Marketing 300 Final Exam Review
Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie?
$25
The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.
$260,000
The total production costs at Kellner Machine Works are $87,000 out of which $45,000 represent fixed costs. Which of the following is representative of the variable costs incurred by the company?
$42,000
Which of the following is true about the demand curve?
A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.
which of the following companies uses product bundle pricing?
Panizza, whose combo meals are priced lower than its individual components sold together
Which of the following is most likely a disadvantage of focus group interviewing?
Focus group interviewing involves small samples to keep time and costs down, which makes it hard to generalize from the results.
Which of the following questions is most important for product designers to consider while developing a product?
How would customers use and benefit from the product?
How can public relations have a strong impact at a much lower cost than advertising?
Interesting brand stories, events, videos, or other content can be shared by sources out of the company's control, but to its benefit.
________ play an important role in efficiently making products available to target markets in the needed varieties and quantities.
Intermediaries
________ play an important role in matching supply and demand by providing consumers with a broad assortment of products in small quantities.
Intermediaries
Which of the following is a disadvantage of using information from internal databases?
Internal information may be incomplete or in the wrong form for making marketing decisions.
Which of the following is true of price skimming?
It can be profitably used when the product's quality and image support its price.
Which of the following statements is true regarding the affordable method for setting a promotion budget?
It completely ignores the effects of promotion on sales.
Which of the following statements is most likely true regarding the objective-and-task method of budget setting?
It forces management to spell out its assumptions about the relationship between the money spent and promotion results.
Which of the following is true of the exclusive distribution strategy?
It helps promote a brand's luxury image.
Which of the following is true of product bundle pricing?
It promotes the sale of products that consumers might not otherwise buy.
Which of the following is a strength of advertising?
It reaches masses of geographically dispersed buyers at low cost per exposure
Which of the following is true of market-penetration pricing?
It results in drawing in large numbers of buyers quickly, winning a large market share.
Which of the following statements best explains why idea screening may be the most important step of new product development?
It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.
Which of the following statements is true of test marketing?
Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.
Which of the following is an accurate statement about the income distribution of the American population?
The bottom 40 percent of earners captures just 11 percent of total income.
Why are customers often considered the most important sources of new product ideas?
The company can analyze customer questions and complaints to find new products that better solve consumer problems.
Which of the following is true with regard to strategic planning?
The focus of strategic planning is to define a game plan for long-run survival and growth.
Why is markup pricing most likely impractical?
The method ignores demand and competitor prices.
Which of the following is true with regard to mail questionnaires?
The response rate of mail questionnaires is often very low.
Which of the following is an advantage of telephone interviews?
The speed with which data is collected is high.
Which of the following is true of channel members?
They play specialized roles in the channel.
Which of the following is most likely a manufacturer-sponsored retailer franchise system?
Toyota and its network of independent franchised dealers
Within a company, who is most likely to perform strategic planning?
cross-functional teams of divisional managers close to their markets
Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill?
franchise
At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.
full-service retailer
The environmental sustainability movement encourages companies to ________.
go beyond government regulations
Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.
growth
Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.
horizontal
The management of two Panizza restaurants has an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.
horizontal
John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?
idea generation
Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.
idea screening
Symbols such as the McDonald's golden arches, the colorful Google logo, the Nike swoosh, or Apple's "bite mark" logo provide strong company or brand recognition and are indicative of ________ differentiation.
image
Soon-Yi Park's chain of travel agencies has identified the lesbian, gay, bisexual, and transgender community as a growing market that spends an increasing percentage of its income on travel. Which of the following would be the LEAST effective component of a marketing plan for Soon-Yi to take advantage of this opportunity?
implement a mass marketing campaign
Which of the following is a common reason for new product failure?
incorrect estimation of the market size
Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
maturity
With their size and buying power, ________ can offer better merchandise selections, good service, and strong price savings to consumers.
megaretailers
Dan has been directed to study the forces close to a company that affect its ability to serve its customers, such as the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. In this instance, Dan has been directed to study the ________ of the company.
microenvironment
Specialty stores carry ________ with ________ within them.
narrow product lines; deep assortments
An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?
need recognition
A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.
noise
Progressive Insurance uses Flo to represent its product. Which of the following message execution styles was used by Progressive Insurance?
personality symbol
Encouraging customers to switch brands is most likely the objective of ________ advertising.
persuasive
LandPort Transportation and Omega Warehousing help companies move and stock goods from their manufacturing plants to their destinations. These two businesses are examples of ________.
physical distribution firms
Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing.
place
Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________.
positioning
A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.
prototype
Marketers who use ________ often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals.
psychographic segmentation
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brandwhose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. What price adjustment strategy is evident in the supermarket's reasoning?
psychological pricing
Many firms hire celebrities to appear in their advertisements. Which step of the communication process is represented?
selecting the message source
Which of the following is most likely an objective of informative advertising?
suggest new uses for a product
A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of a medication. Which of the following message execution styles is illustrated in this example?
testimonial evidence
In designing the marketing channel, a company must balance customer needs and wants with ________.
the firm's resources and skills to provide all the desired services
Starbucks introduced a less-than-perfect mobile payments app, then worked out the flaws after the launch. The company chose speed to market over a perfect app at introduction. This illustrates ________.
the influence of fast-changing market developments
Which of the following is a trend that depicts the increasingly nontraditional nature of today's American families?
the low percentage of married couples with children
Which of the following demographic trends is the most likely cause for a rapid increase in telecommuting?
the migration toward micropolitan and suburban areas
A market-penetration pricing policy should LEAST likely be used for a new product when ________.
the product's quality and image support a high price
In addition to the specific promotion tools, marketing communication requires ________ for greatest impact.
the promotion, product, price, and place be coordinated
The break-even volume is the point at which ________.
the total revenue and total cost curves intersect
Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
product development
Some fast-food restaurants offer tasty and convenient food at affordable prices, but in doing so they contribute to a national obesity epidemic and environmental problems. These fast-food restaurants overlook the ________ philosophy.
societal marketing concept
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.
specialty product
Hispanic Americans tend to be deeply family oriented and make shopping a family affair. Older consumers are brand loyal, while younger Hispanics have shown increasing price sensitivity and willingness to choose store brands. Hispanic Americans make up a ________.
subculture
Cathy's Clothes is a small yet successful retail chain that sells women's clothing and accessories with a focus on buyers who have relatively modest means. For this specific purpose, the firm has rolled out several marketing initiatives aimed at women of a specific demographic. This is an example of ________.
target marketing
Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.
customer management organization
Which of the following is NOT an accurate description of modern marketing?
Marketing emphasizes selling and advertising exclusively.
Which of the following is true with regard to marketing research?
Marketing research gives marketers insights into customer motivations.
Which of the following statements is true of social classes?
People within a social class tend to exhibit similar buying behavior.
Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?
descriptive research
Market segmentation can be best described as the process of ________.
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs
A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.
understand the competition better
According to the five-step model of the marketing process, a company should ________ before designing a customer-driven marketing strategy.
understand the marketplace and customer needs and wants
Jean Malone, a market researcher, recently found that most people in Bradburg County purchase automobiles with predominantly functional designs and prefer darker colors. Which of the following marketing strategies should Jean most likely recommend to an automobile dealer interested in opening a dealership in Bradburg County?
undifferentiated marketing
Rex Steelworks makes steel sheets which the firm markets and sells to companies all over the world. Which of the following marketing strategies is most suitable for Rex Steelworks?
undifferentiated marketing
Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________.
value creation and exchange
Which of the following refers to a cultural factor in the context of segmenting international markets?
values and attitudes
Carrie tends to purchase various brands of bath soap. She has never been loyal to a specific brand; instead she does a lot of brand switching. Carrie exhibits ________.
variety-seeking buying behavior
The selling concept is typically practiced ________.
with goods that buyers normally do not think of buying
Which of the following customer questions is answered by a company's value proposition?
"Why should I buy your brand rather than a competitor's?"
A segment is less attractive if it ________.
already contains many strong and aggressive competitors
Which of the following statements reflects the marketing concept?
Consider customer focus and value as the paths to sales and profits.
Which of the following is a disadvantage of online focus groups?
Controlling the online sample is difficult.
Which of the following is a disadvantage of using a differentiated marketing strategy?
The costs of doing business increase.
Marketing mix planning begins with ________.
building an offering that brings value to target customers
Akira Takano, a marketing manager, is about to test the hypothesis that the sale of a particular product will increase exponentially if there is a $5 drop in the selling price of the product. Akira is involved in ________ research.
causal
Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.
channel
Sanguine Services is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. Sanguine most likely uses which of the following marketing strategies?
concentrated marketing
If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved?
connection to the world of entertainment
FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with other costs of using the service, they are acting upon ________.
customer-perceived value
Greg Williams now has the buying power to purchase the desktop computer that he has wanted for the last six months. Greg's want now has become a(n) ________.
demand
Delta Motorworks markets its cars based on the age, gender, and income of its customers. Which of the following types of market segmentation is evident here?
demographic segmentation
A company sent a trained observer to watch and interact with consumers in their natural environments in order to gain deeper insights on consumer needs. This is an example of ________.
ethnographic research
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since he will need a lot of water as he cycles. Having gathered a great deal of information, he has finally narrowed down his choices to three systems: Waterbags for Roadies, Supertanker Hydropacks, and Fast Water. Robert is in the ________ stage of the buyer decision process.
evaluation of alternatives
Juanita Petino, a nutritionist, decided to test the effects of two breakfast cereals, Kinglo and Loopy, on different consumer groups. For the purpose of her study, she divided 20 volunteers into two groups and asked the members of one group to have Kinglo cereal and the members of the other group to have Loopy cereal for breakfast. She decided to compare the responses of the volunteers after a week to gain deeper insights into consumer attitude. In this instance, Juanita is using ________.
experimental research
If Jason used mostly open-ended questions in the survey to encourage people to answer in their own words, he is performing ________ research.
exploratory
The information sources that are the most effective at influencing a consumer's purchase decision are ________. These sources legitimize or evaluate products for the buyer.
personal
Many companies today are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions, cities, and neighborhoods. This is an example of ________.
geographic segmentation
Redrunners Inc., a manufacturer of sports merchandise, is gathering customer opinions about the firm's new sports shoe line. A team of researchers in the company invited eight regular customers to talk about the new line of shoes, asking why they chose to buy the shoe and what they disliked most about its design. A moderator was present to monitor the discussion. Which of the following types of contact methods is Redrunners using?
group interviewing
Eduardo usually purchases the same breakfast cereal, the kind he grew up eating. Eduardo exhibits ________.
habitual buying behavior
Secondary data consist of ________.
information that already exists somewhere, having been collected for another purpose
Kei, a senior marketing manager of a pizzeria in North Florida, is currently researching electronic collections of consumer information within the company network to arrive at crucial marketing decisions. In this instance, Kei is using ________.
internal databases
A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.
lifestyle
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
market development
Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
market nicher
Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.
personal characteristics
Which of the following terms refers to sellers being preoccupied with their own products and losing sight of underlying consumer needs?
marketing myopia
Refer to the scenario below to answer the following question(s). Ruben Delgado was making wooden pens and pencils, which had unique engravings, as a hobby until Simon Yoder recognized Ruben's talent. Simon immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all students! Ruben Delgado had never thought of marketing his talent, but Simon's enthusiasm and the recent sales were enough to change his mind. With limited resources, Ruben contacted three additional specialty shops within 100 miles that were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Ruben was ecstatic! "I figured business would slow down after that," Ruben stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business." Elmore Distributors provides products for school fundraisers in a seven-state area. Ruben was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Ruben Delgado accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils. "I had to get a grip on the magnitude of this project," Ruben added. He decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Ruben continued nurturing his four previously established accounts without targeting any additional customers. "At this point, I had set up an assembly line in a rented building," Ruben explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Ruben paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes." 21) If Ruben interacted one-to-one with his customers to design his products and services according to individual needs, he would be practicing ________.
mass customization
Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion?
political
Marketers often segment international markets according to the type and stability of government. In such instances, they segment markets based on ________.
political factors
Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles.
position
Buyer responses are influenced by marketing stimuli. The responses to the stimuli include all of the following EXCEPT ________.
purchasing behavior
A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.
segmentation by usage rate
Juana looked at the September issue of her favorite fashion magazine and did not find anything particularly interesting despite the fact that the magazine had several advertisements that were targeted at Juana's demographic. The only thing that interested her was an article about an upcoming fashion show. Which consumer behavior is being illustrated in this instance?
selective attention
Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.
shopping
________ consumers are the most affluent U.S. demographic segment and are expected to have an annual buying power approaching $1 trillion by 2017.
Asian American
________ and ________ do not take title to goods, and they perform only a few channel functions.
Brokers; agents
Which of the following is an accurate statement about the diversity of the American population?
By 2060, Hispanics are estimated to be 28 percent of the population.
Which of the following is true about behavioral segmentation on the basis of the loyalty variable?
By looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them.
Which of the following is a potential drawback of multibranding?
Each brand might obtain only a small market share, and none may be very profitable.
Refer to the scenario below to answer the following question(s). The Attic Trunk opened in 1999 as an upscale dress shop in Forest Ridge's fashionable shopping district, catering to a wealthy, mature clientele consisting mostly of older, first-generation Hispanics. Many other specialty shops lined the main avenue over the next few years. But as Forest Ridge began to attract a more price-conscious, younger, and more demographically diverse population, the once-popular shopping district was increasingly perceived as stodgy and snobby by the new segment of customers. By the mid-2000s, many of these specialty shops suffered financially. Most shops attracted only tourists who enjoyed browsing through the displays of alligator belts and shoes, piles of scented soaps, and so on, often laughing at the ridiculously high prices. Owners of The Attic Trunk had noticed the shifts in buying behavior of customers by the mid-2000s. In fact, the owners had observed that the once-fashionable shopping district in Forest Ridge no longer attracted the wealthy, mature clientele. This clientele had been replaced with price-conscious families with children, a mix of Asian and African Americans as well as Caucasians. Specialty items at The Attic Trunk gradually disappeared, replaced by brand-name apparel, fashion accessories, and jewelry. Other owners followed suit in the late 2000s, bringing restaurants, an outdoor cafe, and a day spa to the main avenue in Forest Ridge. 16) Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind?
Children have considerable amounts of disposable income and have a strong influence on family buying decisions.
Which of the following is a characteristic of customer-driven marketing?
Customers know what they want.
Which of the following best explains why public relations is often overlooked as a tool for supporting product marketing objectives?
Many public relations professionals see their jobs as communicating, not brand building.
Which of the following is the most likely result of a marketing strategy that attempts to serve all potential customers?
Not all customers will be satisfied.
Which of the following statements about income distribution in the United States is NOT true?
Over the past several decades, the middle class has grown faster than other classes.
Which of the following is true with regard to price?
Price is the sum of all the values that customers give up to gain the benefits of having a product
Which of the following is true of vertical marketing systems?
Producers, wholesalers, and retailers act as a unified system.
Which of the following statements characterizes the introduction stage of the PLC?
Profits are nonexistent.
________ refers to activities that communicate the merits of the product and persuade target customers to buy it.
Promotion
Which of the following is most likely a result of regulations set up by the Food and Drug Administration and the Consumer Product Safety Commission?
Research costs for companies have risen.
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
SWOT analysis
Which of the following is true with regard to monopolistic competition?
Sellers can differentiate their products to buyers.
Why is markup pricing most likely popular?
Sellers do not need to make frequent adjustments as demand changes.
Which of the following statements is true of the idea generation stage in the new product development process?
Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
Which of the following is an example of a pure tangible good?
a bag of potato chips
Relative advantage, compatibility, complexity, divisibility, and communicability are all characteristics of ________.
a product's rate of adoption
Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________.
a pull strategy
The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________.
a push strategy
Which of the following product offerings is intangible?
a taxi ride
In an attempt to set the company apart from its competitors, Central Parcel Service (CPS) has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is being used by CPS?
corporate identity materials
Bailey's Burgers promotes the Bailey's Jumbo Burger as a fun snack for teens and young adults. In this instance, Bailey's Burgers is practicing ________ segmentation.
age and life-cycle
Consumers in the "lifestyles of health and sustainability" market are more likely to seek ________.
alternative medicine
Which of the following should be a manufacturer's first step when designing an effective marketing channel?
analyze consumer needs
Using the AIDA model, an effective marketing message should get attention, hold interest, ________, and obtain action.
arouse desire
Brands in a market with many competitors and high advertising clutter must ________.
be advertised more heavily to be noticed in the marketplace
Mission statements should ________ and be defined in terms of ________.
be market oriented; satisfying basic customer needs
Price is important to managers ________.
because a small percentage improvement in price can generate a large percentage increase in profitability
Calypso Motors recently rolled out its Proteus hatchback. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?
benefit segmentation
Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
brand extension
Many marketers use the self-concept premise that people's possessions contribute to and reflect their identitiesthat is, "we are what we consume." According to this premise, consumers ________.
buy products to support their self-image
Companies with lower costs ________.
can set lower prices that result in smaller margins but greater sales and profits
Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?
cash discounts
A regional supermarket chain runs print, radio, and television advertisements announcing that 1 percent of its sales is donated to local after-school programs for underprivileged youth. This is an example of ________.
cause-related marketing
P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new product development process before P&G could.
commercialization
Companies often fail to integrate their various messages to consumers because ________.
communications often come from different parts of the company
When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________.
comparative advertising
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.
consider the sales history of similar products
The buyer decision process consists of five stages. Which of the following is NOT one of these stages?
conspicuous consumption
Companies can legitimately charge a higher price if ________.
consumers perceive that the company's product offers greater value
A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.
conventional distribution channel
Which of the following is LEAST relevant when a firm evaluates different market segments?
core competencies of competitors
Changes to service differentiation include all of the following EXCEPT ________.
customers' willingness to pay more for identical brands
Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.
decline
Which of the following is a consequence of standardizing an international product?
decreased product demand
Until retailers ________ their markets, they cannot make consistent decisions about product assortment, services, pricing, or advertising.
define and profile
Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all ________.
deliver a clear, consistent, and compelling message
The marketing team of 7 Star Inc., a company manufacturing smartphones, is currently studying the size, density, location, age, and occupation of its target market. Which of the following environments is being studied in this scenario?
demographic environment
Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?
department store
In which step of the communication process does the marketing communicator need to know the buyer-readiness stage of the target audience?
determining communication objectives
Which of the following is a major step in selecting advertising media?
determining reach, frequency, and impact
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
develop a planned market rollout over time
Upon determining who will want the product, retailers must determine in more detail how to ________ in those markets.
differentiate and position themselves
Changes to the marketing communications model include that consumers are changing and are better informed, that marketing strategies are changing and are moving from mass marketing, and that ________.
digital technologies are changing the ways companies and customers communicate
In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion in its advertisements, and Rolex stresses luxury and status. These are all examples of ________ appeals.
distinctive
Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions.
distribution
When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.
distribution
HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________.
encoding
While traditional mass media still make up a majority of today's media mixes, companies have added digital, mobile, and social media that cost less, target more effectively, and ________.
engage consumers more fully
Which of the following is an objective of persuasive advertising?
engage customers and create brand community
As a consequence of the concern for the natural environment, many companies are developing strategies and practices that support ________.
environmental sustainability
Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________.
experiential retailing
Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________.
fad
Marketers should understand that people's core beliefs and values tend to be ________.
fixed
As production moves up, the average cost per unit decreases because ________.
fixed costs are spread over more units
Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.
internal marketing
In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?
launching a "fighter brand"
An ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time." This ad uses the ________ execution style.
lifestyle
Marketers can group people in a number of ways, including by birth date. However, the following combination of groups has proven to be more effective: ________.
lifestyle, life stage, common values they seek in products they buy
Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________.
line filling
Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.
location-based
In addition to advertainment, advertisers are creating content that ________.
looks less like ads and more like short films or shows
For which product would a company use an exclusive distribution strategy?
luxury cars
Which of the following is one of the primary goals of reminder advertising?
maintain customer relationships
In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?
market-penetration pricing
Jonathan works for a firm that assists companies in promoting, distributing, and selling their products to end consumers. The firm Jonathan works for is a ________.
marketing intermediary
A good design begins with ________.
observing and understanding customers and shaping their product-use experience
Which of the following is NOT one of a wholesaler's channel functions?
off-price retailing
Store retailers must master ________, integrating store and online channels into a single shopper experience.
omni-channel retailing
Which of the following is a specialized and highly targeted media selection that an advertiser might use to reach smaller customer segments with personalized content?
online social networks
Lubricants, coal, paper, and pencils are examples of ________.
operating supplies
Rachel loves fashion and is always seen wearing the trendiest fashion outfits. She actively shares her knowledge with a wide group of friends and colleagues about where to shop for the latest fashion at great deals. Most of her friends and colleagues follow her fashion tips. Rachel portrays the image of a(n) ________.
opinion leader
A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs.
overhead
Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.
percentage-of-sales
Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem?
perishability
"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.
positioning statement
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday, Apex makes sure you get noticed." This exemplifies a ________.
positioning statement
Pat thought he had received the best deal on his new car. Shortly after buying the car, Pat started to notice certain disadvantages of his new car as he learned more about other cars available in the market. Pat is experiencing ________.
postpurchase dissonance
Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?
price-skimming pricing
Costco's Kirkland Signature products are an example of a ________.
private brand
Katrina Mendoza is a senior manager in a manufacturing firm that hires lobbyists to influence legislation that affects the manufacturing industry. Katrina's firm takes a(n) ________ stance toward the marketing environment.
proactive
Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on ________.
product assortment
Pepsi being prominently featured on episodes of Empire is an example of ________.
product placement
Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with the intended ________.
product positioning
Henry Ford's philosophy was to perfect the Model T so that its cost could be reduced further for increased consumer affordability. This reflects the ________ concept.
production
Companies that define their missions in terms of products or technologies are considered myopic primarily because ________.
products and technologies eventually become outdated
Customer satisfaction is a goal that companies strive to earn. Companies can achieve customer delight by ________.
promising only what they can deliver and then delivering more than they promise
In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.
promotional allowances
Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
psychological pricing
In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.
pure competition
John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere?
push strategy
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.
question mark
You own a neighborhood grocery store and would like to have non-food items delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the goods. Which type of wholesaler best fits your needs?
rack jobber
You receive a report that 68 percent of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information?
reach
A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes. The shoe company believes that the band portrays the image of a ________ to the band's fans.
reference group
Which of the following is a disadvantage of using direct mail as an advertising medium?
relatively high cost per exposure
After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience." According to Young & Rubicam's Brand Asset Valuator, this reflects brand ________.
relevance
The experience curve reveals that ________.
repetition in production enhances efficiency
Rachel works for a furniture company in Ireland. She is responsible for buying and selling goods at a profit to small retailers. Rachel most likely operates in a ________ market.
reseller
Which of the following is the goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process?
save time and increase effectiveness
The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.
seasonal discount
Business information services such as Experian Marketing Services and Nielsen help marketers to ________.
segment people and locations into marketable groups of like-minded consumers
Mark has long supported a particular brand of footwear and has always bought that brand. Recently, the footwear manufacturer was embroiled in a controversy for using child labor at its manufacturing plants. Mark doubts the news reports and continues to purchase the same brand of footwear. It is most accurate to say that Mark displays ________.
selective distortion
Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance?
service intangibility
The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance?
service variability
Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing.
social
For which of the following products would the intensive distribution strategy most likely be used?
soft drinks
Product planners need to consider products and services on three levels. At the second level, product planners must ________.
turn the core benefit into an actual product
A(n) ________ argument is most likely to be effective when the audience is highly educated or likely to hear opposing claims.
two-sided
Which of the following brands most likely requires heavy advertising in order to be set apart from similar products?
undifferentiated brands
A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?
value-based pricing
When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.
vertical
Which of the following wholesaler's channel functions is demonstrated when a wholesaler holds inventories and thereby reduces inventory holding costs and risks of suppliers and customers?
warehousing
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
when the costs of developing and introducing the product are low
Distribution channel decisions frequently require long-term commitments between firms. A primary reason is that ________.
when they set up distribution through franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if conditions change
A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.
widened its product mix
Which of the following is true with regard to services?
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.
Which of the following statements is true of cultural factors that influence consumer behavior?
Social classes show distinct product and brand preferences in areas such as clothing and travel.
Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a ________.
brand personality
Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.
consumer-generated marketing
Gilron Holidays runs a premium membership club that caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts at select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.
income
Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winterwear clothing. She will also go through newspapers and magazines to look out for offers and sales on coats.
information search
Melissa Thomas leads the marketing research division at Tronics Inc., a manufacturing company based in Alabama. To improve future sales of the company's products, she has decided to collect customer opinions and feedback on the current products offered by her company. For this purpose, Melissa is looking for a highly flexible contact method that can be used to gather large amounts of data within the least possible time. In this instance, which of the following contact methods is most likely to hold the highest appeal for Melissa?
online surveys
Chronos Inc. designs and markets different brands of cycling watches. Each brand has a single unique feature: the Chronos Cosmos has a heart rate monitor, the Chronos Acumen is designed for older cyclists who prefer a large display, and the Chronos Aegis has a GPS function. Which of the following is evident here?
product differentiation
