Marketing Exam 2

According to the lecture, how many "Ps" are there in Services Marketing a. 7 b. 4 c. 5 d. 3

a. 7

A set of human characteristics associated with a brand name is referred to as a. product personification b. a brand personality c. a symbolic brand d. a brand psychographic

b. a brand personality

Product repositioning is a. changing the place an offering occupies in a consumer's mind relative to competitive products b. the practice of selling a firm's least successful product line and redirecting that revenue into a totally new product c. the place a product offering occupies in consumers' minds on important attributes d. the competitive advantage of one product over another

a. changing the place an offering occupies in a consumer's mind relative to competitive products

Products that are purchased by the ultimate consumer are a. consumer products b. personal items c. merchandise d. end user goods

a. consumer products

Sending ads to people aged 70-85 with a net worth above $500,000 is an example of what type of segmentation? a. demographic b. ethnographic c. psychographic d. behavioral

a. demographic

Sending ads to people that live within a 10-mile radius of an amusement park is an example of what type of segmentation? a. geographic b. psychographic c. ethnographic d. behavioral

a. geographic

According to the lecture, if the buyer is bearing the costs of the purchase, then the price sensitivity would likely be a. high b. low

a. high

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as a. loss-leader pricing b. bundle pricing c. predatory pricing d. below-market pricing

a. loss-leader pricing

Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as a. product repositioning b. product modification c. perceptual mapping d. market modification

a. product repositioning

Reduction in unit costs for a larger order are referred to as a. quantity discounts b. promotional allowances c. penetration pricing d. case allowances

a. quantity discounts

Customer lifetime _______ represents the financial worth of a customer to a company over the course of their relationship a. value b. revenue c. usage d. profitability

a. value

A perceptual map is a. a framework used to demonstrate the growth or decline of specific market segments within an industry b. a means of displaying in two dimensions the location of its own and competing products or brands in the minds of consumers c. a framework to relate the market segments of potential buyers to the products offered or potential marketing actions by an organization d. a framework used to compare one firm's product offerings with another firm's offerings in relationship to their relative market share

b. a means of displaying in two dimensions the location of its own and competing products or brands in the minds of consumers

The 80/20 rules suggests that a. about 80% of a firm's products will be sold to ultimate consumers while 20% goes to organizational buyers b. about 80% of a firm's sales are obtained from about 20% of its customers c. nearly 80% of a firm's first-time users will become brand loyal while only 20% will use the product only once and then abandon it d. around 80% of a firm's inventory should be readily available while 20% should be reserved for emergency demand

b. about 80% of a firm's sales are obtained from about 20% of its customers

Trading up refers to a. adding product features but reducing the price b. adding value to the product (or line) through additional features or higher-quality materials c. changing the distribution channel members to higher-service-quality retailers d. reallocating marketing resources from a poor-performing target market to one that demonstrates greater potential for future growth

b. adding value to the product (or line) through additional features or higher-quality materials

Which of the below is not a marketing reason for new product failure? a. bad timing b. all of these are marketing reasons for new product failure c. insignificant point of difference d. failure to satisfy consumer needs on critical factors

b. all of these are marketing reasons for new product failure

Targeting is a. buying data from third-party providers to serve ads to unsuspecting consumers b. assessing the attractiveness of segments and choosing which segments to focus on c. selecting which industry to compete in d. creating advertisements that relate to specific ethnicities

b. assessing the attractiveness of segments and choosing which segments to focus on

Customer's subjective and intangible assessment of a brand, above and beyond its objectively perceived value is called a. positioning b. brand equity c. brand value d. subjective value

b. brand equity

The lecture compares the role of a brand manager to what job? a. editor of a newspaper b. conductor of an orchestra c. supervisor on a construction team d. dean of a university

b. conductor of an orchestra

The ratio of a firm's sales revenue or unit sales to those of the industry (competitors plus the firm itself) is referred to as a. industry profit b. market share c. target return on sales d. unit volume

b. market share

Tailoring products or services to the tastes of individual customers on a high-volume scale is a. economies of scale marketing b. mass customization c. build-to-order d. family branding

b. mass customization

_____ are character descriptions of a brand's typical customers, complete with fictional narratives a. protagonists b. personas c. roles d. identities

b. personas

All of the different product lines offered by an organization are collectively referred to as a a. product SKU b. product mix c. marketing mix d. product class

b. product mix

Price is what the consumer PAYS, value is what the consumer a. purchases b. receives c. accepts d. negotiates

b. receives

What is NOT one of the common approaches to find an approximate price level? a. competition-oriented approaches b. sales-oriented approaches c. demand-oriented approaches d. cost-oriented approaches

b. sales-oriented approaches

Product-line pricing refers to a. adding a fixed percentage to the cost of all items in a specific product class b. setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item c. deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well d. the marketing of two or more products in a single package

b. setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item

What type of demand-oriented pricing approach sets the highest initial price that customers who really desire the product are willing to pay and then lowers the price when competition enters the market? a. penetration pricing b. skimming pricing c. yield management pricing d. prestige pricing

b. skimming pricing

According to the lecture, which of these statements is most likely a benefit vs. a reason to believe (RTB)? a. made with recycled materials b. will increase your flexibility c. packed with Omega 3s d. smallest pill on the market

b. will increase your flexibility

The product life cycle is a. the amount of time it takes a product innovation to completely diffuse in the marketplace b. a concept that describes the stages a new product goes through from product concept to commercialization c. a concept that describes the stages a product goes through in the marketplace; introduction, growth, maturity, and decline d. the average life span of a product

c. a concept that describes the stages a product goes through in the marketplace; introduction, growth, maturity, and decline

Segmentation is a. sorting prospective buyers into groups that are willing to pay more than the cost of production for a good or service b. the philosophy that to do a truly excellent job of marketing, a company should concentrate on only one customer segment at a time c. aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action d. the belief that it is possible to satisfy every customer's needs if you can identify the correct segment within which they belong

c. aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action

The precision effect is a psychological effect that says that when sellers use a more precise selling price a. buyers are more likely to negotiate b. buyers become suspicious of the price c. buyers are less likely to negotiate d. buyers will immediately agree to the price

c. buyers are less likely to negotiate

Which stage of the product life cycle do products usually lose the most money? a. growth b. decline c. introduction d. maturity

c. introduction

According to the lecture, how could dynamic pricing go wrong? a. if competitors are also using dynamic pricing b. if the wrong reference prices are applied c. if consumers are caught off guard by real-time pricing changes d. if the AI engine running dynamic pricing malfunctions

c. is consumers are caught off guard by real-time pricing changes

A nondurable good is a(n) a. product purchased only for the use of ultimate consumers b. item that usually lasts over an extended number of uses c. item consumed in one or a few uses d. item that lasts at least one year without becoming obsolete

c. item consumed in one or a few uses

A research report shows that the top three words consumers associate with the company Meta are "metaverse, immoral, evil". This is an example of Meta's a. strategy b. targeting c. position d. positioning

c. position

Contribution margin is a. price - fixed cost b. price - associated cost c. price - variable cost d. price- total cost

c. price - variable cost

A company uses _______ when it manufactures products but sells them under the brand name of a wholesaler or retailer a. do-branding b. manufacturer branding c. private branding d. generic branding

c. private branding

A discontinuous innovation is a product that a. initiates obsolescence of a product class b. disrupts consumers' normal routine but does not require totally new learning c. requires consumers to learn entirely new patterns of behavior and product usage d. requires no new learning by consumers

c. requires consumers to learn entirely new patterns of behavior and product usage

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are a. ideas b. goods c. services d. products

c. services

Which of the following is NOT identified in the text as a factor that can help identify pricing constraints? a. demand for the product class, product group, and brand b. type of competitive environment c. shareholder profit expectations d. cost of producing and marketing the product

c. shareholder profit expectations

Cost plus pricing refers to a. setting prices to achieve a profit that is a specified percentage of the sales volume b. setting the price of a line of products at a number of different price points c. summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price d. adding a fixed percentage to the cost of all items in a specific product class

c. summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price

According to the lecture, a positioning statements answers which question? a. what is the company vision? b. where can i buy? c. why should i buy? d. how am i viewed?

c. why should i buy?

John's Peanut Butter sells 200 units at $3.00/unit. The total units sold in the peanut butter category are 500 units. The total revenue in the category is $1,000. What is John's Peanut Butter's dollar share of the category? a. 40% b. 50% c. 20% d. 60%

d. 60%

Which is NOT one of the six steps in setting price? a. estimate demand & revenue b. determine cost, volume, and profit c. set the price d. ask consumers

d. ask consumers

When a product spreads through the population, it is called the _______ of innovation a. dispersal b. adoption c. proliferation d. diffusion

d. diffusion

Which is not one of the types of segmentation mentioned in the lecture video? a. geographic b. behavioral c. psychographic d. ethnographic

d. ethnographic

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as a. trade-in allowances b. everyday value pricing c. markdown pricing d. everyday low pricing

d. everyday low pricing

What is the first step in setting the price? a. determine cost, volume, and profit b. estimate demand & revenue c. ask consumers d. identify pricing objectives and constraints

d. identify pricing objectives and constraints

According to the lecture, which is NOT one of the "Four I's" that make service marketing so challenging? a. inventory b. intangible c. inconsistent d. incomparable

d. incomparable

According to the lecture, Netflix leverages a _______ price approach a. skimming b. odd-even pricing c. bundle pricing d. penetration

d. penetration

According to the lecture, which one of these is NOT a component of a Positioning statement a. reasons to believe b. target market c. benefit/USP d. price

d. price

Sending ads to people who love yoga and care about animal rights is an example of what type of segmentation a. ethnographic b. behavioral c. demographic d. psychgraphic

d. psychographic

According to the lecture, what are the two simplified factors to consider when selecting your target market? a. where to play, how to win b. size of prize, where to play c. right to win, how to win d. size of prize, right to win

d. size of prize, right to win

According to the lecture, what is the name of a process that many companies use to evaluate new product ideas in order to increase the likelihood of success? a. innovation incubation process b. SUCCESS process c. new product funnel process d. stage gate process

d. stage gate process

According to the lecture, what does the cash discount "2/10 Net 30" mean? a. the buyer gets a 10% discount if they pay within the first 30 days, otherwise they only get a 2% discount b. the seller gets a 10% bonus if the product is sold in the first 30 days, otherwise they get the regular price unless it takes 2 years to sell c. the seller gets a 2% bonus if the product is sold in the first 10 days, otherwise they get the regular price if it's sold within 30 days d. the buyer gets a 2% discount if they pay in the first 10 days, otherwise they must pay the full price within 30 days of the sale

d. the buyer gets a 2% discount if they pay in the first 10 days, otherwise they must pay the full price within 30 days of the sale

True/False: A company CANNOT shift the demand curve for the types of products it sells

false