Study Plan Questions - Marketing Test 2
_______ of the product's value set the ceiling on pricing, while _______ set the floor.
Customer perceptions; costs
Market segmentation is the act of dividing a market into distinct groups of buyers who have ________ and who might require separate marketing strategies or mixes.
different needs, characteristics, or behaviors
The seven price adjustment strategies are _____, ______, _____, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
discount and allowance pricing, segmented pricing, psychological pricing
When a company lengthens a product line by adding more items within that line's current range, the company is ________.
filling the line
Which stage of the business buying decision process involves ranking the importance of reliability, durability, and price?
general need description
Which of the following correctly identifies the levels for which marketers make product and service decisions?
individual product, product line, and product mix decisions
The second step in the buyer decision process might include seeking more information. Sources of information vary. Commercial sources normally ________ the buyer, but personal sources ________ products for the buyer.
inform; legitimatize or evaluate
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage.
introductory
Which of the following statements regarding the business market is correct?
Many sets of business purchases are made for one set of consumer purchases.
Which of the following would be an appropriate strategy in the maturity stage of the product life cycle?
Modify the market, product offering, and marketing mix.
Of the following, which is NOT one of the product-mix pricing situations?
Penetration pricing
Of the following, which is core element of our free-market economy?
Price competition
Marketers must make important decisions when developing individual products and services. Which of the following correctly identifies those important decisions?
Product attributes, branding, packaging, labeling, and product support services
A new product may fail for many reasons. Which of the following is NOT one of them?
Rapid market acceptance
What are the five characteristics that are especially important in influencing an innovation's rate of adoption?
Relative advantage, complexity, compatibility, divisibility, and communicability
What is the mistaken assumption that business-to-business companies often make about digital and social media?
That digital and social media are useful primarily to consumer products and services companies
Service providers often face price competition. As a solution to this, service providers can further differentiate themselves based on which three characteristics?
The service offer, delivery, and image
How do companies apply pricing strategies to accommodate differences in customer segments and situations?
They apply a variety of price adjustment strategies.
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important buying dimensions
Social responsibility includes public policy issues and regulations involving _________________, and product warranties.
acquiring or dropping products, patent protection, product quality and safety
We define the ________ process as the mental process through which an individual passes from first learning about an innovation to final adoption.
adoption
Buyers who face a new task-buying situation usually go through ________.
all of the eight stages, including performance review
All products have a life cycle. The sales of a typical product follow __________________, which is made up of five stages.
an S-shaped curve
What are the five stages of the consumer adoption process, in the correct sequence?
awareness, interest, evaluation, trial, and adoption
A brand's positioning must be continuously communicated to consumers. Although advertising can help, brands are maintained not by advertising, but by customers' ________.
brand engagement and brand experiences
In building brands, companies need to make decisions about four key powerful areas: ________________________________.
brand positioning, brand name selection, brand sponsorship, and brand development
Business marketers are increasingly connecting with customers online and through digital, mobile, and social media to ________, __________, __________, ___________, and maintain ongoing customer relationships.
engage customers, share marketing information, sell products and services, provide customer support services
Occupation, age, and lifestyle are ____ factors that influence consumer buyer behavior.
personal
Consumers go through a distinct process in making a purchase. Of the following, which is the final step in that process?
post-purchase behavior
The illegal practice of selling below cost to harm competitors is known as ______.
predatory pricing
Segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer segments, ________________ to their specific needs.
reach them more efficiently, and tailor market offerings and messages
Laws prohibit ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product.
retail price maintenance
The first part of a marketing strategy statement describes the ________ of a new product.
target market
Once segments have been identified, market ________ evaluates each segment's attractiveness and selects one or more to serve.
targeting
____ determines whether the buyer is satisfied or dissatisfied with a purchase.
the relationship between the consumer's expectations and the product's perceived performance
The ________________________ is a brand's full positioning or the full mix of benefits on which the brand is positioned.
value proposition
Major variables used to segment consumer markets include which of the following?
Geographic, demographic, psychographic, and behavioral
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?
Market-penetration pricing
A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company using?
Market-skimming pricing
Companies find and develop new product ideas from a variety of sources. Which of these is an internal source for new product ideas?
R&D
Firms have four brand development choices. These are _____________.
line extensions, brand extensions, multibrands, and new brands
In which step of the buying decision process is the final order with the chosen supplier developed?
order-routine specification
Another price adjustment strategy is ______________ pricing, where the company sells a product at two or more prices to accommodate different customers, product forms, locations, or times.
segmented
Ideally, a company must carry out strong new product planning and set up a systematic new product development process that is _________ to find and grow new products.
customer-driven
Which of the following is the correct definition of a product?
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
What is market segmentation?
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Marketers need to understand and know the answers to several key questions when dealing with buying centers. Of the following, which is NOT one of those key questions?
Is price a major factor or is the buying center price sensitive?
New product development consists of eight sequential steps. Which step reduces the number of ideas based on the company's criteria?
Idea screening
One form of ______ involves bogus reference or comparison prices, as when a retailer sets artificially high "regular" prices and then announces "sale" prices close to its previous everyday prices.
deceptive pricing
One concern about the expanding use of e-procurement for B-to-B purchasing is that __
it can erode decades-old customer-supplier relationships
One important consideration in using a differentiated targeting strategy is that _______.
it can increase costs
Business markets differ in many ways from consumer markets. The main differences are in ________, __________, and __________
market structure and demand, the nature of the buying unit, and the types of decisions and the decision process
When making a purchase, the buyer goes through a decision process consisting of all of the following:
need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior
When a company builds a brand, it needs to make important decisions regarding the brand. Of the following, which is NOT one of those decisions?
Brand licensing opportunities
At which step does a company perform a review of the sales, costs, and profit projections for a new product to determine whether the new product is likely to satisfy objectives?
Business analysis
Like consumer markets, business markets are segmented. Which of the following describes the variables that marketers use to segment business markets?
Business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics
Companies have to think carefully when considering price changes. They must consider which of the following?
Buyer and competitor reactions
Which of the following correctly describes the classifications into which products and services fall?
Consumer products and industrial products
Charles Revson of Revlon once said, "In the factory we make cosmetics; in the store we sell hope." Which product level is Revson referring to?
Core customer value
Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?
Maturity
What are the eight steps in the business buying decision process, in the correct sequence?
Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?
The nature of the market and demand and other environmental factors
When marketers create services marketing strategy, they understand they must execute on external marketing but also develop _______________________________.
internal strategies to motivate employees and interactive marketing to create service delivery skills among service providers
Companies must manage the ________, which often includes many different buying decisions in various stages of the buying decision process.
overall customer relationship
A company's pricing strategy is affected by internal factors such as ___________________.
overall marketing strategy, objectives, marketing mix, and other organizational considerations
The strongest brands are positioned on ______.
beliefs and values
The totality of a company's product lines and items offered to customers is known as its _________________.
product mix
Many companies are now developing ________ programs to generate new product ideas.
crowdsourcing or open-innovation
Setting the base price for a product is only the start. The company must then adjust the price to account for ____________________________ differences.
customer and situational
Marketers use three major pricing strategies: ______________________.
customer value-based pricing, cost-based pricing, and competition-based pricing
Companies must make important decisions about their individual products and services. Individual product decisions involve ________________, and product support services.
product attributes, branding, packaging, labeling
The stages of the product life cycle are ______________________________.
product development, introduction, growth, maturity, and decline
Good service companies understand the service profit chain, which links ________.
service firm profits with employee and customer satisfaction
The number of product lines a company manages is the product mix ______. The total number of items a company carries within its product line is the product mix _____.
width; length
When Microsoft or Apple sells software as a package, it is engaging in what type of pricing?
Product bundle pricing
Marketers must consider potential product issues related to social responsibility. Of the following, which is NOT one of the product issues associated with social responsibility?
Product differentiation and positioning
___________________ are the two ways firms can obtain new products.
Acquisitions and new product development
Which of the following statements regarding the marketing of international products and services is correct?
Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
To target the best market segments, the company first evaluates various factors related to market attractiveness. Of the following, which is NOT one of those factors?
Compatibility with company mission and vision
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
Which of the following correctly defines the consumer market?
Individuals and households that buy goods and services for personal consumption
What are the four major steps in designing a customer value-driven marketing strategy, in the correct sequence?
Market segmentation, market targeting, differentiation, and positioning
Which type of business buying situation offers marketers not only the greatest opportunity, but also the greatest challenge?
a new task situation
The differentiation and positioning task consists of three steps: identifying ________ that create competitive advantage, choosing ________ on which to build a position, and selecting an overall positioning strategy.
a set of possible differentiations; advantages
When effective programs can be designed for attracting and serving market segments, these segments are ________.
actionable
Because markets and consumers worldwide differ widely, companies usually respond to these differences by ________.
adapting their product offerings
Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. These two facts are _____
attitudes of others and unexpected situational factors
When companies treat customers fairly and make certain they understand pricing and pricing terms, this leads to ________________.
building strong and lasting customer relationships
The ________ market comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
business
In the broadest sense, a new product marketer must research ____ when developing a new product and a marketing program.
characteristics influencing the rate of adoption
Which of the following is NOT among the major factors influencing consumer buying behavior?
commercial
Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents a(n) _______ strategy.
concentrated marketing
In which targeting strategy does a firm go after a large share of one or a few smaller segments?
concentrated marketing
The advantages of standardizing products and services for international markets include _______________, lower manufacturing costs, and lower marketing costs.
consistent global image, lower product design costs
Value-based pricing begins with analyzing ___________.
consumer needs and value perceptions
Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company charges?
costs
______________________ is part of a company's decision on how it will create market offerings to deliver superior customer value.
differentiation
Once market segments have been selected, the company then must decide on _____________________________.
differentiation and positioning strategy
Technology advances have made B-to-B online purchasing possible. This is called ________.
e-procurement
The new product development process consists of sequential steps. The first step is _______ and the last step is ______________.
idea generation; commercialization
The product development process starts with ________. Next comes ________, which reduces the number of ideas based on the company's own criteria.
idea generation; idea screening
The buying center and the buying decision process are influenced by ________, __________, and __________ factors, as well as _____________ factors
internal organizational, interpersonal, and individual factors, as well as external environmental factors
Companies need to consider many factors when choosing a market-targeting strategy. However, which targeting strategy is best depends on company resources, product variability, product life-cycle stage, as well as ________________________.
market variability and competitive marketing strategies
The business buyer decision process itself can be quite involved, with several basic stages. The process begins with ______________ and concludes with _______________
problem recognition; performance review
Combining products for one price can promote the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the package. This is known as ______.
product bundle pricing
In the new product development process, ideas that pass the idea screening step continue through ________. Strong concepts proceed to ________.
product concept development; marketing strategy development
There are several types of product mix pricing situations, which include ______________, by-product pricing, and product bundle pricing.
product line pricing, optional-product pricing, captive-product pricing
___________ are payments or price reductions that reward dealers for participating in advertising and sales-support programs.
promotional allowances
The distinction between a consumer product and an industrial product is based on the ________ for which the product is purchased.
purpose
Companies can do e-procurement in several ways, including _______, ________, ________, and __________.
reverse auctions, trading exchanges, company buying sites, and extranet links
When Dr. Lawncare developed his revolutionary new weed killer, he expected that, during the introductory stage of the product life cycle, ___________.
sales would be slow and with negative or low profits
Services are characterized by four key aspects: ______________________.
services are intangible, inseparable, variable, and perishable
To determine which market segments to target and serve, the company first evaluates each segment's ________.
size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources
A simple model of consumer behavior suggests that marketing stimuli and other major forces enter the consumer's "black box." This black box has two parts: ____ and ____
the buyer's characteristics and the buyer's decision process
In addition to segmentation and targeting, there are two other major steps in designing a customer value-driven market strategy: ________ seeks to create superior customer value in the mind of the consumer, and ________ seeks to firmly place the market offering in the minds of target customers.
Differentiation; positioning
Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices?
Resellers, the government, and social concerns
Broadly defined, a product is anything that can be offered to a market for ___________, or consumption that might satisfy a want or need. Products include not only physical objects, but also services, events, persons, places, organizations, ideas, or mixtures of these entities.
attention, acquisition, use
Printer companies often charge a fairly low price for their inkjet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ___________ pricing.
captive-product
External sources for new product ideas include _________.
competitors, distributors and suppliers, and customers
Consumer products are products and services bought by final consumers for personal consumption. Consumer product classifications include _______________, and unsought products.
convenience, shopping, specialty
Services marketing strategy calls not only for external marketing, but also for internal marketing to motivate ________ and interactive marketing to create service delivery skills among ________.
employees; service providers
People can be classified into the adopter categories, with each category having different values and rates of adoption. The adopter categories include ________, ________, __________, _________, and __________
innovators, early adopters, early mainstream adopters, late mainstream adopters, and lagging adopters
A company can use _________ by setting a low initial price to penetrate the market deeply and win a large market share.
market-penetrating pricing
In pricing innovative new products, a company can use ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.
market-skimming pricing
Federal legislation on _________states that sellers must set prices without talking to competitors.
price-fixing
For services, there is a form of captive-product pricing known as _____ pricing.
two-part
Which of the following terms correctly describes the positive differential effect that knowing the brand name has on customer response to the product or the service?
Brand equity
To successfully implement a market-skimming strategy for a new product, which of the following conditions needs to be present?
Competitors are not able to enter the market quickly and undercut the high price.
____ refers to the set of values, perceptions, wants, behaviors learned by a member of society from family and other important institutions
culture
To be more socially responsible, some companies are appointing _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Marketers can apply the ________ as a useful framework for describing how products and markets work and help develop good marketing strategies for the different life-cycle stages.
product life-cycle concept
