination horizontal price fixing predatory pricing
price discrimination
Measures how changes in a price affect the quantity of the product demanded; specifically, the ratio of the percentage change in quantity demanded to the percentage change in price.
price elasticity of demand
The _________ measures how changes in a price affect the quantity of the product demanded. income effect substitution effect supply curve price elasticity of demand
price elasticity of demand
the practice of colluding with other firms to control prices
price fixing
A pricing strategy that involves setting prices higher than those of the competition
price skimming
For _______ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products. penetration pricing odd pricing price skimming reference pricing
price skimming
______ appeals to segments of consumers who are willing to pay the premium price to have the innovation first. Penetration pricing Price skimming Reference pricing Price targeting
price skimming
occurs when two or more firms compete primarily by lowering their prices
price war
Customers tend to believe they have been treated fairly if the service providers follow specific company guidelines. This is an example of _______. procedural fairness service quality distributive fairness the zone of tolerance
procedural fairness
With regard to complaints, _______ refers to the perceived fairness of the process used to resolve customer complaints. cognitive dissonance procedural fairness distributive fairness the zone of tolerance
procedural fairness
Once Dan Kim has successfully tested the concept for a new product, his next step would be _____. outsourcing test marketing product launch product development brainstorming
product development
The _____ stage of the new product development process can involve the development of a prototype for alpha or beta testing. market testing concept testing product launch idea generation product development
product development
entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features
product development
The _______ defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. product life cycle diffusion of innovation product development cycle market adoption process production positioning curve
product life cycle
Introduced in 1920, Band-Aid now has more than 40 products in its product line to help heal cuts and scrapes. Band-Aid has, over the years, increased its product-line depth. product-mix breadth. product-line breadth. product-mix depth. augmented product line.
product line depth
Introduced in 1920, Band-Aid now has more than 40 products to help heal cuts and scrapes. Band-Aid has, over the years, increased their _________. product line depth product mix breadth product line breadth product mix depth
product line depth
The complete set of Kellogg's offerings representing its _____ includes ready-to-eat cereal, toaster pastries, wholesome portable breakfast snacks, cookies, crackers, and natural and organic brands. product line product mix marketing mix product variability brand extension
product mix
Variable costs are affected by profit margins. production levels. marketing outlays. contribution per unit. the break-even point.
production levels
the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually
prototype
With ___________, there are a large number of sellers of standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals. monopolies pure competition oligopolies monopolistic competition
pure competition
a large number of sellers offer standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals
pure competition
a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences
rebranding
Doritos's new color scheme and bold logo are part of its _____. co-branding brand equity product plan rebranding strategy pricing strategy
rebranding strategy
In an advertisement, Sears provides a price, in smaller print and labeled "Reg.," to indicate that $35 is the regular price of Levi jeans. In addition, the advertisement highlights the current "sale" price of $31. The "Reg." price appears as an example of ___________. reference pricing price lining everyday low pricing odd pricing
reference pricing
A product that is perceived to be better than most substitutes is said to have _____, which should speed up the diffusion process. a relative advantage compatibility observability complexity trialability
relative advantage
if a product or service is perceived to be better than substitutes, then the diffusion will be relatively quick
relative advantage
Marriott Hotels invests heavily in employee training and supports this with a structure for rewarding its workers for their dependability and accuracy. This corresponds to which of the following building blocks of service quality? Reliability Responsiveness Assurance Empathy Tangibles
reliability
Abercrombie and Fitch (A&F) was founded in 1892 as a sporting goods, camping and hunting gear store. A&F is now known as a casual luxury lifestyle brand of clothing for college students. To make this change, A&F had to _______ its brand. extend dilute reposition license
reposition
What does R&D stand for?
research and development
Marriott Hotels has a customer-relationship management system whereby the preferences of regular customers are tracked and used to anticipate customer desires and special requests, which helps to facilitate the registration process. This corresponds to which of the following building blocks of service quality? Empathy Tangibles Reliability Assurance Responsiveness
responsiveness
_______ is the willingness to help customers and provide prompt service. Service quality Responsiveness Empathy Assurance
responsiveness
Firms that use a(n) _______ orientation to set prices believe that increasing sales will help the firm more than increasing profits. profit customer competitor sales
sales
Jana's firm is entering a new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives? Profit orientation Sales orientation Competitor orientation Customer orientation Market orientation
sales orientation
a company objective based on the belief that increasing sales will help the firm more than will increasing profits
sales orientation
. For most products, the UPC code would be located on the _______ package. internal secondary external primary
secondary
. Customers have certain expectations about how a service should be delivered. When the delivery of that service fails to meet those expectations, a _______ results. conflict of interest service gap quality gap marketing gap
service gap
Customers' perceptions of how well a service meets or exceeds their expectations is referred to as _______. service gaps service quality product quality cognitive dissonance
service quality
. Rachel has visited several stores comparing sneakers. For Rachel, sneakers would be a(n) _____ product. specialty unsought shopping convenience
shopping
products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives
shopping products/services
If the market is elastic, relatively ____ changes in price generate fairly _____ changes in the quantity demanded. large; small small; small small; equal large; equal small; large
small; large
Miguel wants to buy a Jaguar automobile, but the closest dealer is 250 miles from his home. Nevertheless, Miguel is going to go to that dealer to buy his car. For Miguel, the Jaguar is a(n) ________ product. shopping unsought specialty convenience
specialty
those for which customers express such a strong preference that they will expend considerable effort to search for the best suppliers
specialty products/services
. The ________ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards the firm sets. standards communication knowledge delivery
standards
The _____ gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. knowledge standards delivery communication ethical
standards
a competitor-oriented strategy in which a firm changes prices only to meet those of competition
status quo pricing
When a consumer buys another brand of the same type of product due to an increase in price or a decrease in value, this is referred to as the _______ effect. cross-price elasticity substitution complementary products income
substitution
refers to consumers' ability to substitute other products for the focal brand, thus increasing the price elasticity of demand for the focal brand
substitution effect
Which of the following represents the most fundamental difference between a product and a service? Heterogeneity Tangibility Perishability Serviceability Inseparability
tangibility
A university that promotes itself as a very traditional campus with an old-world look and feel, where the facilities are manicured and the dorm rooms are large is focusing on which service quality dimension? Tangibles Assurance Empathy Reliability
tangibles
Dr. Winwood's dental office staff makes sure the waiting room is clean and that the magazines are current and accessible to patients, thus addressing the _____ dimension of service quality. reliability responsiveness assurance empathy tangibles
tangibles
Firms usually implement a _______ strategy when they have a particular profit goal as their overriding concern. target profit pricing status quo pricing competitive parity target return pricing
target profit pricing
A method of determining the success potential of a new product; it introduces the offering to a limited geographical area prior to a national launch.
test marketing
In order to examine the potential success of its 1/3 pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of _________. beta testing trade promotion alpha testing test marketing
test marketing
As a brand becomes more recognizable, _______. the company doesn't have to spend as much on marketing the brand it becomes hard to come up with ways to market the brand it costs more money to maintain the message of the brand customers become less loyal and begin to search for competitors
the company doesn't have to spend as much on marketing the brand
Which of the following explains why the demand for Blu-ray discs increases when the demand for Blu-ray players increases? The income effect The substitution effect Cross-price elasticity The complementary products effect The substitute products effect
the complementary products effects
customers' perceptions of how well a service meets or exceeds their expectations
the service quality
Which of the following is not a reason listed in your text that compels firms to continue introducing new products and services? To adapt to changing customer needs To combat market saturation To diversify risk To respond to fashion cycles To drive the competition out of business
to drive the competition out of business
Why did adidas introduce several sub-brands, including "Performance" and "Neo"? To expand into other countries To reduce branding expenses To serve different target markets The brand had gotten too large To escape bad publicity
to serve different target markets
the sum of fixed and variable costs
total cost
_____ relates to how easily consumers can test and use the product. Trialability Availability Observability Compatibility Relative advantage
trialability
products or services that consumers either do not normally think of buying or do not know about
unsought products/services
_______ shows how many units of a product or service consumers will demand during a specific period of time at different prices. A demand curve Price elasticity A supply curve The income effect
A demand curve
What shape curve is the product life cycle?
Bell shaped
When groups work together to generate ideas
Brainstorming
Chapter 11
CHAPTER 11
CHAPTER 12
CHAPTER 12
CHAPTER 13
CHAPTER 13
CHAPTER 14
CHAPTER 14
the practice of marketing two or more brands together, on the same package or promotion
Co-branding
a diffusion process may be faster or slower, depending on various consumer features, including international cultural differences
Compatibility
a firm's strategy of setting prices that are similar to those of major competitors
Competitive parity
a company objective based on the premise that the firm should measure itself primarily against its competition
Competitor orientation
sometimes it is necessary to delete entire product lines to address changing market conditions or meet internal strategic priorities
Decrease Breadth
_______ tend to avoid change, rarely vary from traditional goods and services, and in some cases never attempt to adopt new types of products. Innovators Laggards Early adopters Late majority adopters
Laggards
make up roughly 16 percent of the market. these consumers like to avoid change and rely on traditional products until they are no longer available
Laggards
lowering the price below the store's cost
Loss leader pricing
one firm provides the product or service in a particular industry
Monopoly
those that consumers purchase for status rather than functionality
Prestige products or services
the overall sacrifice a consumer is willing to make to acquire a specific product or service
Price
the one the consumer uses, such as the toothpaste tube
Primary package
products developed by a retailer and sold only by that specific retailer
Private-label brands
anything that is of value to a consumer and can be offered through a voluntary marketing exchange
Product
defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace
Product Life Cycle
Kellogg's has a variety of brands in its cookies and crackers _____, including Cheez-It crackers, Keebler Townhouse Club crackers, Famous Amos cookies, and Keebler Fudge Shoppe. product line product mix marketing mix augmented products brand extension
Product line
groups of associated items that consumers tend to use together or think of as part of a group of similar products or services
Product lines
the complete set of all products and services offered by a firm
Product mix
any intangible offering that involves a deed, performance, or effort that cannot be physically possessed
Service
In the grocery store, you can see the Kellogg's name on its Special K and Rice Krispies cereals, Eggo waffles, and Pop-Tarts. Having the Kellogg's name on all these various products is an example of the use of a family brand. individual brands. co-branding. rebranding. brand association.
a family brand
In theory, the contour of the product life cycle is _______ with regard to sales and profits. circular u-shaped bell-shaped upwardly sloping
bell-shaped
Frito-Lay's spending on advertising and promotion of Doritos's taste and smell was designed to create _____. quality higher prices entertainment brand associations
brand association
A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called ______. profit margin analysis the income effect the contribution per unit break-even analysis
break-even analysis
technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point
break-even analysis
The point at which the number of units sold generates just enough revenue to equal the total costs is the _______. contribution per unit break-even point target return price profit margin
break-even point
Dan Kim does a lot of customer research on his ideas for new products before actually making a prototype. In the new-product development process, this stage is called ______. concept testing beta testing product development test marketing alpha testing
concept testing
In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like, it involves idea generation. concept testing. product development. market testing. product launch.
concept testing
refers to testing new product concepts with groups of target consumers
concept testing
employs irregular but not necessarily illegal methods;
gray market
The _______ stage of the product life cycle is marked by a growing number of product adopters, and increases in both the number of competitors and the number of available product versions. introduction maturity growth decline
growth
A hair stylist who gives a bad haircut in the morning because he or she stayed out late the night before is an example of which core difference when marketing services? Intangibility Serviceability Perishability Heterogeneity
heterogeneity
variability in the service's quality
heterogeneity
. _________ can create excitement and attract customers through the "get them while they last" atmosphere that occurs during a sale. Reference pricing High/low pricing Odd pricing Everyday low pricing
high/low pricing
In the utilities industry, there is generally only one provider of power in each region of the country. This is an example of which level of price competition? Oligopoly Monopoly Monopolistic competition Pure competition
monopoly
Manufacturer brands are also known as _______. private-label brands retail brands store brands national brands
national brands
People who get Botox treatments consider it to be a private matter; therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. trialability complexity observability compatibility relative advantage
obervability
Commercial airline travel in the United States is an example of which level of price competition? oligopolistic competition pure competition monopolistic competition monopolies
oligopolistic competition
Establish a completely new market or radically change both the rules of competition and consumer preferences in a market
pioneers or breakthroughs
Effective service recovery entails all of the following EXCEPT _______. listening to the customer placing blame with the customer to reduce costs resolving the problem quickly providing a fair solution
placing blame with the customer to reduce costs
A tube of toothpaste is an example of a _______ package. external secondary store primary
primary
Consumers typically seek convenience in terms of storage, use and consumption from the _____ package. external labeled primary secondary
primary
Sears sells appliances using its own Kenmore brand name and it sells tools using its own Craftsman brand name. These ______ brands can only be bought at Sears. national private-label manufacturer premium
private label
refers to the customer's perception of the fairness of the process used to resolve complaints about service
procedural fairness
As the marketing vice president of her firm, Jana is considering implementing a company-wide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this? Profit orientation Sales orientation Competitor orientation Customer orientation Market orientation
profit orientation
focusing on target profit pricing, maximizing profits, or target return pricing
profit orientation
when they have a particular profit goal as their overriding concern
target profit pricing
_____ represent(s) a substantial portion of the population, and few new products and services can be profitable until this large group buys them. Laggards Innovators Early adopters The late majority The early majority
the early majority
In the past, Jaleel's vacation time has been spent at home catching a few local attractions when she could afford them. This year, she received a big bonus at work and has decided to finally take the trip to Europe that she has always dreamed about. Jaleel's purchasing behavior has changed due to the income effect. the substitution effect. cross-price elasticity. the complementary products effect. the substitute products effect.
the income effect
collects customer inputs and integrates them into managerial decisions
voice-of-customer (VOC) program
An important marketing metric used to evaluate how well firms perform on the five service quality dimensions is the __________, which refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service. voice-of-customer program zone of tolerance service gap reliability index
zone of tolerance
The _____ measures the difference between what the customer really wants and what he or she will accept before going elsewhere. voice-of-the-consumer zone of tolerance dimensions of service quality standards gap service recovery
zone of tolerance
refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service
zone of tolerance