Marketing management test 2

stability

A firm attempts to find a neutral set point for a price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers. The firm is adopting a(n) ________ pricing strategy.

seeding strategy

A plan for initiating a viral marketing campaign to specific customers is called a(n)

seek out added information about a product for further evaluation

An individual moves through five stages before adopting a product. During the interest stage, consumers

target return

As with average-cost pricing, the effectiveness of ________ pricing is highly dependent on the accuracy of the forecast

what customers will pay

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with

legal

In 1914, the federal government, through the Federal Trade Commission, first ruled misleading or blatantly phony labels were illegal and represented unfair competition. This demonstrates a ________ requirement of labeling.

members of the channel who are targeted for promotion

In a push strategy, the focus is on

protection

In an attempt to reduce product thefts in retail stores, companies include antitheft methodology, such as bar coding or magnetic stripes, in the package design that discourages shoplifting. Which package objective does this exemplify?

attention

In the initial introduction of the Prius, Toyota put much effort into building awareness of the emerging need for hybrid cars and also educating potential customers about what a hybrid car actually is. This is an example of the ________ stage in the AIDA model.

captive

Kallie goes to a store to buy a new liquid soap dispenser. When she purchases a new dispenser from the store she gets two liquid soap refill packets for free, as part of a promotional offer, but she will need to purchase refills later. In this scenario, the pricing strategy used for the soap dispenser is ________ pricing.

percieved quality

Katsuo bought a bicycle from a well-known brand without even considering the other equally good, unbranded bicycles. This shows the advantage that branded products have over unbranded ones in terms of

Select media for use in promotion.

Laurens is the marketing manager for sporting goods store, and he's preparing the company's promotional strategy for a new line of camping gear. He has developed the message for the promotion. What should he do next?

convey a message to customer

Mercedes-Benz offers a lifetime roadside assistance warranty on all of its vehicles, which shows that Mercedes is committed to customer service. This is an example of the ability of a warranty to

competitor based pricing

Mikio owns a driving range in a suburb of Chicago. He has taken notice of the three competitors who are located very close to his business. Mikio decides to look at the other driving ranges' pricing and then determine his best pricing strategy based on all of the information. In this scenario, Mikio is utilizing

Explain how the product can fulfill that particular customer's needs and wants

Nalini is a salesperson for appliances in a hardware and home goods store. She sees a customer testing the settings on a sophisticated model of washing machine. What should Nalini's next step be?

internal marketing

Neil wants to apply marketing concepts and strategies inside his organization, so he ensures that his employees are knowledgeable about company products and can effectively articulate what the company and its offerings stand for. What concept is Neil using?

joint venture

Nickelodeon and Marriott were going to partner to create a kid-friendly chain of vacation-oriented hotels with Nickelodeon-themed water parks. Which approach to co-branding does this exemplify?

prestige pricing

One rationale for establishing a price skimming objective is that ________ lends status to a product or brand by virtue of a price relatively higher than the competition.

a push strategy

Petros is the marketing manager for a pharmaceutical company. His team relies on a combination of personal selling and sales promotions directed toward pharmacies and medical facilities. This is an example of

prestige pricing

Pierre works at a ski shop. He has just gotten a shipment of new snowboards and realizes that the company has priced its snowboards higher than the rest of the boards in his shop. Since Pierre took a marketing class in college, he knows that the company is most likely using

It increases dramatically through both stages

What happens to the sales revenue line on the PLC graph in the introduction and growth stages of the consumer adoption process?

cognitive, affective, behavioral

What three steps do customers pass through when making purchasing decisions?

shopping

When Dave and Bryon remodeled their kitchen, their contractor told them to pick out a refrigerator, dishwasher, and oven. These are examples of ________ goods.

ethical

When a company pays customers for their positive ratings on product user review sites, it may cross a(n) ________ line.

offering legal protection for a product

When a competitor used its logo in a disparaging way in an advertisement, Max Corp. sued. It won the suit on the basis that the competitor violated its trademark. Which company brand role does this scenario exemplify?

bait and switch

When a seller advertises an item at an unbelievably low price to lure customers into a store, and then tells customers that it doesn't have the advertised item and instead pushes a similar item with a higher price and margin, the seller is participating in the illegal practice of

sustaining innovations

When new-to-the-world products are better versions of existing products that target, for the most part, existing customers, then these products are described as

zone

When shipping prices are based on the distance from the shipping location, it is considered ________ pricing

to entertain

Which of these is the least likely to be a purpose of a package?

Brands convey information about a product

Which of these reflects a customer brand role?

earned

________ media refers to a customer or commercial entity choosing to act as a marketing communication channel for the organization at no cost.

community

________ refers to the various ways a site enables user-to-user communications.

salespeople

To encourage the ultimate purchase, marketers often rely on ________ to close the sale.

fixed

To use target return pricing, one must first calculate total ________ costs

stand alone

Unilever, a worldwide leader in consumer products, follows a brand strategy in its personal care division with 21 brands (AXE, Dove, Noxzema, Ponds, etc.) that operate independently of one another. This is an example of ________ branding.

general

Warranties that make broad promises about product performance and customer satisfaction are known as ________ warranties.

develop the product opportunity

What is the third and final activity in new product development?

a good idea is prematurely eliminated during the screening process

While screening and evaluating ideas, a stop-to-market mistake happens when

price

________ is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings

twitter

________ is a social media site where users create and share short-form communications limited to a certain number of characters.

allowances

________ remit monies to purchasers after the fact

customization

ESPN allows each user of the site to customize the homepage to display relevant information in a side column about a given user's favorite teams, including upcoming games, scores, and stories. Which element of the customer interface does this illustrate?

smaller in scope than in consumer markets

For products designed for business markets, market testing is

brand loyalty

Gerard always purchases clothing made by S&G Clothing. He tells others about how much he likes their clothes and the high levels of quality maintained by S&G. When a shirt he purchased turned out to be defective, instead of switching to another clothing company, he gave S&G a chance to fix the problem and still shops there. Which dimension of brand equity does Gerard demonstrate?

promotional allowances

Healthy Living will send retailers a check if the retailer successfully includes its vegetable-based smoothies in its promotional efforts. Healthy Living uses ________ to incentivize retailers

interstitials

In the context of online advertising decisions, ________ are visually appealing, full-page ads that are delivered before the viewer is directed to the intended web page.

core

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________ product.

physical aspects of a product

In the context of product classifications, tangibility refers to the

attention

Martina has developed a new product completely unlike anything else on the market. In which AIDA stage should she spend most of her investment in communication to potential customers?

national

RB Soaps sells its products in every state under the same brand. This is an example of ________ branding.

generate new product ideas.

The first step in the new product development process is to

everyday low pricing

The fundamental philosophy behind ________ is to reduce investment in promotion and transfer part of the savings to lower price.

viral marketing

The immediacy and personalization of social networks and, more broadly, the web itself, set up the environment for

auction pricing

The internet created a rise in ________ as more and more people decided to meet online to sell products to the highest bidder

fail

70 to 80 percent of all new products worldwide

line

A product ________ is a group of products linked through usage, customer profile, price points, and distribution channels

predatory pricing

A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs, is called

temporary

A unique feature of Snapchat is that shared information is

protection

The marketing manager of a store brand pain reliever is designing the package for its new gel-coated capsules. Her main concerns are to design a package that prevents tampering with its contents and keeps children from accessing the product without adult assistance. On which objective of packaging is the marketing manager focusing?

deliver value to the customer

The primary function of marketing and the entire organization, in a broader context, is to

know of the product but have insufficient information to become a dependable user

An individual moves through five stages before adopting a product. During the awareness stage, consumers

trial

An individual purchases a product for the purpose of making a value decision. They are in the ________ stage of the consumer product adoption process.

Dorothea, who works in customer service

The product development team created a prototype of a new widget, and they wanted to get feedback from an internal source. Which person would they be most likely to approach?

new to them

Customers view new products much differently than companies view them. Customers care only if a product is

category

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a ________ extension.

trial purchase

Dorie wanted to find a way to get women to try the company's new shampoo because she knew if she could get them to use it, they would be sold on its features and value. Dorie was referring to a(n)

internal marketing

________ is the application of marketing concepts and strategies inside an organization

reverse auction

Priceline.com is a firm that serves as a clearinghouse for extra capacity from airlines, hotels, and cruise lines. It is an example of a firm that uses a(n) ________ strategy.

communication

Procter & Gamble wanted Crest Vivid White Toothpaste to stand out from competitor brand toothpastes on store shelves, so it created a stand-up package and used a graphics-heavy box. In the context of objectives of packaging, the company focuses on

human resources

Runa understands that the employees at her company have the potential to be strong ambassadors for their brand if they are properly armed and feel the pride of ownership in the brand. Whose help should she enlist to communicate the brand message to employees?

percieved quality

Since Maytag's appliances have earned a reputation as being reliable and durable, John decided to buy a new Maytag washing machine despite the fact that it was more expensive than other brands. Which dimension of brand equity does this example illustrate?

store

Super-Mart decides to create its own brand of personal care products. It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry Super-Mart's name. This is an example of ________ branding.

connect to the customer

The marketing manager of a food packaging company is working on the package for a new line of self-steaming microwaveable vegetables. The manager wants the package to show a physically fit individual happily eating the product in order to make customers believe it is a good product for them. In this case, on which objective of packaging is the marketing manager focusing?

helping reassure the customer in the purchase decision

The owner of Inventions Lawn Service is looking to buy a new lawn tractor, a major purchase and significant financial investment. The owner decides to purchase a Dixie Chopper because of its reputation for dependability and excellent customer service, which made him feel more secure and less anxious about choosing this product. Which customer brand role does this scenario exemplify?

introduction, growth, maturity, and decline

The product life cycle (PLC) defines the life of a product in four basic stages, which include

target return on investment

Zelda is opening an appliance store. She has estimated a monthly profit goal based on her anticipated expenses and earnings goals and uses it to set product prices. Zelda is implementing a ________ pricing strategy.

National

________ brands enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications and distribution.

a price war

________ can occur when a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share.

competitor based pricing

________ could lead the marketing manager to decide to price at some market average price, or perhaps above or below it in the context of penetration or skimming objectives.

price fixing

________ could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits