MKT 320: Exam 3 Review

__________ research is a type of quantitative research that manipulates variables to help determine cause and effect. A. Descriptive B. Syndicated C. Manipulative D. Focus group E. Experimental

E. experimental

Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on A.a demand curve. B. the law of averages. C. multiple regression analyses. D. target return strategies. E. a sales orientation.

A. a demand curve

Margaret has been invited to a fancy dinner party and wants to bring a good bottleof wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as A. an indicator of quality. B.a reflection of status quo pricing. C. an indicator of the variety. D. a measure of scarcity. E. a measure of the income effect.

A. an indicator of quality.

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ isthe most important of the five service quality dimensions. A. assurance B. reliability C. tangibles D. responsiveness E. empathy

A. assurance

Supermarkets collect information about individual customers through their use of loyalty cards, and then analyze the data to look for patterns in purchases. This is an example of A. data mining. B. data recovery. C. data entry. D. data analysis. E. data modeling.

A. data mining

In a __________ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases. A. high/low B. premium C. discount D. horizontal flattening E. vertical triangulation

A. high/low

Marvin is looking for data to help him with a new market research study assigned to him. When reviewing existing secondary data from a past research study, Marvin should pay careful attention to A. how the secondary data were collected. B. where the data were warehoused. C. whether or not the Census Bureau has certified the research. D. whether the data were transformed into information. E. how often primary data were substituted for secondary data.

A. how the secondary data were collected

In determining the price for his company's new small business accounting software, Raymond is assessing how much better the software is as compared to alternative products available in the market. Raymond is using __________ pricing. A. improvement value B. odd-even C. everyday low pricing D. reference-based E. cost-based

A. improvement value

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) A. knowledge gap. B. standards gap. C. ethics gap. D. delivery gap. E. communications gap.

A. knowledge gap

When HP first introduced their inkjet printers, consumers could only buy refill cartridges from HP. HP made significant profits from the sale of replacement cartridges. In this situation, HP logically used a __________ pricing strategy for their printers. A. market penetration B. loss leader C. price fixing D. reference E. skimming

A. market penetration

With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service. A. market penetration B. bundling C. price fixing D. reference E. skimming

A. market penetration

When consumers are unable to articulate their experiences, __________ becomes particularly useful in understanding consumers' preferences. A. observation B. surveying C. in-depth interviewing D. primary data mining E. a focus group

A. observation

In _______ many firms provide similar products that are considered substitutes for each other. A. pure competition B. oligopolistic competition C. monopolistic competition D. a monopoly E. a duopoly

A. pure competition

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct A. quantitative research. B. data warehousing. C. syndicated marketing surveys. D. qualitative research. E. research design.

A. quantitative research

Mary decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer. By sending proof of purchase and the receipt to the manufacturer, she could receive a $40 check in return, making the final price $60. This pricing tactic is known as a A. rebate. B. markdown. C. coupon. D. cash discount. E. price line.

A. rebate

Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby. Which of the servicequality building blocks caused Monique toselect an alternative venue? A. tangibles B. reliability C. responsiveness D. assurance E. empathy

A. tangibles

Christina owns and operates a shop that sells home furnishings. One of her vendors has just offered her a greatly reduced price for some traditional Christmas decorations, even though it is really too early to be thinking about holiday merchandise. One of the main pricing issues Christina will have to address as she considers the offer is A. whether the cost reduction will be low enough to cover the additional inventory costs she will have to incur. B. whether she can get an even lower price by waiting. C. whether the company is going out of business. D. whether this offer is legal. E. whether she should open a Christmas shop instead of her home furnishing store.

A. whether the cost reduction will be low enough to cover the additional inventory costs she will have to incur.

Omar is responsible for marketing and marketing research for a mid-sized manufacturer of assemblies for the housing market. His boss has asked him to cut back expenses, especially in marketing research: "Why can't you just use information off the Internet? There's plenty out there." What is Omar's best response to try to get his boss to change his mind? A. "Wecan try, but if it's wrong it's not my fault." B. "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk." C. "I'd rather not use any data at all thanuse secondary data." D. "This is a matter of quality. If it's not primary data, it's useless as it does not produce favorable recommendations" E. "You should never use any information from the Internet in marketing research."

B. "Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk."

Jake developed a toothpasteusing only natural ingredients, and he has been quite successful selling the product in health food stores and some grocery stores. He has recently developed a toothbrush using bamboo and natural components. Jake is considering a __________, giving the toothbrush the same brand name as the toothpaste in order to have greater brand awareness. A. co-brand B. brand extension C. premium brand D. joint brand E. natural brand

B. brand extension

Reese and Janelle own a boutique in the United States. Recently they took a trip to China and while there, the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States. Upon their return, the couple sold the handbags in their store for less than any other store in the area. This is an example of what takes place in a(n) _______market. A. black B. gray C. unsupervised D. oligopolistic E. unauthorized

B. gray

When marketers state that services are __________, they are referring to the fact that services are produced and consumed at the same time. A. intangible B. inseparable C. variable D. perishable E. peripheral

B. inseparable

Jackson manages an upscale French restaurant in the Washington, D. C., area. His restaurant offers a few specials each evening in addition to its regular menu. Jackson has trained his waiters and waitresses to report comments and requests for items that have previously only been offered as specials. Jackson uses this information to reduce the __________ gap in services marketing. A. seniority B. knowledge C. standards D. delivery E. communication

B. knowledge

Whether they like them or not, most U.S. automobile customers are familiar with and have an opinion about American-made cars. This familiarity makes it easier for consumers to A. meet their self-actualization needs. B. make purchase decisions. C. consider repositioning their opinions. D.pursue generic alternatives. E. negotiate discounts.

B. make purchase decisions.

The _______ is the ratio of the percentage change in quantity demanded to the percentage change in price. A. cross-price elasticity of demand B. price elasticity of demand C. income elasticity of demand D. break-even point E. demand curve

B. price elasticity of demand

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers'__________ perceptions. A. fixed price B. reference price C. seasonal price D. leader price E. cost-based price

B. reference price

Bernard's firm has set corporate directionto become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objectivewould guide Bernard's effort? A. industry-oriented B. sales-oriented C. competitor-oriented D. innovation-oriented E. customer-oriented

B. sales-oriented

It is almost impossible to watch a sporting event on television without seeing Nike's "swoosh" check mark, which is Nike's A. name. B. symbol. C. design. D. term. E. theme.

B. symbol

Which of the following is NOT one of the five dimensions used by consumers to determine overall service quality? A. assurance B. reliability C. acceptability D. responsiveness E. empathy

C. acceptability

Dopson's Hardware was in bad financial shape. They owed so much money that vendors put the store on a cash-only delivery basis. As a result, the store had a dwindling inventory of goods to sell. Whenever a customer asked about an unavailable item, the owner directed the sales staff to say that it was on back order and would be in stock next week. When the customer returned, the item was still unavailable. The owner's policy created a(n) __________ gap. A. knowledge B. empowerment C. communication D. standards E. tangibility

C. communication

Martin has hired a market research company to bring together a small group of soft drink consumers and get feedback on the three new advertising slogans his firm is considering. The market research firm might conduct a(n) __________ to provide the information Martin has requested. A. industry survey B. experiment C. focus group D. observational study E. primary data mining analysis

C. focus group

Which of the following is the most logical example of complementary products? A. hot dogs and hamburgers B. VCRs and DVD players C. hot dogs and hot dog buns D. Honda cars and Toyota cars E. a university and a corporation

C. hot dogs and hot dog buns

Using __________, researchers ask questions, listen to and record responses,and ask additional questions based on initial responses. A. questionnaires B. experiments C. in-depth interviews D. primary data mining E. observation

C. in-depth interviews

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant __________, a large number of items in each product line. A. brand equity B. product line breadth C. product line depth D. product mix depth E. product mix breadth

C. product line depth

Janice is the marketing manager for a major snack food company. She is explaining to a team of investors the range of products that the company offers. In answering the questions, she must explained that the complete set of all productsoffered by a firm is called its A. product line. B. product categories. C. product mix. D. product breadth. E. product line depth.

C. product mix

Because services are intangible, it is often difficult for customers to determine how a service meets their expectations, which marketers call A. service perceptions. B. service efforts. C. service quality. D. service aspirations. E. service feedback.

C. service quality

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists. A. seniority B. knowledge C. standards D. delivery E. communication

C. standards

Jalel is the marketing manager for moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jalel will most likely use __________ to gather this type of data. A. focus groups B. observation C. syndicated data D. sales invoices E. census data

C. syndicated data

Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of _______ on demand for his service. A. break-even points B. the price inelasticity ratio C. the income effect D. the target return effect E. cross-price elasticity

C. the income effect

Desiree is a marketing manager with the Deja Blue Company. She is charged with developing a credible and simple way to explain to the new product line associates the specific components of the new Blue Elephant product. She explained that while the brand name and packaging are critical parts of the product, there are other factors that are equally important, including all of the following except?A.Financing B.Support C.Warranty D.Licensing E.Packaging

D. Licensing

In a __________ pricing tactic, sellers advertise low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price. A. fixed offer B. reference C. seasonal D. bait and switch E. cost-based

D. bait and switch

Which of the following is not one of the five Cs of pricing? A. customers B. channel members C. cost D. collaboration E. company objectives

D. collaboration

Traditional demand curve economic theory is used by marketersto understand _______ in the five Cs of pricing. A. competitors B. channel members C. cost D. customers E. company objectives

D. customers

Through analysis of sales data, Price-Cutters retail store found that customers who bought peanut butter also tended to buy bananas. Price-Cutters was engaged in A. syndicated surveying. B. focus group analysis. C. behavioral analysis. D. data mining. E. structured sampling.

D. data mining

Saltdust Grill is known as the premier restaurant in town. With their elegant dining area, extensive winelist, and gourmet chef, residents and tourists flock to the restaurant. Recently, Trey took a large group to the Saltdust Grill and almost every diner sent their entrée back to the kitchen. The Saltdust Grill was experiencing a(n) __________ gap in service quality. A. knowledge B. communication C. standards D. delivery E. empowerment

D. delivery

Which of the following is NOT a common business-to-business pricing tactic? A. seasonal discounts B. slotting allowances C. quantity discounts' D. loss leader pricing E. advertising allowances

D. loss leader pricing

For a major university, undergraduate studies, graduate studies, and professional programs would be __________ within the university's product mix. A. brand associations B. family brands C. co-brands D. product lines E.private label brands

D. product lines

In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy. A. improvement value B. odd-even prices C. everyday low pricing D. reference prices E. cost of ownership

D. reference prices

How can a company find its way out of a market characterized by pure competition? A. Consistently offer the lowest price until other competitors leave the market B. Increase prices and attract different, quality-oriented customers C. Decrease the amount of available product until the market reacts D. Increase the amount of available product to flood the market E. Differentiate the product in some way, even by packaging, so customers will see it as distinct

E. Differentiate the product in some way, even by packaging, so customers will see it as distinct

__________ price fixing occurs when competitors collude to control prices, and __________ price fixing occurs within a marketing channel to control prices passed on toconsumers. A. Industry; supply chain B. General; specific C. Widespread; integrated D. Strategic; tactical E. Horizontal; vertical

E. Horizontal; vertical

When Greenbelt Construction Company began building houses in a large subdivision with many other builders, they priced their homes slightly higher than their competitors and promoted the added quality features in their homes. Greenbelt was using a(n) __________ pricing strategy. A. improvement value B. value-based C. everyday low pricing D. reference-based E. competitor-based

E. competitor-based

In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products availablein the market. Raymond is using __________ pricing. A. improvement value B. odd-even C. everyday low pricing D. reference-based E. cost of ownership

E. cost of ownership

Compared to other pricing methods, __________ pricing is relatively simple. A. improvement value B. value-based C. cost of ownership D. reference-based E. cost-based

E. cost-based

Retailers use __________ because they believe the use will induce customers to try new products, convert first-time users to regular users, increase purchases, and protect market share. A. seasonal discounts B. rebates C. cumulative quantity discounts D. noncumulative quantity discounts E. coupons

E. coupons

When a firm sets its pricingstrategy based on how it can add value to its products or services it has embraced a(n) _______ orientation to pricing. A. industry B. sales C. competitor D. production E. customer

E. customer

A "no haggle" pricing policy is a type of _____ pricing strategy. A. maximizing profits B. sales orientation C. target return D. status quo E. customer-oriented

E. customer-oriented

A _______ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen. A. sales orientation B. target profit C. target return D. status quo E. maximizing profits

E. maximizing profits

Yolanda manages a Best Sleep Inn along an interstate highway. She knows from experience that five to ten last-minute customers will call after 8 p.m. each evening looking for a room and asking the price. Yolanda has empowered her staff to offer discounts when the motel is largely vacant, and to quote the standard price when the motel isclose to full. She knows her service is __________, meaning that if no one stays in the room, it generates no revenue that evening. A. intangible B. inseparable C. variable D. durable E. perishable

E. perishable

If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with A. loss leader pricing. B. bait and switch pricing. C. price fixing. D. unfair slotting. E. predatory pricing.

E. predatory pricing

A demand curve shows the relationship between _______ in a period of time. A. income and demand B. price and costs C. price and elasticity D. profit and price E. price and demand

E. price and demand

Cosmetic retailers often have one price for each item but another price for three or four similar items with the same brand, all attractively packaged together. These retailers are using A.price lining. B.slotting allowances. C.cumulative quantity discounts. D.loss leaders. E.price bundling.

E. price bundling

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ballin the rough, he gives it away. Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively A. increased the income effect for its products. B. increased the cross-price elasticity for its products. C. focused on the competitive parity point for its products. D. shifted the golf ball market from a monopoly to pure competition. E. reduced the price elasticity of demand for its products.

E. reduced the price elasticity of demand for its products.

The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use __________ to overcome the problem of inseparability of services. A. promotional discounts B. zone of tolerance allowances C. perishability gap analysis D. point-of-purchase displays E. satisfaction guarantees

E. satisfaction guarantees

Kayla is the new manager of a resort hotel. She knows from reviewing customer complaints that service quality at the hotel is not consistently meeting customers' expectations, and she believes that the biggest problem is that her employees are not sure what is expected of them. To improve service quality, Kayla will A. empower customers to meet their own service needs. B. establish a broad zone of intolerance to reduce customer complaints. C. narrowly define a knowledge gap. D. separate intangibles from tangibles. E. set specific, measurable goals based on customers' expectations.

E. set specific, measurable goals based on customers' expectations.

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price A. penetration. B. bundling. C. fixing. D. referencing. E. skimming.

E. skimming

When Apple Computer Company introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy. A. market penetration B. slotting allowance C. price fixing D. reference price E. skimming

E. skimming

Earl was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Earl perceived price as _______ for a good or service, while most consumers recognize price as the _______ made to acquire a good or service. A. the money paid; overall sacrifice B. a variable cost; fixed cost C. a fixed cost; variable payment D. the overall sacrifice; monetary payment E. the break-even amount; total cost

A. the money paid; overall sacrifice

When a salesperson approaches you to sell a cemetery plot, this is considered what type of product? A. unsought product B. shopping product C. convenience product D. line extension E. secondary product

A. unsought product

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms. A. 100 B. 1,500 C. 20,000 D. 1,000 E. it cannot be determined from the information provided.

B. 1,500

Marlie designs and manufactures specialty furniture. She has a number of unique products but can onlyproduce in limited quantities. Marlie will probably NOT use a market penetration strategy because A. there are few barriers to competitive entry in the market. B. she could not meet a rapid rise in demand. C. a low price would indicate low quality. D.she would have to determine zone pricing discounts. E. the experience curve effect would drop unit costs too rapidly.

B. she could not meet a rapid rise in demand.

Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably A. price sensitive. B. price elastic. C. price inelastic. D. income elastic. E. cross-price elastic.

C. price inelastic

When marketers state that services are ____________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another. A. intangible B. inseparable C. variable D. perishable E. viable

C. variable

Which of the following is NOT one of the four criteria used for determining how "good" a brand is? A. brand awareness B. brand loyalty C. brand associations D. brand conceptualization E. brand perceived value

D. brand conceptualization

__________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. A. Brand positioning B. Brand licensing C. Brand association D. Brand equity E. Brand solvency

D. Brand equity

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount oftime consumers are willing to wait varies with the type of store. A. voice-of-customer quotient B. empowerment standard C. tangibles gap D. zone of tolerance E. quality gap

D. zone of tolerance

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60, and variable cost per unit is $20, the break-even point is A. 100 units. B. 4,000 units. C. 20 units. D. 1,000 units. E. 250 units.

E.250 units