Exam 3 Quiz Questions
In price planning, a firm would be most likely to set a profit objective (and use a tactic like skimming) for which of the following products?
A fad such as Beanie Babies
Which of the following is the best example of convenience product
A gallon of milk
Which of the following is the best example of a durable good?
A refrigerator
The _____ for a guest paying for a nights stay at a hotel would include express checkout and superb room service.
Augmented product
Whenever a product line or a product family is extended, there is a risk of _____, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.
Cannibalization
Which of the following is a measure of the percentage of customers who defect over a given period of time?
Churn Rate
Marketers use the metric of _____ to understand where web traffic is coming from and which marketing investments are generating enough interest in users to get them to follow a link to a product webpage. -
Click-through rate
Marketers estimate ______ when they determine whether anyone is likely to buy a new product.
Commercial success
A consumer doesn't have to learn anything new to use a(n) ______.
Continuous innovation
Using the strategy of ______, a marketer designs a package that closely resembles the look of the national branded product with which is competing.
Copycat packaging
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
Product layers
Core, actual, augmented
Through ______ pricing, a marketer pays for an advertisement based on how many times an advertisement appears on a web page viewed by users.
Cost per impression
To determine the _____, marketers need to know the total advertising costs and the total number of purchases made.
Cost per order
The process by which a population adopts a product or innovation. The spread of product through a given social system.
Diffusion
Innovation category thats product creates major change in the way people live. Consumers have to learn a great deal in order to effectively use product. EX: phone, car, airplane, computer
Discontinuous
A good consumed over relatively long periods of time. Do not need to be purchased frequently
Durable
On the internet, price can easily be adjusted to meet changed in the marketplace. This is called _____.
Dynamic pricing
What does the customer see as a good price and what is the competitors price
EDLP
Which of the following is NOT a type of pricing objective?
Elasticity
Level of decision making that has a high degree of involvement. Product prices are high, long time to decide. (house, college, first car, wedding location)
Extended
Conversion rate is calculated as # of new customers + size of market.
False
Discount retailers such as Walmart do not sell private-label brands.
False
In the US, consumers associate prices that end in 00 to be a better bargain than prices that end in 95 or 99.
False
Laggards in the adoption/diffusion cycle tent to be in a higher social class than consumers in other adopter categories. -
False
Long-term profitability will not be affected if the brand managers offer an excess of coupons or cents-off packages to customers.
False
Nondurable goods are more likely than durable goods to be purchased under conditions of high involvement.
False
Share of a customer (or wallet share) is a measure of how many customers the company has compared to competitors.
False
Surge pricing occurs when a company lowers the price of its product when demand for the product goes up and raises the price of its product when demand goes down.
False
Which stage in the product life cycle is characterized by rapidly increasing sales and increasing sales and increasing profits?
Growth
Level of decision making that is made quick. Low involvement in purchase, low cost on goods, high frequency in buying. (groceries, newspaper, coffee)
Habitual
Internet corporation for assigned names and numbers, administers, names, and numbers on the internet.
ICANN
Name all diffusion categories
Innovators, early adapters, early majority, late majority, laggards
Which of the following is true about the demand curve?
It shows the relationship between product demand and product price
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
Level of decision making thats price ranges from low to moderate. Few brands are made before decision is made. (clothes, gifts, furnisher, vacations)
Limited
Marketers use the metric of _____ to see the effectiveness of their marketing efforts in comparison to their competitors' actions.
Market share
Which stage in the product life cycle is usually the longest?
Maturity
A good consumed relatively quickly and can include experiences. Only useable for a short period of time.
Nondurable
A firm is using a(n) _____ strategy when it introduces a product at a very low price to gain market share early on.
Penetration pricing
Marketers classify innovations based on their ______.
Perceived degree of newness
Consumer more likely to to buy as price goes up during which pricing strategy?
Prestige
Which of the following statements about price is true?
Price can mean exchange of nonmonetary goods or services
A firm's ______ is its entire range of products.
Product mix
Through _____, a firm tries to guarantee that its brand will appear at or near the top of lists of typical search phrases related to its business.
Search engine optimization
A firm using _____ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
Skimming
An increase in the price of one will increase demand for other.
Substitutions
Which of the following is a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement of all aspects of the company's operations?
Total quality management (TQM)
Which of the following is NOT an example of a marketing metric?
Touchpoint
Bayer AG agreed to pay $46 million as part of a law settlement for conspiring with Archer-Daniels-Midland (ADM) to keep prices of citric acid at a certain level. These two international companies were guilty of price-fixing.
True
Breakeven metric helps a company know how many units it has to sell before covering its costs.
True
Each year, the majority of new products that are introduced fail.
True
Product adoption is the process by which a customer or business customer begins to buy and use a new good, service, or idea.
True
Advertise very low prices item to lure customer into the store
bait
Pricing that involved low price for fixed item, higher for consumable. EX: razor heads and razor, ink and printer
captive
3 types of product management
category, brand, market
one product is essential for use of second, an increase in the price of one decreases demand for the other
compliments
hidden costs to a customer, fake discounts, etc
deceptive pricing
Firm bases selling price on estimated volume it can sell in different markets at different prices
demand based strategy
Determined by number of SKUs in a product group
line length
amount above cost that is added to arrive at list price. EX: cost=$0.60, markup is $0.40, price is $1.00
markup
Pricing that splits costs over time
payment
firm sets very low prices for purpose of driving rival out of business
predatory pricing
overcharging for essential goods during an emergency
price gouging
arriving customers find product is out of stock and are offered more expensive item
switch
identifies needs with product attribute value and designs product based on price
target costing
Type of pricing that involves initiation fee plus monthly dues
two part
V.I.E.W model stands for
visibility, information, emotional appeal, workability
prices to maximize perishable resource
yield management