Marketing Exam 2 (HW questions)

Fitbit makes health and fitness tracking devices. Some buyers want very basic fitness tracking such as steps taken and calories consumed. Others are focused on high performance and want heart rate and sleep monitoring, text notification, and wireless sync to their smart phone. In serving these two very different groups, Fitbit is using __________ segmentation. A. Personality B. Life-cycle stage C. Benefits sought D. Demographic E. Usage Rate

C. Benefits sought

Duracell is well known for manufacturing and marketing batteries. Recently they launched the Duracell Powermat, which is a wireless charger for mobile devices. Which brand development strategy did Duracell use in this example? A. Multibrand B. Licensing C. Brand extension D. New brand E. Line Extension

C. Brand extension

What is the first thing marketers must do when using value-based pricing? A. Determine product costs B. Set the target price to match customer perceived value C. Design a quality product D. Convince buyers that the product's value at a given price justifies the purchase E. Assess customer needs and value perceptions

E. Assess customer needs and value perceptions

Gillette charges a fairly low price for their razors (relative to costs) and a high price for razor blades. They are using a strategy of __________ pricing. A. Product-bundle B. Product line C. By-product D. Two-part pricing E. Captive-product

E. Captive-product

Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________. A. High-low pricing B. Cost-plus pricing C. Break-even pricing D. Value-added pricing E. EDLP pricing

A. High-low pricing

The number of items in a product line represents the __________ and the total number of product lines a company carries represents the ___________. A. Product line length; product mix width B. Product mix depth; product line width C. Product line width; product mix length D. Product mix length; product mix depth E. Product line length; product line width

A. Product line length; product mix width

Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of__________ pricing. A. Product-bundle B. Product line C. Two-part D. Captive-product E. By-product

A. Product-bundle

What is the overall purpose of differentiation? A. To create superior customer value B. To allow a firm to offer the lowest prices C. To select the segment or segments to enter D. To market high quality products E. To divide the market into smaller groups of buyers

A. To create superior customer value

What are the four special service characteristics marketers must consider when designing marketing programs? A. Intangibility, inseparability, variability, and substitutability. B. Intangibility, inseparability, variability, and perishability C. Tangibility, inseparability, variability, and perishability D. Intangibility, inseparability, conformity, and perishability E. Tangibility, substitutability, variability, and conformity

B. Intangibility, inseparability, variability, and perishability

Which of the following statements about service marketing is correct? A. It is easier to define service quality than product quality B. Training current employees better and hiring new ones with more skills can increase service productivity C. Due to the variability of services, top service companies set modest service-quality standards D. Service marketers cannot differentiate their offerings E. Social media is not useful to service marketers

B. Training current employees better and hiring new ones with more skills can increase service productivity

The full mix of benefits on which a brand is differentiated and positioned is called a(n) ____________. A. Image statement B. Value proposition C. Perceptual map D. Positioning statement E. Mission Statement

B. Value proposition

One form of __________ is when movie theaters charge one price for adults and a different price for senior citizens. A. Product form pricing B. promotional allowances C. Customer-segment pricing D. Psychological pricing E. location-based pricing

C. Customer-segment pricing

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n) __________. A. Trend B. Style C. Fad D. Aberration E. Fashion

C. Fad

Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent? A. Two-part pricing B. Optional-product pricing C. Product line pricing D. By-product pricing E. Product-bundle pricing

D. By-product pricing

Which of the following correctly identifies the three major pricing strategies used by marketers? A. Customer value-based pricing, cost-based pricing, and profit-based pricing B. Customer value-based pricing, revenue-based pricing, and competition-based pricing C. Customer value-based pricing, revenue-based pricing, and profit-based pricing D. Customer value-based pricing, cost-based pricing, and competition-based pricing E. Customer Value-based pricing, cost-based pricing, and revenue-based pricing

D. Customer value-based pricing, cost-based pricing, and competition-based pricing

Which targeting strategy focuses on common consumer needs, as opposed to different needs? A. Individual marketing B. Concentrated marketing C. Local marketing D. Mass marketing E. Differentiated marketing

D. Mass marketing

On a break-even chart, the break-even volume is located __________. A. At the intersection of total revenue and target profit B. At the intersection of target profit and total costs C. At the intersection of total revenue and fixed costs D. At the intersection of total revenue and variable costs E. At the intersection of total revenue and total costs

E. At the intersection of total revenue and total costs

Typically, consumers put in minimum time and effort when buying products such as laundry detergent, candy, and fast food. These types of goods are classified as _________ products. A. Augmented B. Specialty C. Shopping D. Unsought E. Convenience

E. Convenience

A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy? A. Decline B. Product development C. Introduction D. Maturity E. Growth

E. Growth

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as a(n) __________. A. Type of segmented pricing B. Indicator of the cost of production C. Indicator of geographic pricing D. Limited time offer E. Indicator of quality

E. Indicator of quality

Charles Revson, who started Revlon, once said "We sell hope." Revson was defining the __________ of Revlon cosmetics. A. Core customer value B. Quality level C. Augmented product D. Design E. Branding

A. Core customer value

What is the first step of the new product development process? A. Idea generation B. Business analysis C. Marketing strategy development D. Concept development and testing E. Idea screening

A. Idea generation

Which of the following statements regarding customer value-based pricing is correct? A. In using this strategy, companies often find it hard to measure the value customers attach to their product. B. This strategy is seldom used because buyers rarely consider perceived value when evaluating a product's price. C. Customer value-based strategy begins with determining product costs. D. Using this strategy, marketers first design the product and marketing program, then set the price. E. Using this strategy, marketers must convince buyers that the product's value at that price justifies its purchase.

A. In using this strategy, companies often find it hard to measure the value customers attach to their product.

When Doritos come out with new flavors of their tortilla chips, what brand development strategy are they using? A. Line extension B. Licensing C. New Brand D. Multibrand E. Brand extension

A. Line extension

How is price determined using cost-plus pricing? A. The price is set by adding a standard mark-up to the cost of the product. B. The price is set based on competitor's prices. C. The price is set by determining the customer's value perceptions. D. The price is set based on demand. E. The price is set so that total revenue covers total costs.

A. The price is set by adding a standard mark-up to the cost of the product

Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called __________. A. Two-part pricing B. Product-bundle pricing C. Optional-product pricing D. By-product pricing E. Product line pricing

A. Two-part pricing

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. Value-added pricing B. EDLP pricing C. Cost-plus pricing D. High-low pricing E. Break-even pricing

A. Value-added pricing

One major objective of a market-penetration pricing strategy is to __________. A. Win a large market share B. Skim off small but profitable segments C. Prevent customer dissatisfaction D. Set a high price to gain profits E. Attract buyers willing to pay a higher price

A. Win a large market share

Which value proposition is the most difficult to sustain in the long run? A. More for the same B. More for less C. The same for less D. Less for much less E. More for more

B. More for less

Which of the following statements regarding initiating price increases is correct? A. Prices should be increased when there is a lack of demand B. The company should consider ways to meet higher costs of demand without raising prices C. Price increases do not impact profits D. Cost inflation is not a factor in price increases E. Companies do not need to communicate reasons for price increases

B. The company should consider ways to meet higher costs or demand without raising prices

What must companies do to create successful new products? A. Spend more on R&D than its competitors B. Understand its consumers, markets, and competitors and develop products that deliver superior value C. Cut costs to keep the price of new products low D. Focus their new product development efforts only on consumers E. Obtain successful products through acquisitions instead of doing internal development

B. Understand its consumers, markets, and competitors and develop products that deliver superior value

Which of the following statements about new product development strategy is correct? A. New products are usually successful because consumers like new things. B. A new product will succeed as long as it priced correctly C. Innovation can be very expensive and very risky D. New products are not a key source of growth for companies E. Developing new products is optional for companies with established brands

C. Innovation can be very expensive and very risky

Psychographic segmentation divides buyers into different segments based on ___________. A. Personality and income B. Lifestyle and income C. Lifestyle and personality D. Lifestyle and geography E. Age and life-cycle stage

C. Lifestyle and personality

Which of the following descriptions best represents targeting a demographic segment? A. Promoting cranberry sauce for the Thanksgiving holiday B. Promoting a smartphone with longer battery life C. Marketing prepackaged lunches for children D. Marketing athletic clothing for sports enthusiasts E. Rewarding heavy users of a product

C. Marketing prepackaged lunches for children

Which of the following statements is true regarding standardizing products for international markets? A. Standardization ensures that products will succeed in foreign markets B. Standardization helps a company develop a different image in different countries C. Standardization decreases product design, manufacturing, and marketing costs. D. Standardization means that marketers do not have to adapt their product offering for differentiate international markets E. Markets and consumers all over the world are alike, so a company should always standardize international products

C. Standardization decreases product design, manufacturing, and marketing costs

Which of the following statements regarding standard test marketing is correct? A. If test marketing is successful, the next step is to develop the product B. A company usually tests only a small part of its marketing program in a test market C. Test marketing can be costly and delay commercialization of the product D. New products are always test marketed E. Test marketing is conducting in a stimulated market setting

C. Test marketing can be costly and delay commercialization of the product

Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle? A. Shift some advertising from building product awareness to building product conviction and purchase B. Use promotional spending to inform consumers and get them to try the product C. Select products to maintain, harvest, or drop D. Modify the market, product offering, or marketing mix E. Produce the basic versions of the product and focus on selling to those buyers who are most ready to buy

D. Modify the market, product offering, or marketing mix

For which service characteristic do marketers need to pay close attention to fluctuations in demand? A. Inseparability B. Tangibility C. Variability D. Perishability E. Intangibility

D. Perishability

Which of the following statements regarding positioning is correct? A. Once a positioning strategy is identified, it is typically very easy to implement. B. Establishing a position usually takes a very short amount of time. C. Abruptly changing a position is an effective strategy when consumer needs change. D. Positions must adapt over time to meet changing consumer needs. E. Once established, a strong position is never lost.

D. Positions must adapt over time to meet changing consumer needs.

Walmart created the Great Value brand for their food products and the Equate brand for their pharmacy, health, and beauty products. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using? A. Licensed brand B. Co-brand C. National brand D. Private brand E. Manufacturer's brand

D. Private brand

Which of the following statements regarding segmented pricing is correct? A. For segmented pricing to be effective, the segments should have the same degree of demand. B. Different locations are not used as a basis for segmented pricing. C. Perceived value does not have to be considered when using segmented pricing. D. Segmented pricing practices can cause consumer resentment. E. Segmented pricing is not used to price different versions of a product

D. Segmented pricing practices can cause consumer resentment.

Internal factors that affect pricing include __________. A. The company's overall marketing strategy, objectives, and the nature of the market B. The company's overall marketing strategy, the nature of the market, and demand. C. The company's overall marketing strategy, objectives, and demand D. The company's overall marketing strategy, objectives, and marketing mix E. The nature of the market, demand, and the economy.

D. The company's overall marketing strategy, objectives, and marketing mix

Which of the following statements regarding the growth stage of the product life cycle is correct? A. The company will still be free of competition B. Early adopters are not yet buying the product C. Sales begin to climb slowly D. Sales will be slow and profits will level off or decline E. Companies face a trade-off between high market share and high profits

E. Companies face a trade-of between high market share and high profits

Which of the following statements regarding concentrated marketing is correct? A. Concentrated marketing is not feasible for small companies B. Marketers cannot effectively fine-tune the marketing mix to the needs of a narrow, carefully designed segment C. Concentrated marketing targets a small share of a large market D. Concentrated marketing is generally not a profitable strategy E. Concentrated marketing involves higher-than-normal risks.

E. Concentrated marketing involves higher-than-normal risks

Which of the following statements about segmentation is true? A. Different segments might require different marketing strategies or mixes. B. Market segmentation is part of a company's value proposition C. Segmentation identifies individual buyers than can be targeted with a market offering D. Buyers within a market segment have different needs, characteristics, and behaviors E. Most companies today mass market and do not segment their markets

E. Concentrated marketing involves higher-than-normal risks.

Which of the following is true regarding the price-demand relationship? A. Price elasticity measures how responsive price will be to a change in demand. B. If demand is inelastic, a small change in price will result in a large change in demand. C. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. D. Demand and price are directly related—the higher the price, the greater the demand. E. If demand is elastic, sellers will consider lowering their price.

E. If demand is elastic, sellers will consider lowering their price.

When Apple Computer Company introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a(n) __________ pricing strategy. A. By-product B. Market-penetration C. Optional-product D. Captive-product E. Market-skimming

E. Market-skimming

At which stage of the new product development process is a physical product first developed? A. Concept development and testing B. Idea generation C. Test marketing D. Marketing strategy development E. Product development

E. Product Development

Which factor sets the floor on setting a product's price? A. Competitors B. Demand C. Customer's value perceptions D. Revenue E. Product costs

E. Product costs

Furniture, major appliances, clothing, and hotel services are classified as __________ products. A. Industrial B. Specialty C. Unsought D. Convenience E. Shopping

E. Shopping