marketing test 3

________ are likely to target low-income consumers who demand national brands but cannot afford to buy large-sized packages.

Extreme-value retailers

________ price fixing occurs when competitors collude to control prices, and ________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Horizontal; vertical

Why is brand extension a popular marketing strategy?

It allows the firm to spend less on creating brand awareness and associations.

The growth phase of the product life cycle is always dynamic. Which of the following occurs in this phase?

Profits increase as economies of scale are attained.

Which of the following represents the best reason a manufacturer of high-end products might consider selling products in a warehouse club?

The manufacturer overestimated demand or has a great deal of returned merchandise from other retailers.

Why would a firm eliminate an item within a product line?

The product undermined its own brand.

Which of the following is true of profits in the maturity stage of the product life cycle?

They peak or are declining.

The saying "leaving money on the table" is associated with

a penetration pricing strategy when there is an opportunity for price skimming.

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

If many consumers in the marketplace are familiar with a brand and what it stands for and have an opinion about the brand, the brand has considerable

awareness

Darryl desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those tires had supposedly sold out, and he was pressured into buying tires that were more expensive than he wanted. Darryl found out later that Marcus had the same experience at the store a few weeks earlier. It's quite possible that both Darryl and Marcus had become the victim of a deceptive pricing tactic known as

bait and switch.

A noncumulative B2B quantity discount is

based only on the amount purchased in a single order.

Why would a firm spend over $2 million for a 30-second ad on television during the Super Bowl?

because the Super Bowl offers an opportunity to create significant brand awareness

The product life cycle is theoretically ________ with regard to sales and profits.

bell-shaped

Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offerings emblazoned with its horse logo. It has also licensed its logo to 68 different products, from sunglasses to guitars. Ferrari might be at risk of which of the following?

brand dilution

Harley Davidson's cake decorating kit tried to appeal to the brand's unparalleled consumer loyalty, but it was considered too tame by their consumer base. This is an example of

brand dilution.

A ________ refers to the use of the same brand in a different product line.

brand extension

Matilda developed a toothpaste using only natural ingredients, and she has been quite successful selling the product in health food stores and some grocery stores. She has recently developed a toothbrush using bamboo and natural components. Matilda is considering a ________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness.

brand extension

When Procter & Gamble added teeth-whitening products under the Crest brand, the firm was engaged in

brand extension.

Retailers need to provide a consistent ________ across all channels.

brand image

Katrina could not afford expensive furnishings but wanted a stylish home. After researching many options, she went to a local Target to purchase the trendy lamps, pillows, and art featured on its ads and website. As a consumer, which retailing challenge was Katrina likely responding to?

brand image consistency

Elsie was passionate about Talbot's. It was the only place she'd buy her clothes. If anyone asked her about clothes, she would talk for what seemed like hours about why she shopped only there. From a strictly marketing perspective, this word-of-mouth is an element of

brand loyalty.

Efforts to change a brand's focus to target new markets or change the image of a brand are called

brand repositioning.

Which of the following are typical outlets used by retailers?

business-to-business requests for proposals (RFPs)

Which of the following is included in the broad factors that manufacturers must consider when establishing a strategy for getting their products into the hands of the ultimate customer?

choosing retail partners

Firms using a(n) ________ pricing method set their prices relative to what other firms are charging.

competition-based

When choosing a retail partner, manufacturers consider

convenience for the customer.

Eloise, a medical equipment sales rep, purchases a quick snack to eat on the way to work. She buys lunch while on the road visiting customers, and grabs bread and milk on the way home when she stops to buy gas. Eloise probably does the majority of this shopping at a

convenience store.

When manufacturers try to understand what customers are looking for, they are thinking about the ________ component of the product offer.

core customer value

Kaelin owns a lawn maintenance business. From experience, Kaelin has found that Kubota equipment lasts almost twice as long as competitors' machines. For Kubota, Kaelin's perception about its products makes ________ pricing a logical choice.

cost of ownership

Retailers use ________ because they believe their use will induce customers to try new products, convert first-time users to regular users, increase purchases, and protect market share.

coupons

As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the ________ stage of the product life cycle.

decline

For many years, General Electric had a corporate strategy of being among the top three firms in any market in which it operated; if it could not achieve a top-three position, it would exit the market. This strategy often resulted in the company ________ when certain product lines failed to meet this expectation.

decreasing product mix breadth

The diffusion of innovation curve begins with innovators. Who follows that group?

early adopters

For a brand name to be effective, it needs to be

easy for consumers to recognize and remember.

Juan's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Juan wants to apply what he recently learned as a marketing major and he has recommended that his family's business should

emphasize fresh, locally sourced perishables.

General Mills offers three sizes of its popular cereal Cheerios: 10-, 14-, and 18-ounce boxes, and they are priced at approximately $2.99, $3.99, and $4.49, respectively. The company employs this tactic to

encourage consumers to purchase larger quantities each time they buy.

The ________ occurs when unit cost drops as the quantity sold increases.

experience curve effect

Higher-income consumers visiting ________ feel like they are on a treasure hunt, searching for a bargain.

extreme-value retailers

During the ________ stage of the product life cycle, there are few but an increasing number of competitors.

growth

Several airlines have agreed to charge the same fare for a single route. The airlines are using

horizontal price fixing.

Each generation of cell phones has provided greater clarity, range, security, and multifunctionality. If marketers of cell phones use these features as a basis for pricing, they would be using ________ pricing.

improvement value

How does a retail distribution center supporting a store channel most obviously differ from one supporting an Internet channel?

in quantity of items shipped

One important purpose of a brand is to

increase consumer recognition and awareness of product offerings.

When Creative Pen Company designed a new pen that was particularly comfortable to use, it wanted to literally get the pen in the hands of as many consumers as possible. Creative Pen will probably choose ________ distribution for its new product.

intensive

During the ________ stage of the product life cycle, sales are low, and profits are small or negative.

introduction

The ________ stage of the product life cycle is characterized by negative or low profits.

introduction

The CEO of Charisse's firm just came back from a business seminar. He called Charisse into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." Charisse needs to think fast for a good answer because she knows that

it is often impossible to identify with precision where a product is in the product life cycle.

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's

launch.

Rinaldo sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ________, who can provide ideas for new and improved products.

lead users

Supermarkets often offer great deals on milk or eggs to get customers into their stores, knowing that many customers will also purchase items that have higher markups for the store. These supermarkets are using a ________ pricing tactic.

leader

In which of the following tactics does a consumer pay a fee to purchase the right to use a product for a specific amount of time?

lease

As the old cliché claims, the three most important things in retailing are

location, location, location.

Frequent buyer/user award programs are used to

maintain contact with loyal customers.

Retailers use ________ to get rid of slow-moving or obsolete merchandise.

markdowns

A product in the ________ stage of the product life cycle has a high number of competitors and competitive products.

maturity

Pricing ________ products is especially challenging because little or nothing is known about consumers' perceptions of its value.

new-to-the-world

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

observability.

If you were a marketer for a clothing manufacturer and you wanted to improve revenues from irregulars, production overruns, and returns, you would be attracted to using

off-price retailers.

As an omnichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure?

operational integration of all channels

For new product marketers, early adopters are important because they tend to be

opinion leaders.

The Apple iPod is a ______ product.

pioneer

The Apple iPod changed the way people listen to music, but it also created an entirely new industry devoted to accessories such as cases, ear buds, docking stations, and speakers. The Apple iPod is considered a

pioneer product.

Frannie's Housewares has set very low prices for its products in an attempt to drive its competitor, George's Housewares, out of business. This is known as

predatory pricing.

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

premarket testing.

Stitch Fix is a successful online clothing company. One of the difficulties in running a clothing company is the need to have significant ________, a large number of items in each product line.

product line depth

For a major university, undergraduate studies, graduate studies, and professional programs would be ________ within the university's product mix.

product lines

Greta had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was considering what kind of shampoo to try, she was surprised to see ads for Procter & Gamble's Head and Shoulders being promoted as a glamorous health-oriented product. She had always thought of Head & Shoulders as an antidandruff shampoo. The new ads suggest that Head & Shoulders has most likely been

rebranded

Everyday low pricing (EDLP) provides value to consumers by

reducing their search costs.

Which of the following are benefits of new product development to a firm?

satisfying the changing needs of current and new customers

Price reductions offered on products and services to stimulate demand during off-peak seasons are referred to as

seasonal discounts.

The percentage of a customer's purchases made from a particular retailer is referred to as

share of wallet.

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

test marketing.

Retailers can gain valuable knowledge about their customers from the transaction process and from

the insights of store personnel.

A company has a new concept for a lightweight bicycle that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to

the respondent's purchase intentions if the product were made available.

Retailing is the primary activity in which of the following situations?

upgrading an airline ticket at the airport

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.

The level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is

vertically integrated.

Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know

where their target customers expect to find their products.

Cost-based pricing assumes that costs

will not vary much for different levels of production.