BUS2-130 Midterm 2

MATHY (study on your own)

9,500,000

How do firms that use captive-product pricing make up for the low prices of their main products?

They set high markups on the captive products

Which of the following is an example of a horizontal conflict in a distribution channel?

a Ford car dealer complaining that another Ford dealer is underpricing the same model.

Performance Inc. sells its newest athletic shoe styles to The Sneaker Store and distributes dated or slightly defective merchandise through Sports Discounters. Performance Inc.'s main competitor is Nike Manufacturers. Performance Inc. also markets its products through the company website. They decide to offer a short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20 percent discount off current retail prices. In such a distribution channel, which of the following would be considered a vertical conflict?

a conflict between Performance Inc. and The Sneaker Store.

________ is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.

a marketing channel

Epixal, an American video game manufacturer, targets teens between the age of 14 and 18, providing free game trials and applications for PS5, Xbox, and PCs. The firm's marketing approach exemplifies _______ segmentation.

age and life-cycle

Harley-Davidson customers share a common, deeply held attraction to the brand. Harley appeals include: freedom, independence, power, and authenticity. Harley-Davidson doesn't just sell motorcycles, It sells self-expression, lifestyles, aspirations, and dreams. This illustrates _______.

core customer values

Which of the following would most likely trigger a price increase?

cost inflation

Producers use marketing intermediaries because they ________.

create greater efficiency in making goods available to target markets.

All the institutions in a channel are connected by several types of flow. When a retailer conveys to a wholesaler that a new line of hip-hop clothing is not selling, this is an example of _______.

information flow.

A market segment is less attractive when _______.

it contains powerful suppliers who can control prices

In a logistics system, minimizing distribution costs most likely involves _______.

large shipping costs

SoiDoim a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with _______

line extensions

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________.

market-penetration pricing

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.

marketing strategy development

When a product is in the ______ stage, profits level off or decline because of increased marketing costs to defend the product against competition.

maturity

The first part of a marketing strategy statement describes the ________ of a new product.

target market and planned value proposition

A firm that uses direct marketing would most likely sell its products through ________.

the company website.

Beyonce's Lemonade Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Beyonce's Lemonade is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for the Beyonce's Lemonade line of eye makeup?

the desire for having beautiful eyes

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy.

time-based

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.

undifferentiated

Fads are characterized by their ________.

unusually high sales and rapid decline

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced.

variable

Which of the following statements is most likely true about the new product development process?

Customers, competitors, distributors, and suppliers are major sources of new product ideas.

_______ involves using an existing brand name for a new product category.

brand extension

Introducing a new product into the market is called ________.

commercialization

Which of the following sets the price ceiling for a product's pricing?

consumer perceptions of value

Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of _______ products.

convenience

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables.

demographic

If men and women respond dissimilarly to the marketing efforts for a root beer-flavored malt beverage, they are considered ________ market segments.

differentiable

The Port of New Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called _______ marketing.

differentiated

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

exclusive

Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________.

exclusive dealing

The new product development process usually starts with _______

idea generation

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.

idea screening

A product line is most likely too short if managers can _______

increase profit by adding items

Royal Majesty, a manufacturer of luxury watches, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Royal Majesty offers a(n) _______ value proposition.

more-for-more

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?

multibrands

Nvidium Electra, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on _______.

multiple segmentation bases

As a result of _______, a company might not be allowed to make its product illegally similar to a competitor's already established product.

patent laws

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?

perishability

_______ consist of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

positioning

_______ is the sum of all the values that customers exchange for the benefits of having or using a product or service.

price

Bose promises "better sound through research." This is an example of ________.

product differentiation

TECHland Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as _______ pricing.

product line

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

product mix

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

promotional pricing

In _______, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

pure competition

In a just-in-time logistics system, _______.

retailers carry small inventories of merchandise to last for only a few days

the second part of a marketing strategy statement describes the _______ of a new product

short term planned price, distribution, and marketing budget.