Exam 2 - Marketing

The product life cycle concept can be applied by marketers as a useful framework for describing how ________

a market responds to a product over time

A product has three distinct layers. The second layer is the ________, which is the physical good or delivered service.

actual product

The ________ for a guest paying for a night's stay at a hotel is the use of a bed, bathroom, towels, dresser, light, and closet.

actual products

Fixed costs ________

are cost that do not vary with production or sales level

Cost-plus pricing ________.

involves adding a standard markup for profit

________ are the last in the population to adopt a new product

laggards

Through ________, one firm sells another firm the right to use a legally protected brand name for a specific purpose for a specific period of time.

licensing

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

Competitor's pricing

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

Everyday low

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

High-Low

The ________ for a guest paying for a night's stay at a hotel is rest and sleep.

core product

Which of the following processes does value-based pricing reverse?

cost-based pricing

________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

cost-based pricing

What sets the ceiling for product prices?

customer perceptions of the product's value

________ pricing uses buyers' perceptions of value as the key to pricing.

customer value-based

Consumers must engage in a great amount of learning to use a(n) ________ because no similar product has ever been on the market.

discontinuous innovation

A(n) ________ is a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.

dynamically continuous innovation

Which of the following is most likely a fixed cost?

facility rental payments

The sales peak typically occurs during which stage of the product life cycle?

maturity

________ involves designing and producing the container or cover for a product

packaging

Companies that adopt value-added pricing ________.

attach value-added features and services to differentiate their offers and support their higher prices

The ________ for a guest paying for a night's stay at a hotel would include express checkout and superb room service.

augmented product

The ________ is the actual product plus supporting features, such as delivery, installation, financing, and warranty.

augmented product

The concept of ________ encompasses the beliefs and associations that a consumer has about a brand.

brand meaning

The final stage in the product life cycle is ________.

decline

________ is the product life cycle period when sales fall off and profits drop.

decline

________ refers to the amount of money charged for a product or service.

Price

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing.

good-value pricing

Which of the following involves introducing less-expensive versions of established, brand name products?

good-value pricing

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

good-value pricing

Which stage in the product life cycle is characterized by rapidly increasing sales and increasing profits?

growth

Diffusion refers to ________.

how the use of a product spreads throughout a population

The first phase of new product development is ________.

idea generation

If demand hardly changes with a small change in price, the demand is ________.

inelastic

________ is the only element in the marketing mix that produces revenue.

price

________ refers to a measure of the sensitivity of demand to changes in price

price elasticity

What sets the floor for product prices?

product costs

Which of the following is a cost-based approach to pricing?

target return pricing

A ________ is the legal term for a brand name, brand mark, or trade character.

trademark

Costs that change with the level of production are referred to as ________.

variable cost

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

competition-based pricing

The perceived value of different product offers can be reasonably assessed by ________.

conducting surveys and experiments

A ________ is a modification to an existing product.

continuous innovation

A consumer doesn't have to learn anything new to use a(n) ________.

continuous innovation

A product has three distinct layers. The most basic level is the ________, which consists of all the benefits the product will provide for consumers or business customers

core product

As production moves up, the average cost per unit decreases because ________.

fixed costs are spread over more units

which of the following is essentially no branding at all?

generic branding