Marketing Exam 3
What are products that household buyers use for their own use called?
Consumer products
What must occur for the perceived value of a cheaper product to be high?
Consumers must believe the quality of the cheaper product is about the same as that of a premium product.
Which of the following is NOT a pricing tactic aimed at consumers?
Cumulative discounts
Manufacturers will work with specific retailers depending on where their target consumers expect to find their products. What does this process refer to?
Customer expectations
Which of the following is a retail format that carries a broad variety and deep assortment of merchandise, offers customer services, and organizes their facilities into distinct departments for displaying certain product types?
Department stores
Which of the following terms refers to the number of channel members used at each level of the marketing channel?
Distribution intensity
Product development or product design entails a process of balancing which types of considerations?
Manufacturing Marketing Engineering
Which of the following refers to the basic problem-solving benefits that consumers seek in a product?
The core customer value
If Apple gives an electronics store a discount on its products in return for the store promoting Apple products in its flyers and on the home page of its website, this is an example of ______.
an advertising allowance
Price fixing is the illegal tactic of cooperating with other firms to ______ prices.
artificially establish
If a brand has a high degree of brand _______________, it means that most consumers are familiar with the brand and what it stands for even if they do not use the brand.
awareness
Conventional supermarkets tend to have higher profit margins on some items and smaller margins on others. Which of the following product types do conventional supermarkets typically have the smallest margin on?
beauty aids
Business-to-business seasonal discounts are price reductions offered to stimulate purchases ______.
before the buying season for that product begins
Category specialists, or category killers, are ______ stores that offer a narrow but deep assortment of merchandise, where assistance is typically only found in certain areas of the store.
big-box
Products that generate enough revenue to cover the losses from other unsuccessful introductions are known as ______.
blockbusters
Consumers typically compare a firm's products and prices with those offered by ______.
direct competitors
Using predatory pricing, a firm sets a very low price for one or more of its products with the goal of ______.
driving its competition out of business
With the ______ pricing strategy, a company adopts retail prices that are typically somewhere between the product's regular price and the sharply discounted sale prices that competitors occasionally offer.
everyday low
The strategy of ______ appeals to consumers because it reduces their need to spend time comparing prices at various stores.
everyday low pricing (EDLP)
Which of the following does an integrated CRM facilitate? (Select all that apply.)
expediting returns Handling customer complaints Targeting future promotions
The use of an existing brand name in a different product line is called brand ______.
extension
True or false: A rebate is a type of discount issued by a retailer.
false
True or false: Omnichannel retailers price items the same regardless of channel.
false
True or false: Price discrimination is illegal under all conditions.
false
True or false: Puffery is illegal in advertising.
false
True or false: The categories and characteristics of retailers are the same in every industry.
false
In price bundling, two products or services are sold as a package ______.
for less than what they would cost individually
Usually, during the _____________ stage of the product life cycle, the typical consumers would be early adopters, and there would be increases in the number of competitors.
growth
The ______ pricing strategy features frequent sales, during which prices are lowered for a short time.
high/low
When consumers relish the challenge of getting the lowest price and are willing to expend the time and effort to seek out the lowest price every time, retailers should use the ______ pricing strategy.
high/low
The competition in food retailing could best be characterized as which of the following?
highly competitive
________- generation refers to the first stage in the process by which firms develop a new product.
idea
When evaluating a new product, customers decide that they are willing to pay a certain amount, more or less, than they would for similar products offered by competitors. This difference in perceived worth is called ______ value.
improvement
Effective omnichannel operations need a(n) ______, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer.
integrated CRM systems
The ____________ stage of the product life cycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.
introduction
A firm's product line depth is the number of ______ within a product line, as opposed to the number of product lines a firm has.
items
The component of the product package that provides the information consumers need to make their purchase decisions and for proper consumption of the product is known as the ______.
label
Generally, the ______ and more sophisticated a firm is, the ______ likely it will be to use supply chain intermediaries.
larger; less
The ______ pricing tactic lures customers into the store through aggressive advertising coupled with a very low price on something that customers often buy.
leader
Which of the following are part of the atmosphere of a store? (Select all that apply.)
lighting music
The use of the same brand name within the same product line is called a(n) ______.
line extension
What are the two basic types of brand ownership strategies?
manufacturer brands store brands
Imagine that Apple conducts a seminar with Best Buy employees on new features in Apple's latest iPhone. This would be an example of the ______ educating the ______ on how to use and consequently sell its new product.
manufacturer; retailer
After the holidays, Toys "R" Us reduces prices of popular holiday gift items to attract consumers who were unwilling to brave long lines or pay higher prices. This pricing tactic is called a ______.
markdown
The goal of a(n) ______ strategy is to generate profit and establish a new product or service in the market as quickly as possible.
market penetration
The ___________________ stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability.
maturity
Getting customers into the stores by using newspapers, magazines, television, and social media refers to advertising in the ______, whereas displays and signs placed at the point of purchase or in aisles is advertising in the ______.
media; store
One of the retailer's most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of ______ and ______.
merchandise; service
Product lines are a part of a product ______.
mix
The complete set of all products and product lines offered by a firm is called its product assortment, or product___________________
mix
Which statements are true of ALL products?
offered through a marketing exchange something that a customer values
From the customer's perspective, the relationship between a product's or service's benefits and costs is called ______.
perceived value
If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following six Ps?
personnel
Brookstone is a retailer known for opening stores in airports, where they have a captive market. This is an example of employing which of the following six Ps to one's competitive advantage?
place
One strategy that Starbucks uses is opening stores in areas where competing coffee shops would have little chance of staying competitive with Starbucks. What Starbucks is essentially doing is saturating the market, a strategy that falls under ______ within the six Ps framework.
place
Geico Insurance uses characters like the gecko and humorous associations with ______ emotions to reinforce the brand.
positive
In order to accurately evaluate the new product launch, marketers must undertake a critical ______ review to determine whether the product and its launch were a success or failure.
postlaunch
A firm sets extremely low prices for its products so that most customers will stop shopping elsewhere. This will cause other companies to go out of business and leave the firm with no more competition. The firm has engaged in ______.
predatory pricing
In omnichannel marketing, customers expect ______ consistency for the same SKU across channels.
pricing
If a firm has a positive result from the market testing the next step is known as _______ launch
product
_____________________ development entails a variety of processes and considerations to determine the form and features of a firm's offerings.
product
To facilitate retailing strategy, marketers often rely on the six Ps, which include
product price promotion place presentation personnel
A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the____________________ cycle.
product life cycle
Which of the following are ways in which retailers help satisfy customers' needs regarding product? (Select all that apply.) They provide ________.
products in the quantities their customers wish to buy. an assortment of products geared toward their target market. a mix of services relating to the products they sell.
In contrast to coupons, which are offered by retailers,________ are discounts offered by manufacturers. The consumer purchases a product, and the manufacturer sends a cash refund for part of the price.
rebates
A brand, such as T-Mobile, can build awareness through ______ exposure to the brand's logo, symbols, and slogans.
repeated
The _______ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas.
research and development
A manufacturer will seek out partnerships with____________________________ who will sell the manufacturer's products and/or services to the final consumers.
retailers
Adding value to products and services sold to consumers for personal or family use is known as_______________________
retailing
______ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use.
retailing
Personalized ______ refers to ways in which the firm literally helps the consumer during the online shopping experience, personalized ______ refers to how the firm tailors the website for the consumer based on past shopping patterns.
service; offerings
One way to facilitate a smart retail strategy is to use the_________________ Ps.
six
A(n) ______ discount is when large quantities or packages cost only a little more than smaller ones.
size
Warehouse club stores like Sam's Club or Costco offer customers low prices on a variety of merchandise, but often the merchandise is sold in large-quantity packaging. This is an example of a(n) ______ discount.
size
Channel ______ refers to the way in which a manufacturer gets its products to the retailer's channels.
structure
Omnichannel retailers ______ provide an integrated shopping experience across all their channels.
struggle to
Stores such as Walmart, Fred Meyer, and SuperTarget are a combination of supermarkets and full-line discount stores. These are known as ______.
supercenters
Pricing ______ are short-term ways of concentrating on specific aspects of company objectives, costs, customers, competition, and channel members.
tactics
When Burger King introduced the new Whopper Bar to a limited geographical area prior to a national launch, it was engaging in ______.
test marketing
When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in ______.
test marketing
Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?
test marketing
The role of the retailer is to help ______.
the consumers and manufacturer
True or false: Businesses can offer other businesses seasonal discounts.
true
True or false: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.
true
Good marketing increases perceived__________________ by raising customers' quality expectations relative to price.
value
The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know ______.
which stage the product is in
Which of the following are pricing tactics used in B2B pricing? (Select all that apply.)
Allowances Seasonal discounts
What does a brand need in order to be somewhat protected from competition from other firms and price competition?
A loyal customer base An established track record in the market
Which of the following is NOT one of the categories of consumer products that buyers use for their personal use?
Associated services
Which of the following refers to the controllable characteristics of a store related to presentation?
Atmosphere
How would a business benefit from offering a cash discount to customers who pay invoices quickly? (Select all that apply.)
By collecting its income sooner, the business could avoid borrowing to pay its own bills. The business would collect and deposit its money sooner, thus earning more interest.
What retailer offers a narrow but deep assortment of merchandise?
Category specialists
Which of the following is an example of product line extension?
Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke.
______-based pricing encourages consumers to see how the company's prices compare to those of business rivals.
Competition
Which of the following processes could be considered an acceptable method for generating ideas?
Conducting consumer research Communicating with a firm's R&D department Brainstorming within the firm Researching competitors' products and services
What makes the search for shopping goods different from the search for specialty goods?
Consumers are willing to consider alternative brands and features with shopping goods.
Which of the following belong to the five Cs of pricing? (Select all that apply.)
Costs Company objectives Channel members
A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majority of its customers now expect to find its products at Neiman Marcus, Macy's, and Saks Fifth Avenue but relatively few customers expect to find the products at Dillard's or Marshalls. If the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships?
Drop Dillard's and add Macy's and Saks Fifth Avenue.
True or false: Cash discounts are reductions retailers take in the initial selling price of the product or service.
False
True or false: Service retailers, who sell services rather than merchandise, are a small and shrinking retail sector.
False
What is a key characteristic of the maturity stage?
Firms defend market share
Which of the following statements about firms' expectations regarding the success of internal research and development efforts is true?
Firms expect that a few highly successful products will cover the costs of the entire R&D effort.
When Frito-Lay decided to introduce a salsa product line, it used the existing Tostitos brand (under which it sells taco chips). What advantages did this strategy provide Frito-Lay?
Frito-Lay could introduce the product to the market more quickly. The Tostitos brand already had brand associations that helped to sell salsa. Frito-Lay could spend less on developing consumer brand awareness.
Amazon.com is an Internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com are advantages it has over the store channel? (Select all that apply.)
Greater ability to collect information about consumer shopping behavior Greater personalized information Greater selection of products
One advantage of using the ______ channel over the ______ channel is the much higher probability of having a deeper assortment of merchandise available.
Internet; retail
Which of the following is true of the Internet channel compared to the store and catalog channels?
It helps retailers offer a greater variety of products.
What are the characteristics of leader pricing? (Select all that apply.)
It involves aggressive advertising. It sets a low price on something that customers often buy.
Which of the following is true of the supply chain of an omnichannel retailer?
It often includes multiple distribution centers.
Aldi is a type of supermarket that chooses to offer only one or two brands and sizes (one of which is always a store brand) in order to maximize efficiency and reduce costs. What type of supermarket is this called?
Limited-assortment
Which of the following are advantages that online shopping has over traditional store channels? (Select all that apply.)
More information Broader selection
A strong brand protects firms from which of the following? (Select all that apply.)
New products offering similar features or benefits An existing competitor lowering prices
To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies. Which of the following is NOT a common strategy that many conventional supermarkets have adopted?
Offer an athletic shoe department
What is NOT a pricing tactic?
Price skimming
To determine how much integration is best, each retailer must address issues such as which of the following? (Select all that apply.)
Pricing Brand image Supply chain Integrated CRM
In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its ______, whereas a follower firm will be more likely to ______ for ideas.
R&D department; scan the market
Ideas for sustainable packaging include which of the following? (Select all that apply.)
Returnable packaging Using 3D printing Using recycled materials in packaging
what are the key characteristics of the growth stage of the product life cycle? (Select all that apply.)
Sales rise competitors increase
Which of the following is NOT a common base for pricing strategies?
Service
Which of the following are characteristics of price bundling? (Select all that apply.)
Several popular items are frequently sold together for a lower combined price. Price bundling helps customers stock up on a product. A less popular item is sometimes bundled with a more desirable item.
Which of the following is a type of food retailer?
Supercenter
Unlike Estée Lauder, which is a large and established firm with the resources to provide itself with its own sales force to sell its products, smaller firms will probably need to rely on which of the following to help to distribute its products?
Supply chain intermediaries
The improvement value method of pricing assigns a price based on how much more or less the product is perceived to be worth in comparison to comparable products. Who estimates what that price should be?
The firm
Which of the following statements about service retailers are true? (Select all that apply.)
They are a large part of the retail industry. They primarily sell services rather than merchandise. Examples include health clubs and dry cleaners.
Which of the following are true of leader pricing, price lining, and price bundling? (Select all that apply.)
They are aimed at consumers. They are pricing tactics.
What are the characteristics of quantity discounts? (Select all that apply.)
They are higher with high volumes.
Which of the following are true of pricing tactics? (Select all that apply.)
They can be used to counter a competitor's temporary sale prices. They are a widely accepted method of setting short-term prices.
Which of the following are true of coupons? (Select all that apply.)
They offer an immediate discount on items purchased. They encourage first-time users to become regular users.
Distribution intensity is typically divided into how many levels?
Three
Why do retailers use markdowns as a pricing tactic? (Select all that apply.)
To sell products out of season To dispose of products that have not been selling well To match low prices offered by competitors
True or false: Brands are sold either under a common/family name or as an individual brand.
True
When would an advertising allowance be illegal? (Select all that apply.)
When it blatantly favors one customer When it is offered to only a few customers
What does a postlaunch review help determine? (Select all that apply.)
Whether the launch was a success or failure Whether changes to the marketing mix are needed whether additional resources are needed
Which of the following is NOT a type of retailer that falls under the general merchandise retailing category?
Wholesaler
Which of the following are pricing tactics and discounts that businesses often use when selling to other businesses? (Select all that apply.)
Zone pricing Slotting allowances Advertising allowances
Money paid to stores to stock new products or to devote shelf space to products is known as ______.
a slotting allowance
New products and services that consumers accept quickly will have a high ______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.
adoption
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by a product or service is ____________________ equity.
brand
The mental link customers make between a brand and its key product attributes is known as ______.
brand association
One consumer research exercise asks consumers to say the first things that occur to them when they hear a brand name. For example, for the brand "Coca-Cola," someone might respond, "Red and white cans, sweet, carbonated." These are examples of ______.
brand associations
Guitar Center reinforces its image of selling high-quality musical equipment in its stores and catalogs and on its website. This is an example of providing a consistent ______ across all channels.
brand image
A contractual arrangement between firms where one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee is called ______.
brand licensing
When K-Mart paid Martha Stewart (famous for her business related to lifestyle and the home) a fee in return for permission to introduce a line of towels and other housewares bearing Stewart's name, it was an example of ______.
brand licensing
A firm's product mix _____ represents the number of product lines offered by the firm.
breadth
Consumer packaged goods companies sell products across many different product lines. These companies have significant ______ in their product mixes.
breadth
Firms are willing to spend lots of money, such as on very expensive Super Bowl ads, to market a brand in order to ______.
build brand awareness
If a company's products are too closely related, sales of one brand may_____________ , or take away sales, from the other brand.
cannibalize
A(n) ____________- discount is applied only if the buyer pays the invoice within a certain number of days.
cash
One of Taco Bell's most successful new products has been its "Doritos Locos Tacos," tacos with shells in the flavors of Doritos taco chip varieties. This is an example of ______.
co-branding
Pricing strategies are most often based on cost, value, or ______.
competition
______________-testing is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.
concept
Cost-based pricing does NOT consider the influence of ______ on the marketplace.
consumers
Which of the following best describes a self-service food store that offers a wide range of groceries, meat, and produce with only a limited assortment of nonfood items such as health and beauty aids?
conventional supermarkets
Whereas a(n) ______ supermarket is likely to carry around 30,000 SKUs at any given time, a(n) ______ food retailer will only stock around 1,500 SKUs in order to reduce costs and maximize efficiency.
conventional; extreme-value
A company prices all of its products at twice what it cost to produce them. The company is using a ______-based pricing method.
cost
When retailers want to offer a discount on the price of specific items at the point of purchase, they will issue
coupons
Concept testing can be as simple as a brief written description of the product that might also include _______. (Select all that apply.)
customer needs it satisfies visual images
In the United States, it is considered unethical and illegal for advertisements to ______ the consumer so much that the person is harmed.
deceive
Macy's, Sears, JCPenney, and Kohl's are all examples of general merchandise retailers known as__________________ stores that carry a broad variety and deep assortment of products and customer services.
department
Branding provides a way for a firm to ______ its product offerings from those of its competitors.
differentiate
Brands are assets that a firm can build and harness over time to increase its ______.
equity
Retailers like Dollar General fall into the category of ______ stores. By contrast, retailers like Macy's are considered ______ stores.
extreme-value; department
When a firm sells all its products under one ______, such as Pepperidge Farm, the individual brands benefit from the overall brand awareness associated with it.
family brand
When a new product or service is launched, companies that use a ______ strategy will attempt to attract customers quickly by offering a very low price at first.
penetration pricing
For retailers, knowing how much to charge for a given product reflects proficiency in which of the six Ps?
price
If a firm sells the same product to different resellers at different prices, it can be considered ______.
price discrimination
Scheming with other companies to control prices is called ______.
price fixing
For most products, the label is used for ______.
promotion and branding
Patio furniture is often sold at a reduced price when the weather is cold. This is an example of a(n) ______ discount.
seasonal
Cash discounts are encouraged because the ______ gets the benefit from the time value of money.
seller
