marketing exam 2
retailers
0.25 out of 0.25 points Private-label brands are developed and managed by
premium pricing
0.25 out of 0.25 points Rita knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Rita was considering
distribution center
A ________ is a facility for the receipt, storage, and redistribution of goods to company stores.
price and demand
A demand curve shows the relationship between ________ during a specific period of time.
licensing
A long-standing staple of ______ has been major league sports teams that play in the MLB, NBA, NFL, or NHL as well as various collegiate sports teams. rights.
secondary
A marketing research project often begins with a review of the relevant ________ data.
horizontal
A recent innovation by Amazon, the Vendor Flex program, seeks to lower overall transportation costs but also creates new forms of channel conflict with competitors. As a partner in the Vendor Flex program, P&G agreed to allow Amazon to build fulfillment centers within P&G's own warehouses, thus helping to eliminate some of the costs of transporting P&G's products to Amazon's fulfillment centers. Believing that the program was giving its competitor Amazon an unfair advantage, Target reacted vigorously, moving all P&G products from prominent end-cap positions in its stores to less prestigious and less visible locations. Target also stopped using P&G as its primary source of advice for planning merchandising strategies within each category. The conflict between Amazon and Target is an example of ________ channel conflict.
inelastic
A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________ price elasticity demand.
crm
A tablet programmed with key customers' birthdates, wine preferences, and food allergies is a(n) ________ tool.
noncumulative quantity
A(n) ________ discount is based on the amount purchased in a single order.
focus group
A(n) ________ is a small group of people brought together for an intensive discussion of a topic.
operational integration of all channels
As an omnichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure?
early adopter
As it pertains to the diffusion of innovation, if the ________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.
segmentation map
As it relates to positioning, a _________ displays the position of products or brands in the consumer's mind.
decline
As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the ________ stage of the product life cycle.
delivery
Ashburn Grill is known as the premier restaurant in town. With its elegant dining area, extensive wine list, and gourmet chef, residents and tourists flock to the restaurant. Recently, Ty took a large group to the Ashburn Grill and almost every diner sent their entrée back to the kitchen. The Ashburn Grill was experiencing a(n) ________ gap in service quality.
is not substantial
Automobile manufacturers could build cars specially designed for very short people (for example, under five feet), but it is likely that this segment
psychographic
Baby Boomers represent a huge demographic segment for travel marketers. Baby Boomers are also heavily motivated by self-fulfillment, which creates the possibility of ________ segmentation.
instrumental support
Barnes & Noble bookstores have computers available for associates to use to search for books requested by customers and to place special orders. These computers are an example of
information
Because Walmart has vast information about the consumer goods market, it might exert ________ power over P&G by providing or withholding important market information.
the choice of a pricing strategy should be specific to the target market
Because market and operating conditions are different in each target market
perishable
Because services like airline flights and hotel beds are ________, many marketers attempt to match demand with supply using pricing strategies.
data mining
Before deciding on a new promotional campaign, Sonny's Cards looked at its customers' buying patterns over a 15-year period as determined by their use of a loyalty card. What method did Sonny's use to make sense of the data that were available?
geodemographic
Best Life Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using ________ segmentation.
retailers
Brands that are owned by ________ are called private-label brands.
cobranding
British Airways Visa, created cooperatively by British Airways and Visa, is an example of
decline
Celeste listens to music on her iPod and iPhone, but she still buys vinyl records at her local music store on occasion, although they are getting harder to find. Vinyl records are in the ________ stage of the product life cycle.
fast responses at a lower cost
Charlotte wants to survey recent customers about the quality of service they received at her small florist shop. She has customers' mailing and email addresses. Charlotte will likely use an online survey primarily because it offers
syndicated data
Commercial research firms, such as IRI and Nielsen, are sources of
customer input
Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through
variable
Consider a bakery like Entenmann's: The majority of the ________ costs are the cost of the ingredients, primarily flour.
competitor-oriented pricing
Dana owns a bakery where she sells cupcakes. Two blocks down there is another bakery, Sweet's Bakery, that sells cupcakes for $1 less than Dana. Dana decides to lower her price and match Sweet's Bakery prices. What type of pricing strategy is Dana implementing?
reduced the price elasticity of demand for its products
Dante always buys and uses Bridgestone brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Dante allow Bridgestone to charge a higher price and not lose many sales. By building a strong brand, Bridgestone has effectively
realistic
Darlene has identified four potential market segments for her Don't Do It Yourself handyman service. She will now evaluate whether or not each segment is attractive relative to all of the following except
brands
Denny always liked REI outerwear, so when he was shopping for a winter coat, he ordered one from REI without thinking too much about it. This demonstrates how ______ facilitate purchases.
geographic segmentation
Differences in weather and climate create opportunities for
growth
During the ________ stage of the product life cycle, there are few but an increasing number of competitors.
she could not meet a sapid rise in demand
Dylan designs and manufactures custom Murphy bed units. He has a number of unique products but can only produce in limited quantities. Dylan will probably not use a penetration pricing strategy because
relative advantage
Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their
brand loyalty
Elsie was passionate about Talbot's. It was the only place she'd buy her clothes. If anyone asked her about clothes, she would talk for what seemed like hours about why she shopped only there. From a strictly marketing perspective, this word-of-mouth is an element of
frontline employees
Empowerment is when ________ are authorized to make decisions to help their customers and, as a result, service quality generally improves.
align deliveries more closely with actual sales
Especially in the fashion industry where styles and trends change rapidly, a quick response system can
value-based
Every firm needs different strategies to develop pricing models for its products. The strategies include that can help cost-based, competition-based, and
slotting
Fees paid to retailers simply to get new products into stores or to gain more or better shelf space for their products are called ________ allowances.
it helps obtain a bigger share of the market
Firms use a differentiated targeting strategy because
sales orientation
Firms using a ________ to set prices believe that increasing sales will help the firm more than will increasing profits.
decline
Firms with products in the ________ stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market.
easy for consumers to recognize and remember
For a brand name to be effective, it needs to be
regular
For marketers to advertise a price as their ________ price, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price.
lower marketing costs associated with reaching loyal customers
For marketers, one of the benefits of having achieved brand loyalty is
convenient locations
For retailers, when making decisions regarding place, a key ingredient to success is
knowledge
For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a ________ gap in services marketing.
select a target market
Gerardo wants to develop an Internet-based auction business and is working through the STP process. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Gerardo now has to
in-store promotions
Gina wants to maximize sales to the customers who walk into her store. Of the following, Gina will most likely focus on
occasion
Godiva Chocolates produces specially decorated boxes of candies for Valentine's Day, Easter, and Christmas. This is an example of ________ segmentation.
launch
Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's
in quantity of items shipped
How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?
Panelists scan their receipts on a home scanning device
How is consumer panel data collected during the test marketing phase of a new product introduction?
credible comments
If a firm declared that it wanted to develop a strategic relationship, but was unwilling to commit funds or any effort to make it succeed, there would be an obvious lack of
selective
If a manufacturer isn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ________ distribution.
horizontal price fixing
If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used?
partnering relationship
Ilya had just taken over his family's business after spending ten years in the marketing department of a large corporation. He met with a representative from one of his firm's biggest customers, who told him, "We should think about how we can make the pie bigger rather than fighting over the size of the slices." He had expected a more cutthroat approach rather than this call for a
customer relationship managment
Imagine that you are the marketing manager of a restaurant group that wants to implement a customer reward and loyalty program. You research the firm Guest Hospitality Solutions, which offers its services to restaurant chains to develop and execute these types of programs. Guest Hospitality Solutions is a company that focuses on
customer-oriented
Imelda's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Imelda's is using a ________ pricing strategy.
differentiated its product
In a classic example of segmentation strategy, years ago Swift Meat Company transformed turkey meat into "Butterball" turkeys. In doing so, the company
participants—such as warehouses, manufacturing plants , and retail outlets—are typically owned by a parent company to lessen potential conflict among segments of the channel
In a corporate vertical marketing system,
conventional
In a(n) ________ marketing channel, none of the participants have any control over the others.
high/low
In a(n) ________ pricing strategy, marketers rely on the promotion of sales, during which prices are temporarily reduced to encourage purchases.
leads respondents to a particular response
In questionnaire design, a question such as "Advertising is the best part of the business program, isn't it?"
services retailer
In which of the following categories would a dry cleaning business be placed?
electronic communications
Increasingly, ________ are being used for promotions.
relative advantage
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
syndicated data
Jaleel is the marketing manager for a moderately well-known rock band. He wants to know more about industry trends including sales by different musical styles, online downloads, and concert attendance. Jaleel will most likely use ________ to gather this type of data.
facial recognition
Kellogg's used ________ software to assess when they smiled or frowned and their overall positive versus negative responses as they watched three different ads for its Crunchy Nut cereal.
facial recognition software
Kellogg's used ________ to record participants' faces as they watched three different ads for its Crunchy Nut cereal. It then assessed when they smiled or frowned and their overall positive versus negative response.
marketing analytics
Kohl's wants to target the unique customers that shop in each store. To distribute the correct colors and styles to each area, Kohl's uses
selective
Manufacturers might use ________ distribution by allowing only a few selected retail customers in a territory to sell its products.
rebate
Mario decided to purchase an electronic toothbrush priced at $100 because of a special offer from the manufacturer. By sending proof of purchase and the receipt to the manufacturer, he could receive a $40 check in return, making the final price $60. This pricing tactic is known as a
demographics and geography; lifestyle or benefit segmentation
Marketers often employ a combination of segmentation methods, using ________ to identify and target their customers, and ________ to design products and messages to appeal to them.
focus on increasing sales to their best customers
McKenna directs her salespeople to increase the company's share of wallet. McKenna is directing her salespeople to
the product launch
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates
procedural fairness
One afternoon, the clerk at the customer service desk of a large retail store got bored and started stating different return policies to each customer. Customers waiting in line and overhearing the different policies would probably feel that the store's handling of returns lacked
increase consumer recognition and awareness of product offerings.
One important purpose of a brand is to
brainstorming
One of the key characteristics of ________ sessions is that no idea should be immediately accepted or rejected.
avoid negative word of mouth from upset customers
One of the reasons service failures need to be addressed quickly is to
the way a product or service is marketed can have a profound impact on price elasticity
One problem in relying on price elasticity and demand curves when setting prices is
it is easier to lower prices than raise them
One reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that
describe themselves
Psychographics is the segmentation method that delves into how consumers
the money paid; overall sacrafice
Raoul was known for driving 20 miles just to save a dollar on the price of his favorite beverage. Raoul perceived price as ________ for a good or service, while most consumers recognize price as the ________ made to acquire a good or service.
qualitative research
Recently, the number of students enrolled in the marketing program dropped while enrollment in the science program increased. The chair of the marketing department will probably use ________ as a first step to gain a better understanding of why enrollments are changing.
storage
Retailers address the conflict between consumers wanting or needing only one item and manufacturers wanting to produce and ship in quantity by providing
markdowns
Retailers use ________ to get rid of slow-moving or obsolete merchandise.
upgrading an airline ticket at the airport
Retailing is the primary activity in which of the following situations?
intangible
Roberto has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Roberto's problems is that services are ________, making evaluation of service quality difficult.
they can be quickly accessed at a relatively low cost
Roberto is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product line. The advantages of using these data include
advanced shipping notice
Ron has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Ron has just received a(n)
price inelastic
Samar customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably
iri and nielsen
Scanner data are used in quantitative research obtained from scanner readings of Universal Product Code (UPC) labels at checkout counters. The data from these purchases are likely to be acquired by leading marketing research firms such as ________, which use this information to help leading consumer packaged-goods firms (e.g., Kellogg's, Pepsi, Kraft) assess what is happening in the marketplace.
spread positive word-of-mouth to other physicians
Serena is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Serena is trying to identify innovators in her market, knowing these customers will most likely
provide support and incentives for their employees
Service providers often encounter rude and unreasonable consumers. Services marketing managers can reduce the delivery gap, even for these customers, by
intensive
Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this belief is consistent with the company's overall strategy, it will choose ________ distribution.
an associated service
Some credit cards provide free liability insurance, funded by the bank issuing the card, when a customer pays for a rental car using the card. This extra insurance is an example of
sell to contractors or restaurant owners
Stores like Home Depot and Costco act as wholesalers when they
assurance
Students regularly seek out Professor Hunter to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, ________ is the most important of the five service quality dimensions.
walmart
Supercenters are large stores that combine a supermarket with a full-line discount store. ________ dominates this category with the vast majority of supercenters in the United States.
monitor her competitors
Talia subscribes to an Internet service that alerts her whenever other firms in her industry are quoted in the media. Talia is using this type of marketing research primarily to
it is often impossible to identify with precision where a product is in the product life cycle
The CEO of Charisse's firm just came back from a business seminar. He called Charisse into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." Charisse needs to think fast for a good answer because she knows that
price discrimination
The Clayton Act and the Robinson-Patman Act forbid certain types of
dynamic pricing
The Curtain's Coffee company is located in a business district with few customers on the weekend. To attract customers on Saturday and Sundays, it reduces its prices on these two days. This is an example of
an r&d consortia
The National Institutes of Health (NIH) sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of
product launch
The ________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
price - variable cost per unit
The contribution per unit is
Profits increase as economies of scale are attained
The growth phase of the product life cycle is always dynamic. Which of the following occurs in this phase?
increased customer loyalty
The knowledge retailers can gain from their store personnel and customer relationship management databases is valuable for developing
crm
The knowledge retailers gain from their store personnel, the Internet browsing and buying activities of customers, and the data they collect on customer shopping habits can be used in
benefit
The light beer commercial with the slogan "less filling, tastes great" was based on ________ segmentation.
seasonal discount
The local sports store may purchase outswim-related products only during the winter months because the manufacturer offers a better price to the sports store. This type of pricing tactic is known as a
reliability
The new hotel manager asked the pastry chef, "Are you sure you know how to cook Baked Alaska?" Which of the service dimensions was the hotel manager expressing concern about?
service providers need to be pleasant even if the customer is not
The old cliché "Service with a smile" recognizes the fact that
satisfaction guaranteed
The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity to try out their service before purchasing. Many hotels use ________ to overcome the problem of inseparability of services.
share of wallet
The percentage of a customer's purchases made from a particular retailer is referred to as
geodemographic
The phrase "birds of a feather flock together" captures the idea of ________ segmentation.
elastic
The price elasticity of demand for a teeth-whitening kit is −1.5. The market for this product is considered
cost of ownership
The pricing method that considers what consumers may be willing to pay for a particular product based on the value received over the product's entire lifetime is the ________ pricing method.
lessen inventories of finished goods
The primary reasons manufacturers offer seasonal discounts to retailers are to more easily plan production schedules and to
buyer to the manufacturer
The purchase information from each individual store is typically aggregated by the retailer as a whole, which creates an order for new merchandise and sends it to the manufacturer. This is an example of information flowing from the
earning potential of the brand over the next 12 months
The value of a brand is often calculated by assessing the
prestige pricing
There is an old saying "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with
monopolist
There is often only one provider of cable television services in each region of the country: Time Warner is in New York, Comcast is in most of New England, and so forth. When Comcast recently proposed a plan to buy Time Warner, the purchase ultimately could not be completed, mostly due to concerns that it would have caused Comcast to become an overly large ________ with too much power.
data mining
Through analysis of sales data, Lots of Lots retail store found that customers who bought peanut butter also tended to buy bananas. Lots of Lots was engaged in
1,500
Timor rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Timor, to earn his target profit, he will need to rent out ________ rooms.
determine what those expectations are
To meet or exceed customers' expectations, marketers must
customers
Traditional demand curve economic theory is used by marketers to understand ________ in the five Cs of pricing.
that generates revenue
Unlike product, promotion, or place, price is the only part of the marketing mix
as perceived by the customer
Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering
strategic partners
Walmart needs P&G to satisfy its customers, and P&G recognizes that if it can keep Walmart happy, it will have more than enough business for years to come. Walmart and P&G recognize that it is in their common interest to be
Firms must consider the high costs associated with producing a small volume of product
What is one of the drawbacks of using a price skimming strategy?
marketing analytics
What tools help marketers make sense out of the data and use it to make appropriate business decisions?
seasonal discount
When Amana offers its air conditioner dealers an additional discount if they place their orders and receive delivery before April 1, prior to the summer season, Amana is offering a
late majority
When Blu-Ray disc players were new, they could cost around $1,000 and there were a limited number of discs available that would play on them. Stef and Garth waited, concerned with limited availability of discs and wishing for more choices in the market. By the time they purchased a Blu-Ray disc player, sales had leveled off and prices had declined significantly. Stef and Garth were part of the ________ diffusion of innovation group.
concentrated
When Curt's Catering first opened, the owner decided to target only events at resorts in its geographic region. Curt's Catering was using a(n) ________ targeting strategy.
edlp
When Deena's Discount communicates to consumers that, for any given group of often-purchased items, its prices will tend to be lower than that of any other competitor, Deena's Discount is exhibiting what type of pricing strategy?
status-pro pricing
When Delta increases its average fares, American Airlines and United often follow with similar increases. This is an example of
brand licensing
When Disney flooded retail stores with products based on its movie Frozen, this illustrated
brand extension
When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in
expertise power
When Walmart relies on its experience and knowledge to decide how to market a product without giving the supplier much of a say in the matter, this is an example of
coercive power
When Walmart threatens to punish or punishes the other channel member for not undertaking certain tasks, such as if it were to delay payment for a late delivery, this is an example of
shopping
When Winifred planned her trip to Cambodia, she spent months evaluating packages, airfares, and hotel accommodations. Winifred's trip is an example of a(n) ________ product.
m-commerce
When a company offers consumers the ability to make purchases via a smartphone, this is known as
responsiveness
When choosing where to eat lunch, Bart's major service criterion is speed: being seated promptly and served his meal quickly. For Bart, ________ is the most important of the five service quality dimensions.
structured
When conducting a research study attempting to understand what features were most important to automobile consumers, O'Malley Research used a questionnaire containing ________ questions, with a predetermined set of response options.
inseperable
When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.
service
When the delivery of a service fails to meet customers' expectations, a ________ gap exists.
place
Which element of the marketing mix specifically deals with supply chain management?
receiving, checking, and storing merchandise
Which of the following are activities carried on in a distribution center?
overextending a firm's abilities
Which of the following are reasons for the high failure rate of new products?
journal articles
Which of the following is an example of secondary research?
kraft singles and kraft mayo
Which of the following is the best example of a family brand?
heterogeneity
Which of the following refers to variability in a service's quality?
jewelry store
Which of the following retail stores would emphasize personal selling the most as part of the firm's promotional efforts?
occasion segmentation
Which of the following segmentation methods is being used when M&M's offers special wedding-themed packaging for customized M&M's (imprinted with the names of the bride and groom)?
what their customers need
While demographic and geographic segmentation of retail customers are relatively easy, these characteristics do not help marketers determine
the retailer
Who usually makes the final decision regarding the use of distribution center versus direct store delivery?
It allows the firm to spend less on creating brand awareness and associations.
Why is brand extension a popular marketing strategy?
because the Super Bowl offers an opportunity to create significant brand awareness
Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?
more likely to have what customers want
With more frequent shipments associated with quick response (QR) systems, a retailer is
beta testing process
YouEye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the
How likely is it for certain retailers to carry this product?
Yvonne represents a manufacturer who makes unique, high-end handbags. When making a recommendation about potential retail partners, what should be Natalie's first consideration?
value
________ compares the price of a product to its benefits.
distribution centers
________ enable the retailer to lower inventory investments systemwide.
power
________ in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.
positioning
________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings.
store brands
________ is another term for private-label brands.
listening to the customer
________ is the first step in service recovery.
omnichannel retailing
________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.
empowerment
________ means allowing employees to make decisions about how service is provided to customers.
horizontal;vertical
________ price fixing occurs when competitors collude to control prices, and ________ price fixing occurs within a marketing channel to control prices passed on to consumers.
experimental
________ research is a type of quantitative research that manipulates variables to help determine cause and effect.
demograpgic
________ segmentation is the most common basis of consumer market segmentation because these segments are easy to define and usually easy to reach.
the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies
what is neuromarketing?
