Questions I got wrong

Kyle estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Kyle, the total cost of opening the new branch and remaining open for one year will be

550,000

Leonard manages a building supply company. He wants to invite 15 of his most valuable building-contractor customers to a golf outing and party. Leonard will likely use the firm's ________ to identify these customers.

CRM database

What is one of the drawbacks of using a price skimming strategy?

Firms must consider the high costs associated with producing a small volume of product.

Assuming that a marketing research study will answer important questions and reduce the uncertainty associated with a proposed project, a major question that needs to be addressed before starting the study is

Is top management committed to the project and willing to abide by the results of the research?

Which of the following statements regarding secondary packaging is true?

It is important to the retailer in terms of convenience in handling.

________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.

Omnichannel retailing

How is consumer panel data collected during the test marketing phase of a new product introduction?

Panelists scan their receipts on a home scanning device.

Which of the following are guidelines provided by the American Marketing Association for conducting marketing research?

Selling or fund-raising should not be conducted under the guise of conducting research.

How do you calculate brand equity?

Subtract the sales of generic brands from branded items in a category.

When a company launches a new product line with an existing brand name, this is known as

a brand extension.

In countries like the United States, services

account for an increasing share of jobs.

Because of its size and relative power, Walmart can easily impose controls on small manufacturers, such as Brown Betty Dessert Boutique, but with large, powerful suppliers such as P&G, the control is more balanced between parties. Walmart's various marketing channel relationships offer examples of different forms of a(n) ________ marketing system.

administered vertical

Especially in the fashion industry where styles and trends change rapidly, a quick response system can

align deliveries more closely with actual sales.

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

alpha testing.

The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.

assurance

In a ________ pricing tactic, sellers advertise very low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price.

bait-and-switch

In developing marketing strategies, why is price often the most challenging of the four Ps to manage?

because it is the least understood element of the marketing mix

Social networking sites that compete directly with Facebook have a difficult time surviving; however, LinkedIn has survived by focusing on the needs of business professionals, who seek to network with colleagues, share their expertise, post online résumés, and look for new jobs. What segmentation method is LinkedIn using?

benefit segmentation

If a few of Xbox's customers are asked to try out a new video game that has not yet been released on the market; this is an example of

beta testing.

Katrina could not afford expensive furnishings but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Katrina likely responding to?

brand image consistency

The ________ gap can be reduced by managing consumers' expectations and promising only what can be delivered or possibly even a little less.

communication

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through

customer input.

The ________ gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate.

delivery

Marketing channels and supply chains comprise various buying entities that form relationships with one another. The basic motivating factor in these interactions is

each party wants something from the others.

One of the potential benefits to a firm of introducing new-to-the-world products or services is

establishment of a completely new market.

A demand curve is built on the assumption that

everything but price and demand remains the same.

Production of the DeLorean car, made famous in the film Back to the Future, never got above 25,000 units during its lifetime. Automobile industry analysts estimate that production of this car needed to reach around 300,000 units to achieve the ________, which refers to a decrease in unit cost as product volume increases.

experience curve effect

Samson is concerned about a competitor's new line of outdoor barbeque grills that provide most of the same features as his products. Samson might consider using ________ to gather qualitative information from consumers about the competitor's offerings.

focus groups

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the ________ stage of the product life cycle.

growth

Within a perceptual map, a(n) ________ represents where a particular market segment's desired product would lie.

ideal point

Raoul's custom auctioneering service provides online auction selling assistance. Raoul plans to conduct marketing research to determine which auction site is best for his customers. His next step is to

identify the type of data he needs.

Hayla is the marketing manager for a fast-food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to

increase profits.

Effective service recovery efforts can lead to

increased positive word of mouth.

Price skimming focuses on selling products to ________ and ________ in the consumer adoption process model.

innovators; early adopters

Because services are ________, it is often difficult for marketers to convey the benefits to consumers.

intangible

Automobile manufacturers could build cars specially designed for very short people (for example, under five feet), but it is likely that this segment

is not substantial.

One key feature of the value of a strong brand is that

it can protect the firm from competition.

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

keeping up in a market where sales come mostly from new products.

Jacques manages an upscale French restaurant in the Philadelphia area. His restaurant offers a few specials each evening in addition to its regular menu. Jacques has trained his servers to report comments and requests for items that have previously been offered only as specials. Jacques uses this information to reduce the ________ gap in services marketing.

knowledge

Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ________ pricing tactic.

leader

Kohl's wants to target the unique customers that shop in each store. To distribute the correct colors and styles to each area, Kohl's uses

marketing analytics.

When Derek's Hardware, a New Jersey-based discount hardware chain, sent snow blowers to its Augusta, Georgia, store in April, it was engaged in

misguided geographic segmentation.

In a market with ________ there are many firms providing differentiated products.

monopolistic competition

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

observability.

Because of the way ________ buy merchandise, customers can never be confident that the same merchandise will be in stock each time they visit the store or website.

off-price retailers

Which of the following is a key component of a value proposition?

offering name or brand

The commercial airline industry is considered what type of market?

oligopolistic competition

In a corporate vertical marketing system,

participants—such as warehouses, manufacturing plants , and retail outlets—are typically owned by a parent company to lessen potential conflict among segments of the channel.

Relatively few consumers like to go to the dentist. Dental insurance plans that pay for regular checkups increase the ________ of dental care by reducing the cost to the consumer.

perceived value

If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is

price inelastic.

A ketchup bottle is an example of a ________ package.

primary

The ________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.

product launch

Venicia is assessing market growth, market competitiveness, and market access for each segment she has identified. Venicia is assessing the ________ of each potential market segment.

profitability

Marketers have found that ________ segmentation is often more useful for predicting consumer behavior than ________ segmentation.

psychographic; demographic

What price competitive level would be indicated when the price is usually set according to the laws of supply and demand?

pure competition

Once a marketing researcher is ready to move beyond preliminary insights to specific, informed questions, the researcher is ready to conduct

quantitative research.

Historically, prices were

rarely changed except in response to radical shifts in market conditions.

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

relative advantage.

Stores like Home Depot and Costco act as wholesalers when they

sell to contractors or restaurant owners.

Ike owns an oil-change business called For Oil Only. He changes oil in cars—and that is all he does. What kind of retail business is this?

services retailer

When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a(n) ________ pricing strategy.

skimming

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

skimming.

By setting appropriate service standards and measuring service performance, firms can attempt to close a ________ gap.

standards

Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be

strategic partners.

Suzanna is concerned that one of the potential market segments she has identified for her mobile veterinary service is too small and has too little income to have sufficient buying power. Suzanna is concerned with whether the segment is

substantial.

Almost all U.S. political candidates use some combination of red, white, and blue in their campaign posters. They are trying to position themselves in voters' minds using

symbols.

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. The hotel has been updating rooms built in the early part of the 20th century to meet the needs of 21st-century visitors. To accomplish this, it spent millions in improvements, renovating rooms, and adding a new outdoor pool complex. These renovations focus on the ________ service characteristic.

tangibles

Naomi tells her sales representatives the goal is to generate at least a 15 percent return on investment for all of the industrial building supplies they sell. Naomi is using a ________ pricing strategy.

target return

The more substitutes that exist in a market,

the more sensitive consumers will be to changes in the price of a particular product.

The diffusion of innovation theory focuses on

the rate at which consumers are likely to adopt a new product or service.

A reference price might be considered deceptive if

the reference price has been inflated or is fictitious.

One product strategy used by retailers to differentiate themselves from competitors is

the use of private-label brands.

Vanessa wants to position her financial services company. She can position her services according to

the value proposition.

Roberto is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product line. The advantages of using these data include

they can be quickly accessed at a relatively low cost.

Generally, the larger and more sophisticated the channel member, the less likely that it will

use supply chain intermediaries.

Today, retailers like Walmart, Home Depot, and Kroger dictate to their suppliers

what should be made.

When Camden Bank required all customers to use its online banking services, over 30 percent of its customers closed their accounts. In this scenario, Camden Bank's service fell outside customers'

zone of tolerance.