MKT quizzes 6-11

Assume that a company has $600,000 in Fixed Costs. It produces a product that it sells for $5 and the variable cost is $2. What is the firm's break even in terms of units sold

200,000

Which of the following is NOT a Primary Link on the Value Chain

Accounting and finance

Coca Cola doesn't need to sign a contract with Vons to carry its soda. Rather, it uses its brand power to negotiate the best placement in the store. This type of marketing system is best described as _______________

Administered Vertical Marketing System

From the economic system's point of view, the role of marketing intermediaries is to transform the _____ made by producers into the _____ wanted by consumers.

Assortment of products: Assortment of products , Products: Products

According to the AIDA model, advertising is better at driving _____________ than it is at driving ______________.

Attention and interest

The cost of making an Apple Computer is not that much higher than the cost of making a Toshiba. Yet, Apple is able to command a higher price premium because it has _______________

Brand Equity

Farmer Jack is able to lower the price on his milk because he sells the cow poop for extra cash. This is an example of

By-product pricing

When ATT sets the general price range of its phone low and its calling plans high, it is practicing _____

Captive-Product

julia tries on dozens of dresses at three different shops. She finally settles on a designer Mermaid style dress for $3,000. She orders the dress and 3 months elapse between when she orders the dress and her first fitting. For the entire 3 months, she worries that perhaps she has made the wrong decision. Perhaps she should have chosen the ball gown instead! These feelings are best described as _______________

Cognitive Dissonance

The makers of Epi-pen came under fire for making the price of its product probitiively high for the millions of people who would benefit from it. While this greatly enriched the company, it seemed unethical to deny the rights of the many for the great profit of the few. This is an example of which of the following ethical reasoning approaches

Common good approach

Torrid has successfully targeted a niche market by offering clothing and fashion accessories to larger sized women. This niche marketing strategy is best described as

Concentrated Marketing

Which of the following is NOT an example of psychological pricing?

Cost plus pricing

Cutting out the middle-man is great - unless you are the middleman. As the internet has grown, distribution channels have become much shorter as producers can sell directly to consumers. This process of removing the middleman and shorting distribution channels is best known as

Disintermediation

The great recession occurred nearly 10 years ago. Since then, we have recovered through the Obama Presidency with job growth and the surge in the stock market, fueled by low interest rates. We are now experiencing even further expansion through what is being called the Trump Bump, which might then be followed by a Trump Slump. What a difference a decade can make in the _____________________ environment.

Economic

The public's reaction to business scandals - like the shenanigans of Wells Fargo or the outrageous pricing of the Epi-pen reflect society's concern with

Ethic and social responsibility

During the _____________ of alternatives, she tries on dozens of dresses and compares them on a variety of ________________ such as style, color, designer, and price.

Evaluation of Alternatives / Product Attributes

A basic tenet of American law is that all people are to be treated equally under the law. However, sometimes, law enforcement agencies treat different people differently, discriminating against one group and favoring another for no legitimate reason. This would be considered unethical under the ___________ approach to ethics

Fairness and justice approach

Service businesses like McDonald's often use a contractual agreement known as _____________. In this way, a private business owner other than McDonald's corporation pays a large fee to have the right to use the brand and the business model.

Franchising

Now, it's your generation's turn. You were alongside the internet. There have always been computers and mobile phones. You're likely to come from a family where both parents work and it's also not uncommon for your parents to be divorced. You have a very high disposable income and are of great interest to marketers. You were born sometime between the end of the last millennium and the current millennium. You are known as

Gen Y

Companies like Amazon or eBAY rely heavily on third party logistics companies like UPS and FEDEX. Which of the following is NOT a reason why they do this

ICC and the federal government are beginning to mandate and regulate some industries

Which of the following is an argument AGAINST firms engaging in socially responsible behavior

It diverts the focus away from making a profit

Harley Davidson targets the weekend warriors. These dentists, businessmen, accountants, and teachers may be all suited up and uptight professionals during the week. However, on the weekend they are all looking to let loose, wearing leather and Levis with the wind blowing through their hair as they experience the freedom that Harley provides. This group of consumers - who have have a similar need or problem and respond similarly to a Harley's look, sound and feel - all belong to Harley Davidson's large ________________.

Market Segment

When Apple introduces a new iPhone, it prices such that the innovators pay high prices initially, followed by lower prices for early adopters, and laggards eventually pay the lowest price after Apple brings out the next version. This is an example of __________ pricing.

Market Skimming

BMW describes itself as "The Ultimate Driving Machine." Sure, it is an upscale, expensive, German Car that competes against Audi and Mercedes. However, Mercedes offers a luxurious experience for those seeking luxury, and BMW offers a high performance experience for those seeking power. Arranging for BMW to be more powerful and performance oriented the its competitors in the minds of target customers is best described as:

Market positioning

Microsoft's website states that the company "enables people and businesses throughout the world to realize their full potential." This represents the company's

Mission Statement

Under _____, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Monopolistic Competition

Chicken of the Sea and Kroger Brand Tuna are both made by the same company. Chicken of the Sea, the ____________ brand sells for $0.15 more than the Kroger ___________ brand

National/Private Label

There is great debate in our country about whether or not the earth is warming and the role and extent of human beings' effect on climate. People who are concerned about the ___________ environment .

Natural

As the old expression goes, "people in hell want ice-water". How ever much they thirst, they do not have the wherewithal to obtain it. That's because they have:

Need and Want, but no Demand

In general, a company should only target a segment for which it can

Offer something the target market wants and do it better than competitors

The purpose of marketing communication is to let people in the target audience know how a company's product or service solves their particular problems better than the competition. In short, it communicates the company's ______________________.

Positioning

Levi's jeans had long been popular among baby boomers. This was particularly the case when they were young. When they got older, these customers needed pants that were as comfortable as blue jeans but looked formal enough for work. Thus, Levi's Dockers were born. This growth strategy is best described as

Product Development

Chevron gas offers 3 grades of gas: It charges $3.15 for 87 Octane Regular, $3.25 for 89 Octane Plus, and $3.35 for 91 Octane Premium. This is an example of:

Product line pricing

When a pharmaceutical company uses television advertising that tells you to "ask your doctor" about a particular drug, it is using a _____________ strategy. When that same company provides incentives to doctors who prescribe its drug, the company is using a ____________ strategy

Pull/push

In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street. An individual seller cannot charge more than the going price without the risk of losing business to the other stores that are still selling the product at its uniform price. This is an example of what type of market?

Pure Competition

Companies are often accused of acting unethically when they withhold information from customers, when they present them with false information, when they violate customer privacy, or don't deliver upon what is agreed. Wells Fargo is a case in point. They opened up phony accounts using customer information without telling customers what they were doing. They withheld information. Some customers even were harmed by Wells Fargo's egregious violations. Which of the following approaches best describes Well's Fargo's unethical behavior?

Rights Approach

Walmart now includes a pharmacy, a bank, and a grocery store. it sells everything from baby shoes to snow tires. In fact, it offers everything you could possibly want or need, By offering so many different things under one roof, Walmart is seeking to maximize its:

Share of Customer

Each culture consists of smaller _________, or groups of people who share value systems based up on common life experiences, values, or situations. These range from ethnic groups to cultural groups like Goths, Hipsters, or Hip Hop.

Sub-cultures

People's concerns about global warming also drive their purchasing decisions, as they choose fuel efficient cars, products made from recycled goods, and minimizing their carbon footprints. These attitudes, and the accompanying marketing strategy are best described by the term

Sustainability

Green & Gold is a coffee chain based in the United States. Its management has been trying to refocus on the things that originally made the company successful. For example, Green & Gold stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure that customers can smell the freshly ground coffee aroma when they pass by the store. However, when questioned, consumers tend to emphasize on the need for pricing incentives such as a frequent purchasing program. According to the__________, there may be a difference between what customers want and what Green & Gold management thinks customers want.

The Gaps Model of Service Quality

In a famous case, in 1990, a company was forced to honor a coupon from 1950 for a $5 car muffler. By 1990, such a new muffler retailed for $299. This was because

The original coupon did not include an expiration date, so it was still technically valid

Microsoft's website states that the company "enables people and businesses throughout the world to realize their full potential." This represents the company's

The product it currently produces

Which of the marketing concepts most associated with the Corporate Social Responsibility?

The societal marketing concept

Which of the following is true of supplementary services?

They are usually emphasized to create a competitive advantage

Vac 'N' Sew will give anyone $100 for the family's old vacuum cleaner, regardless of condition, when purchasing a new vacuum or sewing machine. The end result is essentially reducing the price by $100. What is this type of discount called?

Trade in allowance

Then again, the Well's Fargo employees opening these accounts may have viewed the potential minor harm to customers as in consequential, compared to the good it would do to increase sales and returns to shareholders. In this case, they might have seen their own actions as ethical by using which of the folllowing approaches

Utilitarian approach

When I buy 30 rolls of toilet paper at Costco, the per roll price I pay is likely to be less than I would pay at 7-11 for a single roll. Is this fair?

Yes - I am paying a premium for the convenience of buying a single roll at 7-11 and I am paying less at Costco because I am assuming inventory carrying costs, which ultimately saves Costco Money

I recently bought a new camera, which is the ______________ product. The memories it creates represent the _________________ product or benefit, while the 3 year warranty represents the _________________ product.

actual, core, extended

Born between the end of WWII and 1964, this large, powerful generation was the first to be raised on television in the era of modern marketing. We are entering retirement and have lots of money and purchasing power. We still consider ourselves young and active. We are ____________________

baby boomers

Apple computers pretty do pretty much the same things as any other computers do. However, people are willing to pay more because they are not just buying a computer, they are buying an Apple. This power to charge a premium in the marketplace is best described as ____________.

brand equity

In the previous question, Coca Cola's brand power relates to its value, as well as its ability to charge premiums and demand more for retailers in the distribution channel. Such power is best described as

brand equity

Some analysts see _____ as the major enduring asset of a company, outlasting the company's specific products and facilities

brands

Buying a wedding dress is no simple matter. There are so many different designs and styles. What if she chooses the wrong dress? This is a very risky purchase, so Julia is likely to engage in ___________ buying behavior

complex

_________________ goods are items we buy every day and are usually characterized by low involvement _______________ buying behavior.

convenience/habitual

Renting a Tux is not such a big deal for Tyler. They're all pretty much the same, so he will get the one Julia tells him looks best and he will try to rent it from the place that offers the lowest price. Tyler's choice of a Tuxedo is best described as

dissonance reducing

You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) _____ product.

emergency

Odor Eaters is a product that, when placed in a shoe, helps absorb foot odor. The maker of the product created an advertisement wherein they show a skunk crawling out of an old shoe. Using the smelly animal to symbolize foot odor, represents which step in the communication process.

encoding

Mary offers John, her neighbor's son, $10 to mow her lawn. This is an example of

exchange

Birds of a feather flock together. We tend to choose to live in neighborhoods among people with whom we share many characteristics - whether they be ethnic, economic, social, or political. This is why many stores will ask you for your Zip Code when purchasing products. They are trying to identify which segment you live in based not only upon where you live, but what kinds of people live there. This is known as

geo-demographic segmentation

One way to segment the market is based on where people live. People who live in different places face different weather conditions, space constraints, and thus need different products or packaging, This type of segmentation is best described as

geographic

Apple computers are sold at Apple Stores, online, and at Best Buy. The company uses this ___________ distribution channel to target different market segments that prefer different shopping venues.

hybrid

Julia decides to bring her best friend Brian shopping with her to select a wedding dress. Brian is a wedding planner and a bit of fashion expert. Brian's opinion matters a lot to Julia so he plays the role of _____________ in her decision

influences

Wherever I go in the world, I can find Coca Cola. It is literally sold in millions of outlets in almost every country in the world. Coca Cola's distribution market coverage can best be described as

intensive

Occasionally, I will buy a very cheap item just because it is cheap. I don't expect much out of it, but hey, you get what you pay for. At least that's what I tell myself when it falls apart shortly after I purchase it This product is most likely positioned as

less for less

The Political,Economic.,Social,Technological, and Legal Environments make up the _______________ while the firm's employees, customers, suppliers, distributors, and competitors are principal components of its _________________.

macro-micro ...primary secondary

When Amazon.com or other online retailers send offers directly to you individually, based upon the websites you have been searching, they are practicing

micro-marketing

FedEx - when it absolutely, positively has to be there over night, Its positioning is based upon its core competence of

most reliable delivery service

Procter and Gamble has several different brands of laundry detergent. Snowy is good for gentle treatment of baby clothes. Tide is great at getting out stains. In the laundry detergent category, Procter and Gamble practices a ____________ strategy

multi-brand

Tyler finally pops the question and asks Julia to marry him. Suddenly, Julia decides that she should begin looking for a wedding dress. She has entered the ___________ phase of the buying decision process.

needs recognition

Toyota has very strong brand positioning. It is recognized as a very reliable and practical car. This was a problem when the company wanted to enter the luxury car market. They had to introduce Lexus - which is really a Toyota - but it does not carry the Toyota name. In so doing, the company was employing a _______________ strategy

new brand

Many Americans are very skeptical of government. This is ingrained in American culture which is very individualistic. This distrust of the government - and its ability to do things - represent which aspect of the American Culture

people's views of institutions

n recent years, we have seen a major upheaval in the Middle East known as the Arab Spring. During that time, several dictatorships were overthrown throughout the region. These changes in the __________________ environment would not have been possible had it not been for Apps like Twitter and Facebook. The emergence of Social Media represents a change in the _____________ environment

political/technological

The most important concept in marketing is ____________________, because it describes why your target customers should by your product rather than the product of competitors.

positioning

Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by _____ such as quality, features, and style and design.

product attributes

Toyota sells a complete __________________ of passenger cars, beginning with the basic Yaris, continuing through the practical Corolla, the fancier Camry, and the Luxury Avalon

product line

Sometimes, brands become prisoners of their own strong positioning. For example, Cadillac has long been associated with old people and luxury. It is very hard to convince young people that Cadillac is a sporty car for young, hip drivers. Nonetheless, they relaunched a new, smaller model and tried to position it is "The Caddy that Zigs. They had mixed results because it is hard to ______________ a brand in the minds of target customers.

reposition

The problem is made worse by the long waiting time between Tyler's proposal and the wedding. Julie cannot think of anything that is not wedding related. She sees advertisements for wedding dresses everywhere she looks. She never before had noticed how many wedding websites, magazines, and reality TV shows there were. Her heightened state of awareness is best described by

selective attention

The _______________ encompasses the ____________, consisting of makers of components and raw materials upon whom manufactures rely for inputs , as well as the _____________, which includes resellers such as wholesalers and retailers, upon whom manufacturers rely for getting their products into the hands of end users.

value delivery system, supply chain, distribution channel