Marketing Exam 3
The Price setting process
1. Define the pricing objectives 2. Evaluate demand 3. Determine the costs 4. Analyze the competitive price environment 5. Choose a price 6. Monitor and evaluate the effectiveness of the price
According to conversion expert Chelsea Baldwin, which of the following will help improve CTA conversion rates?
Add visual cues to CTAs
Which of the following people on a website design team is using a wireframe?
Calvin is putting a framework together of how the website should function.
In November, the appliance store priced its front-loading washing machines at $899.00 and sold 50 units ($44,950). In December they reduced the price to $799.00 and sold 53 units ($42,347). Which of the following statements is accurate regarding this situation?
Demand is inelastic and total revenue fell from November to December.
Jared decided to remove himself from social media for one week. During that time, he did not check his Facebook, Twitter, Instagram, or Snapchat accounts. It didn't take long for Jared to feel isolated and that he was missing out on what was happening around him. What acronym has been linked to the feeling Jared experienced?
FOMO
Which of the following persons is using social media to act as a brand ambassador?
Noah, who posts pictures of him and his friends drinking Red Bull at a ski resort
Compare the following statements and select the one that is accurate regarding a profit maximization strategy.
Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.
Jenna was excited to purchase a Bluetooth wireless speaker. She brought her purchase home and is now using it for the first time. What acronym represents where Jenna is at in the purchase process?
SMOT
Which of the following is an example of geo-fencing?
While shopping at the mall, Adam received a text message for a 20 percent off coupon from one of his favorite stores.
At a local fair, Ford hosted a booth and brought several models of its cars for customers to sit in and look at up close. Customers were then encouraged to fill out a comment card letting Ford know what their favorite model car was. At the end of the fair, one comment card would be chosen by the company and that person would win the car of their choice. This is an example of
a sweepstakes
While on vacation in Europe, Maria purchased an antique porcelain vase valued at $25,000. She needs to have it delivered to her home in Kentucky. What would be the best mode of transportation for this item?
air transportation
Compare the following forms of advertising to determine which one is an example of narrowcasting.
an advertisement for Scotts fertilizer shown on the Home and Garden Television network
In today's era of media noise, how can marketers break through the clutter to reach their audience?
by producing messages that are relevant to each individual consumer
In the early 2000s, the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. When the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. In addition, the company set up a crisis link on its webpage and posted updates regularly. Mattel's actions can be classified as
crisis management
A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of what pricing strategy?
deceptive pricing
You placed an order online at Staples.com for a printer and ink cartridges. As part of the checkout process, you were asked to provide your e-mail address. Now you receive e-mails from Staples.com regarding products you might like. This is an example of
direct marketing
For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units ($96.75 million) at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units ($163.5 million) indicating that demand for the product is.
elastic
Engagement measures all of the following except
how many times people purchase from the brand
Mars, Inc., makers of Snickers candy bars launched its You're Not You When You're Hungry promotion campaign. The company's television commercials portrayed regular people disguised as celebrities behaving badly because they were hungry. Along with the commercials, print ads were released featuring inversion illusions showing the difference between someone whose hunger is satisfied and someone whose hunger is clearly not. In addition, the print ads included a coupon for a Snickers candy bar. This type of promotional strategy is referred to as
integrated marketing communications
A British company manufactures specialty teas and sells them to a retailer in Estes Park, Colorado. In order to get the product to the end-user, the teas are shipped via ocean liner to a port in the Gulf of Mexico and then placed on a railway car to Denver, Colorado. From Denver, the tea is placed on a truck and taken to the retailer in Estes Park. This is an example of
intermodal transportation
Which of the following is true regarding the use of domain names?
it helps if a company's domain name is the same as its brand
Bowman's shoe store just received a shipment of dress boots. The manufacturer's suggested retail price for the boots is $150.00, but Bowman's decides to price the boots at $149.95. What pricing tactic is Bowman's most likely using?
odd pricing
Compare the following forms of advertising and select the medium that is generally the cheapest form.
outdoor advertising
A new Home Depot opened up down the street from Hank's Hardware and has drastically reduced prices on many of the same products that Hank sells, forcing him to go out of business. After Hank closed his store, he noticed that Home Depot began raising its prices to more normal levels. This is an example of
predatory pricing
If luxury brands such as Versace clothing, Lexus automobiles, and Dom Perignon champagne wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic?
prestige pricing
When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers, wireless headset, and one video game. This is an example of
price bundling
Located on a college campus, Ben's Burger Barn charges $4.99 for its burger basket. However, students receive a 10% discount off the price for showing their student ID. This is an example of
price discrimination
The three largest manufacturers of valves for plumbing applications conspired together so that all three firms would charge the same price for a 3-way valve. This is an example of
price fixing
In the Twilight series movies, main character Edward Cullen can be seen driving a Volvo car. This is an example of
product placement
When Apple released its first iPhone in 2007, it charged customers $599. Shortly thereafter, it reduced the price to $399 for the exact same device. Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy?
profit maximization
Bob's Custom Millwork is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Bob does not make any products until he receives an order from the customer. What type of marketing strategy does this represent?
pull strategy
After the economic recession, the boating industry suffered from a decline in sales. However, recent sales forecasts indicate that the upcoming season will produce a strong demand for boats and boating equipment. Based on this, Les has decided to ramp up production this winter of both his bass fishing boats and speed boats, keep them in storage until the boating sales season officially resumes, and hope that customers will buy them. This is an example of a
push strategy
Justine went to the specialty grocery store by her office after work. When looking at the offerings at the meat counter, she was surprised to see ground beef selling for $4.49/lb. At her normal grocery store, she can get the same quality beef for $3.29/lb., a price Justine feels is reasonable. $3.29/lb. for ground beef is Justine's
reference price
Tristan has been calling on the same customer for years. He handles all of the company's orders and quickly resolves any issues that may come up. On occasion, Tristan takes some of the company employees out to dinner and has even given them tickets to local sporting events. Tristan is involved in
relationship selling
A new specialty tea shop opened up in town. In order to lure customers into the store, the owners sent their most popular teabag to 5,000 potential customers. This is an example of
sample
Google, Bing, and Yahoo all help users search for information on the World Wide Web. As such, they are considered to be
search engines
Sunny Pines campground, located in the Midwest, promotes the months of September and October as its value camping months. During this time, it offers reduced rates on camper rentals and campgrounds. It does this, in part, because the weather is not as favorable for camping at this time. The pricing tactic Sunny Pines is using to encourage camping during these months is most likely
seasonal discounts
Brenda and Tim went to Carl's Custom Dining to buy a new dining room set. At the store they configured the set to their specifications in terms of size, finish and style. The store sent the order out via the Internet to the manufacturer. The manufacturer, in turn, secured the correct type of wood from its supplier to complete the dining room set. When finished, the manufacturer shipped the product to its local warehouse where Carl's Custom Dining arranged for delivery to its store by a local trucking company. For Carl's Custom Dining, this is an example of
supply chain
What innovation in the early 20th century started a new age of communication?
the introduction of broadcast tv and radio
Kelsey liked her new smart television so much, she went online to the company's website to post a positive review of it. What type of content is Kelsey's product review?
user generated content