Marketing 350 - Exam 3 - Concept Quizzes

Assume a retailer purchases a can of premium dog food at $2.25 and adds 75 cents to the cost, making the price $3. What is the markup as a percentage of selling price?

25%

ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?

A decrease in total revenue

Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?

An increase in total revenue

Which of the following should be accomplished after developing pricing objectives?

Assessing the target market's evaluation of price

Which of the following is calculated by dividing the variable costs by the number of units produced?

Average variable cost

Buyers recognize the existence of a new product during which of the following stages of the product adoption process?

Awareness

Which of the following is the strongest and most desired by marketers?

Brand insistence

Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?

Breakeven point

Which of the following is a major advantage of nonprice competition?

Building customer loyalty toward the brand

Which of the following pricing strategies sets the basic product in a product line low, but the price on the items required to operate or enhance it are higher?

Captive pricing

ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?

Cash discount

Which of the following is often used by producers of relatively homogeneous products, especially when the target market considers price to be an important purchase consideration?

Competition-based pricing

In the case that a preferred brand is not available, which of the following consumer product types will a shopper be most likely to choose a substitute brand?

Convenience

Which of the following is NOT one of the factors that affect service quality?

Corporate performance

Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment?

Cost-plus pricing

The Federal Trade Commission (FTC) is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?

Deceptive pricing

Sales fall rapidly during which of the following?

Decline stage

Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?

Demand curve

Which of the following identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market?

Disruptive innovation

Which of the following are viewed as "in the know" by many product adopters?

Early adopters

Which of the following is NOT one of the factors that influence the assessment of value?

Elasticity of demand

Kara Thrace operates a service business that engages in systematically collecting data on brands and prices at competitors' stores. For which stage of the price establishment process would this service be most appropriate?

Evaluating competitors' prices

ACME Corp. has decided that all of its products' packages should be similar. ACME is using which of the following?

Family packaging

Which of the following alters a product's versatility, effectiveness, convenience, or safety?

Functional modification

During which of the product life cycle stages do sales rise rapidly?

Growth

When a product's performance characteristics are at least equal to those of competitive brands and it is priced lower, which of the following is appropriate?

Head-to-head positioning

The Red Cross raises money to help people survive natural and manmade disasters. Red Cross can best be described as a(n) _______.

Idea

Traveler's Insurance uses an umbrella in its name to symbolize protection. Such symbols provide cues to overcome which aspect of a service?

Intangibility

Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues?

Intensive distribution

Dell Computer and Harley Davidson are well known for their use of the just-in time (JIT) approach. To which of the following physical distribution activities does the JIT approach belong?

Inventory management

Which of the following is closely related to packaging and is used to identify, promote, inform, and address legal requirements?

Labeling

Which of the following is NOT a means of repositioning a product?

Maintaining the product's marketing mix

Which of the following is responsible for managing the marketing activities that serve a particular group of customers?

Market manager

Which of the following is characterized by intense competition?

Maturity

Which of the following deletion strategies makes no attempt to give a declining product a new life?

Phase-out

Which pricing strategy provides the most flexible introductory base price?

Price skimming

Which of the following is used by retailers or wholesalers to develop more efficient promotion, generate higher gross margins, and change store image?

Private distributor brands

Which of the following involves the processes to obtain resources to create value through sourcing, purchasing, and recycling including materials and information?

Procurement

When you buy a new backpack from LLBean.com, which of the following consumer marketing channels are you using?

Producer to consumer

Which of the following business marketing channels is most likely to be used?

Producer to customer

During which phase of the new product development process is a new product idea turned into a prototype or working model?

Product development

Which of the following is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization?

Product manager

Which of the following is the total group of products that an organization makes available to customers?

Product mix

Which of the following objectives is likely to be more expensive for a firm as the cost of materials and research and development may be greater?

Product quality

Which of the following product-line pricing strategies is NOT generally used for business products?

Psychological pricing

Which of the following pass on to a business customer the cost savings gained through economies of scale?

Quantity discounts

Which of the following is often favored by intermediaries?

Restricted sales territories

ACME Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. ACME is in which phase of the new product development process?

Screening

Which of the following levels of market coverage is desirable when a special effort, such as customer service from a channel member, is important to customers?

Selective distribution

Which of the following pricing objectives can reduce a firm's risks by helping to stabilize demand for its products?

Status quo

Which of the following integrates the functions of operations management, logistics management, procurement, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times?

Supply chain management

Which of the following product elements derives from customers' involvement with the product, which may convey additional value to many products (and brands) for buyers?

Symbolic or experiential benefits

Which of the following is NOT a way in which nonprofit marketing is different from conventional marketing?

The chief beneficiary is who owns it or holds stock in it.

Which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently?

Third-party logistics firms

Which of the following is NOT a typical function of packaging?

To prevent efficient handling of the product

Free samples can help move consumers into which of the following?

Trial

Suppliers may use _______ to get rid of slow-moving inventory, while a franchiser may use them to maintain quality control and protect the franchiser's reputation

Tying agreements

Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?

Uniform geographic pricing

Which of the following are purchased when a sudden problem must be solved, products of which customers are unaware of until they see them in a store or online, and products that people do not plan on purchasing?

Unsought products

Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?

Value-conscious

Which of the following is responsible for all aspects of developing a product: research and development, production and engineering, finance and accounting, and marketing?

Venture team

Which of the following provides time utility by enabling firms to compensate for dissimilar production and consumption rates?

Warehousing

ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _______.

a price war

To compete effectively on a price basis, a firm should _______.

be the low-cost seller of the product

The Double-A of American Airlines, the peacock of NBC, and the apple with a missing bite of Apple are examples of a _______.

brand mark

The Red Cross raises funds to help people recover after fires, tornados, and other disasters. For the Red Cross, the victims of these disasters represent _______.

client publics

The Federal Trade Commission has established guidelines for _______. If the higher price against which the comparison is made is the price formerly charged for the product, the seller must have made the previous price available to customers for a reasonable time period.

comparison discounting

The most popular type of vertical marketing system is the _______.

contractual VMS

Delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking, and information through toll-free numbers and websites are examples of _______.

customer services

Customers usually have two levels of service expectations: _______ and _______.

desired; acceptable

Nonprofit decisions that relate to how ideas and services will be made available to clients relate to _______.

distribution

One of the most important factors in providing high service quality to customers is _______.

employee satisfaction

In any one large metropolitan area, there is usually just one Ferrari luxury sports car dealer. This best illustrates _______.

exclusive distribution

A company's rental of production space is an example of a _______.

fixed cost

In the absence of government controls, pricing is a(n) _______ and _______ way to adjust the marketing mix.

flexible; convenient

When a producer, wholesaler, or retailer has the ability to influence another channel member's goal achievement, it _______.

has channel power

Training can help employees provide consistent service quality, thereby lessening variations in service quality, which is also known as _______.

heterogeneity

When customer-contact jobs are contracted out to the homes of workers, it is called _______.

homesourcing

If PetSmart began to acquire very successful local pet stores, this would be an example of _______.

horizontal integration

The fact that you cannot isolate the production of a ride through a ride-share service such as Uber or Lyft from its consumption relates to the service's _______.

inseparability

A price developed in the buyer's mind through experience with the product is a(n) _______.

internal reference price

The primary difference between a service and a good is that a service _______.

is dominated by the intangible portion of the total product

Quality, the overall characteristics of a product that allow it to perform as expected, has two components: _______ and _______.

level; consistency

The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______.

line extension

ACME Corp. has a pricing objective to increase its primary product's sales relative to total industry sales. This is best described as a(n) _______.

market share objective

The use of a variety of marketing channels to ensure maximum distribution is best called _______.

multichannel distribution

To reduce prices of services used during slow periods in order to boost demand, marketers may use _______.

off-peak pricing

Chevrolet's Presidents' Day sales are an example of _______.

periodic discounting

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds are best described as _______.

positioning

Huy Fong Foods is buying peppers and vinegar to make its iconic Sriracha sauce. For Huy Fong Foods, these are best described as _______.

process materials

Kimberly-Clark is in the process of eliminating products from the product mix because it no longer satisfies a sufficient number of customers. This is best described as _______.

product deletion

The process of creating and designing products so that customers perceive them as different from competing products is best described as _______.

product differentiation

A _______ is a specific version of a product, while a _______ is a group of closely related products that are considered to be a group because of marketing, technical, or end-use considerations.

product item; product line

Price is a key element in the marketing mix because it relates directly to the generation of total _______.

revenue

When a product's packaging can be reused for an additional purpose, this is best described as _______.

secondary-use packaging

Customers' perceptions of how well a service meets or exceeds their expectations is best described as _______.

service quality

Any product making a nutritional claim must have _______.

standardized nutrition labeling

The world's first service economy was _______.

the United States

Although heterogeneity results in variability in service quality, which makes it difficult to standardize services, it does offer a significant advantage: _______.

the ability to customize

Supply chain management should begin with a focus on _______.

the customer

A product modification differs from a line extension in that _______.

the original product does not remain in the line

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______.

time utility

When a company offers many product lines, it can be said to have a _______.

wide product mix

Firefly Space Shuttles is using a strategy of maximizing revenues by making numerous price changes in response to demand, competitors' prices, or environmental conditions. This is best described as _______.

yield management