Marketing Final Quizzes
How is the growth stage of the product life cycle (PLC) characterized with respect to sales revenue and profitability?
Companies recoup costs and begin to realize a return on their investment.
Above all, the purpose of the package is to promote product purchase.
false
Which promotion mix element stimulates purchase directly through an incentive to buy, such as a coupon or rebate?
sales promotion
Promotion involves several forms of communication that are used to inform, persuade, or remind.
true
Which of the following questions should NOT be asked when qualifying a prospect?
Will the sale be enough to make quota?
Rock Solid is a company that manufactures different mixes of mortar for building projects. Recently it decided to outsource its warehousing to focus more on making great mortar mixes. This is an example of ________.
a network organization
Veronica shopped for days before she found the perfect shoe for her wedding, and she bought it in two sizes, just to be safe. When Veronica made her purchase, she was in which stage of the AIDA model?
action
Johnson Trucking picks up finished goods from factories and delivers them to retail locations. Johnson Trucking is most likely ________.
an agent intermediary
ABC Automobile Manufacturers is the leading brand in economy cars with respect to gas mileage. If ABC wanted to start making hybrid vehicles under the same brand name, the company would likely be successful because of its previous product offerings. This is an example of linking the ________ benefit of brand equity to marketing strategy.
brand connections
The probability of a product's success is determined in the ________ stage of the product development process.
business case analysis
You are in the market for a new gym membership. You find a gym that allows you 24-hour access, high-quality machines, and personal trainers—everything you were looking for. Gym membership is a monthly payment of $30 for the course of your contract; a personal trainer is an additional $20 a month. The pricing strategy the gym uses is ________ pricing.
captive
When it comes to social media communication, organizations can do all of the following EXCEPT ________ it.
control
The early majority represents a good portion of total product sales. Generally this group needs to be ________.
convinced of the product's claims and value proposition before making a commitment
Your financial services firm president has just been arrested and you have a huge PR issue. ________ is your best PR option.
crisis management
Because of its prestige, scarcity, and premium pricing, producers of a high-end French champagne would likely opt for selective distribution.
false
Cost-plus pricing uses the bundled price as a basis for setting a price.
false
Durable products such as televisions and microwave ovens have a shorter product life than nondurable products such as health and beauty products.
false
Pricing strategy is related to product line strategy. Often multiple price points are targeted at specific markets with unique features following a ________ product line strategy.
good, better, best
Kendra is frustrated with her eye doctor's office. Every time she goes for an appointment, she sits in the waiting room for at least 45 minutes before the nurse calls her in. She is asking all her friends for the names of their eye doctors so she doesn't have to deal with this anymore. This demonstrates how ________ can cause switching behavior.
inconvenience
While goods can be experienced through sensory perception, services cannot. This relates to the ________ characteristic of services.
intangibility
Consumer products companies, like P&G, work to get their products into as many intermediary and retail locations as possible. They opt for ________ distribution.
intensive
The integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution is called ________.
logistics
Jin Soo joins a company as a salesperson. The company offers him flexible work schedules and telecommuting options. Which of the following factors of salesperson performance is most likely exemplified in this scenario?
motivation
Mallory decided that the company should promote the product through its own website, as well as, the company's social media sites. By making this decision, Mallory was saying the company should rely on _____ media.
owned
_ is a two-way communication process between buyer and seller with the goal of securing, building, and maintaining long-term relationships with profitable customers.
personal selling
When James has to wait a long time for his takeout order, the server apologizes and offers him a coupon for $5 off his bill on the next visit. This is an example of _______
service recovery
The Old Town General Store in Louisville, Kentucky, offers incentives to suppliers who will stock their products on the end-caps in the store. What type of incentive does the store provide?
trade discounts
A customer's equity with a brand is the difference between the perceived benefits and costs associated with the brand.
true
An online brand community is created by an organization for its own use rather than being created on an independent site.
true
Pricing objectives must be consistent with other marketing-related objectives (positioning, branding, etc.), as well as with the firm's overall objectives (including financial objectives) for doing business.
true
Some network organizations operate like a shell in which most or all of the actual manufacturing, distribution, operations, and maybe even R&D and marketing execution are outsourced to efficient experts.
true
Using independent salespeople is an example of sales force ________.
outsourcing
To most of the general public, advertising is synonymous with marketing.
true
A service is a product without physical form.
true
Before Carlos opened his restaurant, he brought all his new employees in for training and showed them a diagram of all the activities that would take place, from first customer contact to the customer exiting the restaurant. Carlos created ________.
a service blueprint
When a seller advertises an item at an unbelievably low price to lure customers into a store, and then doesn't sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of ________.
bait and switch
Xie Zang is considering buying a new car. Because she had a good experience with her previous car from XYZ Motors, she determines that a car from XYZ Motors will best meet her current needs. This is an example of the brand ________ role in customer purchase decisions.
education
Fluctuating demand reflects the inseparability characteristic of services.
false
Intrinsic rewards are those controlled and given by managers who might provide annual bonuses or company recognition to members of the sales team.
false
It is likely that the importance of the outsourced full-service marketing agency will shrink in the next decade.
false
Josie's Shoes ran an advertisement in the local paper to advertise a sale, but also posted it on social media. This is an example of a push strategy.
false
Price wars occur when a company sells a product for one price in a particular geographic region and a different price in another geographic region.
false
Rashid pays Facebook every time someone is exposed to his advertisement on Facebook's site. This type of paid media is called cost per click.
false
Sales promotion is a primary means of promotion and is rarely used in conjunction with other promotional elements.
false
The three major types of attributes that can be evaluated for goods and services are physical, experience, and credence.
false
Warranties do little to inform the customer about perceived product quality and manufacturer commitment to customer satisfaction.
false
When credit is required by one channel member it is provided by another channel member, but not typically by banks.
false
With price bundling, it is easy to know what the individual prices were before the products or services were bundled into a package.
false
the more cobranded products a company has, the stronger its brand image because of the increased exposure of the brand to the public.
false
Product definition has three objectives: define the product's value proposition, identify the key suppliers of raw materials and the nature of those markets, and define the product's characteristics.
falseitDefine the value proposition. •Identify the target market and purchase frequency. •Delineate the product characteristics: Look, feel, physical characteristics, features
The brand name "Bailey's" is used for a variety of products including liqueur, coffee creamer, and candies. This is an example of a ________ strategy.
family branding
After months of in-home research, Kraft discovered that its customers often transferred Chips Ahoy cookies to jars to keep them from going stale. The company solved this problem by creating a patented resealable opening on the top of the bag. This is an example of the ________ objective of package design.
protection
Cost reduction is a specific method for introducing lower-cost products to the market. This may involve ________.
reducing features
The ________ dimension of the SERVQUAL scale relates to delivering what is promised every time.
reliability
Hiroko was shopping for a new computer. She visited HP's website and looked at all the laptops, then she visited Dell's website to look at its laptops. Later, she saw an ad for HP laptops in the banner of an unrelated website, and she went back to the HP website and ordered the laptop that was advertised. The ad that convinced Hiroko to go back to the HP website demonstrates ________.
retargeting
Some companies charge a restocking fee if you return a product you purchased from therm. This process of accepting and restocking returns describes ________ logistics.
reverse
Elba's new blouse had a label that said it was guaranteed not to shrink or fade as long as it was dry cleaned and not hand-washed. This is an example of a ________ warranty.
specific
Chris and his best friend Jason have just opened a specialty beer bar in Phoenix, Arizona. They know the bottom-line profit they want to turn their first month, so they set prices accordingly. Chris and Jason are using ________.
target return on investment (ROI)
Horses and Harnesses wanted to increase its price for hand-made saddles, but it knew its customers were very price sensitive, so it only raised prices by $2. None of the customers reacted to the new price. This minimal price change is known as ________.
the just noticeable difference
A service-profit chain helps managers understand the key links in a service delivery system that drive customer loyalty, revenue growth, and higher profits. Group starts
true
Brand identity is a summary of unique qualities attributed to the brand.
true
Company logos on NASCAR cars are good examples of event sponsorships.
true
Goods incorporated directly in a manufacturer's process are called materials (either natural products or farm products) or parts (either fully assembled or components).
true
In a vertical marketing system (VMS), a channel member owns the others, has contracts with them, or simply compels cooperation within the channel.
true
In the gap model, the area below the line represents the provider side of the service encounter and the area above the line represents the customer side.
true
Marketers have two key communications strategic decisions: the degree to which marketing communications focuses on a single product, and the allocation of budget money across product items in a product line.
true
One advantage of e-retailing is the depth and breadth of selection it offers.
true
Price is a key element in determining value.
true
Trial purchase is a key focus in product launch because if you can get customers to try a new product, you can win them over with superior product design, features, and value.
true
The attention stage of the AIDA model may include raising customer awareness for your product.
true AIDA model for advertising and awareness has 4 stages: -> Attention -> Interest -> Desire -> Action
