MKT 300 Quiz 3
Customers seldom rely on the price-quality associations.
False
Cost-based pricing results in a high price when demand is high and a low price when demand is low.
False
A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.
True
Marketers may use brand names that have absolutely no meaning to avoid negative connotations.
True
Profit margins for marketing channel members must be considered when determining the price of a product.
True
Rent is usually a fixed cost.
True
Demand-based pricing relies on information concerning peak demand times and off-peak demand times.
True
Use of the product is the most important means of distinguishing consumer products from business products.
TRUE
If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager.
brand
Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the ____ stage of the product life cycle as possibilities for elimination.
decline
MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
ideas
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
line-extension
Duds and Suds is a bar with a country and western atmosphere. In addition to the bar, Duds and Suds has a gift shop that sells western clothing with its logo. Norman is the owner of the business and has recently enacted temporary price reductions through clearance sales, discounts, and nightly drink specials. What is Norman most likely trying to do?
raise cash quickly
Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.
screening phase
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as
price lining
The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?
Zone pricing
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way.
an extension in the width of the product mix.
Kleenex Boutique is a ____ of tissues made by the Kimberly-Clark Corporation.
brand name
One of Cole's responsibilities as a marketing manager for a motorcycle parts manufacturer is to maintain market share. Cole believes that the company's products are most likely in the maturity stage of the product life cycle. In order to maintain market share, Cole should suggest that the company requires
moderate to large advertising expenditures.
One disadvantage of test marketing a new product is that
competitors may copy the product.
A deduction from list price for purchasing large quantities aggregated over a stated period of time is a
cumulative quantity discount
A run-out policy of product deletion
exploits any strengths left in the product.
Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____.
have peaked; is growing
Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?
rebates
Christine and Donna work for a manufacturer of frozen pastries and are deciding how to delete a line of frozen waffles. Christine favors focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits. Donna, however, believes the marketing strategy should be unchanged and the product should decline without attempting to give the line new life. Christine favors a(n) ____, while Donna favors a(n) _____.
rollout; phase-out
The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product.
specialty
Bundle pricing may be perceived to be of value by customers because
they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.