Marketing Final Exam
Caruso's Office Supplies has decided to branch out from its existing stores. It plans to start sending out a catalog and to sell its products online. Caruso's is adopting
An omnichannel strategy
An everyday low pricing strategy stresses the continuity of retail prices
At a level between the regular price and the deep-discount sale prices of competitors
Where does retailing fall in the supply chain
At the end
Marketers need to think about the product offer on three levels. Which of the following levels includes associated services such as warranties, financing, support, and after-sale service
Augmented product
A pricing strategy and a pricing tactic are essentially the same thing
False
A product label is just a required sticker on a package
False
At the breakeven point, profits are maximized
False
Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable
False
Costs related to supply and costs related to demand are the two primary cost categories
False
Distribution centers are always operated by distribution specialist
False
It is best if firms choose one pricing strategy to use for all its products rather than use different methods for pricing
False
On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters
False
On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available
False
Procedural fairness pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss)
False
Quick response (QR) inventory systems allow retailers to maximize their inventory holdings
False
Retailers generally have no prior knowledge of the merchandise they will be receiving from suppliers in any particular shipment
False
Selective distribution grants exclusive geographic territories
False
The improvement value method and the cost of ownership method are both cost-based pricing methods
False
The marketing of services differs from the marketing of products because services are tangible and separable from the service provider
False
The more familiar customers are with a brand, the harder their decision-making process will be
False
The sender of an integrated marketing communication controls the meaning individual receivers take from the message
False
________ is the process by which ideas are transformed into new products and services that will help firms grow
Innovation
When marketers say that services are _________, they are referring to the fact that services cannot be touched, tasted, or seen, like a pure product can
Intangible
Which of the following are communication channels used in the IMC process
Internet
________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise
Omnichannel
In the four Ps of marketing ________ refers to all the activities required to get the right product to the right customer when that customer wants it
Place
Consumers generally believe that ________ is one of the most important factors in their purchase decisions
Price
A demand curve shows the relationship between _______ during a specific period of time
Price and demand
A ____________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products
Product line
The complete set of all products offered by a firm is called
Product mix
Integrated marketing communications (IMC) represents the _______ elements of the six Ps
Promotion
__________ is an inventory management system that delivers less merchandise on a more frequent basis than in traditional inventory systems
Quick response
Wholesalers sell to
Retailers
The IMC communication process begins with ________, who (which) must be clearly
The sender
A delivery gap is the difference between the firm's service standards and the actual service it provides to customers
True
A product is anything that is of value to a customer and can be offered through a voluntary marketing exchange
True
American Airlines just reduced its fares for summer flights by $100. Delta Airlines changes its pricing structure and reduces its flights by $100 as well. Delta is employing status-quo
True
Brands enable customers to quickly differentiate one firm or product from another
True
Cost-based methods do not recognize the role that consumers' or competitors' prices play in the marketplace
True
Effective packaging and labels send consumers the signal "Buy me"
True
Even the best marketing communication can be wasted if the sender does not gain the attention of the customer
True
If there is a difference between the message that is sent and the message that is received, it is probably due to noise
True
Integrated marketing communications (IMC) represents the promotion dimension of the six Ps. It encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media
True
Intensive distribution outs products in as many places as possible
True
Many retailers and some manufacturers use an omnichannel or multichannel strategy in which they sell in more than one channel
True
Marketing channel management adds value because it gets products to customers efficiently, quickly, and at low cost
True
Marketing channel management and supply chain management are virtually the same thing
True
New product development adds value to a firm's products and services through innovation
True
One of retailers' most fundamental activities is providing the right mix of merchandise and services that satisfies the needs of the target market
True
One significant potential benefit of the Internet channel is its ability to enable retailers to provide personalized offerings and services for each customer
True
Rarely is the lowest-price product offering the dominant brand in a given market
True
The communication gap can be reduced by managing customer expectations
True
The fact that the Apple iPad is easy to try- demo units are available at Apple stores as well as other retail stores- is helping it diffuse more quickly
True
The failure rate for new products is high
True
The zone of tolerance refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service
True
When a retail store rarely sells deeply discounted or sale products, it is known as "everyday low pricing"
True
When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This refers to price elasticity of demand
True
The improvement value method and the cost of ownership method are two approaches for setting prices that are ________ methods
Value-based
Pioneer or breakthrough products
can change consumer preferences
A service is any intangible offering that involves a deed, performance, or effort that
cannot be physically possessed
Firms using a ________ pricing method set their prices relative to what other firms are charging
competition-based
The process by which the use of a new product or service spreads throughout a market group is referred to as
diffusion of innovation
For a brand name to be effective, it needs to be
easy for customers to recognize and remember
One of the potential benefits to a firm of introducing new-to-the-world products or services is
establishment of a completely new market
A demand curve is built on the assumption that
everything but price and demand remains the same
When marketers state that services are _________, they are referring to the fact that services are not always of the same quality from one time period to another or from one service provider to another
heterogeneous
The marketing of services differs from product marketing because services are
inseparable
Students of marketing often overlook or underestimate the importance of place in the marketing mix simply because
it happens behind the scenes
A company's product mix consists of
its various product lines
Pricing ________ products is especially challenging because little or nothing is known about consumers' perception of its value
new-to-the-world
When marketers state that services are _________, they are referring to the fact that services cannot be stored for use in the future
perishable
In the IMC communication process, the _______ is the person who reads, hears, or sees and processes the message being communicated
receiver
A distribution center is typically operated by
retailers, manufactures, or distribution specialists
Fashion trends tend to experience _______ product life cycles
short
Unlike product, promotion, or place, price is the only part of the marketing mix
that generates revenue
In marketing's four Ps, place refers to all activities required to get
the right product to the right customer when that customer wants it
The IMC process includes a
transmitter
A customer orientation toward pricing simplicity invokes the concept of
value
Every firm needs different strategies to develop pricing models for its products. The strategies include that can help cost-based, competition-based, and
value-based
A company that buys products from manufacturers and resells them to retailers is a
wholesaler