Marketing Exam #3

Carmike Stadium increased the price of a movie by 16% and, as a result, experienced an 8% decline in sales. The value of price elasticity is ____, so that Carmike's demand would be _____.

0.5; inelastic

4 factors of service quality

1. analysis of customer expectations 2. service quality specifications 3. manage of service expectations 4. employee performance

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

Training employee and develop standard procedures for dealing with customers

Customization of internal marketing involves

adapting marketing strategy and marketing mixes according to cultural, regional, and national differences

Which of the following is most likely to have an elastic demand curve? Gasoline, electricity, salt, airline tickets for vacation travel, or a textbook required for a course

airline tickets for vacation

Out of a specialty retailer, _____ compete primarily on the basis of low prices and enormous product availability, and Best Buy, PetSmart, and Staples are all examples of ______

category killer

The idea that morality varies from one culture to another and that business practices are therefore differently defined as a right or wrong by particular cultures

cultural relativism

When a customer is considering the purchase of a product in a less-familiar and less-experienced product category, that individual is likely to rely more heavily on

external reference prices

Barter is the oldest form of exchange, but does not exist in the current marketplace. T/F

false

Demand depends only on the price of the product. T/F

false

If a product has an inelastic demand curve and the manufacturer raises its price, total revenue will decrease. T/F

false

If concert tickets are not sold, seats will remain empty and they can never be sold to anyone again. This is an example of intangibility among characteristics of services. T/F

false

Search quality is based on service attributes such as taste, satisfaction, or pleasure, that can be assessed during purchase and consumption of a service. T/F

false

When choosing international franchising, it is impossible for a global company to retain control of its name and increase global penetration. T/F

false

The more human labor involved with delivering a service, the greater the degree of homogeneity. T/F

false (heterogeneity)

A retailer is an organization that purchases products for the purpose of reselling them to the other retailers. T/F

false (reselling to consumers)

A duty levied by a nation on goods bought outside its borders and brought inside is a(n)

import tariff

The primary advantage of automatic vending as a form of retailing is that

it eliminates the need for sales personnel

Immediately after the breakeven point, a firm starts to

make profits

The selling of merchandise outside the confines of actual facilities is called

nonstore retailing

The practice of contracting noncore operations or jobs from internal production within a business to an external entity that specializes in that operation

outsourcing

The fact that services cannot be inventoried and then sold at a later date is called

perishability

Measure of sensitivity of demand in relation to changes in price

price elasticity of demand

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the _____

quantity demanded goes down

When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves in Japan, that firm is facing a(n)

quota

5 dimensions of service quality

reliability, tangibles, responsiveness, assurance, and empathy

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

specialty retailers

Business partnerships that are formed between traditional rivals competing for the market share in the same product class with the goal to share and utilize their strengths

strategic alliance

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

the generation of total revenue

_______ link buyers and sellers in different countries and are not involved in manufacturing process.

trading companies

The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n)

trading company

When products are introduced into one nation from another, acceptance is more likely is there are similarities between the two cultures. T/F

true

This type of communication is important in service promotion because of heterogeneity and the intangibility of services

word of mouth

The difference between desired level and acceptable level of service quality that customers expect to receive.

zone of tolerance