Marketing 340 Exam #2 (Possible Questions)
Port 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
Which of the following sets the upper limit for a product's pricing?
Consumer perceptions of value
A laundry detergent that consumers purchase frequently, with minimum comparisons, is an example of a(n) ________ product.
Convenience
Which of the following is most likely a true statement about shopping products?
Correct Shopping products are purchased less frequently than convenience products.
Which of the following types of products are generally priced the lowest?
Correct convenience products
Service inseparability means that ________.
Correct services become a part of their providers, whether the providers are people or machines
Cost-based pricing relies on consumers' perceptions of value to drive pricing
False
Line extensions occur when a company extends existing brand names to new or modified products in a new category.
False
The simplest pricing method is break-even pricing, which involves adding a standard markup to the cost of a product
False
Which of the following is true of the product life cycle (PLC)?
It is generally difficult to forecast the sales level at each PLC stage
________ is the process of evaluating the attractiveness of different market segments and selecting one or more segments to enter.
Market Targeting
A firm uses _________ when it charges a high, premium price for a new product with the intention of reducing the price in the future
Market-skimming price
Which of the following statements is most likely true about unsought products?
Marketers use aggressive advertising to convince customers to buy unsought products
When a product hits the __________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition
Maturity
Pricing a product based on consumers' reference prices is referred to as _________ pricing
Psychological
Which of the following is an approach where firms target a whole market based on common consumer needs?
Undifferentiated Marketing
Fads are characterized by their _________
Unusually high sales and rapid decline
In which of the following cases is crowdsourcing used for new product development?
A company creates a forum where anyone can contribute new product ideas
Which of the following is most likely true of a product in the maturity stage of the product life cycle?
A slowdown occurs in sales growth
Market segments that can be effectively reached and served are said to be ________.
Accessible
Demographic variables are the most popular bases for segmenting customer groups because they ________.
Are easier to measure
Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.
Behavioral
Which of the following sets the lower limit for a product's pricing?
Product costs
In a sequential new product development process, which of the following is true of the product development step?
Product development is usually followed by test marketing
