Marketing Exam #3
Carmike Stadium increased the price of a movie by 16% and, as a result, experienced an 8% decline in sales. The value of price elasticity is ____, so that Carmike's demand would be _____.
0.5; inelastic
4 factors of service quality
1. analysis of customer expectations 2. service quality specifications 3. manage of service expectations 4. employee performance
What should marketers do to promote the consistency and reliability of their services most effectively?
Training employee and develop standard procedures for dealing with customers
Customization of internal marketing involves
adapting marketing strategy and marketing mixes according to cultural, regional, and national differences
Which of the following is most likely to have an elastic demand curve? Gasoline, electricity, salt, airline tickets for vacation travel, or a textbook required for a course
airline tickets for vacation
Out of a specialty retailer, _____ compete primarily on the basis of low prices and enormous product availability, and Best Buy, PetSmart, and Staples are all examples of ______
category killer
The idea that morality varies from one culture to another and that business practices are therefore differently defined as a right or wrong by particular cultures
cultural relativism
When a customer is considering the purchase of a product in a less-familiar and less-experienced product category, that individual is likely to rely more heavily on
external reference prices
Barter is the oldest form of exchange, but does not exist in the current marketplace. T/F
false
Demand depends only on the price of the product. T/F
false
If a product has an inelastic demand curve and the manufacturer raises its price, total revenue will decrease. T/F
false
If concert tickets are not sold, seats will remain empty and they can never be sold to anyone again. This is an example of intangibility among characteristics of services. T/F
false
Search quality is based on service attributes such as taste, satisfaction, or pleasure, that can be assessed during purchase and consumption of a service. T/F
false
When choosing international franchising, it is impossible for a global company to retain control of its name and increase global penetration. T/F
false
The more human labor involved with delivering a service, the greater the degree of homogeneity. T/F
false (heterogeneity)
A retailer is an organization that purchases products for the purpose of reselling them to the other retailers. T/F
false (reselling to consumers)
A duty levied by a nation on goods bought outside its borders and brought inside is a(n)
import tariff
The primary advantage of automatic vending as a form of retailing is that
it eliminates the need for sales personnel
Immediately after the breakeven point, a firm starts to
make profits
The selling of merchandise outside the confines of actual facilities is called
nonstore retailing
The practice of contracting noncore operations or jobs from internal production within a business to an external entity that specializes in that operation
outsourcing
The fact that services cannot be inventoried and then sold at a later date is called
perishability
Measure of sensitivity of demand in relation to changes in price
price elasticity of demand
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the _____
quantity demanded goes down
When a glove manufacturer in China is allowed to sell only a certain number of plastic gloves in Japan, that firm is facing a(n)
quota
5 dimensions of service quality
reliability, tangibles, responsiveness, assurance, and empathy
A narrow product mix with a deep product line would most likely be carried by
specialty retailers
Business partnerships that are formed between traditional rivals competing for the market share in the same product class with the goal to share and utilize their strengths
strategic alliance
Price is a key element of the marketing mix because it relates directly to
the generation of total revenue
_______ link buyers and sellers in different countries and are not involved in manufacturing process.
trading companies
The Grummond Group buys air conditioner components in industrialized countries and sells them to business customers in developing countries where the air conditioners are assembled. Grummond is most likely classified as a(n)
trading company
When products are introduced into one nation from another, acceptance is more likely is there are similarities between the two cultures. T/F
true
This type of communication is important in service promotion because of heterogeneity and the intangibility of services
word of mouth
The difference between desired level and acceptable level of service quality that customers expect to receive.
zone of tolerance