marketing quiz 3
cash discounts
Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?
testimonial evidence
Maybelline used Sarah Michelle Gellar, an actress, to endorse a new range of cosmetics. This message execution style is referred to as ________.
captive product pricing
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?
contract manufacturing
One market entry strategy is __________, in which the company makes agreements with companies in the foreign market to produce its product or provide its service.
by-product
Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.
Licensing, contract manufacturing, management contracting, and joint ownership
What are the four types of joint venture entry strategies?
To deliver clear, consistent, and compelling company and brand messages
What is the goal of integrated marketing communications?
The risks the firm faces
What is the main disadvantage of direct investment?
Through exporting
What is the simplest way to enter a foreign market?
market-skimming
When Apple Computer Company introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a(n) __________ pricing strategy.
False
When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is using market-skimming pricing.
comparative advertising
When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________.
product invention
When using the global product strategy of __________, companies create something new to meet the needs of consumers in a given country.
informative advertising
When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?
Licensing
Which joint venturing method typically involves fees and royalty payments?
Direct investment
Which market entry strategy has the greatest amount of commitment, risk, control, and profit potential?
Panizza, whose combo meals are priced lower than its individual components sold together
Which of the following companies uses product bundle pricing?
discount and allowance pricing
Which of the following is a price adjustment strategy?
Foreign firms expand aggressively into new international markets.
Which of the following is most likely to be the consequence of increased growth of global trade?
It involves decreased control over the manufacturing process.
Which of the following is true of contract manufacturing?
It can be profitably used when the product's quality and image support its price.
Which of the following is true of price skimming?
deciding which markets to enter
Which of the following major decisions should a company make immediately after it decides to operate internationally?
mature brands
Which of the following most likely requires the smallest advertising budget?
For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
Which of the following statements is true concerning new product pricing strategies?
comparative advertising
Which of the following types of advertising will most likely result in an advertising war?
Personal selling
Which promotional tool includes presentations, trade shows, and incentive programs?
Advertising
Which promotional tool is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor?
product adaptation
Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the world, whether it's mango-and-orange flavored Oreos in the Asia Pacific region, green tea Oreos in China, a chocolate and peanut variety in Indonesia, or banana and dulce de leche in Argentina. This is an example of ________.
by-product
A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.
reminder
A product in the maturity stage will most likely require ________ advertising.
captive-product
Gillette charges a fairly low price for their razors (relative to costs) and a high price for razor blades. They are using a strategy of __________ pricing.
product line pricing
Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?
how to enter the market
Immediately after deciding which markets to enter, the company should determine ________.
market-penetration pricing
In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?
reminder
Keeping the brand in a customer's mind during off-seasons is most likely a goal of ________ advertising.
personality symbols
The advertisements that use the Aflac duck or the GEICO gecko are using the message execution style of ________.
seasonal discount
The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.
direct exporting
Think Ink is a growing company that sells a variety of inks for home and business printers. Management at Think Ink has decided to open a sales branch overseas to handle sales and distribution abroad. Think Ink is engaging in ________.
Where should we produce or source our products?
Which question should most likely be answered by all companies due to the rapid move toward globalization?
product line
Whirlpool washers and dryers are offered in many different models. Whirlpool will use __________ pricing to determine the price steps between the different models.
promotional allowances
A soda pop company offers a discount to a grocer. In exchange, the grocer agrees to provide in-store advertising for the soda pop and additional sales-support. This is an example of __________.
lifestyle
An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time." This ad uses the ________ execution style.
slice of life
An ad for a new convection oven shows a busy professional woman using the convection oven to cook dinner for her family. Which of the following message execution styles is illustrated in this example?
remind
An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________.
A straight product extension
Apple iPads, Gillette razors, and Black & Decker tools are all sold successfully in about the same form around the world. This is an example of which global strategy?
global
A ________ firm is one that, by operating in more than one country, gains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.
competitors can undercut prices easily
A market-skimming pricing strategy should NOT be used for a new product when ________.
joint ownership
Campbell Soup recently joined forces with Hong Kong-based Swire Pacific to form an entity called Campbell Swire to better distribute the company's soups in China. This is an example of ________.
By-product pricing
Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent?
Product adaptation
Dunkin Donuts has added menu items that meet the unique taste buds of customers in local markets, for example, mango pudding donuts in China. This represents which global product strategy?
persuasive
Encouraging customers to switch brands is most likely the objective of ________ advertising.
personal selling
Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________.
product-bundle
Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of __________ pricing.
indicator of quality
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as a(n) __________.
wherever it can do the best job
Since the global company sees the world as one market, it raises capital, obtains components and materials, and manufactures and markets its goods ________.
public relations
Specific promotional tools used in __________ include press releases, sponsorships, events, and web pages.
access to new consumer markets
What did Selman & Saks hope to gain by entering the French market?
Sales promotion
__________ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service.
Reach
________ is a measure of the percentage of people in a target market who are exposed to an ad campaign during a given period of time.
Direct and digital marketing
__________ involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
